relating to financing and operating of state and local government; making changes
         <br/>
<a id="pl.1.3"></a><var>1.3</var>to individual income, corporate franchise, estate, property, sales and use, excise,
         <br/>
<a id="pl.1.4"></a><var>1.4</var>mineral, special, local, and other miscellaneous taxes and tax-related provisions;
         <br/>
<a id="pl.1.5"></a><var>1.5</var>modifying local government aids, credits, tax increment financing, and public <br/>
<a id="pl.1.6"></a><var>1.6</var>finance; providing for new income tax subtractions, additions, and credits; <br/>
<a id="pl.1.7"></a><var>1.7</var>establishing a first-time home buyer savings account program; modifying the <br/>
<a id="pl.1.8"></a><var>1.8</var>education credit; providing a credit for donations to fund K-12 scholarships; <br/>
<a id="pl.1.9"></a><var>1.9</var>modifying residency definitions; providing estate tax conformity; modifying debt <br/>
<a id="pl.1.10"></a><var>1.10</var>service equalization revenue; providing for and modifying property tax exemptions
         <br/>
<a id="pl.1.11"></a><var>1.11</var>and classifications; modifying the Sustainable Forest Incentive Act; changing levy
         <br/>
<a id="pl.1.12"></a><var>1.12</var>certification dates; establishing a school building bond agricultural tax credit;
         <br/>
<a id="pl.1.13"></a><var>1.13</var>modifying state general levy; modifying certain local government aids; authorizing
         <br/>
<a id="pl.1.14"></a><var>1.14</var>assessor accreditation waivers; modifying sales tax definitions and exemptions; <br/>
<a id="pl.1.15"></a><var>1.15</var>providing sales tax exemptions; authorizing certain tax increment financing <br/>
<a id="pl.1.16"></a><var>1.16</var>authority; authorizing certain local taxes; authorizing provisions related to taconite
         <br/>
<a id="pl.1.17"></a><var>1.17</var>production tax; clarifying Iron Range Resources and Rehabilitation Board approval
         <br/>
<a id="pl.1.18"></a><var>1.18</var>authority; making minor policy, technical, and conforming changes; requiring <br/>
<a id="pl.1.19"></a><var>1.19</var>reports; appropriating money;amending Minnesota Statutes 2016, sections 13.51, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 2; 15.38, subdivision 7; 40A.18, subdivision 2; 69.021, subdivision <br/>
<a id="pl.1.21"></a><var>1.21</var>5; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; <br/>
<a id="pl.1.22"></a><var>1.22</var>115A.1314, subdivision 1; 116J.423, subdivision 2; 116J.424; 123B.53, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivisions 4, 5; 126C.17, subdivision 6; 127A.45, subdivisions 10, 13; 128C.24;
         <br/>
<a id="pl.1.24"></a><var>1.24</var>136A.129, subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions <br/>
<a id="pl.1.25"></a><var>1.25</var>2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
         <br/>
<a id="pl.1.26"></a><var>1.26</var>270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding a subdivision; <br/>
<a id="pl.1.27"></a><var>1.27</var>270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1, by adding <br/>
<a id="pl.1.28"></a><var>1.28</var>a subdivision; 270C.171, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; <br/>
<a id="pl.1.29"></a><var>1.29</var>270C.34, subdivision 2; 270C.35, subdivision 3, by adding a subdivision; 270C.38,
         <br/>
<a id="pl.1.30"></a><var>1.30</var>subdivision 1; 270C.445, subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a <br/>
<a id="pl.1.31"></a><var>1.31</var>subdivision; 270C.446, subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by
         <br/>
<a id="pl.1.32"></a><var>1.32</var>adding a subdivision; 270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901; <br/>
<a id="pl.1.33"></a><var>1.33</var>271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10, 86, by adding a subdivision;
         <br/>
<a id="pl.1.34"></a><var>1.34</var>272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by <br/>
<a id="pl.1.35"></a><var>1.35</var>adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115, <br/>
<a id="pl.1.36"></a><var>1.36</var>subdivisions 1, 2, 3; 273.061, subdivision 7; 273.0755; 273.08; 273.121, by adding
         <br/>
<a id="pl.1.37"></a><var>1.37</var>a subdivision; 273.124, subdivisions 13, 13d; 273.125, subdivision 8; 273.13, <br/>
<a id="pl.1.38"></a><var>1.38</var>subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 273.1392; 273.1393; 273.33, <br/>
<a id="pl.1.39"></a><var>1.39</var>subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by adding subdivisions;
         <br/>
<a id="pl.2.1"></a><var>2.1</var>274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 1; 274.135, <br/>
<a id="pl.2.2"></a><var>2.2</var>subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.07,
         <br/>
<a id="pl.2.3"></a><var>2.3</var>subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, subdivision
         <br/>
<a id="pl.2.4"></a><var>2.4</var>2; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 279.01, subdivision 2; <br/>
<a id="pl.2.5"></a><var>2.5</var>282.01, subdivisions 1a, 1d; 282.38, subdivision 1; 287.08; 287.2205; 289A.08, <br/>
<a id="pl.2.6"></a><var>2.6</var>subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10,
         <br/>
<a id="pl.2.7"></a><var>2.7</var>subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, <br/>
<a id="pl.2.8"></a><var>2.8</var>subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, <br/>
<a id="pl.2.9"></a><var>2.9</var>subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, <br/>
<a id="pl.2.10"></a><var>2.10</var>subdivisions 2a, 7; 289A.60, subdivisions 13, 28, by adding a subdivision; 289A.63,
         <br/>
<a id="pl.2.11"></a><var>2.11</var>by adding a subdivision; 290.01, subdivision 7; 290.0131, subdivision 10, as <br/>
<a id="pl.2.12"></a><var>2.12</var>amended, by adding subdivisions; 290.0132, subdivision 21, by adding <br/>
<a id="pl.2.13"></a><var>2.13</var>subdivisions; 290.0133, subdivision 12, as amended, by adding a subdivision; <br/>
<a id="pl.2.14"></a><var>2.14</var>290.06, subdivisions 2c, 2d, by adding subdivisions; 290.0671, subdivision 1, as <br/>
<a id="pl.2.15"></a><var>2.15</var>amended; 290.0672, subdivision 1; 290.0674, by adding a subdivision; 290.068, <br/>
<a id="pl.2.16"></a><var>2.16</var>subdivision 2, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.0922,
         <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivision
         <br/>
<a id="pl.2.18"></a><var>2.18</var>3; 290A.10; 290A.19; 290C.02, subdivision 6; 290C.03; 290C.07; 290C.10; <br/>
<a id="pl.2.19"></a><var>2.19</var>291.005, subdivision 1, as amended; 291.016, subdivisions 2, 3; 291.03, <br/>
<a id="pl.2.20"></a><var>2.20</var>subdivisions 1, 9, 11; 291.075; 295.53, subdivision 1; 295.54, subdivision 2; <br/>
<a id="pl.2.21"></a><var>2.21</var>295.55, subdivision 6; 296A.01, subdivisions 7, 12, 33, 42, by adding subdivisions;
         <br/>
<a id="pl.2.22"></a><var>2.22</var>296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, subdivision
         <br/>
<a id="pl.2.23"></a><var>2.23</var>2; 296A.15, subdivisions 1, 4; 296A.16, subdivision 2; 296A.17, subdivision 3; <br/>
<a id="pl.2.24"></a><var>2.24</var>296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions <br/>
<a id="pl.2.25"></a><var>2.25</var>3, 4, 34; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67, <br/>
<a id="pl.2.26"></a><var>2.26</var>subdivisions 2, 4, 5, 6, by adding a subdivision; 297A.68, subdivision 19; 297A.70,
         <br/>
<a id="pl.2.27"></a><var>2.27</var>subdivision 14, by adding a subdivision; 297A.71, subdivision 44, by adding <br/>
<a id="pl.2.28"></a><var>2.28</var>subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivisions 4, 4a; 297D.02;
         <br/>
<a id="pl.2.29"></a><var>2.29</var>297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; <br/>
<a id="pl.2.30"></a><var>2.30</var>297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.03, by adding a <br/>
<a id="pl.2.31"></a><var>2.31</var>subdivision; 297G.09, subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, <br/>
<a id="pl.2.32"></a><var>2.32</var>subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, subdivision 7, by adding a <br/>
<a id="pl.2.33"></a><var>2.33</var>subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivisions
         <br/>
<a id="pl.2.34"></a><var>2.34</var>3, 4, 4c; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11; 298.221; 298.2211, subdivision
         <br/>
<a id="pl.2.35"></a><var>2.35</var>3; 298.223, subdivisions 1, 2; 298.227; 298.24, subdivision 1; 298.28, subdivisions
         <br/>
<a id="pl.2.36"></a><var>2.36</var>2, 5, 7a, 9d; 298.292, subdivision 2; 298.296, subdivisions 1, 2, 4; 298.2961, <br/>
<a id="pl.2.37"></a><var>2.37</var>subdivisions 2, 4; 298.46, subdivision 2; 366.095, subdivision 1; 383B.117, <br/>
<a id="pl.2.38"></a><var>2.38</var>subdivision 2; 410.32; 412.301; 414.09, subdivision 2; 469.034, subdivision 2; <br/>
<a id="pl.2.39"></a><var>2.39</var>469.101, subdivision 1; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; <br/>
<a id="pl.2.40"></a><var>2.40</var>469.190, subdivisions 1, 7; 469.319, subdivision 5; 473H.09; 473H.17, subdivision
         <br/>
<a id="pl.2.41"></a><var>2.41</var>1a; 475.58, subdivision 3b; 475.60, subdivision 2; 477A.011, subdivision 34; <br/>
<a id="pl.2.42"></a><var>2.42</var>477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision;
         <br/>
<a id="pl.2.43"></a><var>2.43</var>477A.03, subdivisions 2a, 2b; 477A.11, by adding a subdivision; 477A.12, <br/>
<a id="pl.2.44"></a><var>2.44</var>subdivisions 1, 2; 477A.14, subdivision 3; 477A.17; 477A.19, by adding <br/>
<a id="pl.2.45"></a><var>2.45</var>subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter
         <br/>
<a id="pl.2.46"></a><var>2.46</var>511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter <br/>
<a id="pl.2.47"></a><var>2.47</var>291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; Laws <br/>
<a id="pl.2.48"></a><var>2.48</var>1996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as amended;
         <br/>
<a id="pl.2.49"></a><var>2.49</var>article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, subdivisions
         <br/>
<a id="pl.2.50"></a><var>2.50</var>3, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 2005, First <br/>
<a id="pl.2.51"></a><var>2.51</var>Special Session chapter 3, article 5, sections 38, subdivisions 2, as amended, 4,
         as <br/>
<a id="pl.2.52"></a><var>2.52</var>amended; 44, subdivisions 3, as amended, 4, 5, as amended; Laws 2008, chapter <br/>
<a id="pl.2.53"></a><var>2.53</var>154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section
         <br/>
<a id="pl.2.54"></a><var>2.54</var>20; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2010, chapter <br/>
<a id="pl.2.55"></a><var>2.55</var>216, section 58, as amended; Laws 2014, chapter 308, article 6, sections 8, <br/>
<a id="pl.2.56"></a><var>2.56</var>subdivision 1; 9; article 9, section 94; Laws 2016, chapter 187, section 5; proposing
         <br/>
<a id="pl.2.57"></a><var>2.57</var>coding for new law in Minnesota Statutes, chapters 116J; 273; 289A; 290; 290B; <br/>
<a id="pl.2.58"></a><var>2.58</var>290C; 293; 297A; 477A; proposing coding for new law as Minnesota Statutes, <br/>
<a id="pl.3.1"></a><var>3.1</var>chapter 462D; repealing Minnesota Statutes 2016, sections 270.074, subdivision <br/>
<a id="pl.3.2"></a><var>3.2</var>2; 270C.445, subdivision 1; 270C.447, subdivision 4; 281.22; 289A.10, subdivision
         <br/>
<a id="pl.3.3"></a><var>3.3</var>1a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; <br/>
<a id="pl.3.4"></a><var>3.4</var>290.9743; 290.9744; 290C.02, subdivisions 5, 9; 290C.06; 291.03, subdivisions <br/>
<a id="pl.3.5"></a><var>3.5</var>8, 9, 10, 11; 298.22, subdivision 8; 298.2213, subdivisions 4, 5, 6; 298.298; <br/>
<a id="pl.3.6"></a><var>3.6</var>Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3.<br/>
<a id="pl.3.7"></a><var>3.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.3.10"></a><var>3.10</var>    Section 1. <b>[116J.5491] WORKFORCE HOUSING TAX CREDIT.</b><br/>
<a id="pl.3.11"></a><var>3.11</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms have <br/>
<a id="pl.3.12"></a><var>3.12</var>the meanings given.<br/>
<a id="pl.3.13"></a><var>3.13</var>(b) "City" means a statutory or home rule charter city.<br/>
<a id="pl.3.14"></a><var>3.14</var>(c) "Developer" means the individual or entity that is responsible for arranging financing
         <br/>
<a id="pl.3.15"></a><var>3.15</var>for and construction of a qualified workforce housing project.<br/>
<a id="pl.3.16"></a><var>3.16</var>(d) "Eligible project site" means the site for the proposed qualified workforce housing
         <br/>
<a id="pl.3.17"></a><var>3.17</var>project that must be located in:<br/>
<a id="pl.3.18"></a><var>3.18</var>(1) an area that does not require extension of public infrastructure, other than connections
         <br/>
<a id="pl.3.19"></a><var>3.19</var>to or access for the site, and that is located outside of the metropolitan area, as
         defined in <br/>
<a id="pl.3.20"></a><var>3.20</var>section 473.121, subdivision 2;<br/>
<a id="pl.3.21"></a><var>3.21</var>(2) a city with at least 500 jobs, as measured in the QCEW, or within the jurisdiction
         of <br/>
<a id="pl.3.22"></a><var>3.22</var>an economic development authority, formed under Laws 1988, chapter 516, section 1,
         as a <br/>
<a id="pl.3.23"></a><var>3.23</var>joint partnership between a city and county and excluding those established by the
         county <br/>
<a id="pl.3.24"></a><var>3.24</var>only; and<br/>
<a id="pl.3.25"></a><var>3.25</var>(3) an area, consisting of the city in which the site is located and any other city
         or town <br/>
<a id="pl.3.26"></a><var>3.26</var>located within 15 miles or less of the site, with an average vacancy rate for market
         rate <br/>
<a id="pl.3.27"></a><var>3.27</var>residential rental properties of four percent or less for any two of the last five
         years, based <br/>
<a id="pl.3.28"></a><var>3.28</var>on a market housing analysis that supports demand for the proposed qualified workforce
         <br/>
<a id="pl.3.29"></a><var>3.29</var>housing project.<br/>
<a id="pl.3.30"></a><var>3.30</var>(e) "Market rate residential rental properties" means properties that are rented at
         market <br/>
<a id="pl.3.31"></a><var>3.31</var>value and excludes properties constructed with:<br/>
<a id="pl.3.32"></a><var>3.32</var>(1) financial assistance requiring the property to be occupied by residents that meet
         <br/>
<a id="pl.3.33"></a><var>3.33</var>income limits under federal or state law of initial occupancy; and<br/>
<a id="pl.4.1"></a><var>4.1</var>(2) federal, state, or local flood recovery assistance, regardless of whether that
         assistance <br/>
<a id="pl.4.2"></a><var>4.2</var>imposed income limits as a condition of receiving assistance.<br/>
<a id="pl.4.3"></a><var>4.3</var>(f) "QCEW" means the Quarterly Census of Employment and Wages with the most <br/>
<a id="pl.4.4"></a><var>4.4</var>recent annual data published by the commissioner.<br/>
<a id="pl.4.5"></a><var>4.5</var>(g) "Qualified investment" means a cash investment or the fair market value equivalent
         <br/>
<a id="pl.4.6"></a><var>4.6</var>for common stock, land, a partnership or membership interest, preferred stock, debt
         with <br/>
<a id="pl.4.7"></a><var>4.7</var>mandatory conversion to equity, or an equivalent ownership interest as determined
         by the <br/>
<a id="pl.4.8"></a><var>4.8</var>commissioner that is made in a qualified workforce housing project.<br/>
<a id="pl.4.9"></a><var>4.9</var>(h) "Qualified project investor" means an investor who makes a qualified investment
         <br/>
<a id="pl.4.10"></a><var>4.10</var>and receives a tax credit certificate from the developer of the project.<br/>
<a id="pl.4.11"></a><var>4.11</var>(i) "Qualified workforce housing project" means a project:<br/>
<a id="pl.4.12"></a><var>4.12</var>(1) for market rate residential rental properties with a minimum of three dwelling
         units;<br/>
<a id="pl.4.13"></a><var>4.13</var>(2) with an average construction cost per unit, excluding site preparation costs,
         of no <br/>
<a id="pl.4.14"></a><var>4.14</var>more than $250,000 and no less than $75,000;<br/>
<a id="pl.4.15"></a><var>4.15</var>(3) located on an eligible project site;<br/>
<a id="pl.4.16"></a><var>4.16</var>(4) that has more than 50 percent nonstate funding proposed to fund the project; and<br/>
<a id="pl.4.17"></a><var>4.17</var>(5) that has been designated by the commissioner as a qualified workforce housing
         <br/>
<a id="pl.4.18"></a><var>4.18</var>project.<br/>
<a id="pl.4.19"></a><var>4.19</var>(j) "Workforce Housing Undersupply Ratio" means the total number of full-time jobs
         <br/>
<a id="pl.4.20"></a><var>4.20</var>in the area, as defined in paragraph (d), clause (3), in which the proposed project
         is located, <br/>
<a id="pl.4.21"></a><var>4.21</var>as reported in the QCEW, divided by the total number of persons over the age of 16
         who <br/>
<a id="pl.4.22"></a><var>4.22</var>are employed and living in that area, as reported by the United States Census <br/>
<a id="pl.4.23"></a><var>4.23</var>"EMPLOYMENT STATUS" data set or similar United States Census data set.<br/>
<a id="pl.4.24"></a><var>4.24</var>    Subd. 2. <b>Qualified project investor tax credits.</b> (a) A qualified project investor is <br/>
<a id="pl.4.25"></a><var>4.25</var>allowed a credit against the tax imposed under chapter 290 equal to 40 percent of
         the qualified <br/>
<a id="pl.4.26"></a><var>4.26</var>investment up to a maximum of $1,000,000.<br/>
<a id="pl.4.27"></a><var>4.27</var>(b) The credit under this subdivision is allowed in the first taxable year in which
         the <br/>
<a id="pl.4.28"></a><var>4.28</var>qualified workforce housing project has housing units that are certified for occupancy
         by <br/>
<a id="pl.4.29"></a><var>4.29</var>the Department of Labor and Industry or a city inspector.<br/>
<a id="pl.4.30"></a><var>4.30</var>(c) The commissioner may issue tax credit allocations to qualified workforce housing
         <br/>
<a id="pl.4.31"></a><var>4.31</var>projects for a taxable year, up to $2,500,000, based on applications made by developers
         and <br/>
<a id="pl.4.32"></a><var>4.32</var>as provided under paragraph (d). No more than $1,000,000 in tax credit allocations
         may be <br/>
<a id="pl.5.1"></a><var>5.1</var>issued for a qualified workforce housing project. Any portion of the permitted allocation
         <br/>
<a id="pl.5.2"></a><var>5.2</var>for a taxable year that is not issued by the commissioner does not cancel and carries
         forward <br/>
<a id="pl.5.3"></a><var>5.3</var>to the following taxable year.<br/>
<a id="pl.5.4"></a><var>5.4</var>(d) A developer of a qualified workforce housing project may apply to the commissioner
         <br/>
<a id="pl.5.5"></a><var>5.5</var>for an allocation of tax credits under this section. The application must provide
         information <br/>
<a id="pl.5.6"></a><var>5.6</var>sufficient for the commissioner to determine:<br/>
<a id="pl.5.7"></a><var>5.7</var>(1) that the project meets the requirements for a qualified workforce housing project
         <br/>
<a id="pl.5.8"></a><var>5.8</var>under this section;<br/>
<a id="pl.5.9"></a><var>5.9</var>(2) that the developer has sufficient financing to acquire and construct the project;<br/>
<a id="pl.5.10"></a><var>5.10</var>(3) the financial viability of the project;<br/>
<a id="pl.5.11"></a><var>5.11</var>(4) the total amount of credits applied for;<br/>
<a id="pl.5.12"></a><var>5.12</var>(5) each of the project's investors, the amounts each has or will invest in the project,
         and <br/>
<a id="pl.5.13"></a><var>5.13</var>the amount of tax credits the developer proposes to provide to each; and<br/>
<a id="pl.5.14"></a><var>5.14</var>(6) any other information that the commissioner deems appropriate.<br/>
<a id="pl.5.15"></a><var>5.15</var>The application must be made in the form and manner specified by the commissioner.
         <br/>
<a id="pl.5.16"></a><var>5.16</var>Applications for tax credits for a taxable year must be made available by the commissioner
         <br/>
<a id="pl.5.17"></a><var>5.17</var>by November 1 of the prior calendar year. The commissioner must make every effort
         to <br/>
<a id="pl.5.18"></a><var>5.18</var>provide applications and relevant data to applicants in a simple, concise manner using
         plain <br/>
<a id="pl.5.19"></a><var>5.19</var>language, and distribute relevant eligibility information on the Department of Employment
         <br/>
<a id="pl.5.20"></a><var>5.20</var>and Economic Development Web site. In allocating the credits, the commissioner must
         give <br/>
<a id="pl.5.21"></a><var>5.21</var>preference to projects with the highest Workforce Housing Undersupply Ratio, except
         where <br/>
<a id="pl.5.22"></a><var>5.22</var>the commissioner determines the investment is circumventing the spirit of the law
         or where <br/>
<a id="pl.5.23"></a><var>5.23</var>little or no local economic growth would occur as a result of the investment. The
         <br/>
<a id="pl.5.24"></a><var>5.24</var>commissioner must approve or reject a tax credit request application within 15 days
         of <br/>
<a id="pl.5.25"></a><var>5.25</var>receiving the application. The commissioner shall provide tax credit certificates
         to the <br/>
<a id="pl.5.26"></a><var>5.26</var>applicant developer of an approved qualified workforce housing project in the amount
         of <br/>
<a id="pl.5.27"></a><var>5.27</var>the credits allocated to the project. The developer shall provide the credit certificates
         to its <br/>
<a id="pl.5.28"></a><var>5.28</var>qualified project investors in return for their investments in the projects and notify
         the <br/>
<a id="pl.5.29"></a><var>5.29</var>commissioner of the amount provided to each investor within 15 days. If the project
         does <br/>
<a id="pl.5.30"></a><var>5.30</var>not have units certified for occupancy as provided in paragraph (b) within a two-year
         period <br/>
<a id="pl.5.31"></a><var>5.31</var>following issuance of the credit certificates to the developer, the tax credit allocation
         for <br/>
<a id="pl.5.32"></a><var>5.32</var>the project is canceled. The developer must notify the commissioner immediately of
         the <br/>
<a id="pl.5.33"></a><var>5.33</var>failure to obtain a certificate of occupancy no later than five business days after
         the expiration <br/>
<a id="pl.6.1"></a><var>6.1</var>of the two-year period. The commissioner must notify the commissioner of revenue of
         the <br/>
<a id="pl.6.2"></a><var>6.2</var>credit certificates issued under this section and any cancellations of those certificates.<br/>
<a id="pl.6.3"></a><var>6.3</var>(e) The commissioner shall charge an application fee. Application fees are deposited
         in <br/>
<a id="pl.6.4"></a><var>6.4</var>the workforce housing tax credit administration account in the special revenue fund.
         Amounts <br/>
<a id="pl.6.5"></a><var>6.5</var>in the account are appropriated to the commissioner for the cost of administering
         the tax <br/>
<a id="pl.6.6"></a><var>6.6</var>credit under this section.<br/>
<a id="pl.6.7"></a><var>6.7</var>(f) The commissioner of revenue shall prescribe the manner in which the credits are
         <br/>
<a id="pl.6.8"></a><var>6.8</var>issued and claimed.<br/>
<a id="pl.6.9"></a><var>6.9</var>    Subd. 3. <b>Transfer and revocation of credits.</b> (a) A qualified project investor who <br/>
<a id="pl.6.10"></a><var>6.10</var>receives a certificate may assign the certificate to another taxpayer, who is then
         allowed the <br/>
<a id="pl.6.11"></a><var>6.11</var>credit under this section and section 290.06, subdivision 37. An assignment is not
         valid <br/>
<a id="pl.6.12"></a><var>6.12</var>unless the assignee notifies the commissioner of revenue within 30 days of the date
         that the <br/>
<a id="pl.6.13"></a><var>6.13</var>assignment is made. The commissioner of revenue shall prescribe the forms necessary
         to <br/>
<a id="pl.6.14"></a><var>6.14</var>provide notification of the assignment and to claim a credit by assignment. Credits
         passed <br/>
<a id="pl.6.15"></a><var>6.15</var>through to partners, members, shareholders, or owners under section 290.06, subdivision
         <br/>
<a id="pl.6.16"></a><var>6.16</var>37, paragraph (b), are not an assignment of a credit certificate under this subdivision.<br/>
<a id="pl.6.17"></a><var>6.17</var>(b) If the commissioner discovers that a qualified project investor did not meet the
         <br/>
<a id="pl.6.18"></a><var>6.18</var>eligibility requirements for the tax credits under this section after the credits
         have been <br/>
<a id="pl.6.19"></a><var>6.19</var>allocated and certificates issued, the commissioner may determine that credit certificate
         is <br/>
<a id="pl.6.20"></a><var>6.20</var>revoked and must be repaid by the investor. The commissioner must notify the commissioner
         <br/>
<a id="pl.6.21"></a><var>6.21</var>of revenue of every credit revoked and subject to repayment under this section.<br/>
<a id="pl.6.22"></a><var>6.22</var>    Subd. 4. <b>Reporting.</b> Beginning in 2019, the commissioner must annually report by <br/>
<a id="pl.6.23"></a><var>6.23</var>March 15 to the chairs and ranking minority members of the committees in the senate
         and <br/>
<a id="pl.6.24"></a><var>6.24</var>house of representatives with jurisdiction over taxes and economic development, in
         <br/>
<a id="pl.6.25"></a><var>6.25</var>compliance with sections 3.195 and 3.197, on tax credits issued under this section.
         The <br/>
<a id="pl.6.26"></a><var>6.26</var>report must include:<br/>
<a id="pl.6.27"></a><var>6.27</var>(1) information about the availability of workforce housing in greater Minnesota;<br/>
<a id="pl.6.28"></a><var>6.28</var>(2) information from employers and communities in greater Minnesota about whether
         <br/>
<a id="pl.6.29"></a><var>6.29</var>or not workforce housing needs are being met;<br/>
<a id="pl.6.30"></a><var>6.30</var>(3) which projects have been funded by the workforce housing tax credit and whether
         <br/>
<a id="pl.6.31"></a><var>6.31</var>previously funded projects have created economic growth;<br/>
 <a id="pl.6.32"></a><var>6.32</var>(4) any suggested legislation to accelerate construction of workforce housing;<br/>
<a id="pl.6.33"></a><var>6.33</var>(5) the number and amount of tax credits issued;<br/>
<a id="pl.7.1"></a><var>7.1</var>(6) the number and amount of tax credits revoked under subdivision 3;<br/>
<a id="pl.7.2"></a><var>7.2</var>(7) the location, total cost of, and expected rent to be received as a result of qualified
         <br/>
<a id="pl.7.3"></a><var>7.3</var>workforce housing projects funded under this section; and<br/>
<a id="pl.7.4"></a><var>7.4</var>(8) any other relevant information needed to evaluate the effect of the workforce
         housing <br/>
<a id="pl.7.5"></a><var>7.5</var>tax credits.<br/>
<a id="pl.7.6"></a><var>7.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.7.7"></a><var>7.7</var>31, 2017, and before January 1, 2019.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.7.8"></a><var>7.8</var>    Sec. 2. Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read:<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has been <br/>
<a id="pl.7.10"></a><var>7.10</var>admitted to a major program that is related to the intern experience as determined
         by the <br/>
<a id="pl.7.11"></a><var>7.11</var>eligible institution.<br/>
<a id="pl.7.12"></a><var>7.12</var>(b) To participate in the program, an eligible institution must:<br/>
<a id="pl.7.13"></a><var>7.13</var>(1) enter into written agreements with eligible employers to provide internships that
         are <br/>
<a id="pl.7.14"></a><var>7.14</var>at least eight weeks long and located in greater Minnesota; and<br/>
<a id="pl.7.15"></a><var>7.15</var>(2) provide academic credit for the successful completion of the internship or ensure
         <br/>
<a id="pl.7.16"></a><var>7.16</var>that it fulfills requirements necessary to complete a vocational technical education
         program.<br/>
<a id="pl.7.17"></a><var>7.17</var>(c) To participate in the program, an eligible employer must enter into a written
         agreement <br/>
<a id="pl.7.18"></a><var>7.18</var>with an eligible institution specifying that the intern:<br/>
<a id="pl.7.19"></a><var>7.19</var>(1) would not have been hired without the tax credit described in subdivision 4;<br/>
<a id="pl.7.20"></a><var>7.20</var>(2) did not work for the employer in the same or a similar job prior to entering the
         <br/>
<a id="pl.7.21"></a><var>7.21</var>agreement;<br/>
<a id="pl.7.22"></a><var>7.22</var>(3) (2) does not replace an existing employee;<br/>
<a id="pl.7.23"></a><var>7.23</var>(4) (3) has not previously participated in the program;<br/>
<a id="pl.7.24"></a><var>7.24</var>(5) (4) will be employed at a location in greater Minnesota;<br/>
<a id="pl.7.25"></a><var>7.25</var>(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week for a <br/>
<a id="pl.7.26"></a><var>7.26</var>period of at least eight weeks; and<br/>
<a id="pl.7.27"></a><var>7.27</var>(7) (6) will be supervised and evaluated by the employer.<br/>
<a id="pl.7.28"></a><var>7.28</var>(d) The written agreement between the eligible institution and the eligible employer
         <br/>
<a id="pl.7.29"></a><var>7.29</var>must certify a credit amount to the employer, not to exceed $2,000 per intern. The
         total <br/>
<a id="pl.8.1"></a><var>8.1</var>dollar amount of credits that an eligible institution certifies to eligible employers
         in a calendar <br/>
<a id="pl.8.2"></a><var>8.2</var>year may not exceed the amount of its allocation under subdivision 4.<br/>
<a id="pl.8.3"></a><var>8.3</var>(e) Participating eligible institutions and eligible employers must report annually
         to the <br/>
<a id="pl.8.4"></a><var>8.4</var>office. The report must include at least the following:<br/>
<a id="pl.8.5"></a><var>8.5</var>(1) the number of interns hired;<br/>
<a id="pl.8.6"></a><var>8.6</var>(2) the number of hours and weeks worked by interns; and<br/>
<a id="pl.8.7"></a><var>8.7</var>(3) the compensation paid to interns.<br/>
<a id="pl.8.8"></a><var>8.8</var>(f) An internship required to complete an academic program does not qualify for the
         <br/>
<a id="pl.8.9"></a><var>8.9</var>greater Minnesota internship program under this section.<br/>
<a id="pl.8.10"></a><var>8.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.8.11"></a><var>8.11</var>31, 2016.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.8.12"></a><var>8.12</var>    Sec. 3. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:<br/>
<a id="pl.8.13"></a><var>8.13</var>    Subdivision 1. <b>Return required.</b> (a) In the case of a decedent who has an interest in <br/>
<a id="pl.8.14"></a><var>8.14</var>property with a situs in Minnesota, the personal representative must submit a Minnesota
         <br/>
<a id="pl.8.15"></a><var>8.15</var>estate tax return to the commissioner, on a form prescribed by the commissioner, if:<br/>
<a id="pl.8.16"></a><var>8.16</var>(1) a federal estate tax return is required to be filed; or<br/>
<a id="pl.8.17"></a><var>8.17</var>(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined
         in <br/>
<a id="pl.8.18"></a><var>8.18</var>section 2001(b) of the Internal Revenue Code, made within three years of the date
         of the <br/>
<a id="pl.8.19"></a><var>8.19</var>decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000
         for <br/>
<a id="pl.8.20"></a><var>8.20</var>estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
         <br/>
<a id="pl.8.21"></a><var>8.21</var>$1,800,000 for estates of decedents dying in 2017; and $2,000,000 $2,900,000 for estates <br/>
<a id="pl.8.22"></a><var>8.22</var>of decedents dying in 2018 and thereafter; $3,300,000 for estates of decedents dying in <br/>
<a id="pl.8.23"></a><var>8.23</var>2019; $3,700,000 for estates of decedents dying in 2020; $4,100,000 for estates of
         decedents <br/>
<a id="pl.8.24"></a><var>8.24</var>dying in 2021; and $5,000,000 for estates of decedents dying in 2022.<br/>
<a id="pl.8.25"></a><var>8.25</var>The return must contain a computation of the Minnesota estate tax due. The return
         must <br/>
<a id="pl.8.26"></a><var>8.26</var>be signed by the personal representative(b) For estates of decedents dying in 2023 and <br/>
<a id="pl.8.27"></a><var>8.27</var>thereafter, in the case of a decedent who has an interest in property with a situs
         in Minnesota, <br/>
<a id="pl.8.28"></a><var>8.28</var>the personal representative must submit a Minnesota estate tax return to the commissioner,
         <br/>
<a id="pl.8.29"></a><var>8.29</var>on a form prescribed by the commissioner, if a federal estate tax return is required
         to be <br/>
<a id="pl.8.30"></a><var>8.30</var>filed.<br/>
<a id="pl.8.31"></a><var>8.31</var>(c) The return must contain a computation of the Minnesota estate tax due. The return
         <br/>
<a id="pl.8.32"></a><var>8.32</var>must be signed by the personal representative.<br/>
<a id="pl.9.1"></a><var>9.1</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.9.2"></a><var>9.2</var>December 31, 2017.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.9.3"></a><var>9.3</var>    Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:<br/>
<a id="pl.9.4"></a><var>9.4</var>    Subd. 7. <b>Resident.</b> (a) The term "resident" means any individual domiciled in Minnesota, <br/>
<a id="pl.9.5"></a><var>9.5</var>except that an individual is not a "resident" for the period of time that the individual
         is a <br/>
<a id="pl.9.6"></a><var>9.6</var>"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code,
         if the <br/>
<a id="pl.9.7"></a><var>9.7</var>qualified individual notifies the county within three months of moving out of the
         country <br/>
<a id="pl.9.8"></a><var>9.8</var>that homestead status be revoked for the Minnesota residence of the qualified individual,
         <br/>
<a id="pl.9.9"></a><var>9.9</var>and the property is not classified as a homestead while the individual remains a qualified
         <br/>
<a id="pl.9.10"></a><var>9.10</var>individual.<br/>
<a id="pl.9.11"></a><var>9.11</var>(b) "Resident" also means any individual domiciled outside the state who maintains
         a <br/>
<a id="pl.9.12"></a><var>9.12</var>place of abode in the state and spends in the aggregate more than one-half of the
         tax year <br/>
<a id="pl.9.13"></a><var>9.13</var>in Minnesota, unless:<br/>
<a id="pl.9.14"></a><var>9.14</var>(1) the individual or the spouse of the individual is in the armed forces of the United
         <br/>
<a id="pl.9.15"></a><var>9.15</var>States; or<br/>
<a id="pl.9.16"></a><var>9.16</var>(2) the individual is covered under the reciprocity provisions in section 
         <statute_ref>290.081</statute_ref>.<br/>
<a id="pl.9.17"></a><var>9.17</var>For purposes of this subdivision, presence within the state for any part of a calendar
         day <br/>
<a id="pl.9.18"></a><var>9.18</var>constitutes a day spent in the state. Individuals shall keep adequate records to substantiate
         <br/>
<a id="pl.9.19"></a><var>9.19</var>the days spent outside the state.<br/>
<a id="pl.9.20"></a><var>9.20</var>The term "abode" means a dwelling maintained by an individual, whether or not owned
         <br/>
<a id="pl.9.21"></a><var>9.21</var>by the individual and whether or not occupied by the individual, and includes a dwelling
         <br/>
<a id="pl.9.22"></a><var>9.22</var>place owned or leased by the individual's spouse.<br/>
<a id="pl.9.23"></a><var>9.23</var>(c) In determining where an individual is domiciled, neither the commissioner nor any <br/>
<a id="pl.9.24"></a><var>9.24</var>court shall consider:<br/>
 <a id="pl.9.25"></a><var>9.25</var>(1) charitable contributions made by an the individual within or without the state in <br/>
<a id="pl.9.26"></a><var>9.26</var>determining if the individual is domiciled in Minnesota;<br/>
<a id="pl.9.27"></a><var>9.27</var>(2) the location of the individual's attorney, certified public accountant, or financial
         <br/>
<a id="pl.9.28"></a><var>9.28</var>adviser; or<br/>
<a id="pl.9.29"></a><var>9.29</var>(3) the place of business of a financial institution at which the individual applies
         for any <br/>
<a id="pl.9.30"></a><var>9.30</var>new type of credit or at which the individual opens or maintains any type of account.<br/>
<a id="pl.9.31"></a><var>9.31</var>(d) For purposes of this subdivision, the following terms have the meanings given
         them:<br/>
<a id="pl.10.1"></a><var>10.1</var>(1) "financial adviser" means:<br/>
<a id="pl.10.2"></a><var>10.2</var>(i) an individual or business entity engaged in business as a certified financial
         planner, <br/>
<a id="pl.10.3"></a><var>10.3</var>registered investment adviser, licensed insurance producer or agent, or registered
         securities <br/>
<a id="pl.10.4"></a><var>10.4</var>broker-dealer representative; or<br/>
<a id="pl.10.5"></a><var>10.5</var>(ii) a financial institution providing services related to trust or estate administration,
         <br/>
<a id="pl.10.6"></a><var>10.6</var>investment management, or financial planning; and<br/>
<a id="pl.10.7"></a><var>10.7</var>(2) "financial institution" means a financial institution as defined in section 47.015,
         <br/>
<a id="pl.10.8"></a><var>10.8</var>subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
         <br/>
<a id="pl.10.9"></a><var>10.9</var>under the Securities and Exchange Act of 1934.<br/>
<a id="pl.10.10"></a><var>10.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.10.11"></a><var>10.11</var>31, 2016.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.10.12"></a><var>10.12</var>    Sec. 5. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws <br/>
<a id="pl.10.13"></a><var>10.13</var>2017, chapter 1, section 4, is amended to read:<br/>
<a id="pl.10.14"></a><var>10.14</var>    Subd. 10. <b>Section 179 expensing.</b> For taxable years beginning before January 1, 2018, <br/>
<a id="pl.10.15"></a><var>10.15</var>80 percent of the amount by which the deduction allowed under the dollar limits of
         section <br/>
<a id="pl.10.16"></a><var>10.16</var>179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of
         the <br/>
<a id="pl.10.17"></a><var>10.17</var>Internal Revenue Code, as amended through December 31, 2003, is an addition.<br/>
<a id="pl.10.18"></a><var>10.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.10.19"></a><var>10.19</var>31, 2017.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.10.20"></a><var>10.20</var>    Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision <br/>
<a id="pl.10.21"></a><var>10.21</var>to read:<br/>
<a id="pl.10.22"></a><var>10.22</var>    Subd. 14. <b>Equity and opportunity donations to qualified foundations.</b> The amount <br/>
<a id="pl.10.23"></a><var>10.23</var>of the deduction under section 170 of the Internal Revenue Code that represents contributions
         <br/>
<a id="pl.10.24"></a><var>10.24</var>to a qualified foundation under section 290.0693 is an addition.<br/>
<a id="pl.10.25"></a><var>10.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.10.26"></a><var>10.26</var>31, 2017.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.10.27"></a><var>10.27</var>    Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision <br/>
<a id="pl.10.28"></a><var>10.28</var>to read:<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subd. 15. <b>First-time home buyer savings account.</b> The amount for a first-time home <br/>
<a id="pl.10.30"></a><var>10.30</var>buyer savings account required by section 462D.06, subdivision 2, is an addition.<br/>
<a id="pl.11.1"></a><var>11.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.11.2"></a><var>11.2</var>31, 2016.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.11.3"></a><var>11.3</var>    Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision <br/>
<a id="pl.11.4"></a><var>11.4</var>to read:<br/>
<a id="pl.11.5"></a><var>11.5</var>    Subd. 23. <b>Social Security benefits.</b> (a) A portion of Social Security benefits, as defined <br/>
<a id="pl.11.6"></a><var>11.6</var>under section 86(d)(1) of the Internal Revenue Code, is allowed as a subtraction,
         subject to <br/>
<a id="pl.11.7"></a><var>11.7</var>the limits under paragraphs (b), (c), and (d).<br/>
<a id="pl.11.8"></a><var>11.8</var>(b) For married taxpayers filing a joint return, the subtraction equals the lesser
         of Social <br/>
<a id="pl.11.9"></a><var>11.9</var>Security benefits or $2,500. The subtraction is reduced by two and one-half percent
         for <br/>
<a id="pl.11.10"></a><var>11.10</var>every $960 of provisional income over $76,900. In no case is the subtraction less
         than zero.<br/>
<a id="pl.11.11"></a><var>11.11</var>(c) For single or head-of-household taxpayers, the subtraction equals the lesser of
         Social <br/>
<a id="pl.11.12"></a><var>11.12</var>Security benefits or $1,955. The subtraction is reduced by two and one-half percent
         for <br/>
<a id="pl.11.13"></a><var>11.13</var>every $750 of provisional income over $60,200. In no case is the subtraction less
         than zero.<br/>
<a id="pl.11.14"></a><var>11.14</var>(d) For married taxpayers filing separate returns, the subtraction equals the lesser
         of <br/>
<a id="pl.11.15"></a><var>11.15</var>Social Security benefits or $1,250. The subtraction is reduced by two and one-half
         percent <br/>
<a id="pl.11.16"></a><var>11.16</var>for every $480 of provisional income over $38,500. In no case is the subtraction less
         than <br/>
<a id="pl.11.17"></a><var>11.17</var>zero.<br/>
<a id="pl.11.18"></a><var>11.18</var>(e) For purposes of this subdivision, "provisional income" has the meaning given in
         <br/>
<a id="pl.11.19"></a><var>11.19</var>section 86 of the Internal Revenue Code.<br/>
<a id="pl.11.20"></a><var>11.20</var>(f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the
         <br/>
<a id="pl.11.21"></a><var>11.21</var>percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
         <br/>
<a id="pl.11.22"></a><var>11.22</var>Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016"
         shall <br/>
<a id="pl.11.23"></a><var>11.23</var>be substituted for the word "1992." For 2018, the commissioner shall then determine
         the <br/>
<a id="pl.11.24"></a><var>11.24</var>percent change from the 12 months ending on August 31, 2016, to the 12 months ending
         <br/>
<a id="pl.11.25"></a><var>11.25</var>on August 31, 2017, and in each subsequent year, from the 12 months ending on August
         <br/>
<a id="pl.11.26"></a><var>11.26</var>31, 2016, to the 12 months ending on August 31 of the year preceding the taxable year.
         The <br/>
<a id="pl.11.27"></a><var>11.27</var>determination of the commissioner pursuant to this subdivision must not be considered
         a <br/>
<a id="pl.11.28"></a><var>11.28</var>rule and is not subject to the Administrative Procedure Act contained in chapter 14.
         The <br/>
<a id="pl.11.29"></a><var>11.29</var>threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount
         <br/>
<a id="pl.11.30"></a><var>11.30</var>ends in $5, the amount is rounded up to the nearest $10 amount.<br/>
<a id="pl.11.31"></a><var>11.31</var><b>EFFECTIVE DATE.</b>Paragraphs (a) to (e) are effective for taxable years beginning <br/>
<a id="pl.11.32"></a><var>11.32</var>after December 31, 2016. Paragraph (f) is effective for taxable years beginning after
         <br/>
<a id="pl.11.33"></a><var>11.33</var>December 31, 2017.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision <br/>
<a id="pl.12.2"></a><var>12.2</var>to read:<br/>
<a id="pl.12.3"></a><var>12.3</var>    Subd. 24. <b>First-time home buyer savings account.</b> (a) The amount for contributions <br/>
<a id="pl.12.4"></a><var>12.4</var>to and earnings on a first-time home buyer savings account allowed by section 462D.06,
         <br/>
<a id="pl.12.5"></a><var>12.5</var>subdivision 1, is a subtraction.<br/>
<a id="pl.12.6"></a><var>12.6</var>(b) The subtraction allowed under this subdivision for a taxable year is limited to
         $7,500, <br/>
<a id="pl.12.7"></a><var>12.7</var>or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as
         defined <br/>
<a id="pl.12.8"></a><var>12.8</var>in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000,
         or <br/>
<a id="pl.12.9"></a><var>12.9</var>$250,000 for married joint filers, the maximum subtraction is reduced $1 for each
         $4 of <br/>
<a id="pl.12.10"></a><var>12.10</var>adjusted gross income in excess of that threshold.<br/>
<a id="pl.12.11"></a><var>12.11</var>(c) The adjusted gross income thresholds under paragraph (b) are annually adjusted
         for <br/>
<a id="pl.12.12"></a><var>12.12</var>inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar
         amount <br/>
<a id="pl.12.13"></a><var>12.13</var>of the income thresholds at which the subtraction begins to be reduced under paragraph
         (b) <br/>
<a id="pl.12.14"></a><var>12.14</var>by the percentage determined under section 1(f) of the Internal Revenue Code, except
         that <br/>
<a id="pl.12.15"></a><var>12.15</var>in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018,
         the <br/>
<a id="pl.12.16"></a><var>12.16</var>commissioner shall then determine the percent change from the 12 months ending on
         August <br/>
<a id="pl.12.17"></a><var>12.17</var>31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year,
         from <br/>
<a id="pl.12.18"></a><var>12.18</var>the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
         <br/>
<a id="pl.12.19"></a><var>12.19</var>year preceding the taxable year. The determination of the commissioner under this
         <br/>
<a id="pl.12.20"></a><var>12.20</var>subdivision is not a "rule" and is not subject to the Administrative Procedure Act
         in chapter <br/>
<a id="pl.12.21"></a><var>12.21</var>14. The threshold amount as adjusted must be rounded to the nearest $100 amount. If
         the <br/>
<a id="pl.12.22"></a><var>12.22</var>amount ends in $50, the amount is rounded up to the nearest $100 amount.<br/>
<a id="pl.12.23"></a><var>12.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.12.24"></a><var>12.24</var>31, 2016.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.12.25"></a><var>12.25</var>    Sec. 10. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws <br/>
<a id="pl.12.26"></a><var>12.26</var>2017, chapter 1, section 5, is amended to read:<br/>
<a id="pl.12.27"></a><var>12.27</var>    Subd. 12. <b>Section 179 expensing.</b> For taxable years beginning before January 1, 2018, <br/>
<a id="pl.12.28"></a><var>12.28</var>80 percent of the amount by which the deduction allowed under the dollar limits of
         section <br/>
<a id="pl.12.29"></a><var>12.29</var>179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of
         the <br/>
<a id="pl.12.30"></a><var>12.30</var>Internal Revenue Code, as amended through December 31, 2003, is an addition.<br/>
<a id="pl.12.31"></a><var>12.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.12.32"></a><var>12.32</var>31, 2017.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 11. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision <br/>
<a id="pl.13.2"></a><var>13.2</var>to read:<br/>
<a id="pl.13.3"></a><var>13.3</var>    Subd. 15. <b>Equity and opportunity donations to qualified foundations.</b> The amount <br/>
<a id="pl.13.4"></a><var>13.4</var>of the deduction under section 170 of the Internal Revenue Code that represents contributions
         <br/>
<a id="pl.13.5"></a><var>13.5</var>to a qualified foundation under section 290.0693 is an addition.<br/>
<a id="pl.13.6"></a><var>13.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.13.7"></a><var>13.7</var>31, 2017.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.13.8"></a><var>13.8</var>    Sec. 12. Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:<br/>
<a id="pl.13.9"></a><var>13.9</var>    Subd. 2c. <b>Schedules of rates for individuals, estates, and trusts.</b> For taxable years <br/>
<a id="pl.13.10"></a><var>13.10</var>beginning after December 21, 2017:<br/>
<a id="pl.13.11"></a><var>13.11</var>    (a) The income taxes imposed by this chapter upon married individuals filing joint
         returns <br/>
<a id="pl.13.12"></a><var>13.12</var>and surviving spouses as defined in section 2(a) of the Internal Revenue Code must
         be <br/>
<a id="pl.13.13"></a><var>13.13</var>computed by applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.13.14"></a><var>13.14</var>    (1) On the first $35,480 $37,970, 5.35 5.0 percent;<br/>
<a id="pl.13.15"></a><var>13.15</var>    (2) On all over $35,480 $37,970, but not over $140,960 $134,250, 7.05 percent;<br/>
<a id="pl.13.16"></a><var>13.16</var>    (3) On all over $140,960 $134,250, but not over $250,000 $267,550, 7.85 percent;<br/>
<a id="pl.13.17"></a><var>13.17</var>(4) On all over $250,000 $267,550, 9.85 percent.<br/>
<a id="pl.13.18"></a><var>13.18</var>    Married individuals filing separate returns, estates, and trusts must compute their
         income <br/>
<a id="pl.13.19"></a><var>13.19</var>tax by applying the above rates to their taxable income, except that the income brackets
         <br/>
<a id="pl.13.20"></a><var>13.20</var>will be one-half of the above amounts.<br/>
<a id="pl.13.21"></a><var>13.21</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.13.22"></a><var>13.22</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.13.23"></a><var>13.23</var>    (1) On the first $24,270 $25,970, 5.35 5.0 percent;<br/>
<a id="pl.13.24"></a><var>13.24</var>    (2) On all over $24,270 $25,970, but not over $79,730 $73,970, 7.05 percent;<br/>
<a id="pl.13.25"></a><var>13.25</var>    (3) On all over $79,730 $73,970, but not over $150,000 $160,530, 7.85 percent;<br/>
<a id="pl.13.26"></a><var>13.26</var>(4) On all over $150,000 $160,530, 9.85 percent.<br/>
<a id="pl.13.27"></a><var>13.27</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
         as <br/>
<a id="pl.13.28"></a><var>13.28</var>a head of household as defined in section 2(b) of the Internal Revenue Code must be
         <br/>
<a id="pl.13.29"></a><var>13.29</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.13.30"></a><var>13.30</var>    (1) On the first $29,880 $31,980, 5.35 5.0 percent;<br/>
<a id="pl.14.1"></a><var>14.1</var>    (2) On all over $29,880 $31,980, but not over $120,070 $114,510, 7.05 percent;<br/>
<a id="pl.14.2"></a><var>14.2</var>    (3) On all over $120,070 $114,510, but not over $200,000 $214,040, 7.85 percent;<br/>
<a id="pl.14.3"></a><var>14.3</var>(4) On all over $200,000 $214,040, 9.85 percent.<br/>
<a id="pl.14.4"></a><var>14.4</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision,
         the tax <br/>
<a id="pl.14.5"></a><var>14.5</var>of any individual taxpayer whose taxable net income for the taxable year is less than
         an <br/>
<a id="pl.14.6"></a><var>14.6</var>amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.14.7"></a><var>14.7</var>prepared and issued by the commissioner of revenue based on income brackets of not
         more <br/>
<a id="pl.14.8"></a><var>14.8</var>than $100. The amount of tax for each bracket shall be computed at the rates set forth
         in <br/>
<a id="pl.14.9"></a><var>14.9</var>this subdivision, provided that the commissioner may disregard a fractional part of
         a dollar <br/>
<a id="pl.14.10"></a><var>14.10</var>unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.14.11"></a><var>14.11</var>    (e) An individual who is not a Minnesota resident for the entire year must compute
         the <br/>
<a id="pl.14.12"></a><var>14.12</var>individual's Minnesota income tax as provided in this subdivision. After the application
         of <br/>
<a id="pl.14.13"></a><var>14.13</var>the nonrefundable credits provided in this chapter, the tax liability must then be
         multiplied <br/>
<a id="pl.14.14"></a><var>14.14</var>by a fraction in which:<br/>
<a id="pl.14.15"></a><var>14.15</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income
         as <br/>
<a id="pl.14.16"></a><var>14.16</var>defined in section 62 of the Internal Revenue Code and increased by the additions
         required <br/>
<a id="pl.14.17"></a><var>14.17</var>under section 
         <statute_ref>290.0131, subdivisions 2</statute_ref> and 6 to 11, and reduced by the Minnesota assignable <br/>
<a id="pl.14.18"></a><var>14.18</var>portion of the subtraction for United States government interest under section 
         <statute_ref>290.0132, <br/>
<a id="pl.14.19"></a><var>14.19</var>subdivision 2
         </statute_ref>, and the subtractions under section 
         <statute_ref>290.0132, subdivisions 9</statute_ref>, 10, 14, 15, 17, <br/>
<a id="pl.14.20"></a><var>14.20</var>and 18, after applying the allocation and assignability provisions of section 
         <statute_ref>290.081</statute_ref>, clause <br/>
<a id="pl.14.21"></a><var>14.21</var>(a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.14.22"></a><var>14.22</var>    (2) the denominator is the individual's federal adjusted gross income as defined in
         section <br/>
<a id="pl.14.23"></a><var>14.23</var>62 of the Internal Revenue Code, increased by the amounts specified in section 
         <statute_ref>290.0131, <br/>
<a id="pl.14.24"></a><var>14.24</var>subdivisions 2
         </statute_ref> and 6 to 11, and reduced by the amounts specified in section 
         <statute_ref>290.0132</statute_ref>, <br/>
<a id="pl.14.25"></a><var>14.25</var>subdivisions 2, 9, 10, 14, 15, 17, and 18.<br/>
<a id="pl.14.26"></a><var>14.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.14.27"></a><var>14.27</var>31, 2017.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.14.28"></a><var>14.28</var>    Sec. 13. Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:<br/>
<a id="pl.14.29"></a><var>14.29</var>    Subd. 2d. <b>Inflation adjustment of brackets.</b> (a) For taxable years beginning after <br/>
<a id="pl.14.30"></a><var>14.30</var>December 31, 2013 2018, the minimum and maximum dollar amounts for each rate bracket <br/>
<a id="pl.14.31"></a><var>14.31</var>for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
         percentage <br/>
<a id="pl.14.32"></a><var>14.32</var>determined under paragraph (b). For the purpose of making the adjustment as provided
         in <br/>
<a id="pl.14.33"></a><var>14.33</var>this subdivision all of the rate brackets provided in subdivision 2c shall be the
         rate brackets <br/>
<a id="pl.15.1"></a><var>15.1</var>as they existed for taxable years beginning after December 31, 2012 2017, and before <br/>
<a id="pl.15.2"></a><var>15.2</var>January 1, 2014 2019. The rate applicable to any rate bracket must not be changed. The <br/>
<a id="pl.15.3"></a><var>15.3</var>dollar amounts setting forth the tax shall be adjusted to reflect the changes in the
         rate brackets. <br/>
<a id="pl.15.4"></a><var>15.4</var>The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate
         bracket <br/>
<a id="pl.15.5"></a><var>15.5</var>ends in $5, it must be rounded up to the nearest $10 amount.<br/>
<a id="pl.15.6"></a><var>15.6</var>(b) The commissioner shall adjust the rate brackets and by the percentage determined
         <br/>
<a id="pl.15.7"></a><var>15.7</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that
         in section <br/>
<a id="pl.15.8"></a><var>15.8</var>1(f)(3)(B) the word "2012" "2017" shall be substituted for the word "1992." For 2014 2019, <br/>
<a id="pl.15.9"></a><var>15.9</var>the commissioner shall then determine the percent change from the 12 months ending
         on <br/>
<a id="pl.15.10"></a><var>15.10</var>August 31, 2012 2017, to the 12 months ending on August 31, 2013 2018, and in each <br/>
<a id="pl.15.11"></a><var>15.11</var>subsequent year, from the 12 months ending on August 31, 2012 2017, to the 12 months <br/>
<a id="pl.15.12"></a><var>15.12</var>ending on August 31 of the year preceding the taxable year. The determination of the
         <br/>
<a id="pl.15.13"></a><var>15.13</var>commissioner pursuant to this subdivision shall not be considered a "rule" and shall
         not be <br/>
<a id="pl.15.14"></a><var>15.14</var>subject to the Administrative Procedure Act contained in chapter 14.<br/>
<a id="pl.15.15"></a><var>15.15</var>No later than December 15 of each year, the commissioner shall announce the specific
         <br/>
<a id="pl.15.16"></a><var>15.16</var>percentage that will be used to adjust the tax rate brackets.<br/>
<a id="pl.15.17"></a><var>15.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.15.18"></a><var>15.18</var>31, 2018.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.15.19"></a><var>15.19</var>    Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to <br/>
<a id="pl.15.20"></a><var>15.20</var>read:<br/>
<a id="pl.15.21"></a><var>15.21</var>    Subd. 2g. <b>First-time home buyer savings account.</b> In addition to the tax computed <br/>
<a id="pl.15.22"></a><var>15.22</var>under subdivision 2c, an additional amount of tax applies equal to the additional
         tax computed <br/>
<a id="pl.15.23"></a><var>15.23</var>for the taxable year for the account holder of a first-time home buyer account under
         section <br/>
<a id="pl.15.24"></a><var>15.24</var>462D.06, subdivision 3.<br/>
<a id="pl.15.25"></a><var>15.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.15.26"></a><var>15.26</var>31, 2016.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.15.27"></a><var>15.27</var>    Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to <br/>
<a id="pl.15.28"></a><var>15.28</var>read:<br/>
<a id="pl.15.29"></a><var>15.29</var>    Subd. 2h. <b>Temporary schedule of rates for individuals, estates, and trusts.</b> For taxable <br/>
<a id="pl.15.30"></a><var>15.30</var>years beginning after December 31, 2016, and before January 1, 2018:<br/>
<a id="pl.16.1"></a><var>16.1</var>(a) The income taxes imposed by this chapter upon married individuals filing joint
         returns <br/>
<a id="pl.16.2"></a><var>16.2</var>and surviving spouses as defined in section 2(a) of the Internal Revenue Code must
         be <br/>
<a id="pl.16.3"></a><var>16.3</var>computed by applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.16.4"></a><var>16.4</var>(1) On the first $37,110, 5.15 percent;<br/>
<a id="pl.16.5"></a><var>16.5</var>(2) On all over $37,110, but not over $138,180, 7.05 percent;<br/>
<a id="pl.16.6"></a><var>16.6</var>(3) On all over $138,180, but not over $261,510, 7.85 percent;<br/>
<a id="pl.16.7"></a><var>16.7</var>(4) On all over $261,510, 9.85 percent.<br/>
<a id="pl.16.8"></a><var>16.8</var>    Married individuals filing separate returns, estates, and trusts must compute their
         income <br/>
<a id="pl.16.9"></a><var>16.9</var>tax by applying the above rates to their taxable income, except that the income brackets
         <br/>
<a id="pl.16.10"></a><var>16.10</var>will be one-half of the above amounts.<br/>
<a id="pl.16.11"></a><var>16.11</var>(b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.16.12"></a><var>16.12</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.16.13"></a><var>16.13</var>(1) On the first $25,390, 5.15 percent;<br/>
<a id="pl.16.14"></a><var>16.14</var>(2) On all over $25,390, but not over $77,060, 7.05 percent;<br/>
<a id="pl.16.15"></a><var>16.15</var>(3) On all over $77,060, but not over $156,910, 7.85 percent;<br/>
<a id="pl.16.16"></a><var>16.16</var>(4) On all over $156,910, 9.85 percent.<br/>
<a id="pl.16.17"></a><var>16.17</var>(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
         as <br/>
<a id="pl.16.18"></a><var>16.18</var>a head of household as defined in section 2(b) of the Internal Revenue Code must be
         <br/>
<a id="pl.16.19"></a><var>16.19</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.16.20"></a><var>16.20</var>(1) On the first $31,260, 5.15 percent;<br/>
<a id="pl.16.21"></a><var>16.21</var>(2) On all over $31,260, but not over $117,790, 7.05 percent;<br/>
<a id="pl.16.22"></a><var>16.22</var>(3) On all over $117,790, but not over $209,210, 7.85 percent;<br/>
<a id="pl.16.23"></a><var>16.23</var>(4) On all over $209,210, 9.85 percent.<br/>
<a id="pl.16.24"></a><var>16.24</var>(d) The provisions of subdivision 2c, paragraphs (d) and (e), apply to this section.<br/>
<a id="pl.16.25"></a><var>16.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.16.26"></a><var>16.26</var>31, 2016, and before January 1, 2018.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.17.1"></a><var>17.1</var>    Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to <br/>
<a id="pl.17.2"></a><var>17.2</var>read:<br/>
<a id="pl.17.3"></a><var>17.3</var>    Subd. 37. <b>Workforce housing credit.</b> (a) A qualified project investor is allowed a credit <br/>
<a id="pl.17.4"></a><var>17.4</var>against the tax under this chapter equal to the amount certified by the commissioner
         of <br/>
<a id="pl.17.5"></a><var>17.5</var>employment and economic development under section 116J.5491 to the taxpayer as a <br/>
<a id="pl.17.6"></a><var>17.6</var>qualified project investor for the taxable year.<br/>
<a id="pl.17.7"></a><var>17.7</var>(b) The definitions under section 116J.5491 apply to this subdivision.<br/>
<a id="pl.17.8"></a><var>17.8</var>(c) Credits allowed to a partnership, a limited liability company taxed as a partnership,
         <br/>
<a id="pl.17.9"></a><var>17.9</var>S corporation, or multiple owners of property are passed through to the partners,
         members, <br/>
<a id="pl.17.10"></a><var>17.10</var>shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
         <br/>
<a id="pl.17.11"></a><var>17.11</var>shareholder's, or owner's share of the entity's assets or as specially allocated in
         the <br/>
<a id="pl.17.12"></a><var>17.12</var>organizational documents or any other executed agreement, as of the last day of the
         taxable <br/>
<a id="pl.17.13"></a><var>17.13</var>year.<br/>
<a id="pl.17.14"></a><var>17.14</var>(d) Notwithstanding the a tax credit certificate issued by the commissioner of employment
         <br/>
<a id="pl.17.15"></a><var>17.15</var>and economic development under section 116J.5491, the commissioner may utilize any
         <br/>
<a id="pl.17.16"></a><var>17.16</var>audit and examination powers under chapter 270C or 289A to the extent necessary to
         verify <br/>
<a id="pl.17.17"></a><var>17.17</var>that the taxpayer is eligible for the credit and to assess for the amount of any improperly
         <br/>
<a id="pl.17.18"></a><var>17.18</var>claimed credit.<br/>
<a id="pl.17.19"></a><var>17.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.17.20"></a><var>17.20</var>31, 2017, and before January 1, 2019.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.17.21"></a><var>17.21</var>    Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws <br/>
<a id="pl.17.22"></a><var>17.22</var>2017, chapter 1, section 6, is amended to read:<br/>
<a id="pl.17.23"></a><var>17.23</var>    Subdivision 1. <b>Credit allowed.</b> (a) An individual who is a resident of Minnesota is <br/>
<a id="pl.17.24"></a><var>17.24</var>allowed a credit against the tax imposed by this chapter equal to a percentage of
         earned <br/>
<a id="pl.17.25"></a><var>17.25</var>income. To receive a credit, a taxpayer must be eligible for a credit under section
         32 of the <br/>
<a id="pl.17.26"></a><var>17.26</var>Internal Revenue Code.<br/>
<a id="pl.17.27"></a><var>17.27</var>(b) For individuals with no qualifying children, the credit equals 2.10 percent of
         the first <br/>
<a id="pl.17.28"></a><var>17.28</var>$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or
         adjusted <br/>
<a id="pl.17.29"></a><var>17.29</var>gross income, whichever is greater, in excess of $8,130, but in no case is the credit
         less than <br/>
<a id="pl.17.30"></a><var>17.30</var>zero.<br/>
<a id="pl.17.31"></a><var>17.31</var>(c) For individuals with one qualifying child, the credit equals 9.35 percent of the
         first <br/>
<a id="pl.17.32"></a><var>17.32</var>$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or
         adjusted <br/>
<a id="pl.18.1"></a><var>18.1</var>gross income, whichever is greater, in excess of $21,190, but in no case is the credit
         less <br/>
<a id="pl.18.2"></a><var>18.2</var>than zero.<br/>
<a id="pl.18.3"></a><var>18.3</var>(d) For individuals with two or more qualifying children, the credit equals 11 percent
         <br/>
<a id="pl.18.4"></a><var>18.4</var>of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
         <br/>
<a id="pl.18.5"></a><var>18.5</var>income or adjusted gross income, whichever is greater, in excess of $25,130, but in
         no case <br/>
<a id="pl.18.6"></a><var>18.6</var>is the credit less than zero.<br/>
<a id="pl.18.7"></a><var>18.7</var>(e) For a part-year resident, the credit must be allocated based on the percentage
         calculated <br/>
<a id="pl.18.8"></a><var>18.8</var>under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br/>
<a id="pl.18.9"></a><var>18.9</var>(f) For a person who was a resident for the entire tax year and has earned income
         not <br/>
<a id="pl.18.10"></a><var>18.10</var>subject to tax under this chapter, including income excluded under section 
         <statute_ref>290.0132, <br/>
<a id="pl.18.11"></a><var>18.11</var>subdivision 10
         </statute_ref>, the credit must be allocated based on the ratio of federal adjusted gross <br/>
<a id="pl.18.12"></a><var>18.12</var>income reduced by the earned income not subject to tax under this chapter over federal
         <br/>
<a id="pl.18.13"></a><var>18.13</var>adjusted gross income. For purposes of this paragraph, the following clauses are not <br/>
<a id="pl.18.14"></a><var>18.14</var>considered "earned income not subject to tax under this chapter":<br/>
 <a id="pl.18.15"></a><var>18.15</var>(1) the subtractions for military pay under section 
         <statute_ref>290.0132, subdivisions 11</statute_ref> and 12, <br/>
<a id="pl.18.16"></a><var>18.16</var>are not considered "earned income not subject to tax under this chapter."For the purposes
         <br/>
<a id="pl.18.17"></a><var>18.17</var>of this paragraph,;<br/>
<a id="pl.18.18"></a><var>18.18</var>(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not <br/>
<a id="pl.18.19"></a><var>18.19</var>considered "earned income not subject to tax under this chapter."; and<br/>
<a id="pl.18.20"></a><var>18.20</var>(3) income derived from an Indian reservation by an enrolled member of the reservation
         <br/>
<a id="pl.18.21"></a><var>18.21</var>while living on the reservation.<br/>
<a id="pl.18.22"></a><var>18.22</var>(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b),
         the <br/>
<a id="pl.18.23"></a><var>18.23</var>$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
         inflation <br/>
<a id="pl.18.24"></a><var>18.24</var>under subdivision 7, are each increased by $5,000 for married taxpayers filing joint
         returns. <br/>
<a id="pl.18.25"></a><var>18.25</var>For tax years beginning after December 31, 2013, the commissioner shall annually adjust
         <br/>
<a id="pl.18.26"></a><var>18.26</var>the $5,000 by the percentage determined pursuant to the provisions of section 1(f)
         of the <br/>
<a id="pl.18.27"></a><var>18.27</var>Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be
         substituted <br/>
<a id="pl.18.28"></a><var>18.28</var>for the word "1992." For 2014, the commissioner shall then determine the percent change
         <br/>
<a id="pl.18.29"></a><var>18.29</var>from the 12 months ending on August 31, 2008, to the 12 months ending on August 31,
         <br/>
<a id="pl.18.30"></a><var>18.30</var>2013, and in each subsequent year, from the 12 months ending on August 31, 2008, to
         the <br/>
<a id="pl.18.31"></a><var>18.31</var>12 months ending on August 31 of the year preceding the taxable year. The earned income
         <br/>
<a id="pl.18.32"></a><var>18.32</var>thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount
         ends <br/>
<a id="pl.18.33"></a><var>18.33</var>in $5, the amount is rounded up to the nearest $10. The determination of the commissioner
         <br/>
<a id="pl.18.34"></a><var>18.34</var>under this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.19.1"></a><var>19.1</var>(h) The commissioner shall construct tables showing the amount of the credit at various
         <br/>
<a id="pl.19.2"></a><var>19.2</var>income levels and make them available to taxpayers. The tables shall follow the schedule
         <br/>
<a id="pl.19.3"></a><var>19.3</var>contained in this subdivision, except that the commissioner may graduate the transition
         <br/>
<a id="pl.19.4"></a><var>19.4</var>between income brackets.<br/>
<a id="pl.19.5"></a><var>19.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.19.6"></a><var>19.6</var>31, 2016.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.19.7"></a><var>19.7</var>    Sec. 18. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision <br/>
<a id="pl.19.8"></a><var>19.8</var>to read:<br/>
<a id="pl.19.9"></a><var>19.9</var>    Subd. 6. <b>Inflation adjustment.</b> The credit amount and the income threshold at which <br/>
<a id="pl.19.10"></a><var>19.10</var>the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation.
         <br/>
<a id="pl.19.11"></a><var>19.11</var>The commissioner shall adjust the credit amount and income threshold by the percentage
         <br/>
<a id="pl.19.12"></a><var>19.12</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except <br/>
<a id="pl.19.13"></a><var>19.13</var>that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992."
         For <br/>
<a id="pl.19.14"></a><var>19.14</var>2019, the commissioner shall then determine the percent change from the 12 months
         ending <br/>
<a id="pl.19.15"></a><var>19.15</var>on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent
         <br/>
<a id="pl.19.16"></a><var>19.16</var>year, from the 12 months ending August 31, 2017, to the 12 months ending on August
         31 <br/>
<a id="pl.19.17"></a><var>19.17</var>of the year preceding the taxable year. The credit amount and income threshold as
         adjusted <br/>
<a id="pl.19.18"></a><var>19.18</var>for inflation must be rounded to the nearest $10 amount. If the amount ends in $5,
         the amount <br/>
<a id="pl.19.19"></a><var>19.19</var>is rounded up to the nearest $10 amount. The determination of the commissioner under
         this <br/>
<a id="pl.19.20"></a><var>19.20</var>subdivision is not a rule subject to the Administrative Procedure Act in chapter 14,
         including <br/>
<a id="pl.19.21"></a><var>19.21</var>section 14.386.<br/>
<a id="pl.19.22"></a><var>19.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.19.23"></a><var>19.23</var>31, 2018.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.19.24"></a><var>19.24</var>    Sec. 19. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:<br/>
<a id="pl.19.25"></a><var>19.25</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the meanings <br/>
<a id="pl.19.26"></a><var>19.26</var>given.<br/>
<a id="pl.19.27"></a><var>19.27</var>    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         research <br/>
<a id="pl.19.28"></a><var>19.28</var>payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
         it does <br/>
<a id="pl.19.29"></a><var>19.29</var>not include expenses incurred for qualified research or basic research conducted outside
         <br/>
<a id="pl.19.30"></a><var>19.30</var>the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code;
         and <br/>
<a id="pl.19.31"></a><var>19.31</var>(ii) contributions to a nonprofit corporation established and operated pursuant to
         the <br/>
<a id="pl.19.32"></a><var>19.32</var>provisions of chapter 317A for the purpose of promoting the establishment and expansion
         <br/>
<a id="pl.19.33"></a><var>19.33</var>of business in this state, provided the contributions are invested by the nonprofit
         corporation <br/>
<a id="pl.20.1"></a><var>20.1</var>for the purpose of providing funds for small, technologically innovative enterprises
         in <br/>
<a id="pl.20.2"></a><var>20.2</var>Minnesota during the early stages of their development.<br/>
<a id="pl.20.3"></a><var>20.3</var>    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         <br/>
<a id="pl.20.4"></a><var>20.4</var>Internal Revenue Code, except that the term does not include qualified research conducted
         <br/>
<a id="pl.20.5"></a><var>20.5</var>outside the state of Minnesota.<br/>
<a id="pl.20.6"></a><var>20.6</var>    (c) "Base amount" means:<br/>
<a id="pl.20.7"></a><var>20.7</var>    (1) for taxpayers not subject to clause (2), the base amount as defined in section 41(c) <br/>
<a id="pl.20.8"></a><var>20.8</var>of the Internal Revenue Code, except that the average annual gross receipts must be
         calculated <br/>
<a id="pl.20.9"></a><var>20.9</var>using Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the definitions contained in <br/>
<a id="pl.20.10"></a><var>20.10</var>clauses paragraphs (a) and (b) shall apply; or<br/>
<a id="pl.20.11"></a><var>20.11</var>    (2) for a taxpayer with an alternative simplified credit election in place under subdivision
         <br/>
<a id="pl.20.12"></a><var>20.12</var>2a for the taxable year, 50 percent of the average qualified research expenses for
         the three <br/>
<a id="pl.20.13"></a><var>20.13</var>taxable years preceding the taxable year for which the credit is being determined.<br/>
<a id="pl.20.14"></a><var>20.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.20.15"></a><var>20.15</var>31, 2017.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.20.16"></a><var>20.16</var>    Sec. 20. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision <br/>
<a id="pl.20.17"></a><var>20.17</var>to read:<br/>
<a id="pl.20.18"></a><var>20.18</var>    Subd. 2a. <b>Alternative simplified credit election.</b> (a) A corporation, partnership, or other <br/>
<a id="pl.20.19"></a><var>20.19</var>taxpayer qualifying for a credit under this section may elect on an original return,
         including <br/>
<a id="pl.20.20"></a><var>20.20</var>all extensions, to calculate its base amount under subdivision 2, paragraph (c), clause
         (2), <br/>
<a id="pl.20.21"></a><var>20.21</var>for the taxable year. A taxpayer may revoke the election without approval of the <br/>
<a id="pl.20.22"></a><var>20.22</var>commissioner.<br/>
<a id="pl.20.23"></a><var>20.23</var>(b) For a partnership, the election must be made by the partnership on the partnership
         <br/>
<a id="pl.20.24"></a><var>20.24</var>return or other form, as required by the commissioner, and applies to all of its partners.<br/>
<a id="pl.20.25"></a><var>20.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.20.26"></a><var>20.26</var>31, 2017.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.20.27"></a><var>20.27</var>    Sec. 21. <b>[290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN </b><br/>
<a id="pl.20.28"></a><var>20.28</var><b>TEACHER'S LICENSURE FIELD.</b><br/>
<a id="pl.20.29"></a><var>20.29</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.20.30"></a><var>20.30</var>the meanings given them.<br/>
<a id="pl.21.1"></a><var>21.1</var>(b) "Master's degree program" means a graduate-level program at an accredited university
         <br/>
<a id="pl.21.2"></a><var>21.2</var>leading to a master of arts or science degree in a core content area directly related
         to a <br/>
<a id="pl.21.3"></a><var>21.3</var>qualified teacher's licensure field. The master's degree program may not include pedagogy
         <br/>
<a id="pl.21.4"></a><var>21.4</var>or a pedagogy component. To be eligible under this credit, a licensed elementary school
         <br/>
<a id="pl.21.5"></a><var>21.5</var>teacher must pursue and complete a master's degree program in a core content area
         in which <br/>
<a id="pl.21.6"></a><var>21.6</var>the teacher provides direct classroom instruction.<br/>
<a id="pl.21.7"></a><var>21.7</var>(c) "Qualified teacher" means a person who:<br/>
<a id="pl.21.8"></a><var>21.8</var>(1) holds a teaching license issued by the licensing division in the Department of
         <br/>
<a id="pl.21.9"></a><var>21.9</var>Education on behalf of the Minnesota Board of Teaching both when the teacher begins
         the <br/>
<a id="pl.21.10"></a><var>21.10</var>master's degree program and when the teacher completes the master's degree program;<br/>
<a id="pl.21.11"></a><var>21.11</var>(2) began a master's degree program after June 30, 2017; and<br/>
<a id="pl.21.12"></a><var>21.12</var>(3) completes the master's degree program during the taxable year.<br/>
<a id="pl.21.13"></a><var>21.13</var>(d) "Core content area" means the academic subject of reading, English or language
         arts, <br/>
<a id="pl.21.14"></a><var>21.14</var>mathematics, science, foreign languages, civics and government, economics, arts, history,
         <br/>
<a id="pl.21.15"></a><var>21.15</var>or geography.<br/>
<a id="pl.21.16"></a><var>21.16</var>    Subd. 2. <b>Credit allowed.</b> (a) An individual who is a qualified teacher is allowed a credit <br/>
<a id="pl.21.17"></a><var>21.17</var>against the tax imposed under this chapter. The credit equals $2,500.<br/>
<a id="pl.21.18"></a><var>21.18</var>(b) For a nonresident or a part-year resident, the credit under this subdivision must
         be <br/>
<a id="pl.21.19"></a><var>21.19</var>allocated based on the percentage calculated under section 290.06, subdivision 2c,
         paragraph <br/>
<a id="pl.21.20"></a><var>21.20</var>(e).<br/>
<a id="pl.21.21"></a><var>21.21</var>(c) A qualified teacher may claim the credit in this section only one time for each
         master's <br/>
<a id="pl.21.22"></a><var>21.22</var>degree program completed in a core content area.<br/>
<a id="pl.21.23"></a><var>21.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.21.24"></a><var>21.24</var>31, 2016.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.21.25"></a><var>21.25</var>    Sec. 22. <b>[290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.</b><br/>
<a id="pl.21.26"></a><var>21.26</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.21.27"></a><var>21.27</var>the meanings given.<br/>
<a id="pl.21.28"></a><var>21.28</var>(b) "Eligible student" means a student who:<br/>
<a id="pl.21.29"></a><var>21.29</var>(1) resides in Minnesota;<br/>
<a id="pl.21.30"></a><var>21.30</var>(2) is a member of a household that has total annual income during the year prior
         to <br/>
<a id="pl.21.31"></a><var>21.31</var>initial receipt of a qualified scholarship or qualified transportation scholarship,
         without <br/>
<a id="pl.22.1"></a><var>22.1</var>consideration of the benefits under this program, that does not exceed an amount equal
         to <br/>
<a id="pl.22.2"></a><var>22.2</var>two times the income standard used to qualify for a reduced-price meal under the National
         <br/>
<a id="pl.22.3"></a><var>22.3</var>School Lunch Program; and<br/>
<a id="pl.22.4"></a><var>22.4</var>(3) meets one of the following criteria:<br/>
<a id="pl.22.5"></a><var>22.5</var>(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
         <br/>
<a id="pl.22.6"></a><var>22.6</var>preceding initial receipt of a qualified scholarship or qualified transportation scholarship;<br/>
<a id="pl.22.7"></a><var>22.7</var>(ii) is younger than age seven and not enrolled in kindergarten or first grade in
         the <br/>
<a id="pl.22.8"></a><var>22.8</var>semester preceding initial receipt of a qualified scholarship;<br/>
<a id="pl.22.9"></a><var>22.9</var>(iii) previously received a qualified scholarship or qualified transportation scholarship
         <br/>
<a id="pl.22.10"></a><var>22.10</var>under this section; or<br/>
<a id="pl.22.11"></a><var>22.11</var>(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified
         <br/>
<a id="pl.22.12"></a><var>22.12</var>scholarship.<br/>
<a id="pl.22.13"></a><var>22.13</var>(c) "Equity and opportunity in education donation" means a donation to a qualified
         <br/>
<a id="pl.22.14"></a><var>22.14</var>foundation that awards qualified scholarships or qualified transportation scholarships.<br/>
<a id="pl.22.15"></a><var>22.15</var>(d) "Household" means household as used to determine eligibility under the National
         <br/>
<a id="pl.22.16"></a><var>22.16</var>School Lunch Program.<br/>
<a id="pl.22.17"></a><var>22.17</var>(e) "National School Lunch Program" means the program in United States Code, title
         <br/>
<a id="pl.22.18"></a><var>22.18</var>42, section 1758.<br/>
<a id="pl.22.19"></a><var>22.19</var>(f) "Qualified school" means a school operated in Minnesota that is a nonpublic <br/>
<a id="pl.22.20"></a><var>22.20</var>elementary or secondary school in Minnesota wherein a resident may legally fulfill
         the <br/>
<a id="pl.22.21"></a><var>22.21</var>state's compulsory attendance laws that is not operated for profit, and that adheres
         to the <br/>
<a id="pl.22.22"></a><var>22.22</var>provisions of United States Code, title 42, section 1981, chapter 121A, sections 121A.03
         <br/>
<a id="pl.22.23"></a><var>22.23</var>to 121A.0311, and chapter 363A.<br/>
<a id="pl.22.24"></a><var>22.24</var>(g) "Qualified foundation" means a nonprofit organization granted an exemption from
         <br/>
<a id="pl.22.25"></a><var>22.25</var>the federal income tax under section 501(c)(3) of the Internal Revenue Code that has
         been <br/>
<a id="pl.22.26"></a><var>22.26</var>approved as a qualified foundation by the commissioner of revenue under subdivision
         5.<br/>
<a id="pl.22.27"></a><var>22.27</var>(h) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
         <br/>
<a id="pl.22.28"></a><var>22.28</var>of the parent or guardian of an eligible student for payment of tuition for enrollment
         in <br/>
<a id="pl.22.29"></a><var>22.29</var>grades kindergarten through 12 at a qualified school. A qualified scholarship must
         not <br/>
<a id="pl.22.30"></a><var>22.30</var>exceed an amount greater than 70 percent of the state average general education revenue
         <br/>
<a id="pl.22.31"></a><var>22.31</var>under section 126C.10, subdivision 1, per pupil unit.<br/>
<a id="pl.23.1"></a><var>23.1</var>(i) "Total annual income" means the income measure used to determine eligibility under
         <br/>
<a id="pl.23.2"></a><var>23.2</var>the National School Lunch Program in United States Code, title 42, section 1758.<br/>
<a id="pl.23.3"></a><var>23.3</var>(j) "Qualified transportation scholarship" means a payment from a qualified foundation
         <br/>
<a id="pl.23.4"></a><var>23.4</var>to or on behalf of a parent or guardian of an eligible student for payment of transportation
         <br/>
<a id="pl.23.5"></a><var>23.5</var>to a school, as defined in section 120A.22, subdivision 4. A qualified transportation
         <br/>
<a id="pl.23.6"></a><var>23.6</var>scholarship must not exceed an amount greater than 70 percent of the state average
         general <br/>
<a id="pl.23.7"></a><var>23.7</var>education revenue under section 126C.10, subdivision 1, per pupil unit.<br/>
<a id="pl.23.8"></a><var>23.8</var>    Subd. 2. <b>Credit allowed.</b> (a) An individual or corporate taxpayer who has been issued <br/>
<a id="pl.23.9"></a><var>23.9</var>a credit certificate under subdivision 3 is allowed a credit against the tax due under
         this <br/>
<a id="pl.23.10"></a><var>23.10</var>chapter equal to 70 percent of the amount donated during the taxable year to the qualified
         <br/>
<a id="pl.23.11"></a><var>23.11</var>foundation designated on the taxpayer's credit certificate. No credit is allowed if
         the taxpayer <br/>
<a id="pl.23.12"></a><var>23.12</var>designates a specific child as the beneficiary of the contribution. No credit is allowed
         to a <br/>
<a id="pl.23.13"></a><var>23.13</var>taxpayer for an equity and opportunity in education donation made before the taxpayer
         was <br/>
<a id="pl.23.14"></a><var>23.14</var>issued a credit certificate as provided in subdivision 3.<br/>
<a id="pl.23.15"></a><var>23.15</var>(b) The maximum annual credit allowed is:<br/>
<a id="pl.23.16"></a><var>23.16</var>(1) $21,000 for married joint filers for a one-year donation of $30,000;<br/>
<a id="pl.23.17"></a><var>23.17</var>(2) $10,500 for other individual filers for a one-year donation of $15,000; and<br/>
<a id="pl.23.18"></a><var>23.18</var>(3) $105,000 for corporate filers for a one-year donation of $150,000.<br/>
<a id="pl.23.19"></a><var>23.19</var>(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
         <br/>
<a id="pl.23.20"></a><var>23.20</var>when claiming the credit for the donation if requested by the commissioner.<br/>
<a id="pl.23.21"></a><var>23.21</var>(d) The credit is limited to the liability for tax under this chapter, including the
         tax <br/>
<a id="pl.23.22"></a><var>23.22</var>imposed by sections 290.0921 and 290.0922.<br/>
<a id="pl.23.23"></a><var>23.23</var>(e) If the amount of the credit under this subdivision for any taxable year exceeds
         the <br/>
<a id="pl.23.24"></a><var>23.24</var>limitations under paragraph (d), the excess is a credit carryover to each of the five
         succeeding <br/>
<a id="pl.23.25"></a><var>23.25</var>taxable years. The entire amount of the excess unused credit for the taxable year
         must be <br/>
<a id="pl.23.26"></a><var>23.26</var>carried first to the earliest of the taxable years to which the credit may be carried.
         The <br/>
<a id="pl.23.27"></a><var>23.27</var>amount of the unused credit that may be added under this paragraph may not exceed
         the <br/>
<a id="pl.23.28"></a><var>23.28</var>taxpayer's liability for tax, less the credit for the taxable year. No credit may
         be carried to <br/>
<a id="pl.23.29"></a><var>23.29</var>a taxable year more than five years after the taxable year in which the credit was
         earned.<br/>
<a id="pl.23.30"></a><var>23.30</var>    Subd. 3. <b>Application for credit certificate.</b> (a) The commissioner must make applications <br/>
<a id="pl.23.31"></a><var>23.31</var>for tax credits for 2018 available on the department's Web site by January 1, 2018.
         <br/>
<a id="pl.23.32"></a><var>23.32</var>Applications for subsequent years must be made available by January 1 of the taxable
         year.<br/>
<a id="pl.24.1"></a><var>24.1</var>(b) A taxpayer must apply to the commissioner for an equity and opportunity in education
         <br/>
<a id="pl.24.2"></a><var>24.2</var>tax credit certificate. The application must be in the form and manner specified by
         the <br/>
<a id="pl.24.3"></a><var>24.3</var>commissioner and must designate the qualified foundation to which the taxpayer intends
         <br/>
<a id="pl.24.4"></a><var>24.4</var>to make a donation. The commissioner must begin accepting applications for a taxable
         year <br/>
<a id="pl.24.5"></a><var>24.5</var>on January 1. The commissioner must issue tax credit certificates under this section
         on a <br/>
<a id="pl.24.6"></a><var>24.6</var>first-come, first-served basis until the maximum statewide credit amount has been
         reached. <br/>
<a id="pl.24.7"></a><var>24.7</var>The certificates must list the qualified foundation the taxpayer designated on the
         application. <br/>
<a id="pl.24.8"></a><var>24.8</var>The maximum statewide credit amount is $35,000,000 per taxable year for taxable years
         <br/>
<a id="pl.24.9"></a><var>24.9</var>beginning after December 31, 2017.<br/>
<a id="pl.24.10"></a><var>24.10</var>(c) The commissioner must not issue a tax credit certificate for an amount greater
         than <br/>
<a id="pl.24.11"></a><var>24.11</var>the limits in subdivision 2.<br/>
<a id="pl.24.12"></a><var>24.12</var>(d) The commissioner must not issue a credit certificate for an application that designates
         <br/>
<a id="pl.24.13"></a><var>24.13</var>a qualified foundation that the commissioner has barred from participation as provided
         in <br/>
<a id="pl.24.14"></a><var>24.14</var>subdivision 5.<br/>
<a id="pl.24.15"></a><var>24.15</var>    Subd. 4. <b>Responsibilities of qualified foundations.</b> (a) A qualified foundation must:<br/>
<a id="pl.24.16"></a><var>24.16</var>(1) award qualified scholarships and qualified transportation scholarships to eligible
         <br/>
<a id="pl.24.17"></a><var>24.17</var>students;<br/>
<a id="pl.24.18"></a><var>24.18</var>(2) not restrict the availability of scholarships to students of one qualified school;<br/>
<a id="pl.24.19"></a><var>24.19</var>(3) not charge a fee of any kind for a child to be considered for a scholarship; and<br/>
<a id="pl.24.20"></a><var>24.20</var>(4) require a qualified school receiving payment of tuition through a scholarship
         funded <br/>
<a id="pl.24.21"></a><var>24.21</var>by contributions qualifying for the tax credit under this section to sign an agreement
         that it <br/>
<a id="pl.24.22"></a><var>24.22</var>will not use different admissions standards for a student with a qualified scholarship
         or <br/>
<a id="pl.24.23"></a><var>24.23</var>qualified transportation scholarship.<br/>
<a id="pl.24.24"></a><var>24.24</var>(b) An entity that is eligible to be a qualified foundation must apply to the commissioner
         <br/>
<a id="pl.24.25"></a><var>24.25</var>by September 15 of the year preceding the year in which it will first receive equity
         and <br/>
<a id="pl.24.26"></a><var>24.26</var>opportunity in education donations. The application must be in the form and manner
         <br/>
<a id="pl.24.27"></a><var>24.27</var>prescribed by the commissioner. The application must:<br/>
<a id="pl.24.28"></a><var>24.28</var>(1) demonstrate to the commissioner that the entity, if it is a nonprofit organization,
         has <br/>
<a id="pl.24.29"></a><var>24.29</var>been granted an exemption from the federal income tax as an organization described
         in <br/>
<a id="pl.24.30"></a><var>24.30</var>section 501(c)(3) of the Internal Revenue Code; and<br/>
<a id="pl.24.31"></a><var>24.31</var>(2) demonstrate the entity's financial accountability by submitting its most recent
         audited <br/>
<a id="pl.24.32"></a><var>24.32</var>financial statement prepared by a certified public accountant firm licensed under
         chapter <br/>
<a id="pl.25.1"></a><var>25.1</var>326A using the Statements on Auditing Standards issued by the Audit Standards Board
         of <br/>
<a id="pl.25.2"></a><var>25.2</var>the American Institute of Certified Public Accountants.<br/>
<a id="pl.25.3"></a><var>25.3</var>(c) A qualified foundation must provide to taxpayers who make donations or <br/>
<a id="pl.25.4"></a><var>25.4</var>commitments to donate a receipt or verification on a form approved by the commissioner.<br/>
<a id="pl.25.5"></a><var>25.5</var>(d) A qualified foundation in each year it awards qualified scholarships or qualified
         <br/>
<a id="pl.25.6"></a><var>25.6</var>transportation scholarships to eligible students to enroll in a qualified school must
         obtain <br/>
<a id="pl.25.7"></a><var>25.7</var>from the qualified school documentation that the school:<br/>
<a id="pl.25.8"></a><var>25.8</var>(i) complies with all health and safety laws or codes that apply to nonpublic schools;<br/>
<a id="pl.25.9"></a><var>25.9</var>(ii) holds a valid occupancy permit if required by its municipality;<br/>
<a id="pl.25.10"></a><var>25.10</var>(iii) certifies that it adheres to the provisions of chapter 363A and United States
         Code, <br/>
<a id="pl.25.11"></a><var>25.11</var>title 42, section 1981; and<br/>
<a id="pl.25.12"></a><var>25.12</var>(iv) provides academic accountability to parents of students in the program by regularly
         <br/>
<a id="pl.25.13"></a><var>25.13</var>reporting to the parents on the student's progress.<br/>
<a id="pl.25.14"></a><var>25.14</var>A qualified foundation must make the documentation available to the commissioner on
         <br/>
<a id="pl.25.15"></a><var>25.15</var>request.<br/>
<a id="pl.25.16"></a><var>25.16</var>(e) A qualified foundation must, by June 1 of each year following a year in which
         it <br/>
<a id="pl.25.17"></a><var>25.17</var>receives donations and awards scholarships, provide the following information to the
         <br/>
<a id="pl.25.18"></a><var>25.18</var>commissioner:<br/>
<a id="pl.25.19"></a><var>25.19</var>(1) financial information that demonstrates the financial viability of the qualified
         <br/>
<a id="pl.25.20"></a><var>25.20</var>foundation, if it is to receive donations of $150,000 or more during the year;<br/>
<a id="pl.25.21"></a><var>25.21</var>(2) documentation that it has conducted criminal background checks on all of its <br/>
<a id="pl.25.22"></a><var>25.22</var>employees and board members and has excluded from employment or governance any <br/>
<a id="pl.25.23"></a><var>25.23</var>individuals who might reasonably pose a risk to the appropriate use of contributed
         funds;<br/>
<a id="pl.25.24"></a><var>25.24</var>(3) consistent with paragraph (f), document that it has used amounts received as donations
         <br/>
<a id="pl.25.25"></a><var>25.25</var>to provide qualified scholarships within one calendar year of the calendar year in
         which it <br/>
<a id="pl.25.26"></a><var>25.26</var>received the donation;<br/>
<a id="pl.25.27"></a><var>25.27</var>(4) a listing of qualified schools that enrolled eligible students to whom the qualified
         <br/>
<a id="pl.25.28"></a><var>25.28</var>foundation awarded qualified scholarships; and<br/>
<a id="pl.25.29"></a><var>25.29</var>(5) the following information prepared by a certified public accountant regarding
         <br/>
<a id="pl.25.30"></a><var>25.30</var>donations received and scholarships awarded in the previous calendar year:<br/>
<a id="pl.25.31"></a><var>25.31</var>(i) the total number and total dollar amount of donations received from taxpayers;<br/>
<a id="pl.26.1"></a><var>26.1</var>(ii) the total number and total dollar amount of qualified scholarships and qualified
         <br/>
<a id="pl.26.2"></a><var>26.2</var>transportation scholarships awarded; and<br/>
<a id="pl.26.3"></a><var>26.3</var>(iii) the dollar amount of donations used for administrative expenses, as allowed
         by <br/>
<a id="pl.26.4"></a><var>26.4</var>paragraph (f).<br/>
<a id="pl.26.5"></a><var>26.5</var>(f) The foundation may use up to five percent of the amounts received as donations
         for <br/>
<a id="pl.26.6"></a><var>26.6</var>reasonable administrative expenses, including but not limited to fund-raising, scholarship
         <br/>
<a id="pl.26.7"></a><var>26.7</var>tracking, and reporting requirements.<br/>
<a id="pl.26.8"></a><var>26.8</var>    Subd. 5. <b>Responsibilities of commissioner.</b> (a) The commissioner must make <br/>
<a id="pl.26.9"></a><var>26.9</var>applications for an entity to be approved as a qualified foundation for a taxable
         year available <br/>
<a id="pl.26.10"></a><var>26.10</var>on the department's Web site by August 1 of the year preceding the taxable year. The
         <br/>
<a id="pl.26.11"></a><var>26.11</var>commissioner must approve an application that provides the documentation required
         in <br/>
<a id="pl.26.12"></a><var>26.12</var>subdivision 4, paragraph (b), clauses (1) and (2), within 60 days of receiving the
         application. <br/>
<a id="pl.26.13"></a><var>26.13</var>The commissioner must notify a foundation that provides incomplete documentation and
         <br/>
<a id="pl.26.14"></a><var>26.14</var>the foundation may resubmit its application within 30 days.<br/>
<a id="pl.26.15"></a><var>26.15</var>(b) By November 15 of each year, the commissioner must post on the department's Web
         <br/>
<a id="pl.26.16"></a><var>26.16</var>site the names and addresses of qualified foundations for the next taxable year. The
         <br/>
<a id="pl.26.17"></a><var>26.17</var>commissioner must regularly update the names and addresses of any qualified foundations
         <br/>
<a id="pl.26.18"></a><var>26.18</var>that have been barred from participating in the program.<br/>
<a id="pl.26.19"></a><var>26.19</var>(c) The commissioner must prescribe a standardized format for a receipt to be issued
         by <br/>
<a id="pl.26.20"></a><var>26.20</var>a qualified foundation to a taxpayer to indicate the value of a donation received
         and of a <br/>
<a id="pl.26.21"></a><var>26.21</var>commitment to make a donation.<br/>
<a id="pl.26.22"></a><var>26.22</var>(d) The commissioner must prescribe a standardized format for qualified foundations
         <br/>
<a id="pl.26.23"></a><var>26.23</var>to report the information required under subdivision 4, paragraph (e).<br/>
<a id="pl.26.24"></a><var>26.24</var>(e) The commissioner may conduct either a financial review or audit of a qualified
         <br/>
<a id="pl.26.25"></a><var>26.25</var>foundation upon finding evidence of fraud or intentional misreporting. If the commissioner
         <br/>
<a id="pl.26.26"></a><var>26.26</var>determines that the qualified foundation committed fraud or intentionally misreported
         <br/>
<a id="pl.26.27"></a><var>26.27</var>information, the qualified foundation is barred from further program participation.<br/>
<a id="pl.26.28"></a><var>26.28</var>(f) If a qualified foundation fails to submit the documentation required under subdivision
         <br/>
<a id="pl.26.29"></a><var>26.29</var>4, paragraph (e), by June 1, the commissioner must notify the qualified foundation
         by July <br/>
<a id="pl.26.30"></a><var>26.30</var>1. A qualified foundation that fails to submit the required information by August
         1 is barred <br/>
<a id="pl.26.31"></a><var>26.31</var>from participation for the next taxable year.<br/>
<a id="pl.26.32"></a><var>26.32</var>(g) If a qualified foundation fails to comply with the requirements of subdivision
         4, <br/>
<a id="pl.26.33"></a><var>26.33</var>paragraph (e), the commissioner must by September 1 notify the qualified foundation
         that <br/>
<a id="pl.27.1"></a><var>27.1</var>it has until November 1 to document that it has remedied its noncompliance. A qualified
         <br/>
<a id="pl.27.2"></a><var>27.2</var>foundation that fails to document that it has remedied its noncompliance by November
         1 is <br/>
<a id="pl.27.3"></a><var>27.3</var>barred from participation for the next taxable year.<br/>
 <a id="pl.27.4"></a><var>27.4</var>(h) A qualified foundation barred under paragraph (f) or (g) may become eligible to
         <br/>
<a id="pl.27.5"></a><var>27.5</var>participate by submitting the required information in future years.<br/>
<a id="pl.27.6"></a><var>27.6</var>    Subd. 6. <b>Mandatory inclusion for people with disabilities.</b> No otherwise qualified <br/>
<a id="pl.27.7"></a><var>27.7</var>individual with a disability, as defined in Minnesota Statutes, shall, solely by reason
         of the <br/>
<a id="pl.27.8"></a><var>27.8</var>individual's disability, be excluded from the participation in, be denied the benefits
         of, or <br/>
<a id="pl.27.9"></a><var>27.9</var>be subjected to discrimination under any program or activity receiving funding from
         tax <br/>
<a id="pl.27.10"></a><var>27.10</var>credits defined within this section.<br/>
<a id="pl.27.11"></a><var>27.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.27.12"></a><var>27.12</var>donations made and credits allowed in taxable years beginning after December 31, 2017.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.27.13"></a><var>27.13</var>    Sec. 23. Minnesota Statutes 2016, section 290.081, is amended to read:<br/>
<a id="pl.27.14"></a><var>27.14</var><b>290.081 INCOME OF NONRESIDENTS, RECIPROCITY.</b><br/>
<a id="pl.27.15"></a><var>27.15</var>(a) The compensation received for the performance of personal or professional services
         <br/>
<a id="pl.27.16"></a><var>27.16</var>within this state by an individual whose residence, place of abode, and place customarily
         <br/>
<a id="pl.27.17"></a><var>27.17</var>returned to at least once a month is in another state, shall be excluded from gross
         income <br/>
<a id="pl.27.18"></a><var>27.18</var>to the extent such compensation is subject to an income tax imposed by the state of
         residence; <br/>
<a id="pl.27.19"></a><var>27.19</var>provided that such state allows a similar exclusion of compensation received by residents
         <br/>
<a id="pl.27.20"></a><var>27.20</var>of Minnesota for services performed therein.<br/>
<a id="pl.27.21"></a><var>27.21</var>(b) When it is deemed to be in the best interests of the people of this state, the
         <br/>
<a id="pl.27.22"></a><var>27.22</var>commissioner may determine that the provisions of paragraph (a) shall not apply. As
         long <br/>
<a id="pl.27.23"></a><var>27.23</var>as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
         <br/>
<a id="pl.27.24"></a><var>27.24</var>of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.<br/>
<a id="pl.27.25"></a><var>27.25</var>(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents
         <br/>
<a id="pl.27.26"></a><var>27.26</var>which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax
         <br/>
<a id="pl.27.27"></a><var>27.27</var>on Wisconsin residents which would have been paid Minnesota without paragraph (a),
         or <br/>
<a id="pl.27.28"></a><var>27.28</var>vice versa, then the state with the net revenue loss resulting from calculated under paragraph <br/>
<a id="pl.27.29"></a><var>27.29</var>(a) (e) shall receive from the other state the amount of such loss. This provision shall be <br/>
<a id="pl.27.30"></a><var>27.30</var>effective for all years beginning after December 31, 1972. The data used for computing
         the <br/>
<a id="pl.27.31"></a><var>27.31</var>loss to either state shall be determined on or before September 30 of the year following
         the <br/>
<a id="pl.27.32"></a><var>27.32</var>close of the previous calendar year.<br/>
<a id="pl.28.1"></a><var>28.1</var>(d) (1) Interest is payable on all amounts calculated under paragraph (c) relating to
         <br/>
<a id="pl.28.2"></a><var>28.2</var>taxable years beginning after December 31, 2000. Interest accrues from July 1 of the
         taxable <br/>
<a id="pl.28.3"></a><var>28.3</var>year Payments for amounts calculated under paragraph (c) must equal one-quarter of the
         <br/>
<a id="pl.28.4"></a><var>28.4</var>estimated annual amount and must be paid at the midpoint of each quarter, on February
         15, <br/>
<a id="pl.28.5"></a><var>28.5</var>May 15, August 15, and November 15.<br/>
<a id="pl.28.6"></a><var>28.6</var>(2) (e)(1)The commissioner of revenue is authorized to enter into agreements with the <br/>
<a id="pl.28.7"></a><var>28.7</var>state of Wisconsin specifying the reciprocity payment due dates, conditions constituting
         <br/>
<a id="pl.28.8"></a><var>28.8</var>delinquency, interest rates, and a method for computing interest due.<br/>
<a id="pl.28.9"></a><var>28.9</var>(3) (2) For agreements entered into before October 1, 2014 2017, the annual compensation <br/>
<a id="pl.28.10"></a><var>28.10</var>required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 up <br/>
<a id="pl.28.11"></a><var>28.11</var>to $3,000,000 per fiscal year.<br/>
<a id="pl.28.12"></a><var>28.12</var>(4) For agreements entered into after September 30, 2014, the annual compensation
         <br/>
<a id="pl.28.13"></a><var>28.13</var>required under paragraph (c) must equal the net revenue loss per fiscal year.<br/>
<a id="pl.28.14"></a><var>28.14</var>(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the <br/>
<a id="pl.28.15"></a><var>28.15</var>difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing
         <br/>
<a id="pl.28.16"></a><var>28.16</var>Wisconsin residents on income subject to reciprocity and the credit Minnesota would
         have <br/>
<a id="pl.28.17"></a><var>28.17</var>been required to give under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, to Minnesota residents working <br/>
<a id="pl.28.18"></a><var>28.18</var>in Wisconsin had there not been reciprocity.<br/>
<a id="pl.28.19"></a><var>28.19</var>(4) All agreements must include provisions:<br/>
<a id="pl.28.20"></a><var>28.20</var>(i) providing for a suspension of the agreement if one party to the agreement does
         not <br/>
<a id="pl.28.21"></a><var>28.21</var>pay in full by a time proscribed in the agreement;<br/>
<a id="pl.28.22"></a><var>28.22</var>(ii) setting the interest rate that will be applied, and that interest shall run from
         the date <br/>
<a id="pl.28.23"></a><var>28.23</var>the payment is due until the day the payment is made, except that interest from the
         <br/>
<a id="pl.28.24"></a><var>28.24</var>reconciliation payments runs from July 1 of the tax year until paid;<br/>
<a id="pl.28.25"></a><var>28.25</var>(iii) stating a time for annual reconciliation must be completed by October 31 of
         the <br/>
<a id="pl.28.26"></a><var>28.26</var>year following the tax year, and the time for payment of any amounts to be completed
         by <br/>
<a id="pl.28.27"></a><var>28.27</var>no later than December 1 of the year following the tax year;<br/>
<a id="pl.28.28"></a><var>28.28</var>(iv) requiring the parties to jointly conduct updated benchmark studies every five
         years <br/>
<a id="pl.28.29"></a><var>28.29</var>beginning tax year 2018;<br/>
<a id="pl.28.30"></a><var>28.30</var>(v) requiring each party to the agreement to require taxpayers who request exemption
         <br/>
<a id="pl.28.31"></a><var>28.31</var>from withholding in the state where they work to make an annual application and that
         a list <br/>
<a id="pl.28.32"></a><var>28.32</var>of participants will be exchanged annually; and<br/>
<a id="pl.29.1"></a><var>29.1</var>(vi) the sum of the amount of the quarterly payments must be a reasonable estimate
         of <br/>
<a id="pl.29.2"></a><var>29.2</var>the revenue loss as defined in item (iii).<br/>
<a id="pl.29.3"></a><var>29.3</var>(e) (f) If an agreement cannot be reached as to the amount of the loss, the commissioner <br/>
<a id="pl.29.4"></a><var>29.4</var>of revenue and the taxing official of the state of Wisconsin shall each appoint a
         member of <br/>
<a id="pl.29.5"></a><var>29.5</var>a board of arbitration and these members shall appoint the third member of the board.
         The <br/>
<a id="pl.29.6"></a><var>29.6</var>board shall select one of its members as chair. Such board may administer oaths, take
         <br/>
<a id="pl.29.7"></a><var>29.7</var>testimony, subpoena witnesses, and require their attendance, require the production
         of books, <br/>
<a id="pl.29.8"></a><var>29.8</var>papers and documents, and hold hearings at such places as are deemed necessary. The
         board <br/>
<a id="pl.29.9"></a><var>29.9</var>shall then make a determination as to the amount to be paid the other state which
         <br/>
<a id="pl.29.10"></a><var>29.10</var>determination shall be final and conclusive.<br/>
<a id="pl.29.11"></a><var>29.11</var>(f) (g) The commissioner may furnish copies of returns, reports, or other information to
         <br/>
<a id="pl.29.12"></a><var>29.12</var>the taxing official of the state of Wisconsin, a member of the board of arbitration,
         or a <br/>
<a id="pl.29.13"></a><var>29.13</var>consultant under joint contract with the states of Minnesota and Wisconsin for the
         purpose <br/>
<a id="pl.29.14"></a><var>29.14</var>of making a determination as to the amount to be paid the other state under the provisions
         <br/>
<a id="pl.29.15"></a><var>29.15</var>of this section. Prior to the release of any information under the provisions of this
         section, <br/>
<a id="pl.29.16"></a><var>29.16</var>the person to whom the information is to be released shall sign an agreement which
         provides <br/>
<a id="pl.29.17"></a><var>29.17</var>that the person will protect the confidentiality of the returns and information revealed
         thereby <br/>
<a id="pl.29.18"></a><var>29.18</var>to the extent that it is protected under the laws of the state of Minnesota.<br/>
<a id="pl.29.19"></a><var>29.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.29.20"></a><var>29.20</var>31, 2017.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.29.21"></a><var>29.21</var>    Sec. 24. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:<br/>
<a id="pl.29.22"></a><var>29.22</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.29.23"></a><var>29.23</var>terms have the meanings given:<br/>
<a id="pl.29.24"></a><var>29.24</var>    (a) "Alternative minimum taxable income" means the sum of the following for the taxable
         <br/>
<a id="pl.29.25"></a><var>29.25</var>year:<br/>
<a id="pl.29.26"></a><var>29.26</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section
         <br/>
<a id="pl.29.27"></a><var>29.27</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.29.28"></a><var>29.28</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
         <br/>
<a id="pl.29.29"></a><var>29.29</var>taxable income, but excluding:<br/>
<a id="pl.29.30"></a><var>29.30</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue
         Code;<br/>
<a id="pl.29.31"></a><var>29.31</var>    (ii) the medical expense deduction;<br/>
<a id="pl.29.32"></a><var>29.32</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.30.1"></a><var>30.1</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.30.2"></a><var>30.2</var>    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
         <br/>
<a id="pl.30.3"></a><var>30.3</var>Code, with respect to each property (as defined in section 614 of the Internal Revenue
         Code), <br/>
<a id="pl.30.4"></a><var>30.4</var>to the extent not included in federal alternative minimum taxable income, the excess
         of the <br/>
<a id="pl.30.5"></a><var>30.5</var>deduction for depletion allowable under section 611 of the Internal Revenue Code for
         the <br/>
<a id="pl.30.6"></a><var>30.6</var>taxable year over the adjusted basis of the property at the end of the taxable year
         (determined <br/>
<a id="pl.30.7"></a><var>30.7</var>without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.30.8"></a><var>30.8</var>    (4) to the extent not included in federal alternative minimum taxable income, the
         amount <br/>
<a id="pl.30.9"></a><var>30.9</var>of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal
         Revenue <br/>
<a id="pl.30.10"></a><var>30.10</var>Code determined without regard to subparagraph (E);<br/>
<a id="pl.30.11"></a><var>30.11</var>    (5) to the extent not included in federal alternative minimum taxable income, the
         amount <br/>
<a id="pl.30.12"></a><var>30.12</var>of interest income as provided by section 
         <statute_ref>290.0131, subdivision 2</statute_ref>; and<br/>
<a id="pl.30.13"></a><var>30.13</var>    (6) the amount of addition required by section 
         <statute_ref>290.0131, subdivisions 9</statute_ref> to 11;<br/>
<a id="pl.30.14"></a><var>30.14</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.30.15"></a><var>30.15</var>    (1) interest income as defined in section 
         <statute_ref>290.0132, subdivision 2</statute_ref>;<br/>
<a id="pl.30.16"></a><var>30.16</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.0132, subdivision 3</statute_ref>, <br/>
<a id="pl.30.17"></a><var>30.17</var>to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.30.18"></a><var>30.18</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.30.19"></a><var>30.19</var>indebtedness to the extent that the amount does not exceed net investment income,
         as defined <br/>
<a id="pl.30.20"></a><var>30.20</var>in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts
         deducted <br/>
<a id="pl.30.21"></a><var>30.21</var>in computing federal adjusted gross income;<br/>
<a id="pl.30.22"></a><var>30.22</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.0132, <br/>
<a id="pl.30.23"></a><var>30.23</var>subdivisions 7
         </statute_ref>, 9 to 15, 17, and 21, 23, and 24; and<br/>
<a id="pl.30.24"></a><var>30.24</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision 11</statute_ref>, <br/>
<a id="pl.30.25"></a><var>30.25</var>paragraph (c).<br/>
<a id="pl.30.26"></a><var>30.26</var>    In the case of an estate or trust, alternative minimum taxable income must be computed
         <br/>
<a id="pl.30.27"></a><var>30.27</var>as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.30.28"></a><var>30.28</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
         of <br/>
<a id="pl.30.29"></a><var>30.29</var>the Internal Revenue Code.<br/>
<a id="pl.30.30"></a><var>30.30</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.31.1"></a><var>31.1</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without
         regard <br/>
<a id="pl.31.2"></a><var>31.2</var>to this section and section 290.032), reduced by the sum of the nonrefundable credits
         allowed <br/>
<a id="pl.31.3"></a><var>31.3</var>under this chapter.<br/>
<a id="pl.31.4"></a><var>31.4</var>    (e) "Tentative minimum tax" equals 
         <statute_ref>6.75</statute_ref> percent of alternative minimum taxable income <br/>
<a id="pl.31.5"></a><var>31.5</var>after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.31.6"></a><var>31.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.31.7"></a><var>31.7</var>31, 2016.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.31.8"></a><var>31.8</var>    Sec. 25. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws <br/>
<a id="pl.31.9"></a><var>31.9</var>2017, chapter 1, section 8, is amended to read:<br/>
<a id="pl.31.10"></a><var>31.10</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following terms <br/>
<a id="pl.31.11"></a><var>31.11</var>used in this chapter shall have the following meanings:<br/>
<a id="pl.31.12"></a><var>31.12</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.31.13"></a><var>31.13</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.31.14"></a><var>31.14</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be
         valued <br/>
<a id="pl.31.15"></a><var>31.15</var>and otherwise determined for federal estate tax purposes under the Internal Revenue
         Code, <br/>
<a id="pl.31.16"></a><var>31.16</var>increased by the value of any property in which the decedent had a qualifying income
         interest <br/>
<a id="pl.31.17"></a><var>31.17</var>for life and for which an election was made under section 
         <statute_ref>291.03, subdivision 1d</statute_ref>, for <br/>
<a id="pl.31.18"></a><var>31.18</var>Minnesota estate tax purposes, but was not made for federal estate tax purposes.<br/>
<a id="pl.31.19"></a><var>31.19</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
         <br/>
<a id="pl.31.20"></a><var>31.20</var>as amended through December 16, 2016.<br/>
<a id="pl.31.21"></a><var>31.21</var>    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
         <br/>
<a id="pl.31.22"></a><var>31.22</var>excluding therefrom any property included in the estate which has its situs outside
         Minnesota, <br/>
<a id="pl.31.23"></a><var>31.23</var>and (b) including any property omitted from the federal gross estate which is includable
         in <br/>
<a id="pl.31.24"></a><var>31.24</var>the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.<br/>
<a id="pl.31.25"></a><var>31.25</var>    (5) "Nonresident decedent" means an individual whose domicile at the time of death
         <br/>
<a id="pl.31.26"></a><var>31.26</var>was not in Minnesota.<br/>
<a id="pl.31.27"></a><var>31.27</var>    (6) "Personal representative" means the executor, administrator or other person appointed
         <br/>
<a id="pl.31.28"></a><var>31.28</var>by the court to administer and dispose of the property of the decedent. If there is
         no executor, <br/>
<a id="pl.31.29"></a><var>31.29</var>administrator or other person appointed, qualified, and acting within this state,
         then any <br/>
<a id="pl.31.30"></a><var>31.30</var>person in actual or constructive possession of any property having a situs in this
         state which <br/>
<a id="pl.31.31"></a><var>31.31</var>is included in the federal gross estate of the decedent shall be deemed to be a personal
         <br/>
<a id="pl.32.1"></a><var>32.1</var>representative to the extent of the property and the Minnesota estate tax due with
         respect <br/>
<a id="pl.32.2"></a><var>32.2</var>to the property.<br/>
<a id="pl.32.3"></a><var>32.3</var>    (7) "Resident decedent" means an individual whose domicile at the time of death was
         <br/>
<a id="pl.32.4"></a><var>32.4</var>in Minnesota. The provisions of section 290.01, subdivision 7, paragraph (c), apply to <br/>
<a id="pl.32.5"></a><var>32.5</var>determinations of domicile under this chapter.<br/>
<a id="pl.32.6"></a><var>32.6</var>    (8) "Situs of property" means, with respect to:<br/>
<a id="pl.32.7"></a><var>32.7</var>    (i) real property, the state or country in which it is located;<br/>
<a id="pl.32.8"></a><var>32.8</var>    (ii) tangible personal property, the state or country in which it was normally kept
         or <br/>
<a id="pl.32.9"></a><var>32.9</var>located at the time of the decedent's death or for a gift of tangible personal property
         within <br/>
<a id="pl.32.10"></a><var>32.10</var>three years of death, the state or country in which it was normally kept or located
         when the <br/>
<a id="pl.32.11"></a><var>32.11</var>gift was executed;<br/>
<a id="pl.32.12"></a><var>32.12</var>    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
         <br/>
<a id="pl.32.13"></a><var>32.13</var>Code, owned by a nonresident decedent and that is normally kept or located in this
         state <br/>
<a id="pl.32.14"></a><var>32.14</var>because it is on loan to an organization, qualifying as exempt from taxation under
         section <br/>
<a id="pl.32.15"></a><var>32.15</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of
         the art is <br/>
<a id="pl.32.16"></a><var>32.16</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br/>
<a id="pl.32.17"></a><var>32.17</var>    (iv) intangible personal property, the state or country in which the decedent was
         domiciled <br/>
<a id="pl.32.18"></a><var>32.18</var>at death or for a gift of intangible personal property within three years of death,
         the state or <br/>
<a id="pl.32.19"></a><var>32.19</var>country in which the decedent was domiciled when the gift was executed.<br/>
<a id="pl.32.20"></a><var>32.20</var>    For a nonresident decedent with an ownership interest in a pass-through entity with
         <br/>
<a id="pl.32.21"></a><var>32.21</var>assets that include real or tangible personal property, situs of the real or tangible
         personal <br/>
<a id="pl.32.22"></a><var>32.22</var>property, including qualified works of art, is determined as if the pass-through entity
         does <br/>
<a id="pl.32.23"></a><var>32.23</var>not exist and the real or tangible personal property is personally owned by the decedent.
         If <br/>
<a id="pl.32.24"></a><var>32.24</var>the pass-through entity is owned by a person or persons in addition to the decedent,
         ownership <br/>
<a id="pl.32.25"></a><var>32.25</var>of the property is attributed to the decedent in proportion to the decedent's capital
         ownership <br/>
<a id="pl.32.26"></a><var>32.26</var>share of the pass-through entity.<br/>
<a id="pl.32.27"></a><var>32.27</var>(9) "Pass-through entity" includes the following:<br/>
<a id="pl.32.28"></a><var>32.28</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue
         <br/>
<a id="pl.32.29"></a><var>32.29</var>Code;<br/>
<a id="pl.32.30"></a><var>32.30</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br/>
<a id="pl.33.1"></a><var>33.1</var>(iii) a single-member limited liability company or similar entity, regardless of whether
         <br/>
<a id="pl.33.2"></a><var>33.2</var>it is taxed as an association or is disregarded for federal income tax purposes under
         Code <br/>
<a id="pl.33.3"></a><var>33.3</var>of Federal Regulations, title 26, section 301.7701-3; or<br/>
<a id="pl.33.4"></a><var>33.4</var>(iv) a trust to the extent the property is includible in the decedent's federal gross
         estate; <br/>
<a id="pl.33.5"></a><var>33.5</var>but excludes<br/>
<a id="pl.33.6"></a><var>33.6</var>    (v) an entity whose ownership interest securities are traded on an exchange regulated
         <br/>
<a id="pl.33.7"></a><var>33.7</var>by the Securities and Exchange Commission as a national securities exchange under
         section <br/>
<a id="pl.33.8"></a><var>33.8</var>6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br/>
<a id="pl.33.9"></a><var>33.9</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.33.10"></a><var>33.10</var>dying after December 31, 2016.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.33.11"></a><var>33.11</var>    Sec. 26. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:<br/>
<a id="pl.33.12"></a><var>33.12</var>    Subd. 3. <b>Subtraction.</b> (a) For estates of decedents dying in 2017, the value of qualified <br/>
<a id="pl.33.13"></a><var>33.13</var>small business property under section 
<statute_ref>291.03, subdivision 9</statute_ref>, and the value of qualified farm <br/>
<a id="pl.33.14"></a><var>33.14</var>property under section 
<statute_ref>291.03, subdivision 10</statute_ref>, or the result of $5,000,000 minus $1,800,000, <br/>
<a id="pl.33.15"></a><var>33.15</var>whichever is less, may be subtracted in computing the Minnesota taxable estate but
         must <br/>
<a id="pl.33.16"></a><var>33.16</var>not reduce the Minnesota taxable estate to less than zero.<br/>
<a id="pl.33.17"></a><var>33.17</var>(b) For estates of decedents dying after December 31, 2017, and before January 1,
         2022, <br/>
<a id="pl.33.18"></a><var>33.18</var>the subtraction equals the sum of the applicable amount for the year of death under
         paragraphs <br/>
<a id="pl.33.19"></a><var>33.19</var>(c) and (d).<br/>
<a id="pl.33.20"></a><var>33.20</var>(c) The value of qualified small business property under section 
         <statute_ref>291.03, subdivision 9</statute_ref>, <br/>
<a id="pl.33.21"></a><var>33.21</var>and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision 10</statute_ref>, or the result <br/>
<a id="pl.33.22"></a><var>33.22</var>of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5),
         whichever <br/>
<a id="pl.33.23"></a><var>33.23</var>is less, up to the amounts listed in clauses (1) to (4), may be subtracted included in computing <br/>
<a id="pl.33.24"></a><var>33.24</var>the Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than <br/>
<a id="pl.33.25"></a><var>33.25</var>zero:<br/>
<a id="pl.33.26"></a><var>33.26</var>(1) $1,200,000 for estates of decedents dying in 2014;<br/>
<a id="pl.33.27"></a><var>33.27</var>(2) $1,400,000 $2,100,000 for estates of decedents dying in 2015 2018;<br/>
<a id="pl.33.28"></a><var>33.28</var>(3) $1,600,000 (2) $1,700,000 for estates of decedents dying in 2016 2019;<br/>
<a id="pl.33.29"></a><var>33.29</var>(4) $1,800,000 (3) $1,300,000 for estates of decedents dying in 2017; and 2020<br/>
<a id="pl.33.30"></a><var>33.30</var>(5) $2,000,000 (4) $900,000 for estates of decedents dying in 2018 and thereafter 2021.<br/>
<a id="pl.34.1"></a><var>34.1</var>(d) In addition to the amounts under paragraph (b), the following amount for the year
         <br/>
<a id="pl.34.2"></a><var>34.2</var>of death listed in clauses (1) to (4) may be included in computing the Minnesota taxable
         <br/>
<a id="pl.34.3"></a><var>34.3</var>estate:<br/>
<a id="pl.34.4"></a><var>34.4</var>(1) $2,900,000 for estates of decedents dying in 2018;<br/>
<a id="pl.34.5"></a><var>34.5</var>(2) $3,300,000 for estates of decedents dying in 2019;<br/>
<a id="pl.34.6"></a><var>34.6</var>(3) $3,700,000 for estates of decedents dying in 2020; and<br/>
<a id="pl.34.7"></a><var>34.7</var>(4) $4,100,000 for estates of decedents dying in 2021.<br/>
<a id="pl.34.8"></a><var>34.8</var>(e) For estates of decedents dying in 2022, the subtraction equals $5,000,000.<br/>
<a id="pl.34.9"></a><var>34.9</var>(f) For estates of decedents dying in 2023 and thereafter, the subtraction equals
         the <br/>
<a id="pl.34.10"></a><var>34.10</var>decedent's applicable federal exclusion amount under section 2010(c)(2) of the Internal
         <br/>
<a id="pl.34.11"></a><var>34.11</var>Revenue Code, but must not reduce the Minnesota taxable estate to less than zero.<br/>
<a id="pl.34.12"></a><var>34.12</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.34.13"></a><var>34.13</var>dying after December 31, 2016.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.34.14"></a><var>34.14</var>    Sec. 27. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:<br/>
<a id="pl.34.15"></a><var>34.15</var>    Subdivision 1. <b>Tax amount.</b> The tax imposed must be computed by applying to the <br/>
<a id="pl.34.16"></a><var>34.16</var>Minnesota taxable estate the following schedule of rates and then the resulting amount
         <br/>
<a id="pl.34.17"></a><var>34.17</var>multiplied by a fraction, not greater than one, the numerator of which is the value
         of the <br/>
<a id="pl.34.18"></a><var>34.18</var>Minnesota gross estate plus the value of gifts under section 
         <statute_ref>291.016, subdivision 2</statute_ref>, clause <br/>
<a id="pl.34.19"></a><var>34.19</var>(3), with a Minnesota situs, and the denominator of which is the federal gross estate
         plus <br/>
<a id="pl.34.20"></a><var>34.20</var>the value of gifts under section 
         <statute_ref>291.016, subdivision 2</statute_ref>, clause (3):<br/>
<a id="pl.34.21"></a><var>34.21</var>    (a) For estates of decedents dying in 2014:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.34.22"></a><var>34.22</var><br/>
</td>
<td align="center" valign="top">Amount of Minnesota Taxable Estate<br/>
</td>
<td align="center" valign="top">Rate of Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.23"></a><var>34.23</var><br/>
</td>
<td valign="top">Not over $1,200,000<br/>
</td>
<td valign="top">None<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.24"></a><var>34.24</var><br/>
</td>
<td valign="top">Over $1,200,000 but not over $1,400,000<br/>
</td>
<td valign="top">nine percent of the excess over $1,200,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.25"></a><var>34.25</var><br/>
<a id="pl.34.26"></a><var>34.26</var><br/>
</td>
<td valign="top">Over $1,400,000 but not over $3,600,000<br/>
</td>
<td valign="top">$18,000 plus ten percent of the excess over <br/>
$1,400,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.27"></a><var>34.27</var><br/>
<a id="pl.34.28"></a><var>34.28</var><br/>
</td>
<td valign="top">Over $3,600,000 but not over $4,100,000<br/>
</td>
<td valign="top">$238,000 plus 10.4 percent of the excess over <br/>
$3,600,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.29"></a><var>34.29</var><br/>
<a id="pl.34.30"></a><var>34.30</var><br/>
</td>
<td valign="top">Over $4,100,000 but not over $5,100,000<br/>
</td>
<td valign="top">$290,000 plus 11.2 percent of the excess over <br/>
$4,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.31"></a><var>34.31</var><br/>
<a id="pl.34.32"></a><var>34.32</var><br/>
</td>
<td valign="top">Over $5,100,000 but not over $6,100,000<br/>
</td>
<td valign="top">$402,000 plus 12 percent of the excess over <br/>
$5,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.33"></a><var>34.33</var><br/>
<a id="pl.34.34"></a><var>34.34</var><br/>
</td>
<td valign="top">Over $6,100,000 but not over $7,100,000<br/>
</td>
<td valign="top">$522,000 plus 12.8 percent of the excess over <br/>
$6,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.34.35"></a><var>34.35</var><br/>
<a id="pl.34.36"></a><var>34.36</var><br/>
</td>
<td valign="top">Over $7,100,000 but not over $8,100,000<br/>
</td>
<td valign="top">$650,000 plus 13.6 percent of the excess over <br/>
$7,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.1"></a><var>35.1</var><br/>
<a id="pl.35.2"></a><var>35.2</var><br/>
</td>
<td valign="top">Over $8,100,000 but not over $9,100,000<br/>
</td>
<td valign="top">$786,000 plus 14.4 percent of the excess over <br/>
$8,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.3"></a><var>35.3</var><br/>
<a id="pl.35.4"></a><var>35.4</var><br/>
</td>
<td valign="top">Over $9,100,000 but not over $10,100,000<br/>
</td>
<td valign="top">$930,000 plus 15.2 percent of the excess over <br/>
$9,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.5"></a><var>35.5</var><br/>
<a id="pl.35.6"></a><var>35.6</var><br/>
</td>
<td valign="top">Over $10,100,000<br/>
</td>
<td valign="top">$1,082,000 plus 16 percent of the excess over <br/>
$10,100,000<br/>
</td>
</tr>
</table><a id="pl.35.7"></a><var>35.7</var>(b) For estates of decedents dying in 2015:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.35.8"></a><var>35.8</var><br/>
</td>
<td align="center" valign="top">Amount of Minnesota Taxable Estate<br/>
</td>
<td align="center" valign="top">Rate of Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.9"></a><var>35.9</var><br/>
</td>
<td valign="top">Not over $1,400,000<br/>
</td>
<td valign="top">None<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.10"></a><var>35.10</var><br/>
</td>
<td valign="top">Over $1,400,000 but not over $3,600,000<br/>
</td>
<td valign="top">ten percent of the excess over $1,400,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.11"></a><var>35.11</var><br/>
<a id="pl.35.12"></a><var>35.12</var><br/>
</td>
<td valign="top">Over $3,600,000 but not over $6,100,000<br/>
</td>
<td valign="top">$220,000 plus 12 percent of the excess over <br/>
$3,600,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.13"></a><var>35.13</var><br/>
<a id="pl.35.14"></a><var>35.14</var><br/>
</td>
<td valign="top">Over $6,100,000 but not over $7,100,000<br/>
</td>
<td valign="top">$520,000 plus 12.8 percent of the excess over <br/>
$6,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.15"></a><var>35.15</var><br/>
<a id="pl.35.16"></a><var>35.16</var><br/>
</td>
<td valign="top">Over $7,100,000 but not over $8,100,000<br/>
</td>
<td valign="top">$648,000 plus 13.6 percent of the excess over <br/>
$7,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.17"></a><var>35.17</var><br/>
<a id="pl.35.18"></a><var>35.18</var><br/>
</td>
<td valign="top">Over $8,100,000 but not over $9,100,000<br/>
</td>
<td valign="top">$784,000 plus 14.4 percent of the excess over <br/>
$8,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.19"></a><var>35.19</var><br/>
<a id="pl.35.20"></a><var>35.20</var><br/>
</td>
<td valign="top">Over $9,100,000 but not over $10,100,000<br/>
</td>
<td valign="top">$928,000 plus 15.2 percent of the excess over <br/>
$9,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.21"></a><var>35.21</var><br/>
<a id="pl.35.22"></a><var>35.22</var><br/>
</td>
<td valign="top">Over $10,100,000<br/>
 
</td>
<td valign="top">$1,080,000 plus 16 percent of the excess over <br/>
$10,100,000<br/>
</td>
</tr>
</table><a id="pl.35.23"></a><var>35.23</var>(c) For estates of decedents dying in 2016:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.35.24"></a><var>35.24</var><br/>
</td>
<td align="center" valign="top">Amount of Minnesota Taxable Estate<br/>
</td>
<td align="center" valign="top">Rate of Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.25"></a><var>35.25</var><br/>
</td>
<td valign="top">Not over $1,600,000<br/>
</td>
<td valign="top">None<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.26"></a><var>35.26</var><br/>
</td>
<td valign="top">Over $1,600,000 but not over $2,600,000<br/>
</td>
<td valign="top">ten percent of the excess over $1,600,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.27"></a><var>35.27</var><br/>
<a id="pl.35.28"></a><var>35.28</var><br/>
</td>
<td valign="top">Over $2,600,000 but not over $6,100,000<br/>
</td>
<td valign="top">$100,000 plus 12 percent of the excess over <br/>
$2,600,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.29"></a><var>35.29</var><br/>
<a id="pl.35.30"></a><var>35.30</var><br/>
</td>
<td valign="top">Over $6,100,000 but not over $7,100,000<br/>
</td>
<td valign="top">$520,000 plus 12.8 percent of the excess over <br/>
$6,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.31"></a><var>35.31</var><br/>
<a id="pl.35.32"></a><var>35.32</var><br/>
</td>
<td valign="top">Over $7,100,000 but not over $8,100,000<br/>
</td>
<td valign="top">$648,000 plus 13.6 percent of the excess over <br/>
$7,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.33"></a><var>35.33</var><br/>
<a id="pl.35.34"></a><var>35.34</var><br/>
</td>
<td valign="top">Over $8,100,000 but not over $9,100,000<br/>
</td>
<td valign="top">$784,000 plus 14.4 percent of the excess over <br/>
$8,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.35"></a><var>35.35</var><br/>
<a id="pl.35.36"></a><var>35.36</var><br/>
</td>
<td valign="top">Over $9,100,000 but not over $10,100,000<br/>
</td>
<td valign="top">$928,000 plus 15.2 percent of the excess over <br/>
$9,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.37"></a><var>35.37</var><br/>
<a id="pl.35.38"></a><var>35.38</var><br/>
</td>
<td valign="top">Over $10,100,000<br/>
 
</td>
<td valign="top">$1,080,000 plus 16 percent of the excess over <br/>
$10,100,000<br/>
</td>
</tr>
</table><a id="pl.35.39"></a><var>35.39</var>(d) (a) For estates of decedents dying in 2017:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.35.40"></a><var>35.40</var><br/>
</td>
<td align="center" valign="top">Amount of Minnesota Taxable Estate<br/>
</td>
<td align="center" valign="top">Rate of Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.41"></a><var>35.41</var><br/>
</td>
<td valign="top">Not over $1,800,000<br/>
</td>
<td valign="top">None<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.42"></a><var>35.42</var><br/>
</td>
<td valign="top">Over $1,800,000 but not over $2,100,000<br/>
</td>
<td valign="top">ten percent of the excess over $1,800,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.43"></a><var>35.43</var><br/>
<a id="pl.35.44"></a><var>35.44</var><br/>
</td>
<td valign="top">Over $2,100,000 but not over $5,100,000<br/>
</td>
<td valign="top">$30,000 plus 12 percent of the excess over <br/>
                  		$2,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.35.45"></a><var>35.45</var><br/>
<a id="pl.35.46"></a><var>35.46</var><br/>
</td>
<td valign="top">Over $5,100,000 but not over $7,100,000<br/>
</td>
<td valign="top">$390,000 plus 12.8 percent of the excess over <br/>
                  		$5,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.1"></a><var>36.1</var><br/>
<a id="pl.36.2"></a><var>36.2</var><br/>
</td>
<td valign="top">Over $7,100,000 but not over $8,100,000<br/>
</td>
<td valign="top">$646,000 plus 13.6 percent of the excess over <br/>
                  		$7,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.3"></a><var>36.3</var><br/>
<a id="pl.36.4"></a><var>36.4</var><br/>
</td>
<td valign="top">Over $8,100,000 but not over $9,100,000<br/>
</td>
<td valign="top">$782,000 plus 14.4 percent of the excess over <br/>
                  		$8,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.5"></a><var>36.5</var><br/>
<a id="pl.36.6"></a><var>36.6</var><br/>
</td>
<td valign="top">Over $9,100,000 but not over $10,100,000<br/>
</td>
<td valign="top">$926,000 plus 15.2 percent of the excess over <br/>
                  		$9,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.7"></a><var>36.7</var><br/>
<a id="pl.36.8"></a><var>36.8</var><br/>
</td>
<td valign="top">Over $10,100,000<br/>
</td>
<td valign="top">$1,078,000 plus 16 percent of the excess over <br/>
                  		$10,100,000<br/>
</td>
</tr>
</table><a id="pl.36.9"></a><var>36.9</var>(e) (b) For estates of decedents dying in 2018 and thereafter:<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.36.10"></a><var>36.10</var><br/>
</td>
<td align="center" valign="top">Amount of Minnesota Taxable Estate<br/>
</td>
<td align="center" valign="top">Rate of Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.11"></a><var>36.11</var><br/>
</td>
<td valign="top">Not over $2,000,000 $7,100,000<br/>
</td>
<td valign="top">None 13 percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.12"></a><var>36.12</var><br/>
</td>
<td valign="top">Over $2,000,000 but not over $2,600,000<br/>
</td>
<td valign="top">ten percent of the excess over $2,000,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.13"></a><var>36.13</var><br/>
<a id="pl.36.14"></a><var>36.14</var><br/>
</td>
<td valign="top">Over $2,600,000 but not over $7,100,000<br/>
</td>
<td valign="top">$60,000 plus 13 percent of the excess over <br/>
$2,600,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.15"></a><var>36.15</var><br/>
<a id="pl.36.16"></a><var>36.16</var><br/>
</td>
<td valign="top">Over $7,100,000 but not over $8,100,000<br/>
</td>
<td valign="top">$645,000 $923,000 plus 13.6 percent of the <br/>
                  		excess over $7,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.17"></a><var>36.17</var><br/>
<a id="pl.36.18"></a><var>36.18</var><br/>
</td>
<td valign="top">Over $8,100,000 but not over $9,100,000<br/>
</td>
<td valign="top">$781,000 $1,059,000 plus 14.4 percent of the <br/>
                  		excess over $8,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.19"></a><var>36.19</var><br/>
<a id="pl.36.20"></a><var>36.20</var><br/>
</td>
<td valign="top">Over $9,100,000 but not over $10,100,000<br/>
</td>
<td valign="top">$925,000 $1,203,000 plus 15.2 percent of the <br/>
                  		excess over $9,100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.36.21"></a><var>36.21</var><br/>
<a id="pl.36.22"></a><var>36.22</var><br/>
</td>
<td valign="top">Over $10,100,000<br/>
</td>
<td valign="top">$1,077,000 $1,355,000 plus 16 percent of the <br/>
                  		excess over $10,100,000<br/>
</td>
</tr>
</table><a id="pl.36.23"></a><var>36.23</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.36.24"></a><var>36.24</var>dying after December 31, 2016.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.36.25"></a><var>36.25</var>    Sec. 28. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:<br/>
<a id="pl.36.26"></a><var>36.26</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and before <br/>
<a id="pl.36.27"></a><var>36.27</var>the death of the qualified heir, the qualified heir disposes of any interest in the
         qualified <br/>
<a id="pl.36.28"></a><var>36.28</var>property, other than by a disposition to a family member, or a family member ceases
         to <br/>
<a id="pl.36.29"></a><var>36.29</var>satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
         estate <br/>
<a id="pl.36.30"></a><var>36.30</var>tax is imposed on the property. In the case of a sole proprietor, if the qualified
         heir replaces <br/>
<a id="pl.36.31"></a><var>36.31</var>qualified small business property excluded under subdivision 9 with similar property,
         then <br/>
<a id="pl.36.32"></a><var>36.32</var>the qualified heir will not be treated as having disposed of an interest in the qualified
         property.<br/>
<a id="pl.36.33"></a><var>36.33</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by
         the <br/>
<a id="pl.36.34"></a><var>36.34</var>estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.36.35"></a><var>36.35</var>(c) The additional tax under this subdivision is due on the day which is six months
         after <br/>
<a id="pl.36.36"></a><var>36.36</var>the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.36.37"></a><var>36.37</var>(d) The tax under this subdivision does not apply to the following: acquisition of
         title <br/>
<a id="pl.36.38"></a><var>36.38</var>or possession of the qualified property by a federal, state, or local government unit,
         or any <br/>
<a id="pl.37.1"></a><var>37.1</var>other entity with the power of eminent domain for a public purpose, as defined in
         section <br/>
<a id="pl.37.2"></a><var>37.2</var>117.025, subdivision 11, within the three-year holding period.<br/>
<a id="pl.37.3"></a><var>37.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.37.4"></a><var>37.4</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.37.5"></a><var>37.5</var>    Sec. 29. <b>[462D.01] CITATION.</b><br/>
<a id="pl.37.6"></a><var>37.6</var>This chapter may be cited as the "First-Time Home Buyer Savings Account Act."<br/>
<a id="pl.37.7"></a><var>37.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.37.8"></a><var>37.8</var>    Sec. 30. <b>[462D.02] DEFINITIONS.</b><br/>
<a id="pl.37.9"></a><var>37.9</var>    Subdivision 1. <b>Definitions.</b> For purposes of this chapter, the following terms have the <br/>
<a id="pl.37.10"></a><var>37.10</var>meanings given.<br/>
<a id="pl.37.11"></a><var>37.11</var>    Subd. 2. <b>Account holder.</b> "Account holder" means an individual who establishes, <br/>
<a id="pl.37.12"></a><var>37.12</var>individually or jointly with one or more other individuals, a first-time home buyer
         savings <br/>
<a id="pl.37.13"></a><var>37.13</var>account.<br/>
<a id="pl.37.14"></a><var>37.14</var>    Subd. 3. <b>Allowable closing costs.</b> "Allowable closing costs" means a disbursement listed <br/>
<a id="pl.37.15"></a><var>37.15</var>on a settlement statement for the purchase of a single-family residence in Minnesota
         by a <br/>
<a id="pl.37.16"></a><var>37.16</var>qualified beneficiary.<br/>
<a id="pl.37.17"></a><var>37.17</var>    Subd. 4. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.37.18"></a><var>37.18</var>    Subd. 5. <b>Eligible costs.</b> "Eligible costs" means the down payment and allowable closing <br/>
<a id="pl.37.19"></a><var>37.19</var>costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
         <br/>
<a id="pl.37.20"></a><var>37.20</var>Eligible costs include paying for the cost of construction of or financing the construction
         <br/>
<a id="pl.37.21"></a><var>37.21</var>of a single-family residence.<br/>
<a id="pl.37.22"></a><var>37.22</var>    Subd. 6. <b>Financial institution.</b> "Financial institution" means a bank, bank and trust, <br/>
<a id="pl.37.23"></a><var>37.23</var>trust company with banking powers, savings bank, savings association, or credit union,
         <br/>
<a id="pl.37.24"></a><var>37.24</var>organized under the laws of this state, any other state, or the United States; an
         industrial <br/>
<a id="pl.37.25"></a><var>37.25</var>loan and thrift under chapter 53 or the laws of another state and authorized to accept
         deposits; <br/>
<a id="pl.37.26"></a><var>37.26</var>or a money market mutual fund registered under the federal Investment Company Act
         of <br/>
<a id="pl.37.27"></a><var>37.27</var>1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
         <br/>
<a id="pl.37.28"></a><var>37.28</var>under that act.<br/>
<a id="pl.37.29"></a><var>37.29</var>    Subd. 7. <b>First-time home buyer.</b> "First-time home buyer" means an individual, and if <br/>
<a id="pl.37.30"></a><var>37.30</var>married, the individual's spouse, who has no present ownership interest in a principal
         <br/>
<a id="pl.37.31"></a><var>37.31</var>residence during the three-year period ending on the earlier of:<br/>
<a id="pl.38.1"></a><var>38.1</var>(1) the date of the purchase of the single-family residence funded, in part, with
         proceeds <br/>
<a id="pl.38.2"></a><var>38.2</var>from the first-time home buyer savings account; or<br/>
<a id="pl.38.3"></a><var>38.3</var>(2) the close of the taxable year for which a subtraction is claimed under sections
         <br/>
<a id="pl.38.4"></a><var>38.4</var>290.0132 and 462D.06.<br/>
<a id="pl.38.5"></a><var>38.5</var>    Subd. 8. <b>First-time home buyer savings account.</b> "First-time home buyer savings <br/>
<a id="pl.38.6"></a><var>38.6</var>account" or "account" means an account with a financial institution that an account
         holder <br/>
<a id="pl.38.7"></a><var>38.7</var>designates as a first-time home buyer savings account, as provided in section 462D.03,
         to <br/>
<a id="pl.38.8"></a><var>38.8</var>pay or reimburse eligible costs for the purchase of a single-family residence by a
         qualified <br/>
<a id="pl.38.9"></a><var>38.9</var>beneficiary.<br/>
 <a id="pl.38.10"></a><var>38.10</var>    Subd. 9. <b>Internal Revenue Code.</b> "Internal Revenue Code" has the meaning given in <br/>
<a id="pl.38.11"></a><var>38.11</var>section 290.01.<br/>
<a id="pl.38.12"></a><var>38.12</var>    Subd. 10. <b>Principal residence.</b> "Principal residence" has the meaning given in section <br/>
<a id="pl.38.13"></a><var>38.13</var>121 of the Internal Revenue Code.<br/>
<a id="pl.38.14"></a><var>38.14</var>    Subd. 11. <b>Qualified beneficiary.</b> "Qualified beneficiary" means a first-time home buyer <br/>
<a id="pl.38.15"></a><var>38.15</var>who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
         <br/>
<a id="pl.38.16"></a><var>38.16</var>home buyer savings account by the account holder.<br/>
<a id="pl.38.17"></a><var>38.17</var>    Subd. 12. <b>Single-family residence.</b> "Single-family residence" means a single-family <br/>
<a id="pl.38.18"></a><var>38.18</var>residence located in this state and owned and occupied by or to be occupied by a qualified
         <br/>
<a id="pl.38.19"></a><var>38.19</var>beneficiary as the qualified beneficiary's principal residence, which may include
         a <br/>
<a id="pl.38.20"></a><var>38.20</var>manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.<br/>
<a id="pl.38.21"></a><var>38.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.38.22"></a><var>38.22</var>    Sec. 31. <b>[462D.03] ESTABLISHMENT OF ACCOUNTS.</b><br/>
<a id="pl.38.23"></a><var>38.23</var>    Subdivision 1. <b>Accounts established.</b> An individual may open an account with a financial <br/>
<a id="pl.38.24"></a><var>38.24</var>institution and designate the account as a first-time home buyer savings account to
         be used <br/>
<a id="pl.38.25"></a><var>38.25</var>to pay or reimburse the designated qualified beneficiary's eligible costs.<br/>
<a id="pl.38.26"></a><var>38.26</var>    Subd. 2. <b>Designation of qualified beneficiary.</b> (a) The account holder must designate  <br/>
<a id="pl.38.27"></a><var>38.27</var>a first-time home buyer as the qualified beneficiary of the account by April 15 of
         the year <br/>
<a id="pl.38.28"></a><var>38.28</var>following the taxable year in which the account was established. The account holder
         may <br/>
<a id="pl.38.29"></a><var>38.29</var>be the qualified beneficiary. The account holder may change the designated qualified
         <br/>
<a id="pl.38.30"></a><var>38.30</var>beneficiary at any time, but no more than one qualified beneficiary may be designated
         for <br/>
<a id="pl.38.31"></a><var>38.31</var>an account at any one time. For purposes of the one beneficiary restriction, a married
         couple <br/>
<a id="pl.39.1"></a><var>39.1</var>qualifies as one beneficiary. Changing the designated qualified beneficiary of an
         account <br/>
<a id="pl.39.2"></a><var>39.2</var>does not affect computation of the ten-year period under section 462D.06, subdivision
         2.<br/>
<a id="pl.39.3"></a><var>39.3</var>(b) The commissioner shall establish a process for account holders to notify the state
         <br/>
<a id="pl.39.4"></a><var>39.4</var>that permits recording of the account, the account holder or holders, any transfers
         under <br/>
<a id="pl.39.5"></a><var>39.5</var>section 462D.04, subdivision 2, and the designated qualified beneficiary for each
         account. <br/>
<a id="pl.39.6"></a><var>39.6</var>This may be done upon filing the account holder's income tax return or in any other
         way <br/>
<a id="pl.39.7"></a><var>39.7</var>the commissioner determines to be appropriate.<br/>
<a id="pl.39.8"></a><var>39.8</var>    Subd. 3. <b>Joint account holders.</b> An individual may jointly own a first-time home buyer <br/>
<a id="pl.39.9"></a><var>39.9</var>account with another person if the joint account holders file a married joint income
         tax <br/>
<a id="pl.39.10"></a><var>39.10</var>return.<br/>
<a id="pl.39.11"></a><var>39.11</var>    Subd. 4. <b>Multiple accounts.</b> (a) An individual may be the account holder of more than <br/>
<a id="pl.39.12"></a><var>39.12</var>one first-time home buyer savings account, but must not hold or own multiple accounts
         that <br/>
<a id="pl.39.13"></a><var>39.13</var>designate the same qualified beneficiary.<br/>
<a id="pl.39.14"></a><var>39.14</var>(b) An individual may be designated as the qualified beneficiary on more than one
         <br/>
<a id="pl.39.15"></a><var>39.15</var>first-time home buyer savings account.<br/>
<a id="pl.39.16"></a><var>39.16</var>    Subd. 5. <b>Contributions.</b> Only cash may be contributed to a first-time home buyer savings <br/>
<a id="pl.39.17"></a><var>39.17</var>account. Individuals other than the account holder may contribute to an account. No
         limitation <br/>
<a id="pl.39.18"></a><var>39.18</var>applies to the amount of contributions that may be made to or retained in a first-time
         home <br/>
<a id="pl.39.19"></a><var>39.19</var>buyer savings account.<br/>
<a id="pl.39.20"></a><var>39.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.39.21"></a><var>39.21</var>    Sec. 32. <b>[462D.04] ACCOUNT HOLDER RESPONSIBILITIES.</b><br/>
<a id="pl.39.22"></a><var>39.22</var>    Subdivision 1. <b>Expenses; reporting.</b> The account holder must:<br/>
<a id="pl.39.23"></a><var>39.23</var>(1) not use funds in a first-time home buyer savings account to pay expenses of <br/>
<a id="pl.39.24"></a><var>39.24</var>administering the account, except that a service fee may be deducted from the account
         by <br/>
<a id="pl.39.25"></a><var>39.25</var>the financial institution in which the account is held; and<br/>
<a id="pl.39.26"></a><var>39.26</var>(2) submit to the commissioner, in the form and manner required by the commissioner:<br/>
<a id="pl.39.27"></a><var>39.27</var>(i) detailed information regarding the first-time home buyer savings account, including
         <br/>
<a id="pl.39.28"></a><var>39.28</var>a list of transactions for the account during the taxable year and the Form 1099 issued
         by <br/>
<a id="pl.39.29"></a><var>39.29</var>the financial institution for the account for the taxable year; and<br/>
<a id="pl.39.30"></a><var>39.30</var>(ii) upon withdrawal of funds from the account, a detailed account of the eligible
         costs <br/>
<a id="pl.39.31"></a><var>39.31</var>for which the account funds were expended and a statement of the amount of funds remaining
         <br/>
<a id="pl.39.32"></a><var>39.32</var>in the account, if any.<br/>
<a id="pl.40.1"></a><var>40.1</var>    Subd. 2. <b>Transfers.</b> An account holder may withdraw funds, in whole or part, from a <br/>
<a id="pl.40.2"></a><var>40.2</var>first-time home buyer savings account and deposit the funds in another first-time
         home <br/>
<a id="pl.40.3"></a><var>40.3</var>buyer savings account held by a different financial institution or the same financial
         institution.<br/>
<a id="pl.40.4"></a><var>40.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.40.5"></a><var>40.5</var>    Sec. 33. <b>[462D.05] FINANCIAL INSTITUTIONS.</b><br/>
<a id="pl.40.6"></a><var>40.6</var>(a) A financial institution is not required to take any action to ensure compliance
         with <br/>
<a id="pl.40.7"></a><var>40.7</var>this chapter, including to:<br/>
<a id="pl.40.8"></a><var>40.8</var>(1) designate an account, designate qualified beneficiaries, or modify the financial
         <br/>
<a id="pl.40.9"></a><var>40.9</var>institution's account contracts or systems in any way;<br/>
<a id="pl.40.10"></a><var>40.10</var>(2) track the use of money withdrawn from a first-time home buyer savings account;<br/>
<a id="pl.40.11"></a><var>40.11</var>(3) allocate funds in a first-time home buyer savings account among joint account
         holders <br/>
<a id="pl.40.12"></a><var>40.12</var>or multiple qualified beneficiaries; or<br/>
<a id="pl.40.13"></a><var>40.13</var>(4) report any information to the commissioner or any other government that is not
         <br/>
<a id="pl.40.14"></a><var>40.14</var>otherwise required by law.<br/>
<a id="pl.40.15"></a><var>40.15</var>(b) A financial institution is not responsible or liable for:<br/>
<a id="pl.40.16"></a><var>40.16</var>(1)  determining or ensuring that an account satisfies the requirements of this chapter
         or <br/>
<a id="pl.40.17"></a><var>40.17</var>that its funds are used for eligible costs; or<br/>
<a id="pl.40.18"></a><var>40.18</var>(2) reporting or remitting taxes or penalties related to the use of a first-time home
         buyer <br/>
<a id="pl.40.19"></a><var>40.19</var>savings account.<br/>
<a id="pl.40.20"></a><var>40.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.40.21"></a><var>40.21</var>    Sec. 34. <b>[462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.</b><br/>
<a id="pl.40.22"></a><var>40.22</var>    Subdivision 1. <b>Subtraction.</b> (a) An account holder is allowed a subtraction from federal <br/>
<a id="pl.40.23"></a><var>40.23</var>taxable income equal to the sum of:<br/>
<a id="pl.40.24"></a><var>40.24</var>(1) the amount the individual contributed to a first-time home buyer savings account
         <br/>
<a id="pl.40.25"></a><var>40.25</var>during the taxable year not to exceed $5,000, or $10,000 for a married couple filing
         a joint <br/>
<a id="pl.40.26"></a><var>40.26</var>return; and<br/>
<a id="pl.40.27"></a><var>40.27</var>(2) interest or dividends earned on the first-time home buyer savings account during
         the <br/>
<a id="pl.40.28"></a><var>40.28</var>taxable year.<br/>
<a id="pl.40.29"></a><var>40.29</var>(b) The subtraction under paragraph (a) is allowed each year in which a contribution
         is <br/>
<a id="pl.40.30"></a><var>40.30</var>made for the ten taxable years including and following the taxable year in which the
         account <br/>
<a id="pl.41.1"></a><var>41.1</var>was established. The total subtraction for all taxable years and for all first-time
         home buyer <br/>
<a id="pl.41.2"></a><var>41.2</var>accounts established by the individual for a qualified beneficiary is limited to $50,000.
         No <br/>
<a id="pl.41.3"></a><var>41.3</var>person other than the account holder who deposits funds in a first-time home buyer
         savings <br/>
<a id="pl.41.4"></a><var>41.4</var>account is allowed a subtraction under this section.<br/>
<a id="pl.41.5"></a><var>41.5</var>    Subd. 2. <b>Addition.</b> (a) An account holder must add to federal taxable income the sum <br/>
<a id="pl.41.6"></a><var>41.6</var>of the following amounts:<br/>
<a id="pl.41.7"></a><var>41.7</var>(1) any amount withdrawn from a first-time home buyer savings account during the <br/>
<a id="pl.41.8"></a><var>41.8</var>taxable year and used neither to pay eligible costs nor for a transfer permitted under
         section <br/>
<a id="pl.41.9"></a><var>41.9</var>462D.04, subdivision 2; and<br/>
<a id="pl.41.10"></a><var>41.10</var>(2) any amount remaining in the first-time home buyer savings account at the close
         of <br/>
<a id="pl.41.11"></a><var>41.11</var>the tenth taxable year after the taxable year in which the account was established.<br/>
<a id="pl.41.12"></a><var>41.12</var>(b) For an account that received a transfer under section 462D.04, subdivision 2,
         the <br/>
<a id="pl.41.13"></a><var>41.13</var>ten-year period under paragraph (a), clause (2), ends at the close of the earliest
         taxable year <br/>
<a id="pl.41.14"></a><var>41.14</var>that applies to either account under that clause.<br/>
<a id="pl.41.15"></a><var>41.15</var>    Subd. 3. <b>Additional tax.</b> The account holder is liable for an additional tax equal to ten <br/>
<a id="pl.41.16"></a><var>41.16</var>percent of the addition under subdivision 2 for the taxable year. This amount must
         be added <br/>
<a id="pl.41.17"></a><var>41.17</var>to the amount due under section 290.06. The tax under this subdivision does not apply
         to:<br/>
<a id="pl.41.18"></a><var>41.18</var>(1) a withdrawal because of the account holder's or designated qualified beneficiary's
         <br/>
<a id="pl.41.19"></a><var>41.19</var>death or disability; and<br/>
<a id="pl.41.20"></a><var>41.20</var>(2) a disbursement of assets of the account under federal bankruptcy law.<br/>
<a id="pl.41.21"></a><var>41.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.41.22"></a><var>41.22</var>31, 2016.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.41.23"></a><var>41.23</var>    Sec. 35. <b>INCOME TAX RECIPROCITY BENCHMARK STUDY.</b><br/>
<a id="pl.41.24"></a><var>41.24</var>(a) The Department of Revenue, in conjunction with the Wisconsin Department of <br/>
<a id="pl.41.25"></a><var>41.25</var>Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study
         to <br/>
<a id="pl.41.26"></a><var>41.26</var>determine at least the following:<br/>
<a id="pl.41.27"></a><var>41.27</var>(1) the number of residents of each state who earn income from personal services in
         the <br/>
<a id="pl.41.28"></a><var>41.28</var>other state;<br/>
<a id="pl.41.29"></a><var>41.29</var>(2) the total amount of income earned by residents of each state who earn income from
         <br/>
<a id="pl.41.30"></a><var>41.30</var>personal services in the other state; and<br/>
<a id="pl.42.1"></a><var>42.1</var>(3) the change in tax revenue in each state if an income tax reciprocity arrangement
         were <br/>
<a id="pl.42.2"></a><var>42.2</var>resumed between the two states under which the taxpayers were required to pay income
         <br/>
<a id="pl.42.3"></a><var>42.3</var>taxes on the income only in their state of residence.<br/>
<a id="pl.42.4"></a><var>42.4</var>(b) The study must use information obtained from each state's income tax returns for
         <br/>
<a id="pl.42.5"></a><var>42.5</var>tax year 2017, and from any other source of information the departments determine
         is <br/>
<a id="pl.42.6"></a><var>42.6</var>necessary to complete the study.<br/>
<a id="pl.42.7"></a><var>42.7</var>(c) No later than March 1, 2019, the Department of Revenue must submit a report <br/>
<a id="pl.42.8"></a><var>42.8</var>containing the results of the study to the governor and to the chairs and ranking
         minority <br/>
<a id="pl.42.9"></a><var>42.9</var>members of the legislative committees having jurisdiction over taxes, in compliance
         with <br/>
<a id="pl.42.10"></a><var>42.10</var>Minnesota Statutes, sections 3.195 and 3.197.<br/>
<a id="pl.42.11"></a><var>42.11</var>(d) The department shall conduct the study only if the commissioner of revenue receives
         <br/>
<a id="pl.42.12"></a><var>42.12</var>notice from the secretary of revenue that the Wisconsin Department of Revenue will
         fully <br/>
<a id="pl.42.13"></a><var>42.13</var>participate in the study.<br/>
<a id="pl.42.14"></a><var>42.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.42.15"></a><var>42.15</var>    Sec. 36. <b>PENSION INCOME REPORT.</b><br/>
<a id="pl.42.16"></a><var>42.16</var>By March 15, 2018, the commissioner of revenue, in conjunction with the Legislative
         <br/>
<a id="pl.42.17"></a><var>42.17</var>Commission on Pensions and Retirement, shall provide a report to the senate and house
         of <br/>
<a id="pl.42.18"></a><var>42.18</var>representatives committees with jurisdiction over taxes and the Legislative Commission
         on <br/>
<a id="pl.42.19"></a><var>42.19</var>Pensions and Retirement that includes the following information:<br/>
<a id="pl.42.20"></a><var>42.20</var>(1) the number of Minnesota recipients, including survivors, of a basic member pension
         <br/>
<a id="pl.42.21"></a><var>42.21</var>plan governed by Minnesota Statutes, chapter 3A, 352B, 353, 354, or 354A, that is
         based <br/>
<a id="pl.42.22"></a><var>42.22</var>on service for which the member or survivor is not also receiving Social Security
         benefits;<br/>
<a id="pl.42.23"></a><var>42.23</var>(2) the number of Minnesota recipients, including survivors, of any retirement system
         <br/>
<a id="pl.42.24"></a><var>42.24</var>administered by the federal government for which the recipient or survivor is not
         also <br/>
<a id="pl.42.25"></a><var>42.25</var>receiving Social Security benefits;<br/>
<a id="pl.42.26"></a><var>42.26</var>(3) the number of Minnesota recipients, including survivors, of an annuity or benefit
         <br/>
<a id="pl.42.27"></a><var>42.27</var>from a public retirement system of or created by another state or any of its political
         <br/>
<a id="pl.42.28"></a><var>42.28</var>subdivisions, where the income tax laws of the other state permit a reciprocal deduction
         or <br/>
<a id="pl.42.29"></a><var>42.29</var>exemption of retirement or pension benefits received from a public retirement system;<br/>
<a id="pl.42.30"></a><var>42.30</var>(4) the average and median amount of pension or retirement benefit income received
         by <br/>
<a id="pl.42.31"></a><var>42.31</var>the individuals in each of clauses (1) to (3); and<br/>
<a id="pl.43.1"></a><var>43.1</var>(5) an estimate of the amount of a subtraction for annuities or benefits received
         by the <br/>
<a id="pl.43.2"></a><var>43.2</var>individuals in each of clauses (1) to (3) that would be proportionate to the subtraction
         for <br/>
<a id="pl.43.3"></a><var>43.3</var>Social Security benefits under section 8.<br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.43.4"></a><var>43.4</var>    Sec. 37. <b>REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL INCOME </b><br/>
<a id="pl.43.5"></a><var>43.5</var><b>TAX RETURNS.</b><br/>
<a id="pl.43.6"></a><var>43.6</var>(a) By March 16, 2018, the commissioner of revenue must provide a written report to
         <br/>
<a id="pl.43.7"></a><var>43.7</var>the chairs and ranking minority members of the legislative committees with jurisdiction
         <br/>
<a id="pl.43.8"></a><var>43.8</var>over taxes regarding free electronic filing options for individual income tax filing,
         including <br/>
<a id="pl.43.9"></a><var>43.9</var>a vendor-based solution. The report must include responses from a commissioner's request
         <br/>
<a id="pl.43.10"></a><var>43.10</var>for information to consumer-based tax filing software vendors. The request for information
         <br/>
<a id="pl.43.11"></a><var>43.11</var>may include, but is not limited to, seeking information on the following aspects of
         a free <br/>
<a id="pl.43.12"></a><var>43.12</var>electronic filing solution:<br/>
<a id="pl.43.13"></a><var>43.13</var>(1) costs, on a per return basis, that would be charged to the state of Minnesota
         to provide <br/>
<a id="pl.43.14"></a><var>43.14</var>an electronic individual income tax return preparation, submission, and payment remittance
         <br/>
<a id="pl.43.15"></a><var>43.15</var>process;<br/>
<a id="pl.43.16"></a><var>43.16</var>(2) vendor capability to provide customer service and issue resolution to taxpayers
         using <br/>
<a id="pl.43.17"></a><var>43.17</var>the software;<br/>
<a id="pl.43.18"></a><var>43.18</var>(3) vendor capability to provide and maintain an appropriate link between the Department
         <br/>
<a id="pl.43.19"></a><var>43.19</var>of Revenue and the Internal Revenue Service Modernized Electronic Filing Program;<br/>
<a id="pl.43.20"></a><var>43.20</var>(4) vendor security capabilities to ensure that taxpayer return information is maintained
         <br/>
<a id="pl.43.21"></a><var>43.21</var>and protected as required by Minnesota Statutes, chapters 13 and 270B, Internal Revenue
         <br/>
<a id="pl.43.22"></a><var>43.22</var>Service Publication 1075, and any other applicable requirements;<br/>
<a id="pl.43.23"></a><var>43.23</var>(5) products for the free filing and submitting of both Minnesota and federal returns
         <br/>
<a id="pl.43.24"></a><var>43.24</var>offered to customers and the thresholds for using those products; and<br/>
<a id="pl.43.25"></a><var>43.25</var>(6) add-on products offered to customers and their costs.<br/>
<a id="pl.43.26"></a><var>43.26</var>(b) The report required under paragraph (a) must comply with Minnesota Statutes, <br/>
<a id="pl.43.27"></a><var>43.27</var>sections 3.195 and 3.197.<br/>
<a id="pl.43.28"></a><var>43.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.43.29"></a><var>43.29</var>    Sec. 38. <b>STUDENT LOAN CREDIT.</b><br/>
<a id="pl.43.30"></a><var>43.30</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.43.31"></a><var>43.31</var>the meanings given.<br/>
<a id="pl.44.1"></a><var>44.1</var>(b) "Adjusted gross income" means federal adjusted gross income as defined in section
         <br/>
<a id="pl.44.2"></a><var>44.2</var>62 of the Internal Revenue Code. In the case of a married couple filing jointly, adjusted
         <br/>
<a id="pl.44.3"></a><var>44.3</var>gross income means the adjusted gross income of the taxpayer and spouse.<br/>
<a id="pl.44.4"></a><var>44.4</var>(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
         <br/>
<a id="pl.44.5"></a><var>44.5</var>Code, except that earned income includes combat pay excluded from federal taxable
         income <br/>
<a id="pl.44.6"></a><var>44.6</var>under section 112 of the Internal Revenue Code.<br/>
<a id="pl.44.7"></a><var>44.7</var>(d) "Education profession" means:<br/>
<a id="pl.44.8"></a><var>44.8</var>(1) a full-time job in public education; early childhood education, including licensed
         or <br/>
<a id="pl.44.9"></a><var>44.9</var>regulated child care, Head Start, and state-funded prekindergarten; school-based library
         <br/>
<a id="pl.44.10"></a><var>44.10</var>sciences; and other school-based services; or<br/>
<a id="pl.44.11"></a><var>44.11</var>(2) a full-time job as a faculty member at a tribal college or university as defined
         in <br/>
<a id="pl.44.12"></a><var>44.12</var>section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
         <br/>
<a id="pl.44.13"></a><var>44.13</var>subject areas or areas of shortage, including nursing faculty, foreign language faculty,
         and <br/>
<a id="pl.44.14"></a><var>44.14</var>part-time faculty at community colleges, as determined by the United States Secretary
         of <br/>
<a id="pl.44.15"></a><var>44.15</var>Education.<br/>
<a id="pl.44.16"></a><var>44.16</var>(e) "Eligible individual" means an individual who has one or more qualified education
         <br/>
<a id="pl.44.17"></a><var>44.17</var>loans related to an undergraduate or graduate degree program at a postsecondary educational
         <br/>
<a id="pl.44.18"></a><var>44.18</var>institution.<br/>
<a id="pl.44.19"></a><var>44.19</var>(f) "Eligible loan payments" means the amount the eligible individual paid in principal
         <br/>
<a id="pl.44.20"></a><var>44.20</var>and interest on qualified education loans during the taxable year.<br/>
<a id="pl.44.21"></a><var>44.21</var>(g) "Postsecondary educational institution" means a postsecondary institution eligible
         <br/>
<a id="pl.44.22"></a><var>44.22</var>for state student aid under Minnesota Statutes, section 136A.103 or, if the institution
         is not <br/>
<a id="pl.44.23"></a><var>44.23</var>located in this state, a postsecondary institution participating in the federal Pell
         Grant program <br/>
<a id="pl.44.24"></a><var>44.24</var>under title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.<br/>
<a id="pl.44.25"></a><var>44.25</var>(h) "Public service job" means a full-time job in emergency management; government,
         <br/>
<a id="pl.44.26"></a><var>44.26</var>excluding time served as a member of Congress; military service; public safety; law
         <br/>
<a id="pl.44.27"></a><var>44.27</var>enforcement; public health, including nurses, nurse practitioners, nurses in a clinical
         setting, <br/>
<a id="pl.44.28"></a><var>44.28</var>and full-time professionals engaged in health care practitioner occupations and health
         care <br/>
<a id="pl.44.29"></a><var>44.29</var>support occupations, as such terms are defined by the Bureau of Labor Statistics;
         social <br/>
<a id="pl.44.30"></a><var>44.30</var>work in a public child or family services agency; public interest law services including
         <br/>
<a id="pl.44.31"></a><var>44.31</var>prosecution or public defense or legal advocacy on behalf of low-income communities
         at <br/>
<a id="pl.44.32"></a><var>44.32</var>a nonprofit organization; public service for individuals with disabilities or public
         service <br/>
<a id="pl.44.33"></a><var>44.33</var>for the elderly; public library sciences; or at an organization that is described
         in section <br/>
<a id="pl.45.1"></a><var>45.1</var>501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a)
         of <br/>
<a id="pl.45.2"></a><var>45.2</var>the Internal Revenue Code.<br/>
<a id="pl.45.3"></a><var>45.3</var>(i) "Qualified education loan" has the meaning given in section 221 of the Internal
         <br/>
<a id="pl.45.4"></a><var>45.4</var>Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.<br/>
<a id="pl.45.5"></a><var>45.5</var>    Subd. 2. <b>Credit allowed.</b> (a) An eligible individual is allowed a credit against the tax <br/>
<a id="pl.45.6"></a><var>45.6</var>due under Minnesota Statutes, chapter 290. The credit equals a percentage of eligible
         loan <br/>
<a id="pl.45.7"></a><var>45.7</var>payments in excess of ten percent of adjusted gross income, up to $700, as follows:<br/>
<a id="pl.45.8"></a><var>45.8</var>(1) for eligible individuals, 50 percent;<br/>
<a id="pl.45.9"></a><var>45.9</var>(2) for eligible individuals in a public service job, 65 percent; and<br/>
<a id="pl.45.10"></a><var>45.10</var>(3) for eligible individuals in an education profession, 75 percent.<br/>
<a id="pl.45.11"></a><var>45.11</var>(b) The credit must not exceed the eligible individual's earned income for the taxable
         <br/>
<a id="pl.45.12"></a><var>45.12</var>year.<br/>
<a id="pl.45.13"></a><var>45.13</var>(c) In the case of a married couple filing a joint return, each spouse is eligible
         for the <br/>
<a id="pl.45.14"></a><var>45.14</var>credit in this section.<br/>
<a id="pl.45.15"></a><var>45.15</var>(d) For a nonresident or part-year resident, the credit must be allocated based on
         the <br/>
<a id="pl.45.16"></a><var>45.16</var>percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
         <br/>
<a id="pl.45.17"></a><var>45.17</var>(e).<br/>
<a id="pl.45.18"></a><var>45.18</var>(e) An eligible individual may receive the credit under this section without regard
         to the <br/>
<a id="pl.45.19"></a><var>45.19</var>individual's eligibility for the public service loan forgiveness program under United
         States <br/>
<a id="pl.45.20"></a><var>45.20</var>Code, title 20, section 1087e(m).<br/>
<a id="pl.45.21"></a><var>45.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.45.22"></a><var>45.22</var>31, 2016, and before January 1, 2019.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.45.23"></a><var>45.23</var>    Sec. 39. <b>TAXPAYER ASSISTANCE GRANTS APPROPRIATION.</b><br/>
<a id="pl.45.24"></a><var>45.24</var>(a) $200,000 in fiscal year 2018 only and $200,000 in fiscal year 2019 only are <br/>
<a id="pl.45.25"></a><var>45.25</var>appropriated from the general fund to the commissioner of revenue for the provision
         of <br/>
<a id="pl.45.26"></a><var>45.26</var>taxpayer assistance grants under Minnesota Statutes, section 270C.21. Of the amounts
         <br/>
<a id="pl.45.27"></a><var>45.27</var>appropriated under this paragraph, up to five percent may be used for the administration
         of <br/>
<a id="pl.45.28"></a><var>45.28</var>the taxpayer assistance grants program. The unencumbered balance in the first year
         does <br/>
<a id="pl.45.29"></a><var>45.29</var>not cancel but is available for the second year.<br/>
<a id="pl.45.30"></a><var>45.30</var>(b) For purposes of this section, "taxpayer assistance services" means accounting
         and <br/>
<a id="pl.45.31"></a><var>45.31</var>tax preparation services provided by volunteers to low-income, elderly, and disadvantaged
         <br/>
<a id="pl.46.1"></a><var>46.1</var>Minnesota residents to help them file federal and state income tax returns and Minnesota
         <br/>
<a id="pl.46.2"></a><var>46.2</var>property tax refund claims and to provide personal representation before the Department
         <br/>
<a id="pl.46.3"></a><var>46.3</var>of Revenue and the Internal Revenue Service.<br/>
<br/>
<a id="bill.1.40.0"></a><a id="pl.46.4"></a><var>46.4</var>    Sec. 40. <b> REPEALER.</b><br/>
<a id="pl.46.5"></a><var>46.5</var>Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 18;
         <br/>
<a id="pl.46.6"></a><var>46.6</var>289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10,
         and <br/>
<a id="pl.46.7"></a><var>46.7</var>11, are repealed.<br/>
<a id="pl.46.8"></a><var>46.8</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.46.9"></a><var>46.9</var>December 31, 2021.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.46.12"></a><var>46.12</var>    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:<br/>
<a id="pl.46.13"></a><var>46.13</var>    Subd. 2. <b>Allowed commercial and industrial operations.</b> (a) Commercial and industrial <br/>
<a id="pl.46.14"></a><var>46.14</var>operations are not allowed on land within an agricultural preserve except:<br/>
<a id="pl.46.15"></a><var>46.15</var>(1) small on-farm commercial or industrial operations normally associated with and
         <br/>
<a id="pl.46.16"></a><var>46.16</var>important to farming in the agricultural preserve area;<br/>
<a id="pl.46.17"></a><var>46.17</var>(2) storage use of existing farm buildings that does not disrupt the integrity of
         the <br/>
<a id="pl.46.18"></a><var>46.18</var>agricultural preserve; and<br/>
<a id="pl.46.19"></a><var>46.19</var>(3) small commercial use of existing farm buildings for trades not disruptive to the
         <br/>
<a id="pl.46.20"></a><var>46.20</var>integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, <br/>
<a id="pl.46.21"></a><var>46.21</var>and similar activities that a farm operator might conduct; and<br/>
<a id="pl.46.22"></a><var>46.22</var>(4) wireless communication installments and related equipment and structure capable
         <br/>
<a id="pl.46.23"></a><var>46.23</var>of providing technology potentially beneficial to farming activities.<br/>
<a id="pl.46.24"></a><var>46.24</var>    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3) <br/>
<a id="pl.46.25"></a><var>46.25</var>means existing on August 1, 1989.<br/>
<a id="pl.46.26"></a><var>46.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.46.27"></a><var>46.27</var>    Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read:<br/>
<a id="pl.46.28"></a><var>46.28</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.</b><br/>
<a id="pl.47.1"></a><var>47.1</var>    The governing body of any home rule charter or statutory city or town may annually
         <br/>
<a id="pl.47.2"></a><var>47.2</var>appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
         <br/>
<a id="pl.47.3"></a><var>47.3</var>market value, derived from ad valorem taxes on property or other revenues, to be paid
         to <br/>
<a id="pl.47.4"></a><var>47.4</var>the historical society of its respective city, town, or county to be used for the promotion of <br/>
<a id="pl.47.5"></a><var>47.5</var>historical work and to aid in defraying the expenses of carrying on the historical
         work in <br/>
<a id="pl.47.6"></a><var>47.6</var>the county. No city or town may appropriate any funds for the benefit of any historical
         <br/>
<a id="pl.47.7"></a><var>47.7</var>society unless the society is affiliated with and approved by the Minnesota Historical
         Society.<br/>
<a id="pl.47.8"></a><var>47.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.47.9"></a><var>47.9</var>    Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read:<br/>
<a id="pl.47.10"></a><var>47.10</var><b>270C.9901 ASSESSOR ACCREDITATION</b><b>; WAIVER</b><b>.</b><br/>
<a id="pl.47.11"></a><var>47.11</var>    Subdivision 1. <b>Accreditation.</b> Every individual who appraises or physically inspects <br/>
<a id="pl.47.12"></a><var>47.12</var>real property for the purpose of determining its valuation or classification for property
         tax <br/>
<a id="pl.47.13"></a><var>47.13</var>purposes must obtain licensure as an accredited Minnesota assessor from the State
         Board <br/>
<a id="pl.47.14"></a><var>47.14</var>of Assessors by July 1, 2019 2022, or within four five years of that person having become <br/>
<a id="pl.47.15"></a><var>47.15</var>licensed as a certified Minnesota assessor, whichever is later.<br/>
<a id="pl.47.16"></a><var>47.16</var>    Subd. 2. <b>Waiver.</b> (a) An individual may apply to the State Board of Assessors for a <br/>
<a id="pl.47.17"></a><var>47.17</var>waiver from licensure as an accredited Minnesota assessor as required by subdivision
         1 if <br/>
<a id="pl.47.18"></a><var>47.18</var>the individual:<br/>
<a id="pl.47.19"></a><var>47.19</var>(1) was first licensed as a certified Minnesota assessor before July 1, 2004;<br/>
<a id="pl.47.20"></a><var>47.20</var>(2) has maintained an assessor license in good standing since July 1, 2004;<br/>
<a id="pl.47.21"></a><var>47.21</var>(3) has successfully passed a comprehensive examination substantially equivalent to
         the <br/>
<a id="pl.47.22"></a><var>47.22</var>requirements by the State Board of Assessors for the accredited Minnesota assessor
         license <br/>
<a id="pl.47.23"></a><var>47.23</var>designation before May 1, 2020; and<br/>
<a id="pl.47.24"></a><var>47.24</var>    (4) submits an application to the State Board of Assessors no later than July 1, 2022.<br/>
<a id="pl.47.25"></a><var>47.25</var>The examination can only be taken once to fulfill the requirements of the waiver.<br/>
<a id="pl.47.26"></a><var>47.26</var>(b) The commissioner of revenue, in consultation with the State Board of Assessors
         and <br/>
<a id="pl.47.27"></a><var>47.27</var>the Minnesota Association of Assessing Officers, must determine the contents of the
         waiver <br/>
<a id="pl.47.28"></a><var>47.28</var>application and the comprehensive examination.<br/>
<a id="pl.47.29"></a><var>47.29</var>(c) A county assessor in any jurisdiction assessed by an applicant may submit additional
         <br/>
<a id="pl.47.30"></a><var>47.30</var>information to the State Board of Assessors to be considered as part of the waiver
         review <br/>
<a id="pl.47.31"></a><var>47.31</var>proceedings.<br/>
<a id="pl.48.1"></a><var>48.1</var>(d) The State Board of Assessors must not grant a waiver unless the applicant has
         met <br/>
<a id="pl.48.2"></a><var>48.2</var>the requirements in paragraph (a) and has the ability to perform the duties of assessment
         <br/>
<a id="pl.48.3"></a><var>48.3</var>required in each jurisdiction in which the applicant appraises or physically inspects
         real <br/>
<a id="pl.48.4"></a><var>48.4</var>property for the purposes of determining its valuation or classification for property
         tax <br/>
<a id="pl.48.5"></a><var>48.5</var>purposes.<br/>
<a id="pl.48.6"></a><var>48.6</var>(e) An individual granted a waiver under this subdivision is allowed to continue <br/>
<a id="pl.48.7"></a><var>48.7</var>assessment duties at the individual's licensure level, provided the individual maintains
         <br/>
<a id="pl.48.8"></a><var>48.8</var>licensure in good standing and complies with the continuing education requirements
         for the <br/>
<a id="pl.48.9"></a><var>48.9</var>accredited Minnesota assessor designation as prescribed by the State Board of Assessors.<br/>
<a id="pl.48.10"></a><var>48.10</var>(f) An individual granted a waiver under this section:<br/>
<a id="pl.48.11"></a><var>48.11</var>(1) is not considered to have achieved the designation as an accredited Minnesota
         assessor <br/>
<a id="pl.48.12"></a><var>48.12</var>and may not represent himself or herself as an accredited Minnesota assessor; and<br/>
<a id="pl.48.13"></a><var>48.13</var>(2) is not authorized to value income-producing property as defined in section 273.11,
         <br/>
<a id="pl.48.14"></a><var>48.14</var>subdivision 13, unless the individual meets the requirements of that section.<br/>
<a id="pl.48.15"></a><var>48.15</var>(g) A waiver granted by the State Board of Assessors under this section remains in
         effect <br/>
<a id="pl.48.16"></a><var>48.16</var>unless the individual's licensure lapses or is revoked. If the individual's licensure
         lapses or <br/>
<a id="pl.48.17"></a><var>48.17</var>is revoked, the waiver is void and the individual is subject to the requirements of
         subdivision <br/>
<a id="pl.48.18"></a><var>48.18</var>1.<br/>
<a id="pl.48.19"></a><var>48.19</var>(h) A decision of the State Board of Assessors to grant or deny a waiver under this
         <br/>
<a id="pl.48.20"></a><var>48.20</var>subdivision is final and is not subject to appeal.<br/>
<a id="pl.48.21"></a><var>48.21</var>(i) Waivers granted under this subdivision expire on June 30, 2032.<br/>
<a id="pl.48.22"></a><var>48.22</var>(j) This subdivision expires July 1, 2032.<br/>
<a id="pl.48.23"></a><var>48.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.48.24"></a><var>48.24</var>    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:<br/>
<a id="pl.48.25"></a><var>48.25</var>    Subd. 86. <b>Apprenticeship training facilities.</b> All or a portion of a building used <br/>
<a id="pl.48.26"></a><var>48.26</var>exclusively for a state-approved apprenticeship program through the Department of
         Labor <br/>
<a id="pl.48.27"></a><var>48.27</var>and Industry is exempt if:<br/>
<a id="pl.48.28"></a><var>48.28</var>(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by
         a nonprofit <br/>
<a id="pl.48.29"></a><var>48.29</var>organization or a nonprofit trust;<br/>
<a id="pl.48.30"></a><var>48.30</var>(2) the program participants receive no compensation; and<br/>
<a id="pl.48.31"></a><var>48.31</var>(3) it is located:<br/>
<a id="pl.49.1"></a><var>49.1</var>(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
         <br/>
<a id="pl.49.2"></a><var>49.2</var>by the 2000 federal census;<br/>
<a id="pl.49.3"></a><var>49.3</var>(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical
         area <br/>
<a id="pl.49.4"></a><var>49.4</var>that has a population of 7,400 or greater according to the most recent federal census;
         or<br/>
<a id="pl.49.5"></a><var>49.5</var>(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000 <br/>
<a id="pl.49.6"></a><var>49.6</var>determined by the 2000 federal census and the building was previously used by a school
         <br/>
<a id="pl.49.7"></a><var>49.7</var>and was exempt for taxes payable in 2010.<br/>
<a id="pl.49.8"></a><var>49.8</var>Use of the property for advanced skills training of incumbent workers does not disqualify
         <br/>
<a id="pl.49.9"></a><var>49.9</var>the property for the exemption under this subdivision. This exemption includes up
         to five <br/>
<a id="pl.49.10"></a><var>49.10</var>acres of the land on which the building is located and associated parking areas on
         that land, <br/>
<a id="pl.49.11"></a><var>49.11</var>except that if the building meets the requirements of clause (3), item (iii), then
         the exemption <br/>
<a id="pl.49.12"></a><var>49.12</var>includes up to ten acres of land on which the building is located and associated parking
         <br/>
<a id="pl.49.13"></a><var>49.13</var>areas on that land. If a parking area associated with the facility is used for the
         purposes of <br/>
<a id="pl.49.14"></a><var>49.14</var>the facility and for other purposes, a portion of the parking area shall be exempt
         in proportion <br/>
<a id="pl.49.15"></a><var>49.15</var>to the square footage of the facility used for purposes of apprenticeship training.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.49.16"></a><var>49.16</var>    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to <br/>
<a id="pl.49.17"></a><var>49.17</var>read:<br/>
<a id="pl.49.18"></a><var>49.18</var>    Subd. 100. <b>Certain property owned by an Indian tribe.</b> (a) Property is exempt that:<br/>
<a id="pl.49.19"></a><var>49.19</var>(1) is located in a city of the first class with a population less than 100,000 as
         of the <br/>
<a id="pl.49.20"></a><var>49.20</var>2010 federal census;<br/>
<a id="pl.49.21"></a><var>49.21</var>(2) was on January 1, 2016, and is for the current assessment, owned by a federally
         <br/>
<a id="pl.49.22"></a><var>49.22</var>recognized Indian tribe, or its instrumentality, that is located within the state
         of Minnesota; <br/>
<a id="pl.49.23"></a><var>49.23</var>and<br/>
<a id="pl.49.24"></a><var>49.24</var>(3) is used exclusively as a medical clinic.<br/>
<a id="pl.49.25"></a><var>49.25</var>(b) Property that qualifies for the exemption under this subdivision is limited to
         no more <br/>
<a id="pl.49.26"></a><var>49.26</var>than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000
         <br/>
<a id="pl.49.27"></a><var>49.27</var>square feet. Property acquired for single-family housing, market-rate apartments,
         agriculture, <br/>
<a id="pl.49.28"></a><var>49.28</var>or forestry does not qualify for this exemption. The exemption created by this subdivision
         <br/>
<a id="pl.49.29"></a><var>49.29</var>expires with taxes payable in 2028.<br/>
<a id="pl.49.30"></a><var>49.30</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2017.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.50.1"></a><var>50.1</var>    Sec. 6. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:<br/>
<a id="pl.50.2"></a><var>50.2</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br/>
<a id="pl.50.3"></a><var>50.3</var>(1) "wind energy conversion system" has the meaning given in section 
         <statute_ref>216C.06, <br/>
<a id="pl.50.4"></a><var>50.4</var>subdivision 19
         </statute_ref>, and also includes a substation that is used and owned by one or more wind <br/>
<a id="pl.50.5"></a><var>50.5</var>energy conversion facilities;<br/>
<a id="pl.50.6"></a><var>50.6</var>(2) "large scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.50.7"></a><var>50.7</var>of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.50.8"></a><var>50.8</var>combined with other systems as provided in paragraph (b);<br/>
<a id="pl.50.9"></a><var>50.9</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.50.10"></a><var>50.10</var>system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         <br/>
<a id="pl.50.11"></a><var>50.11</var>of the system or as combined with other systems as provided in paragraph (b); and<br/>
<a id="pl.50.12"></a><var>50.12</var>(4) "small scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.50.13"></a><var>50.13</var>of two megawatts and under, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.50.14"></a><var>50.14</var>combined with other systems as provided in paragraph (b).<br/>
<a id="pl.50.15"></a><var>50.15</var>(b) For systems installed and contracted for after January 1, 2002, the total size
         of a <br/>
<a id="pl.50.16"></a><var>50.16</var>wind energy conversion system under this subdivision shall be determined according
         to this <br/>
<a id="pl.50.17"></a><var>50.17</var>paragraph. Unless the systems are interconnected with different distribution systems,
         the <br/>
<a id="pl.50.18"></a><var>50.18</var>nameplate capacity of one wind energy conversion system shall be combined with the
         <br/>
<a id="pl.50.19"></a><var>50.19</var>nameplate capacity of any other wind energy conversion system that is:<br/>
<a id="pl.50.20"></a><var>50.20</var>(1) located within five miles of the wind energy conversion system;<br/>
<a id="pl.50.21"></a><var>50.21</var>(2) constructed within the same calendar year as the wind energy conversion system;
         <br/>
<a id="pl.50.22"></a><var>50.22</var>and<br/>
<a id="pl.50.23"></a><var>50.23</var>(3) under common ownership.<br/>
<a id="pl.50.24"></a><var>50.24</var>In the case of a dispute, the commissioner of commerce shall determine the total size
         of <br/>
<a id="pl.50.25"></a><var>50.25</var>the system, and shall draw all reasonable inferences in favor of combining the systems.<br/>
<a id="pl.50.26"></a><var>50.26</var>(c) In making a determination under paragraph (b), the commissioner of commerce may
         <br/>
<a id="pl.50.27"></a><var>50.27</var>determine that two wind energy conversion systems are under common ownership when
         <br/>
<a id="pl.50.28"></a><var>50.28</var>the underlying ownership structure contains similar the same persons or entities, even if the <br/>
<a id="pl.50.29"></a><var>50.29</var>ownership shares differ between the two systems. Wind energy conversion systems are
         not <br/>
<a id="pl.50.30"></a><var>50.30</var>under common ownership solely because the same person or entity provided equity financing
         <br/>
<a id="pl.50.31"></a><var>50.31</var>for the systems. Wind energy conversion systems that were determined by the commissioner <br/>
<a id="pl.50.32"></a><var>50.32</var>of commerce to be eligible for a renewable energy production incentive under section
         <br/>
<a id="pl.51.1"></a><var>51.1</var>216C.41 are not under common ownership unless a change in the qualifying owner was
         <br/>
<a id="pl.51.2"></a><var>51.2</var>made to an owner of another wind energy conversion system subsequent to the determination
         <br/>
<a id="pl.51.3"></a><var>51.3</var>by the commissioner of commerce.<br/>
<a id="pl.51.4"></a><var>51.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.51.5"></a><var>51.5</var>    Sec. 7. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:<br/>
<a id="pl.51.6"></a><var>51.6</var>    Subd. 8. <b>Manufactured homes; sectional structures.</b> (a) In this section, "manufactured <br/>
<a id="pl.51.7"></a><var>51.7</var>home" means a structure transportable in one or more sections, which is built on a
         permanent <br/>
<a id="pl.51.8"></a><var>51.8</var>chassis, and designed to be used as a dwelling with or without a permanent foundation
         when <br/>
<a id="pl.51.9"></a><var>51.9</var>connected to the required utilities, and contains the plumbing, heating, air conditioning,
         and <br/>
<a id="pl.51.10"></a><var>51.10</var>electrical systems in it. Manufactured home includes any accessory structure that
         is an <br/>
<a id="pl.51.11"></a><var>51.11</var>addition or supplement to the manufactured home and, when installed, becomes a part
         of <br/>
<a id="pl.51.12"></a><var>51.12</var>the manufactured home.<br/>
<a id="pl.51.13"></a><var>51.13</var>    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
         <br/>
<a id="pl.51.14"></a><var>51.14</var>following criteria must be valued and assessed as an improvement to real property,
         the <br/>
<a id="pl.51.15"></a><var>51.15</var>appropriate real property classification applies, and the valuation is subject to
         review and <br/>
<a id="pl.51.16"></a><var>51.16</var>the taxes payable in the manner provided for real property:<br/>
<a id="pl.51.17"></a><var>51.17</var>    (1) the owner of the unit holds title to the land on which it is situated;<br/>
<a id="pl.51.18"></a><var>51.18</var>    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location <br/>
<a id="pl.51.19"></a><var>51.19</var>in accordance with the Manufactured Home Building Code in sections 
         <statute_ref>327.31 </statute_ref>to 
         <statute_ref>327.34</statute_ref>, <br/>
<a id="pl.51.20"></a><var>51.20</var>and rules adopted under those sections, or is affixed to the land like other real
         property in <br/>
<a id="pl.51.21"></a><var>51.21</var>the taxing district; and<br/>
<a id="pl.51.22"></a><var>51.22</var>    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced <br/>
<a id="pl.51.23"></a><var>51.23</var>by water and sewer facilities comparable to other real property in the taxing district.<br/>
<a id="pl.51.24"></a><var>51.24</var>    (c) A manufactured home that meets each of the following criteria must be assessed
         at <br/>
<a id="pl.51.25"></a><var>51.25</var>the rate provided by the appropriate real property classification but must be treated
         as <br/>
<a id="pl.51.26"></a><var>51.26</var>personal property, and the valuation is subject to review and the taxes payable in
         the manner <br/>
<a id="pl.51.27"></a><var>51.27</var>provided in this section:<br/>
<a id="pl.51.28"></a><var>51.28</var>    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the
         unit is <br/>
<a id="pl.51.29"></a><var>51.29</var>located in a manufactured home park but is not the homestead of the park owner;<br/>
<a id="pl.51.30"></a><var>51.30</var>    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location <br/>
<a id="pl.51.31"></a><var>51.31</var>in accordance with the Manufactured Home Building Code contained in sections 
         <statute_ref>327.31</statute_ref> to <br/>
<statute_ref><a id="pl.52.1"></a><var>52.1</var>327.34
         </statute_ref>, and the rules adopted under those sections, or is affixed to the land like other
         real <br/>
<a id="pl.52.2"></a><var>52.2</var>property in the taxing district; and<br/>
<a id="pl.52.3"></a><var>52.3</var>    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced <br/>
<a id="pl.52.4"></a><var>52.4</var>by water and sewer facilities comparable to other real property in the taxing district.<br/>
<a id="pl.52.5"></a><var>52.5</var>    (d) Sectional structures must be valued and assessed as an improvement to real property
         <br/>
<a id="pl.52.6"></a><var>52.6</var>if the owner of the structure holds title to the land on which it is located or is
         a qualifying <br/>
<a id="pl.52.7"></a><var>52.7</var>lessee of the land under section 
         <statute_ref>273.19</statute_ref>. In this paragraph "sectional structure" means a <br/>
<a id="pl.52.8"></a><var>52.8</var>building or structural unit that has been in whole or substantial part manufactured
         or <br/>
<a id="pl.52.9"></a><var>52.9</var>constructed at an off-site location to be wholly or partially assembled on site alone
         or with <br/>
<a id="pl.52.10"></a><var>52.10</var>other units and attached to a permanent foundation.<br/>
<a id="pl.52.11"></a><var>52.11</var>    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
         <br/>
<a id="pl.52.12"></a><var>52.12</var>Act to establish additional criteria for the classification of manufactured homes
         and sectional <br/>
<a id="pl.52.13"></a><var>52.13</var>structures under this subdivision.<br/>
<a id="pl.52.14"></a><var>52.14</var>    (f) A storage shed, deck, or similar improvement constructed on property that is leased
         <br/>
<a id="pl.52.15"></a><var>52.15</var>or rented as a site for a manufactured home, sectional structure, park trailer, or
         travel trailer <br/>
<a id="pl.52.16"></a><var>52.16</var>is taxable as provided in this section. In the case of property that is leased or
         rented as a site <br/>
<a id="pl.52.17"></a><var>52.17</var>for a travel trailer, a storage shed, deck, or similar improvement on the site that
         is considered <br/>
<a id="pl.52.18"></a><var>52.18</var>personal property under this paragraph is taxable only if its total estimated market
         value is <br/>
<a id="pl.52.19"></a><var>52.19</var>over $1,000 $10,000. The property is taxable as personal property to the lessee of the site <br/>
<a id="pl.52.20"></a><var>52.20</var>if it is not owned by the owner of the site. The property is taxable as real estate
         if it is owned <br/>
<a id="pl.52.21"></a><var>52.21</var>by the owner of the site. As a condition of permitting the owner of the manufactured
         home, <br/>
<a id="pl.52.22"></a><var>52.22</var>sectional structure, park trailer, or travel trailer to construct improvements on
         the leased or <br/>
<a id="pl.52.23"></a><var>52.23</var>rented site, the owner of the site must obtain the permanent home address of the lessee
         or <br/>
<a id="pl.52.24"></a><var>52.24</var>user of the site. The site owner must provide the name and address to the assessor
         upon <br/>
<a id="pl.52.25"></a><var>52.25</var>request.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.52.26"></a><var>52.26</var>    Sec. 8. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.52.27"></a><var>52.27</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural land <br/>
<a id="pl.52.28"></a><var>52.28</var>that is homesteaded, along with any class 2b rural vacant land that is contiguous
         to the class <br/>
<a id="pl.52.29"></a><var>52.29</var>2a land under the same ownership. The market value of the house and garage and immediately
         <br/>
<a id="pl.52.30"></a><var>52.30</var>surrounding one acre of land has the same classification rates as class 1a or 1b property
         <br/>
<a id="pl.52.31"></a><var>52.31</var>under subdivision 22. The value of the remaining land including improvements up to
         the <br/>
<a id="pl.52.32"></a><var>52.32</var>first tier valuation limit of agricultural homestead property has a classification
         rate of 0.5 <br/>
<a id="pl.52.33"></a><var>52.33</var>percent of market value. The remaining property over the first tier has a classification
         rate <br/>
<a id="pl.52.34"></a><var>52.34</var>of one percent of market value. For purposes of this subdivision, the "first tier
         valuation <br/>
<a id="pl.53.1"></a><var>53.1</var>limit of agricultural homestead property" and "first tier" means the limit certified
         under <br/>
<a id="pl.53.2"></a><var>53.2</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.53.3"></a><var>53.3</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
         that <br/>
<a id="pl.53.4"></a><var>53.4</var>are agricultural land and buildings. Class 2a property has a classification rate of
         one percent <br/>
<a id="pl.53.5"></a><var>53.5</var>of market value, unless it is part of an agricultural homestead under paragraph (a).
         Class 2a <br/>
<a id="pl.53.6"></a><var>53.6</var>property must also include any property that would otherwise be classified as 2b,
         but is <br/>
<a id="pl.53.7"></a><var>53.7</var>interspersed with class 2a property, including but not limited to sloughs, wooded
         wind <br/>
<a id="pl.53.8"></a><var>53.8</var>shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
         requirement, <br/>
<a id="pl.53.9"></a><var>53.9</var>and other similar land that is impractical for the assessor to value separately from
         the rest <br/>
<a id="pl.53.10"></a><var>53.10</var>of the property or that is unlikely to be able to be sold separately from the rest
         of the property.<br/>
<a id="pl.53.11"></a><var>53.11</var>    An assessor may classify the part of a parcel described in this subdivision that is
         used <br/>
<a id="pl.53.12"></a><var>53.12</var>for agricultural purposes as class 2a and the remainder in the class appropriate to
         its use.<br/>
<a id="pl.53.13"></a><var>53.13</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
         that <br/>
<a id="pl.53.14"></a><var>53.14</var>are unplatted real estate, rural in character and not used for agricultural purposes,
         including <br/>
<a id="pl.53.15"></a><var>53.15</var>land used for growing trees for timber, lumber, and wood and wood products, that is
         not <br/>
<a id="pl.53.16"></a><var>53.16</var>improved with a structure. The presence of a minor, ancillary nonresidential structure
         as <br/>
<a id="pl.53.17"></a><var>53.17</var>defined by the commissioner of revenue does not disqualify the property from classification
         <br/>
<a id="pl.53.18"></a><var>53.18</var>under this paragraph. Any parcel of 20 acres or more improved with a structure that
         is not <br/>
<a id="pl.53.19"></a><var>53.19</var>a minor, ancillary nonresidential structure must be split-classified, and ten acres
         must be <br/>
<a id="pl.53.20"></a><var>53.20</var>assigned to the split parcel containing the structure. Class 2b property has a classification
         <br/>
<a id="pl.53.21"></a><var>53.21</var>rate of one percent of market value unless it is part of an agricultural homestead
         under <br/>
<a id="pl.53.22"></a><var>53.22</var>paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.53.23"></a><var>53.23</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
         <br/>
<a id="pl.53.24"></a><var>53.24</var>acres statewide per taxpayer that is being managed under a forest management plan
         that <br/>
<a id="pl.53.25"></a><var>53.25</var>meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
         resource <br/>
<a id="pl.53.26"></a><var>53.26</var>management incentive program. It has a classification rate of .65 percent, provided
         that the <br/>
<a id="pl.53.27"></a><var>53.27</var>owner of the property must apply to the assessor in order for the property to initially
         qualify <br/>
<a id="pl.53.28"></a><var>53.28</var>for the reduced rate and provide the information required by the assessor to verify
         that the <br/>
<a id="pl.53.29"></a><var>53.29</var>property qualifies for the reduced rate. If the assessor receives the application
         and information <br/>
<a id="pl.53.30"></a><var>53.30</var>before May 1 in an assessment year, the property qualifies beginning with that assessment
         <br/>
<a id="pl.53.31"></a><var>53.31</var>year. If the assessor receives the application and information after April 30 in an
         assessment <br/>
<a id="pl.53.32"></a><var>53.32</var>year, the property may not qualify until the next assessment year. The commissioner
         of <br/>
<a id="pl.53.33"></a><var>53.33</var>natural resources must concur that the land is qualified. The commissioner of natural
         <br/>
<a id="pl.53.34"></a><var>53.34</var>resources shall annually provide county assessors verification information on a timely
         basis. <br/>
<a id="pl.54.1"></a><var>54.1</var>The presence of a minor, ancillary nonresidential structure as defined by the commissioner
         <br/>
<a id="pl.54.2"></a><var>54.2</var>of revenue does not disqualify the property from classification under this paragraph.<br/>
<a id="pl.54.3"></a><var>54.3</var>    (e) Agricultural land as used in this section means:<br/>
<a id="pl.54.4"></a><var>54.4</var>    (1) contiguous acreage of ten acres or more, used during the preceding year for <br/>
<a id="pl.54.5"></a><var>54.5</var>agricultural purposes; or<br/>
<a id="pl.54.6"></a><var>54.6</var>    (2) contiguous acreage used during the preceding year for an intensive livestock or
         <br/>
<a id="pl.54.7"></a><var>54.7</var>poultry confinement operation, provided that land used only for pasturing or grazing
         does <br/>
<a id="pl.54.8"></a><var>54.8</var>not qualify under this clause.<br/>
<a id="pl.54.9"></a><var>54.9</var>    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
         or <br/>
<a id="pl.54.10"></a><var>54.10</var>storage of agricultural products for sale, or the storage of machinery or equipment
         used in <br/>
<a id="pl.54.11"></a><var>54.11</var>support of agricultural production by the same farm entity. For a property to be classified
         <br/>
<a id="pl.54.12"></a><var>54.12</var>as agricultural based only on the drying or storage of agricultural products, the
         products <br/>
<a id="pl.54.13"></a><var>54.13</var>being dried or stored must have been produced by the same farm entity as the entity
         operating <br/>
<a id="pl.54.14"></a><var>54.14</var>the drying or storage facility. "Agricultural purposes" also includes enrollment in
         the Reinvest <br/>
<a id="pl.54.15"></a><var>54.15</var>in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal Conservation <br/>
<a id="pl.54.16"></a><var>54.16</var>Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal <br/>
<a id="pl.54.17"></a><var>54.17</var>conservation program if the property was classified as agricultural (i) under this
         subdivision <br/>
<a id="pl.54.18"></a><var>54.18</var>for taxes payable in 2003 because of its enrollment in a qualifying program and the
         land <br/>
<a id="pl.54.19"></a><var>54.19</var>remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a <br/>
<a id="pl.54.20"></a><var>54.20</var>local conservation program means a program administered by a town, statutory or home
         <br/>
<a id="pl.54.21"></a><var>54.21</var>rule charter city, or county, including a watershed district, water management organization,
         <br/>
<a id="pl.54.22"></a><var>54.22</var>or soil and water conservation district, in which landowners voluntarily enroll land
         and <br/>
<a id="pl.54.23"></a><var>54.23</var>receive incentive payments in exchange for use or other restrictions placed on the
         land. <br/>
<a id="pl.54.24"></a><var>54.24</var>Agricultural classification shall not be based upon the market value of any residential
         <br/>
<a id="pl.54.25"></a><var>54.25</var>structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.54.26"></a><var>54.26</var>    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
         <br/>
<a id="pl.54.27"></a><var>54.27</var>portion of, a tax parcel as described in section 
         <statute_ref>272.193</statute_ref>, or all of, or a contiguous portion <br/>
<a id="pl.54.28"></a><var>54.28</var>of, a set of contiguous tax parcels under that section that are owned by the same
         person.<br/>
<a id="pl.54.29"></a><var>54.29</var>    (f) Agricultural land under this section also includes:<br/>
<a id="pl.54.30"></a><var>54.30</var>    (1) contiguous acreage that is less than ten acres in size and exclusively used in
         the <br/>
<a id="pl.54.31"></a><var>54.31</var>preceding year for raising or cultivating agricultural products; or<br/>
<a id="pl.55.1"></a><var>55.1</var>    (2) contiguous acreage that contains a residence and is less than 11 acres in size,
         if the <br/>
<a id="pl.55.2"></a><var>55.2</var>contiguous acreage exclusive of the house, garage, and surrounding one acre of land
         was <br/>
<a id="pl.55.3"></a><var>55.3</var>used in the preceding year for one or more of the following three uses:<br/>
<a id="pl.55.4"></a><var>55.4</var>    (i) for an intensive grain drying or storage operation, or for intensive machinery
         or <br/>
<a id="pl.55.5"></a><var>55.5</var>equipment storage activities used to support agricultural activities on other parcels
         of property <br/>
<a id="pl.55.6"></a><var>55.6</var>operated by the same farming entity;<br/>
<a id="pl.55.7"></a><var>55.7</var>    (ii) as a nursery, provided that only those acres used intensively to produce nursery
         stock <br/>
<a id="pl.55.8"></a><var>55.8</var>are considered agricultural land; or<br/>
<a id="pl.55.9"></a><var>55.9</var>    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
         <br/>
<a id="pl.55.10"></a><var>55.10</var>means the cultivation of one or more fruits or vegetables or production of animal
         or other <br/>
<a id="pl.55.11"></a><var>55.11</var>agricultural products for sale to local markets by the farmer or an organization with
         which <br/>
<a id="pl.55.12"></a><var>55.12</var>the farmer is affiliated.<br/>
<a id="pl.55.13"></a><var>55.13</var>    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
         <br/>
<a id="pl.55.14"></a><var>55.14</var>described in section 
         <statute_ref>272.193</statute_ref>, or all of a set of contiguous tax parcels under that section that <br/>
<a id="pl.55.15"></a><var>55.15</var>are owned by the same person.<br/>
<a id="pl.55.16"></a><var>55.16</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
         use <br/>
<a id="pl.55.17"></a><var>55.17</var>of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.55.18"></a><var>55.18</var>    Classification under this subdivision is not determinative for qualifying under section
         <br/>
<statute_ref><a id="pl.55.19"></a><var>55.19</var>273.111
         </statute_ref>.<br/>
<a id="pl.55.20"></a><var>55.20</var>    (h) The property classification under this section supersedes, for property tax purposes
         <br/>
<a id="pl.55.21"></a><var>55.21</var>only, any locally administered agricultural policies or land use restrictions that
         define <br/>
<a id="pl.55.22"></a><var>55.22</var>minimum or maximum farm acreage.<br/>
<a id="pl.55.23"></a><var>55.23</var>    (i) The term "agricultural products" as used in this subdivision includes production
         for <br/>
<a id="pl.55.24"></a><var>55.24</var>sale of:<br/>
<a id="pl.55.25"></a><var>55.25</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
         <br/>
<a id="pl.55.26"></a><var>55.26</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage,
         grains, bees, <br/>
<a id="pl.55.27"></a><var>55.27</var>and apiary products by the owner;<br/>
<a id="pl.55.28"></a><var>55.28</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
         <br/>
<a id="pl.55.29"></a><var>55.29</var>agricultural use;<br/>
<a id="pl.55.30"></a><var>55.30</var>    (3) the commercial boarding of horses, which may include related horse training and
         <br/>
<a id="pl.55.31"></a><var>55.31</var>riding instruction, if the boarding is done on property that is also used for raising
         pasture <br/>
<a id="pl.55.32"></a><var>55.32</var>to graze horses or raising or cultivating other agricultural products as defined in
         clause (1);<br/>
<a id="pl.56.1"></a><var>56.1</var>    (4) property which is owned and operated by nonprofit organizations used for equestrian
         <br/>
<a id="pl.56.2"></a><var>56.2</var>activities, excluding racing;<br/>
<a id="pl.56.3"></a><var>56.3</var>    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
         <br/>
<statute_ref><a id="pl.56.4"></a><var>56.4</var>97A.105
         </statute_ref>, provided that the annual licensing report to the Department of Natural Resources,
         <br/>
<a id="pl.56.5"></a><var>56.5</var>which must be submitted annually by March 30 to the assessor, indicates that at least
         500 <br/>
<a id="pl.56.6"></a><var>56.6</var>birds were raised or used for breeding stock on the property during the preceding
         year and <br/>
<a id="pl.56.7"></a><var>56.7</var>that the owner provides a copy of the owner's most recent schedule F; or (ii) for
         use on a <br/>
<a id="pl.56.8"></a><var>56.8</var>shooting preserve licensed under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.56.9"></a><var>56.9</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.56.10"></a><var>56.10</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
         sold <br/>
<a id="pl.56.11"></a><var>56.11</var>for timber, lumber, wood, or wood products; and<br/>
<a id="pl.56.12"></a><var>56.12</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.56.13"></a><var>56.13</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.56.14"></a><var>56.14</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
         <br/>
<a id="pl.56.15"></a><var>56.15</var>purposes, including but not limited to:<br/>
<a id="pl.56.16"></a><var>56.16</var>    (1) wholesale and retail sales;<br/>
<a id="pl.56.17"></a><var>56.17</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.56.18"></a><var>56.18</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.56.19"></a><var>56.19</var>    (4) office facilities for the support of the activities enumerated in clauses (1),
         (2), and <br/>
<a id="pl.56.20"></a><var>56.20</var>(3),<br/>
<a id="pl.56.21"></a><var>56.21</var>the assessor shall classify the part of the parcel used for agricultural purposes
         as class 1b, <br/>
<a id="pl.56.22"></a><var>56.22</var>2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to
         its use. <br/>
<a id="pl.56.23"></a><var>56.23</var>The grading, sorting, and packaging of raw agricultural products for first sale is
         considered <br/>
<a id="pl.56.24"></a><var>56.24</var>an agricultural purpose. A greenhouse or other building where horticultural or nursery
         <br/>
<a id="pl.56.25"></a><var>56.25</var>products are grown that is also used for the conduct of retail sales must be classified
         as <br/>
<a id="pl.56.26"></a><var>56.26</var>agricultural if it is primarily used for the growing of horticultural or nursery products
         from <br/>
<a id="pl.56.27"></a><var>56.27</var>seed, cuttings, or roots and occasionally as a showroom for the retail sale of those
         products. <br/>
<a id="pl.56.28"></a><var>56.28</var>Use of a greenhouse or building only for the display of already grown horticultural
         or nursery <br/>
<a id="pl.56.29"></a><var>56.29</var>products does not qualify as an agricultural purpose.<br/>
<a id="pl.56.30"></a><var>56.30</var>    (k) The assessor shall determine and list separately on the records the market value
         of <br/>
<a id="pl.56.31"></a><var>56.31</var>the homestead dwelling and the one acre of land on which that dwelling is located.
         If any <br/>
<a id="pl.57.1"></a><var>57.1</var>farm buildings or structures are located on this homesteaded acre of land, their market
         value <br/>
<a id="pl.57.2"></a><var>57.2</var>shall not be included in this separate determination.<br/>
<a id="pl.57.3"></a><var>57.3</var>    (l) Class 2d airport landing area consists of a landing area or public access area
         of a <br/>
<a id="pl.57.4"></a><var>57.4</var>privately owned public use airport. It has a classification rate of one percent of
         market value. <br/>
<a id="pl.57.5"></a><var>57.5</var>To qualify for classification under this paragraph, a privately owned public use airport
         must <br/>
<a id="pl.57.6"></a><var>57.6</var>be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph, "landing <br/>
<a id="pl.57.7"></a><var>57.7</var>area" means that part of a privately owned public use airport properly cleared, regularly
         <br/>
<a id="pl.57.8"></a><var>57.8</var>maintained, and made available to the public for use by aircraft and includes runways,
         <br/>
<a id="pl.57.9"></a><var>57.9</var>taxiways, aprons, and sites upon which are situated landing or navigational aids.
         A landing <br/>
<a id="pl.57.10"></a><var>57.10</var>area also includes land underlying both the primary surface and the approach surfaces
         that <br/>
<a id="pl.57.11"></a><var>57.11</var>comply with all of the following:<br/>
<a id="pl.57.12"></a><var>57.12</var>    (i) the land is properly cleared and regularly maintained for the primary purposes
         of the <br/>
<a id="pl.57.13"></a><var>57.13</var>landing, taking off, and taxiing of aircraft; but that portion of the land that contains
         facilities <br/>
<a id="pl.57.14"></a><var>57.14</var>for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.57.15"></a><var>57.15</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.57.16"></a><var>57.16</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.57.17"></a><var>57.17</var>The land contained in a landing area under this paragraph must be described and certified
         <br/>
<a id="pl.57.18"></a><var>57.18</var>by the commissioner of transportation. The certification is effective until it is
         modified, or <br/>
<a id="pl.57.19"></a><var>57.19</var>until the airport or landing area no longer meets the requirements of this paragraph.
         For <br/>
<a id="pl.57.20"></a><var>57.20</var>purposes of this paragraph, "public access area" means property used as an aircraft
         parking <br/>
<a id="pl.57.21"></a><var>57.21</var>ramp, apron, or storage hangar, or an arrival and departure building in connection
         with the <br/>
<a id="pl.57.22"></a><var>57.22</var>airport.<br/>
<a id="pl.57.23"></a><var>57.23</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
         <br/>
<a id="pl.57.24"></a><var>57.24</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land
         is not <br/>
<a id="pl.57.25"></a><var>57.25</var>located in a county that has elected to opt-out of the aggregate preservation program
         as <br/>
<a id="pl.57.26"></a><var>57.26</var>provided in section 
         <statute_ref>273.1115, subdivision 6</statute_ref>. It has a classification rate of one percent of <br/>
<a id="pl.57.27"></a><var>57.27</var>market value. To qualify for classification under this paragraph, the property must
         be at <br/>
<a id="pl.57.28"></a><var>57.28</var>least ten contiguous acres in size and the owner of the property must record with
         the county <br/>
<a id="pl.57.29"></a><var>57.29</var>recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.57.30"></a><var>57.30</var>    (1) a legal description of the property;<br/>
<a id="pl.57.31"></a><var>57.31</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is
         not <br/>
<a id="pl.57.32"></a><var>57.32</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.58.1"></a><var>58.1</var>    (3) documentation that the conditional use under the county or local zoning ordinance
         <br/>
<a id="pl.58.2"></a><var>58.2</var>of this property is for mining; and<br/>
<a id="pl.58.3"></a><var>58.3</var>    (4) documentation that a permit has been issued by the local unit of government or
         the <br/>
<a id="pl.58.4"></a><var>58.4</var>mining activity is allowed under local ordinance. The disclosure must include a statement
         <br/>
<a id="pl.58.5"></a><var>58.5</var>from a registered professional geologist, engineer, or soil scientist delineating
         the deposit <br/>
<a id="pl.58.6"></a><var>58.6</var>and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.58.7"></a><var>58.7</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.58.8"></a><var>58.8</var>means a deposit that will yield crushed stone or sand and gravel that is suitable
         for use as <br/>
<a id="pl.58.9"></a><var>58.9</var>a construction aggregate; and "actively mined" means the removal of top soil and overburden
         <br/>
<a id="pl.58.10"></a><var>58.10</var>in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.58.11"></a><var>58.11</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins
         to <br/>
<a id="pl.58.12"></a><var>58.12</var>be actively mined, the owner must file a supplemental affidavit within 60 days from
         the <br/>
<a id="pl.58.13"></a><var>58.13</var>day any aggregate is removed stating the number of acres of the property that is actively
         <br/>
<a id="pl.58.14"></a><var>58.14</var>being mined. The acres actively being mined must be (1) valued and classified under
         <br/>
<a id="pl.58.15"></a><var>58.15</var>subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
         <br/>
<a id="pl.58.16"></a><var>58.16</var>resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the land was enrolled <br/>
<a id="pl.58.17"></a><var>58.17</var>in that program. Copies of the original affidavit and all supplemental affidavits
         must be <br/>
<a id="pl.58.18"></a><var>58.18</var>filed with the county assessor, the local zoning administrator, and the Department
         of Natural <br/>
<a id="pl.58.19"></a><var>58.19</var>Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
         <br/>
<a id="pl.58.20"></a><var>58.20</var>time a subsequent portion of the property is actively mined, provided that the minimum
         <br/>
<a id="pl.58.21"></a><var>58.21</var>acreage change is five acres, even if the actual mining activity constitutes less
         than five <br/>
<a id="pl.58.22"></a><var>58.22</var>acres.<br/>
<a id="pl.58.23"></a><var>58.23</var>    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
         not <br/>
<a id="pl.58.24"></a><var>58.24</var>rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
         in <br/>
<a id="pl.58.25"></a><var>58.25</var>section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.58.26"></a><var>58.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2017.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.58.27"></a><var>58.27</var>    Sec. 9. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.58.28"></a><var>58.28</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more units <br/>
<a id="pl.58.29"></a><var>58.29</var>and used or held for use by the owner or by the tenants or lessees of the owner as
         a residence <br/>
<a id="pl.58.30"></a><var>58.30</var>for rental periods of 30 days or more, excluding property qualifying for class 4d.
         Class 4a <br/>
<a id="pl.58.31"></a><var>58.31</var>also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other than hospitals exempt <br/>
<a id="pl.58.32"></a><var>58.32</var>under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital purposes, without regard <br/>
<a id="pl.59.1"></a><var>59.1</var>to whether the property has been platted or subdivided. The market value of class
         4a property <br/>
<a id="pl.59.2"></a><var>59.2</var>has a classification rate of 1.25 percent.<br/>
<a id="pl.59.3"></a><var>59.3</var>    (b) Class 4b includes:<br/>
<a id="pl.59.4"></a><var>59.4</var>    (1) residential real estate containing less than four units that does not qualify
         as class <br/>
<a id="pl.59.5"></a><var>59.5</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.59.6"></a><var>59.6</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.59.7"></a><var>59.7</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
         <br/>
<a id="pl.59.8"></a><var>59.8</var>classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.59.9"></a><var>59.9</var>    (4) unimproved property that is classified residential as determined under subdivision
         <br/>
<a id="pl.59.10"></a><var>59.10</var>33.<br/>
<a id="pl.59.11"></a><var>59.11</var>    The market value of class 4b property has a classification rate of 1.25 percent.<br/>
<a id="pl.59.12"></a><var>59.12</var>    (c) Class 4bb includes nonhomestead residential real estate containing one unit, other
         <br/>
<a id="pl.59.13"></a><var>59.13</var>than seasonal residential recreational property, and a single family dwelling, garage,
         and <br/>
<a id="pl.59.14"></a><var>59.14</var>surrounding one acre of property on a nonhomestead farm classified under subdivision
         23, <br/>
<a id="pl.59.15"></a><var>59.15</var>paragraph (b).<br/>
<a id="pl.59.16"></a><var>59.16</var>    Class 4bb property has the same classification rates as class 1a property under subdivision
         <br/>
<a id="pl.59.17"></a><var>59.17</var>22.<br/>
<a id="pl.59.18"></a><var>59.18</var>    Property that has been classified as seasonal residential recreational property at
         any time <br/>
<a id="pl.59.19"></a><var>59.19</var>during which it has been owned by the current owner or spouse of the current owner
         does <br/>
<a id="pl.59.20"></a><var>59.20</var>not qualify for class 4bb.<br/>
<a id="pl.59.21"></a><var>59.21</var>    (d) Class 4c property includes:<br/>
<a id="pl.59.22"></a><var>59.22</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property
         <br/>
<a id="pl.59.23"></a><var>59.23</var>devoted to commercial temporary and seasonal residential occupancy for recreation
         purposes, <br/>
<a id="pl.59.24"></a><var>59.24</var>for not more than 250 days in the year preceding the year of assessment. For purposes
         of <br/>
<a id="pl.59.25"></a><var>59.25</var>this clause, property is devoted to a commercial purpose on a specific day if any
         portion of <br/>
<a id="pl.59.26"></a><var>59.26</var>the property is used for residential occupancy, and a fee is charged for residential
         occupancy. <br/>
<a id="pl.59.27"></a><var>59.27</var>Class 4c property under this clause must contain three or more rental units. A "rental
         unit" <br/>
<a id="pl.59.28"></a><var>59.28</var>is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
         site <br/>
<a id="pl.59.29"></a><var>59.29</var>equipped with water and electrical hookups for recreational vehicles. A camping pad
         offered <br/>
<a id="pl.59.30"></a><var>59.30</var>for rent by a property that otherwise qualifies for class 4c under this clause is
         also class 4c <br/>
<a id="pl.59.31"></a><var>59.31</var>under this clause regardless of the term of the rental agreement, as long as the use
         of the <br/>
<a id="pl.59.32"></a><var>59.32</var>camping pad does not exceed 250 days. In order for a property to be classified under
         this <br/>
<a id="pl.60.1"></a><var>60.1</var>clause, either (i) the business located on the property must provide recreational
         activities, <br/>
<a id="pl.60.2"></a><var>60.2</var>at least 40 percent of the annual gross lodging receipts related to the property must
         be from <br/>
<a id="pl.60.3"></a><var>60.3</var>business conducted during 90 consecutive days, and either (A) at least 60 percent
         of all paid <br/>
<a id="pl.60.4"></a><var>60.4</var>bookings by lodging guests during the year must be for periods of at least two consecutive
         <br/>
<a id="pl.60.5"></a><var>60.5</var>nights; or (B) at least 20 percent of the annual gross receipts must be from charges
         for <br/>
<a id="pl.60.6"></a><var>60.6</var>providing recreational activities, or (ii) the business must contain 20 or fewer rental
         units, <br/>
<a id="pl.60.7"></a><var>60.7</var>and must be located in a township or a city with a population of 2,500 or less located
         outside <br/>
<a id="pl.60.8"></a><var>60.8</var>the metropolitan area, as defined under section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion <br/>
<a id="pl.60.9"></a><var>60.9</var>of a state trail administered by the Department of Natural Resources. For purposes
         of item <br/>
<a id="pl.60.10"></a><var>60.10</var>(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class
         4c <br/>
<a id="pl.60.11"></a><var>60.11</var>property also includes commercial use real property used exclusively for recreational
         <br/>
<a id="pl.60.12"></a><var>60.12</var>purposes in conjunction with other class 4c property classified under this clause
         and devoted <br/>
<a id="pl.60.13"></a><var>60.13</var>to temporary and seasonal residential occupancy for recreational purposes, up to a
         total of <br/>
<a id="pl.60.14"></a><var>60.14</var>two acres, provided the property is not devoted to commercial recreational use for
         more <br/>
<a id="pl.60.15"></a><var>60.15</var>than 250 days in the year preceding the year of assessment and is located within two
         miles <br/>
<a id="pl.60.16"></a><var>60.16</var>of the class 4c property with which it is used. In order for a property to qualify
         for <br/>
<a id="pl.60.17"></a><var>60.17</var>classification under this clause, the owner must submit a declaration to the assessor
         <br/>
<a id="pl.60.18"></a><var>60.18</var>designating the cabins or units occupied for 250 days or less in the year preceding
         the year <br/>
<a id="pl.60.19"></a><var>60.19</var>of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
         <br/>
<a id="pl.60.20"></a><var>60.20</var>share of the land on which they are located must be designated class 4c under this
         clause <br/>
<a id="pl.60.21"></a><var>60.21</var>as otherwise provided. The remainder of the cabins or units and a proportionate share
         of <br/>
<a id="pl.60.22"></a><var>60.22</var>the land on which they are located will be designated as class 3a. The owner of property
         <br/>
<a id="pl.60.23"></a><var>60.23</var>desiring designation as class 4c property under this clause must provide guest registers
         or <br/>
<a id="pl.60.24"></a><var>60.24</var>other records demonstrating that the units for which class 4c designation is sought
         were not <br/>
<a id="pl.60.25"></a><var>60.25</var>occupied for more than 250 days in the year preceding the assessment if so requested.
         The <br/>
<a id="pl.60.26"></a><var>60.26</var>portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference
         center <br/>
<a id="pl.60.27"></a><var>60.27</var>or meeting room, and (5) other nonresidential facility operated on a commercial basis
         not <br/>
<a id="pl.60.28"></a><var>60.28</var>directly related to temporary and seasonal residential occupancy for recreation purposes
         <br/>
<a id="pl.60.29"></a><var>60.29</var>does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
         <br/>
<a id="pl.60.30"></a><var>60.30</var>means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
         <br/>
<a id="pl.60.31"></a><var>60.31</var>ski equipment; providing marina services, launch services, or guide services; or selling
         bait <br/>
<a id="pl.60.32"></a><var>60.32</var>and fishing tackle;<br/>
<a id="pl.60.33"></a><var>60.33</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.60.34"></a><var>60.34</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or
         dues, <br/>
<a id="pl.60.35"></a><var>60.35</var>but a membership fee may not be required in order to use the property for golfing,
         and its <br/>
<a id="pl.61.1"></a><var>61.1</var>green fees for golfing must be comparable to green fees typically charged by municipal
         <br/>
<a id="pl.61.2"></a><var>61.2</var>courses; and<br/>
<a id="pl.61.3"></a><var>61.3</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.61.4"></a><var>61.4</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
         with <br/>
<a id="pl.61.5"></a><var>61.5</var>the golf course is classified as class 3a property;<br/>
<a id="pl.61.6"></a><var>61.6</var>    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
         <br/>
<a id="pl.61.7"></a><var>61.7</var>community service oriented organization and not used for residential purposes on either
         a <br/>
<a id="pl.61.8"></a><var>61.8</var>temporary or permanent basis, provided that:<br/>
<a id="pl.61.9"></a><var>61.9</var>    (i) the property is not used for a revenue-producing activity for more than six days
         in <br/>
<a id="pl.61.10"></a><var>61.10</var>the calendar year preceding the year of assessment; or<br/>
<a id="pl.61.11"></a><var>61.11</var>    (ii) the organization makes annual charitable contributions and donations at least
         equal <br/>
<a id="pl.61.12"></a><var>61.12</var>to the property's previous year's property taxes and the property is allowed to be
         used for <br/>
<a id="pl.61.13"></a><var>61.13</var>public and community meetings or events for no charge, as appropriate to the size
         of the <br/>
<a id="pl.61.14"></a><var>61.14</var>facility.<br/>
<a id="pl.61.15"></a><var>61.15</var>    For purposes of this clause:<br/>
<a id="pl.61.16"></a><var>61.16</var>    (A) "charitable contributions and donations" has the same meaning as lawful gambling
         <br/>
<a id="pl.61.17"></a><var>61.17</var>purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes relating to the <br/>
<a id="pl.61.18"></a><var>61.18</var>payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.61.19"></a><var>61.19</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.61.20"></a><var>61.20</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.61.21"></a><var>61.21</var>society, association, foundation, or institution organized and operated exclusively
         for <br/>
<a id="pl.61.22"></a><var>61.22</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt
         from <br/>
<a id="pl.61.23"></a><var>61.23</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
         <br/>
<a id="pl.61.24"></a><var>61.24</var>Revenue Code; and<br/>
<a id="pl.61.25"></a><var>61.25</var>    (D) "revenue-producing activities" shall include but not be limited to property or
         that <br/>
<a id="pl.61.26"></a><var>61.26</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent
         malt <br/>
<a id="pl.61.27"></a><var>61.27</var>liquor establishment licensed under chapter 340A, a restaurant open to the public,
         bowling <br/>
<a id="pl.61.28"></a><var>61.28</var>alley, a retail store, gambling conducted by organizations licensed under chapter
         349, an <br/>
<a id="pl.61.29"></a><var>61.29</var>insurance business, or office or other space leased or rented to a lessee who conducts
         a <br/>
<a id="pl.61.30"></a><var>61.30</var>for-profit enterprise on the premises.<br/>
<a id="pl.61.31"></a><var>61.31</var>    Any portion of the property not qualifying under either item (i) or (ii) is class
         3a. The <br/>
<a id="pl.61.32"></a><var>61.32</var>use of the property for social events open exclusively to members and their guests
         for periods <br/>
<a id="pl.62.1"></a><var>62.1</var>of less than 24 hours, when an admission is not charged nor any revenues are received
         by <br/>
<a id="pl.62.2"></a><var>62.2</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.62.3"></a><var>62.3</var>    The organization shall maintain records of its charitable contributions and donations
         <br/>
<a id="pl.62.4"></a><var>62.4</var>and of public meetings and events held on the property and make them available upon
         <br/>
<a id="pl.62.5"></a><var>62.5</var>request any time to the assessor to ensure eligibility. An organization meeting the
         requirement <br/>
<a id="pl.62.6"></a><var>62.6</var>under item (ii) must file an application by May 1 with the assessor for eligibility
         for the <br/>
<a id="pl.62.7"></a><var>62.7</var>current year's assessment. The commissioner shall prescribe a uniform application
         form <br/>
<a id="pl.62.8"></a><var>62.8</var>and instructions;<br/>
<a id="pl.62.9"></a><var>62.9</var>    (4) postsecondary student housing of not more than one acre of land that is owned
         by a <br/>
<a id="pl.62.10"></a><var>62.10</var>nonprofit corporation organized under chapter 317A and is used exclusively by a student
         <br/>
<a id="pl.62.11"></a><var>62.11</var>cooperative, sorority, or fraternity for on-campus housing or housing located within
         two <br/>
<a id="pl.62.12"></a><var>62.12</var>miles of the border of a college campus;<br/>
<a id="pl.62.13"></a><var>62.13</var>    (5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, excluding <br/>
<a id="pl.62.14"></a><var>62.14</var>manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii), <br/>
<a id="pl.62.15"></a><var>62.15</var>and (ii) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are <br/>
<a id="pl.62.16"></a><var>62.16</var>described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (iii) class I manufactured home parks as <br/>
<a id="pl.62.17"></a><var>62.17</var>defined  in section 327C.01, subdivision 13;<br/>
<a id="pl.62.18"></a><var>62.18</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health,
         social, <br/>
<a id="pl.62.19"></a><var>62.19</var>recreational, and related uses, is owned and operated by a not-for-profit corporation,
         and is <br/>
<a id="pl.62.20"></a><var>62.20</var>located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.62.21"></a><var>62.21</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
         <br/>
<a id="pl.62.22"></a><var>62.22</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.62.23"></a><var>62.23</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
         <br/>
<a id="pl.62.24"></a><var>62.24</var>Airports Commission, or group thereof; and<br/>
<a id="pl.62.25"></a><var>62.25</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
         leased <br/>
<a id="pl.62.26"></a><var>62.26</var>premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.62.27"></a><var>62.27</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale
         must be <br/>
<a id="pl.62.28"></a><var>62.28</var>filed by the new owner with the assessor of the county where the property is located
         within <br/>
<a id="pl.62.29"></a><var>62.29</var>60 days of the sale;<br/>
<a id="pl.62.30"></a><var>62.30</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
         <br/>
<statute_ref><a id="pl.62.31"></a><var>62.31</var>272.01, subdivision 2
         </statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.62.32"></a><var>62.32</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.63.1"></a><var>63.1</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
         agreement <br/>
<a id="pl.63.2"></a><var>63.2</var>restricting the use of the premises, prohibiting commercial use or activity performed
         at the <br/>
<a id="pl.63.3"></a><var>63.3</var>hangar; and<br/>
<a id="pl.63.4"></a><var>63.4</var>    (9) residential real estate, a portion of which is used by the owner for homestead
         purposes, <br/>
<a id="pl.63.5"></a><var>63.5</var>and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.63.6"></a><var>63.6</var>    (i) rooms are provided for rent to transient guests that generally stay for periods
         of 14 <br/>
<a id="pl.63.7"></a><var>63.7</var>or fewer days;<br/>
<a id="pl.63.8"></a><var>63.8</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
         in <br/>
<a id="pl.63.9"></a><var>63.9</var>the basic room rate;<br/>
<a id="pl.63.10"></a><var>63.10</var>    (iii) meals are not provided to the general public except for special events on fewer
         than <br/>
<a id="pl.63.11"></a><var>63.11</var>seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.63.12"></a><var>63.12</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.63.13"></a><var>63.13</var>    The market value subject to the 4c classification under this clause is limited to
         five rental <br/>
<a id="pl.63.14"></a><var>63.14</var>units. Any rental units on the property in excess of five, must be valued and assessed
         as <br/>
<a id="pl.63.15"></a><var>63.15</var>class 3a. The portion of the property used for purposes of a homestead by the owner
         must <br/>
<a id="pl.63.16"></a><var>63.16</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.63.17"></a><var>63.17</var>    (10) real property up to a maximum of three acres and operated as a restaurant as
         defined <br/>
<a id="pl.63.18"></a><var>63.18</var>under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (i) is located on a lake as defined under <br/>
<a id="pl.63.19"></a><var>63.19</var>section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (ii) is either devoted to <br/>
<a id="pl.63.20"></a><var>63.20</var>commercial purposes for not more than 250 consecutive days, or receives at least 60
         percent <br/>
<a id="pl.63.21"></a><var>63.21</var>of its annual gross receipts from business conducted during four consecutive months.
         Gross <br/>
<a id="pl.63.22"></a><var>63.22</var>receipts from the sale of alcoholic beverages must be included in determining the
         property's <br/>
<a id="pl.63.23"></a><var>63.23</var>qualification under item (ii). The property's primary business must be as a restaurant
         and <br/>
<a id="pl.63.24"></a><var>63.24</var>not as a bar. Gross receipts from gift shop sales located on the premises must be
         excluded. <br/>
<a id="pl.63.25"></a><var>63.25</var>Owners of real property desiring 4c classification under this clause must submit an
         annual <br/>
<a id="pl.63.26"></a><var>63.26</var>declaration to the assessor by February 1 of the current assessment year, based on
         the <br/>
<a id="pl.63.27"></a><var>63.27</var>property's relevant information for the preceding assessment year;<br/>
<a id="pl.63.28"></a><var>63.28</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
         as <br/>
<a id="pl.63.29"></a><var>63.29</var>a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to the public <br/>
<a id="pl.63.30"></a><var>63.30</var>and devoted to recreational use for marina services. The marina owner must annually
         provide <br/>
<a id="pl.63.31"></a><var>63.31</var>evidence to the assessor that it provides services, including lake or river access
         to the public <br/>
<a id="pl.63.32"></a><var>63.32</var>by means of an access ramp or other facility that is either located on the property
         of the <br/>
<a id="pl.63.33"></a><var>63.33</var>marina or at a publicly owned site that abuts the property of the marina. No more
         than 800 <br/>
<a id="pl.64.1"></a><var>64.1</var>feet of lakeshore may be included in this classification. Buildings used in conjunction
         with <br/>
<a id="pl.64.2"></a><var>64.2</var>a marina for marina services, including but not limited to buildings used to provide
         food <br/>
<a id="pl.64.3"></a><var>64.3</var>and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle,
         are classified <br/>
<a id="pl.64.4"></a><var>64.4</var>as class 3a property; and<br/>
<a id="pl.64.5"></a><var>64.5</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.64.6"></a><var>64.6</var>residential occupancy for recreation purposes.<br/>
<a id="pl.64.7"></a><var>64.7</var>    Class 4c property has a classification rate of 1.5 percent of market value, except
         that (i) <br/>
<a id="pl.64.8"></a><var>64.8</var>each parcel of noncommercial seasonal residential recreational property under clause
         (12) <br/>
<a id="pl.64.9"></a><var>64.9</var>has the same classification rates as class 4bb property, (ii) manufactured home parks
         assessed <br/>
<a id="pl.64.10"></a><var>64.10</var>under clause (5), item (i), have the same classification rate as class 4b property,
         and the <br/>
<a id="pl.64.11"></a><var>64.11</var>market value of manufactured home parks assessed under clause (5), item (ii), has have a <br/>
<a id="pl.64.12"></a><var>64.12</var>classification rate of 0.75 percent if more than 50 percent of the lots in the park
         are occupied <br/>
<a id="pl.64.13"></a><var>64.13</var>by shareholders in the cooperative corporation or association and a classification
         rate of <br/>
<a id="pl.64.14"></a><var>64.14</var>one percent if 50 percent or less of the lots are so occupied, and class I manufactured home <br/>
<a id="pl.64.15"></a><var>64.15</var>parks as defined in section 327C.01, subdivision 13, have a classification rate of
         1.0 percent, <br/>
<a id="pl.64.16"></a><var>64.16</var>(iii) commercial-use seasonal residential recreational property and marina recreational
         land <br/>
<a id="pl.64.17"></a><var>64.17</var>as described in clause (11), has a classification rate of one percent for the first
         $500,000 of <br/>
<a id="pl.64.18"></a><var>64.18</var>market value, and 1.25 percent for the remaining market value, (iv) the market value
         of <br/>
<a id="pl.64.19"></a><var>64.19</var>property described in clause (4) has a classification rate of one percent, (v) the
         market value <br/>
<a id="pl.64.20"></a><var>64.20</var>of property described in clauses (2), (6), and (10) has a classification rate of 1.25
         percent, <br/>
<a id="pl.64.21"></a><var>64.21</var>and (vi) that portion of the market value of property in clause (9) qualifying for
         class 4c <br/>
<a id="pl.64.22"></a><var>64.22</var>property has a classification rate of 1.25 percent.<br/>
<a id="pl.64.23"></a><var>64.23</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
         <br/>
<a id="pl.64.24"></a><var>64.24</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion of <br/>
<a id="pl.64.25"></a><var>64.25</var>the units in the building qualify as low-income rental housing units as certified
         under section <br/>
<statute_ref><a id="pl.64.26"></a><var>64.26</var>273.128, subdivision 3
         </statute_ref>, only the proportion of qualifying units to the total number of units <br/>
<a id="pl.64.27"></a><var>64.27</var>in the building qualify for class 4d. The remaining portion of the building shall
         be classified <br/>
<a id="pl.64.28"></a><var>64.28</var>by the assessor based upon its use. Class 4d also includes the same proportion of
         land as <br/>
<a id="pl.64.29"></a><var>64.29</var>the qualifying low-income rental housing units are to the total units in the building.
         For all <br/>
<a id="pl.64.30"></a><var>64.30</var>properties qualifying as class 4d, the market value determined by the assessor must
         be based <br/>
<a id="pl.64.31"></a><var>64.31</var>on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.64.32"></a><var>64.32</var>    (f) The first tier of market value of class 4d property has a classification rate
         of 0.75 <br/>
<a id="pl.64.33"></a><var>64.33</var>percent. The remaining value of class 4d property has a classification rate of 0.25
         percent. <br/>
<a id="pl.64.34"></a><var>64.34</var>For the purposes of this paragraph, the "first tier of market value of class 4d property"
         means <br/>
<a id="pl.64.35"></a><var>64.35</var>the market value of each housing unit up to the first tier limit. For the purposes
         of this <br/>
<a id="pl.65.1"></a><var>65.1</var>paragraph, all class 4d property value must be assigned to individual housing units.
         The <br/>
<a id="pl.65.2"></a><var>65.2</var>first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit
         is <br/>
<a id="pl.65.3"></a><var>65.3</var>adjusted each year by the average statewide change in estimated market value of property
         <br/>
<a id="pl.65.4"></a><var>65.4</var>classified as class 4a and 4d under this section for the previous assessment year,
         excluding <br/>
<a id="pl.65.5"></a><var>65.5</var>valuation change due to new construction, rounded to the nearest $1,000, provided,
         however, <br/>
<a id="pl.65.6"></a><var>65.6</var>that the limit may never be less than $100,000. Beginning with assessment year 2015,
         the <br/>
<a id="pl.65.7"></a><var>65.7</var>commissioner of revenue must certify the limit for each assessment year by November
         1 <br/>
<a id="pl.65.8"></a><var>65.8</var>of the previous year.<br/>
<a id="pl.65.9"></a><var>65.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.65.10"></a><var>65.10</var>    Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.65.11"></a><var>65.11</var>    Subd. 34. <b>Homestead of disabled veteran or family caregiver.</b> (a) All or a portion of <br/>
<a id="pl.65.12"></a><var>65.12</var>the market value of property owned by a veteran and serving as the veteran's homestead
         <br/>
<a id="pl.65.13"></a><var>65.13</var>under this section is excluded in determining the property's taxable market value
         if the <br/>
<a id="pl.65.14"></a><var>65.14</var>veteran has a service-connected disability of 70 percent or more as certified by the
         United <br/>
<a id="pl.65.15"></a><var>65.15</var>States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
         the <br/>
<a id="pl.65.16"></a><var>65.16</var>veteran must have been honorably discharged from the United States armed forces, as
         <br/>
<a id="pl.65.17"></a><var>65.17</var>indicated by United States Government Form DD214 or other official military discharge
         <br/>
<a id="pl.65.18"></a><var>65.18</var>papers.<br/>
<a id="pl.65.19"></a><var>65.19</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
         excluded, <br/>
<a id="pl.65.20"></a><var>65.20</var>except as provided in clause (2); and<br/>
<a id="pl.65.21"></a><var>65.21</var>    (2) for a total (100 percent) and permanent 100 percent disability rating, $300,000 of <br/>
<a id="pl.65.22"></a><var>65.22</var>market value is excluded.<br/>
<a id="pl.65.23"></a><var>65.23</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
         clause <br/>
<a id="pl.65.24"></a><var>65.24</var>(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse
         holds <br/>
<a id="pl.65.25"></a><var>65.25</var>the legal or beneficial title to the homestead and permanently resides there, the
         exclusion <br/>
<a id="pl.65.26"></a><var>65.26</var>shall carry over to the benefit of the veteran's spouse for the current taxes payable year and <br/>
<a id="pl.65.27"></a><var>65.27</var>for eight additional taxes payable years or until such time as the spouse remarries, or sells, <br/>
<a id="pl.65.28"></a><var>65.28</var>transfers, or otherwise disposes of the property, whichever comes first. Qualification under <br/>
<a id="pl.65.29"></a><var>65.29</var>this paragraph requires an annual application under paragraph (h).<br/>
<a id="pl.65.30"></a><var>65.30</var>(d) If the spouse of a member of any branch or unit of the United States armed forces
         <br/>
<a id="pl.65.31"></a><var>65.31</var>who dies due to a service-connected cause while serving honorably in active service,
         as <br/>
<a id="pl.65.32"></a><var>65.32</var>indicated on United States Government Form DD1300 or DD2064, holds the legal or <br/>
<a id="pl.65.33"></a><var>65.33</var>beneficial title to a homestead and permanently resides there, the spouse is entitled
         to the <br/>
<a id="pl.66.1"></a><var>66.1</var>benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such <br/>
<a id="pl.66.2"></a><var>66.2</var>time as the spouse remarries or sells, transfers, or otherwise disposes of the property, <br/>
<a id="pl.66.3"></a><var>66.3</var>whichever comes first.<br/>
<a id="pl.66.4"></a><var>66.4</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
         <br/>
<a id="pl.66.5"></a><var>66.5</var>classified as homestead in the state of Minnesota, then the homestead of the veteran's
         primary <br/>
<a id="pl.66.6"></a><var>66.6</var>family caregiver, if any, is eligible for the exclusion that the veteran would otherwise
         qualify <br/>
<a id="pl.66.7"></a><var>66.7</var>for under paragraph (b).<br/>
<a id="pl.66.8"></a><var>66.8</var>    (f) In the case of an agricultural homestead, only the portion of the property consisting
         <br/>
<a id="pl.66.9"></a><var>66.9</var>of the house and garage and immediately surrounding one acre of land qualifies for
         the <br/>
<a id="pl.66.10"></a><var>66.10</var>valuation exclusion under this subdivision.<br/>
<a id="pl.66.11"></a><var>66.11</var>    (g) A property qualifying for a valuation exclusion under this subdivision is not
         eligible <br/>
<a id="pl.66.12"></a><var>66.12</var>for the market value exclusion under subdivision 35, or classification under subdivision
         22, <br/>
<a id="pl.66.13"></a><var>66.13</var>paragraph (b).<br/>
<a id="pl.66.14"></a><var>66.14</var>    (h) To qualify for a valuation exclusion under this subdivision a property owner must
         <br/>
<a id="pl.66.15"></a><var>66.15</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication
         <br/>
<a id="pl.66.16"></a><var>66.16</var>is not required once a property has been accepted for a valuation exclusion under
         paragraph <br/>
<a id="pl.66.17"></a><var>66.17</var>(a) and qualifies for the benefit described in paragraph (b), clause (2), and the
         property <br/>
<a id="pl.66.18"></a><var>66.18</var>continues to qualify until there is a change in ownership. For an application received
         after <br/>
<a id="pl.66.19"></a><var>66.19</var>July 1 of any calendar year, the exclusion shall become effective for the following
         assessment <br/>
<a id="pl.66.20"></a><var>66.20</var>year.<br/>
<a id="pl.66.21"></a><var>66.21</var>(i) A first-time application by a qualifying spouse for the market value exclusion
         under <br/>
<a id="pl.66.22"></a><var>66.22</var>paragraph (d) must be made any time within two years of the death of the service member.<br/>
<a id="pl.66.23"></a><var>66.23</var>(j) For purposes of this subdivision:<br/>
<a id="pl.66.24"></a><var>66.24</var>(1) "active service" has the meaning given in section 
         <statute_ref>190.05</statute_ref>;<br/>
<a id="pl.66.25"></a><var>66.25</var>(2) "own" means that the person's name is present as an owner on the property deed;<br/>
<a id="pl.66.26"></a><var>66.26</var>(3) "primary family caregiver" means a person who is approved by the secretary of
         the <br/>
<a id="pl.66.27"></a><var>66.27</var>United States Department of Veterans Affairs for assistance as the primary provider
         of <br/>
<a id="pl.66.28"></a><var>66.28</var>personal care services for an eligible veteran under the Program of Comprehensive
         Assistance <br/>
<a id="pl.66.29"></a><var>66.29</var>for Family Caregivers, codified as United States Code, title 38, section 1720G; and<br/>
<a id="pl.66.30"></a><var>66.30</var>(4) "veteran" has the meaning given the term in section 
         <statute_ref>197.447</statute_ref>.<br/>
<a id="pl.67.1"></a><var>67.1</var>(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
         <br/>
<a id="pl.67.2"></a><var>67.2</var>(2), before dying, the veteran's spouse is entitled to the benefit under paragraph
         (b), clause <br/>
<a id="pl.67.3"></a><var>67.3</var>(2), until the spouse remarries or sells, transfers, or otherwise disposes of the
         property if:<br/>
<a id="pl.67.4"></a><var>67.4</var>(1) the spouse files a first-time application within two years of the death of the
         service <br/>
<a id="pl.67.5"></a><var>67.5</var>member or by June 1, 2019, whichever is later;<br/>
<a id="pl.67.6"></a><var>67.6</var>(2) upon the death of the veteran, the spouse holds the legal or beneficial title
         to the <br/>
<a id="pl.67.7"></a><var>67.7</var>homestead and permanently resides there;<br/>
<a id="pl.67.8"></a><var>67.8</var>(3) the veteran met the honorable discharge requirements of paragraph (a);<br/>
<a id="pl.67.9"></a><var>67.9</var>(4) the spouse complies with the annual application requirement under paragraph (h);
         <br/>
<a id="pl.67.10"></a><var>67.10</var>and<br/>
<a id="pl.67.11"></a><var>67.11</var>(5) the United States Department of Veterans Affairs certifies that:<br/>
<a id="pl.67.12"></a><var>67.12</var>(i) the veteran met the total (100 percent) and permanent disability requirement under
         <br/>
<a id="pl.67.13"></a><var>67.13</var>paragraph (b), clause (2); or<br/>
<a id="pl.67.14"></a><var>67.14</var>(ii) the spouse has been awarded dependency and indemnity compensation.<br/>
<a id="pl.67.15"></a><var>67.15</var>(l) The purpose of this provision of law providing a level of homestead property tax
         <br/>
<a id="pl.67.16"></a><var>67.16</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving
         <br/>
<a id="pl.67.17"></a><var>67.17</var>spouses is to help ease the burdens of war for those among our state's citizens who
         bear <br/>
<a id="pl.67.18"></a><var>67.18</var>those burdens most heavily.<br/>
<a id="pl.67.19"></a><var>67.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.67.20"></a><var>67.20</var>    Sec. 11. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.67.21"></a><var>67.21</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.67.22"></a><var>67.22</var>commercial-industrial property and seasonal residential recreational property, as
         defined <br/>
<a id="pl.67.23"></a><var>67.23</var>in this section. The state general levy base amount for commercial-industrial property is <br/>
<a id="pl.67.24"></a><var>67.24</var>$592,000,000 $784,594,000 for taxes payable in 2002 2018 and thereafter. For taxes payable <br/>
<a id="pl.67.25"></a><var>67.25</var>in subsequent years, the levy base amount is increased each year by multiplying the
         levy <br/>
<a id="pl.67.26"></a><var>67.26</var>base amount for the prior year by the sum of one plus the rate of increase, if any,
         in the <br/>
<a id="pl.67.27"></a><var>67.27</var>implicit price deflator for government consumption expenditures and gross investment
         for <br/>
<a id="pl.67.28"></a><var>67.28</var>state and local governments prepared by the Bureau of Economic Analysts of the United
         <br/>
<a id="pl.67.29"></a><var>67.29</var>States Department of Commerce for the 12-month period ending March 31 of the year
         prior <br/>
<a id="pl.67.30"></a><var>67.30</var>to the year the taxes are payable The state general levy base amount for seasonal <br/>
<a id="pl.67.31"></a><var>67.31</var>residential-recreational property is $44,190,000 for taxes payable in 2018 and thereafter. <br/>
<a id="pl.68.1"></a><var>68.1</var>The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not <br/>
<a id="pl.68.2"></a><var>68.2</var>the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.68.3"></a><var>68.3</var>The commissioner shall increase or decrease the preliminary or final rate rates for a year <br/>
<a id="pl.68.4"></a><var>68.4</var>as necessary to account for errors and tax base changes that affected a preliminary
         or final <br/>
<a id="pl.68.5"></a><var>68.5</var>rate for either of the two preceding years. Adjustments are allowed to the extent
         that the <br/>
<a id="pl.68.6"></a><var>68.6</var>necessary information is available to the commissioner at the time the rates for a
         year must <br/>
<a id="pl.68.7"></a><var>68.7</var>be certified, and for the following reasons:<br/>
<a id="pl.68.8"></a><var>68.8</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.68.9"></a><var>68.9</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.68.10"></a><var>68.10</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal
         <br/>
<a id="pl.68.11"></a><var>68.11</var>residential recreational property reported on the abstracts of tax lists submitted
         under section <br/>
<statute_ref><a id="pl.68.12"></a><var>68.12</var>275.29
         </statute_ref> that was not reported on the abstracts of assessment submitted under section 
         <statute_ref>270C.89</statute_ref> <br/>
<a id="pl.68.13"></a><var>68.13</var>for the same year.<br/>
<a id="pl.68.14"></a><var>68.14</var>The commissioner may, but need not, make adjustments if the total difference in the
         tax <br/>
<a id="pl.68.15"></a><var>68.15</var>levied for the year would be less than $100,000.<br/>
<a id="pl.68.16"></a><var>68.16</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.68.17"></a><var>68.17</var>    Sec. 12. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:<br/>
<a id="pl.68.18"></a><var>68.18</var>    Subd. 2. <b>Commercial-industrial tax capacity.</b> For the purposes of this section, <br/>
<a id="pl.68.19"></a><var>68.19</var>"commercial-industrial tax capacity" means the tax capacity of all taxable property
         classified <br/>
<a id="pl.68.20"></a><var>68.20</var>as class 3 or class 5(1) under section 
         <statute_ref>273.13</statute_ref>, except for excluding: (1) the first $100,000 of <br/>
<a id="pl.68.21"></a><var>68.21</var>market value of each parcel of commercial-industrial net tax capacity as defined under
         <br/>
<a id="pl.68.22"></a><var>68.22</var>section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation attached machinery <br/>
<a id="pl.68.23"></a><var>68.23</var>under class 3; and (3) property described in section 
         <statute_ref>473.625</statute_ref>. County commercial-industrial <br/>
<a id="pl.68.24"></a><var>68.24</var>tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment
         <br/>
<a id="pl.68.25"></a><var>68.25</var>financing district under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, the net tax capacity of transmission <br/>
<a id="pl.68.26"></a><var>68.26</var>lines deducted from a local government's total net tax capacity under section 
         <statute_ref>273.425</statute_ref>, or <br/>
<a id="pl.68.27"></a><var>68.27</var>fiscal disparities contribution and distribution net tax capacities under chapter
         276A or 473F. <br/>
<a id="pl.68.28"></a><var>68.28</var>For purposes of this subdivision, the procedures for determining eligibility for tier
         1under <br/>
<a id="pl.68.29"></a><var>68.29</var>section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the
         portion <br/>
<a id="pl.68.30"></a><var>68.30</var>of a property eligible to be considered within the first $100,000 of market value.<br/>
<a id="pl.68.31"></a><var>68.31</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.69.1"></a><var>69.1</var>    Sec. 13. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.69.2"></a><var>69.2</var>    Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of The <br/>
<a id="pl.69.3"></a><var>69.3</var>state general tax must be levied by applying a uniform rate to all commercial-industrial
         tax <br/>
<a id="pl.69.4"></a><var>69.4</var>capacity and five percent of the state general tax must be levied by applying a uniform rate <br/>
<a id="pl.69.5"></a><var>69.5</var>to all seasonal residential recreational tax capacity. On or before October 1 each
         year, the <br/>
<a id="pl.69.6"></a><var>69.6</var>commissioner of revenue shall certify the preliminary state general levy rates to
         each county <br/>
<a id="pl.69.7"></a><var>69.7</var>auditor that must be used to prepare the notices of proposed property taxes for taxes
         payable <br/>
<a id="pl.69.8"></a><var>69.8</var>in the following year. By January 1 of each year, the commissioner shall certify the
         final <br/>
<a id="pl.69.9"></a><var>69.9</var>state general levy rate rates to each county auditor that shall be used in spreading taxes.<br/>
<a id="pl.69.10"></a><var>69.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.69.11"></a><var>69.11</var>    Sec. 14. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.69.12"></a><var>69.12</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the contrary, <br/>
<a id="pl.69.13"></a><var>69.13</var>on or before September 30, each county and each, home rule charter or statutory city, town, <br/>
<a id="pl.69.14"></a><var>69.14</var>and special taxing district, excluding the Metropolitan Council and the Metropolitan
         Mosquito <br/>
<a id="pl.69.15"></a><var>69.15</var>Control Commission, shall certify to the county auditor the proposed property tax levy for <br/>
<a id="pl.69.16"></a><var>69.16</var>taxes payable in the following year. For towns, the final certified levy shall also be considered <br/>
<a id="pl.69.17"></a><var>69.17</var>the proposed levy.<br/>
<a id="pl.69.18"></a><var>69.18</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         each <br/>
<a id="pl.69.19"></a><var>69.19</var>town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito <br/>
<a id="pl.69.20"></a><var>69.20</var>Control Commission shall adopt and certify to the county auditor a proposed property tax <br/>
<a id="pl.69.21"></a><var>69.21</var>levy for taxes payable in the following year. For towns, the final certified levy shall also be <br/>
<a id="pl.69.22"></a><var>69.22</var>considered the proposed levy.<br/>
<a id="pl.69.23"></a><var>69.23</var>    (c) On or before September 30, each school district that has not mutually agreed with
         <br/>
<a id="pl.69.24"></a><var>69.24</var>its home county to extend this date shall certify to the county auditor the proposed
         property <br/>
<a id="pl.69.25"></a><var>69.25</var>tax levy for taxes payable in the following year. Each school district that has agreed
         with <br/>
<a id="pl.69.26"></a><var>69.26</var>its home county to delay the certification of its proposed property tax levy must
         certify its <br/>
<a id="pl.69.27"></a><var>69.27</var>proposed property tax levy for the following year no later than October 7. The school
         district <br/>
<a id="pl.69.28"></a><var>69.28</var>shall certify the proposed levy as:<br/>
<a id="pl.69.29"></a><var>69.29</var>    (1) a specific dollar amount by school district fund, broken down between voter-approved
         <br/>
<a id="pl.69.30"></a><var>69.30</var>and non-voter-approved levies and between referendum market value and tax capacity
         <br/>
<a id="pl.69.31"></a><var>69.31</var>levies; or<br/>
<a id="pl.69.32"></a><var>69.32</var>    (2) the maximum levy limitation certified by the commissioner of education according
         <br/>
<a id="pl.69.33"></a><var>69.33</var>to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.70.1"></a><var>70.1</var>    (d) If the board of estimate and taxation or any similar board that establishes maximum
         <br/>
<a id="pl.70.2"></a><var>70.2</var>tax levies for taxing jurisdictions within a first class city certifies the maximum
         property <br/>
<a id="pl.70.3"></a><var>70.3</var>tax levies for funds under its jurisdiction by charter to the county auditor by the
         date specified <br/>
<a id="pl.70.4"></a><var>70.4</var>in paragraph (a), the city shall be deemed to have certified its levies for those
         taxing <br/>
<a id="pl.70.5"></a><var>70.5</var>jurisdictions.<br/>
<a id="pl.70.6"></a><var>70.6</var>    (e) For purposes of this section, "special taxing district" means a special taxing
         district <br/>
<a id="pl.70.7"></a><var>70.7</var>as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter <br/>
<a id="pl.70.8"></a><var>70.8</var>124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and <br/>
<a id="pl.70.9"></a><var>70.9</var>Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
         <br/>
<a id="pl.70.10"></a><var>70.10</var>taxing districts for purposes of this section.<br/>
<a id="pl.70.11"></a><var>70.11</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         <br/>
<a id="pl.70.12"></a><var>70.12</var>tax levy under this subdivision, the taxing authority shall announce the time and
         place of <br/>
<a id="pl.70.13"></a><var>70.13</var>its subsequent regularly scheduled meetings at which the budget and levy will be discussed
         <br/>
<a id="pl.70.14"></a><var>70.14</var>and at which the public will be allowed to speak. The time and place of those meetings
         must <br/>
<a id="pl.70.15"></a><var>70.15</var>be included in the proceedings or summary of proceedings published in the official
         newspaper <br/>
<a id="pl.70.16"></a><var>70.16</var>of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.70.17"></a><var>70.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with proposed levy <br/>
<a id="pl.70.18"></a><var>70.18</var>certifications for taxes payable in 2018.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.70.19"></a><var>70.19</var>    Sec. 15. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:<br/>
<a id="pl.70.20"></a><var>70.20</var>    Subdivision 1. <b>Certification of levy.</b> (a) Except as provided under paragraph (b), the <br/>
<a id="pl.70.21"></a><var>70.21</var>taxes voted by cities, counties, school districts, and special districts shall be
         certified by the <br/>
<a id="pl.70.22"></a><var>70.22</var>proper authorities to the county auditor on or before five working days after December
         20 <br/>
<a id="pl.70.23"></a><var>70.23</var>in each year. A town must certify the levy adopted by the town board to the county
         auditor <br/>
<a id="pl.70.24"></a><var>70.24</var>by September 15 30 each year. If the town board modifies the levy at a special town meeting <br/>
<a id="pl.70.25"></a><var>70.25</var>after September 15 30, the town board must recertify its levy to the county auditor on or <br/>
<a id="pl.70.26"></a><var>70.26</var>before five working days after December 20. If a city, town, county, school district,
         or <br/>
<a id="pl.70.27"></a><var>70.27</var>special district fails to certify its levy by that date, its levy shall be the amount
         levied by it <br/>
<a id="pl.70.28"></a><var>70.28</var>for the preceding year.<br/>
<a id="pl.70.29"></a><var>70.29</var>(b)(i) The taxes voted by counties under sections 
         <statute_ref>103B.241</statute_ref>, 
         <statute_ref>103B.245</statute_ref>, and 
         <statute_ref>103B.251</statute_ref> <br/>
<a id="pl.70.30"></a><var>70.30</var>shall be separately certified by the county to the county auditor on or before five
         working <br/>
<a id="pl.70.31"></a><var>70.31</var>days after December 20 in each year. The taxes certified shall not be reduced by the
         county <br/>
<a id="pl.70.32"></a><var>70.32</var>auditor by the aid received under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>. If a county fails to certify <br/>
<a id="pl.70.33"></a><var>70.33</var>its levy by that date, its levy shall be the amount levied by it for the preceding
         year.<br/>
<a id="pl.71.1"></a><var>71.1</var>(ii) For purposes of the proposed property tax notice under section 
         <statute_ref>275.065</statute_ref> and the <br/>
<a id="pl.71.2"></a><var>71.2</var>property tax statement under section 
         <statute_ref>276.04</statute_ref>, for the first year in which the county implements <br/>
<a id="pl.71.3"></a><var>71.3</var>the provisions of this paragraph, the county auditor shall reduce the county's levy
         for the <br/>
<a id="pl.71.4"></a><var>71.4</var>preceding year to reflect any amount levied for water management purposes under clause
         <br/>
<a id="pl.71.5"></a><var>71.5</var>(i) included in the county's levy.<br/>
<a id="pl.71.6"></a><var>71.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning with proposed levy <br/>
<a id="pl.71.7"></a><var>71.7</var>certifications for taxes payable in 2018.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.71.8"></a><var>71.8</var>    Sec. 16. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:<br/>
<a id="pl.71.9"></a><var>71.9</var>    Subd. 2. <b>Abatement of penalty.</b> (a) The county board may, with the concurrence of the <br/>
<a id="pl.71.10"></a><var>71.10</var>county treasurer, delegate to the county treasurer the power to abate the penalty
         provided <br/>
<a id="pl.71.11"></a><var>71.11</var>for late payment of taxes in the current year. Notwithstanding section 
         <statute_ref>270C.86</statute_ref>, if any county <br/>
<a id="pl.71.12"></a><var>71.12</var>board so elects, the county treasurer may abate the penalty on finding that the imposition
         <br/>
<a id="pl.71.13"></a><var>71.13</var>of the penalty would be unjust and unreasonable.<br/>
<a id="pl.71.14"></a><var>71.14</var>(b) The county treasurer shall abate the penalty provided for late payment of taxes
         in <br/>
<a id="pl.71.15"></a><var>71.15</var>the current year if the property tax payment is delivered by mail to the county treasurer
         and <br/>
<a id="pl.71.16"></a><var>71.16</var>the envelope containing the payment is postmarked by the United States Postal Service
         <br/>
<a id="pl.71.17"></a><var>71.17</var>within one business day of the due date prescribed under this section, but only if
         the property <br/>
<a id="pl.71.18"></a><var>71.18</var>owner requesting the abatement has not previously received an abatement of penalty
         for <br/>
<a id="pl.71.19"></a><var>71.19</var>late payment of tax under this paragraph.<br/>
<a id="pl.71.20"></a><var>71.20</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2018 and <br/>
<a id="pl.71.21"></a><var>71.21</var>thereafter.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.71.22"></a><var>71.22</var>    Sec. 17. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:<br/>
<a id="pl.71.23"></a><var>71.23</var>    Subd. 6. <b>Forest land.</b> "Forest land" means land containing a minimum of 20 contiguous <br/>
<a id="pl.71.24"></a><var>71.24</var>acres for which the owner has implemented a forest management plan that was prepared
         or <br/>
<a id="pl.71.25"></a><var>71.25</var>updated within the past ten years by an approved plan writer. For purposes of this
         subdivision, <br/>
<a id="pl.71.26"></a><var>71.26</var>acres are considered to be contiguous even if they are separated by a road, waterway,
         railroad <br/>
<a id="pl.71.27"></a><var>71.27</var>track, or other similar intervening property. At least 50 percent of the contiguous
         acreage <br/>
<a id="pl.71.28"></a><var>71.28</var>must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>. For the purposes of <br/>
<a id="pl.71.29"></a><var>71.29</var>sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref> 290C.13, forest land does not include (i) land used for <br/>
<a id="pl.71.30"></a><var>71.30</var>residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota
         program, <br/>
<a id="pl.71.31"></a><var>71.31</var>a state or federal conservation reserve or easement reserve program under sections
         
         <statute_ref>103F.501</statute_ref> <br/>
<a id="pl.71.32"></a><var>71.32</var>to 
         <statute_ref>103F.531</statute_ref>, the Minnesota agricultural property tax law under section 
         <statute_ref>273.111</statute_ref>, or land <br/>
<a id="pl.71.33"></a><var>71.33</var>subject to agricultural land preservation controls or restrictions as defined in section
         
         <statute_ref>40A.02</statute_ref> <br/>
<a id="pl.72.1"></a><var>72.1</var>or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land
         exceeding <br/>
<a id="pl.72.2"></a><var>72.2</var>60,000 acres that is subject to a single conservation easement funded under section
         
         <statute_ref>97A.056</statute_ref> <br/>
<a id="pl.72.3"></a><var>72.3</var>or a comparable permanent easement conveyed to a governmental or nonprofit entity;
         (iv) <br/>
<a id="pl.72.4"></a><var>72.4</var>any land that becomes subject to a conservation easement funded under section 
         <statute_ref>97A.056</statute_ref> <br/>
<a id="pl.72.5"></a><var>72.5</var>or a comparable permanent easement conveyed to a governmental or nonprofit entity
         after <br/>
<a id="pl.72.6"></a><var>72.6</var>May 30, 2013; or (v) land improved with a structure,; pavement, other than a paved trail <br/>
<a id="pl.72.7"></a><var>72.7</var>under easement, lease, or terminable license to the state of Minnesota or a political
         <br/>
<a id="pl.72.8"></a><var>72.8</var>subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes <br/>
<a id="pl.72.9"></a><var>72.9</var>not prescribed in the forest management plan.<br/>
<a id="pl.72.10"></a><var>72.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.72.11"></a><var>72.11</var>    Sec. 18. Minnesota Statutes 2016, section 290C.07, is amended to read:<br/>
<a id="pl.72.12"></a><var>72.12</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT.</b><br/>
<a id="pl.72.13"></a><var>72.13</var>    An approved claimant under the sustainable forest incentive program is eligible to
         receive <br/>
<a id="pl.72.14"></a><var>72.14</var>an annual payment for each acre of enrolled land, excluding any acre improved with a paved <br/>
<a id="pl.72.15"></a><var>72.15</var>trail under easement, lease, or terminable license to the state of Minnesota or a
         political <br/>
<a id="pl.72.16"></a><var>72.16</var>subdivision. The payment shall equal $7 per acre for each acre enrolled in the sustainable <br/>
<a id="pl.72.17"></a><var>72.17</var>forest incentive program.<br/>
<a id="pl.72.18"></a><var>72.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.72.19"></a><var>72.19</var>    Sec. 19. Minnesota Statutes 2016, section 290C.10, is amended to read:<br/>
<a id="pl.72.20"></a><var>72.20</var><b>290C.10 WITHDRAWAL PROCEDURES.</b><br/>
<a id="pl.72.21"></a><var>72.21</var>(a) An approved claimant under the sustainable forest incentive program for a minimum
         <br/>
<a id="pl.72.22"></a><var>72.22</var>of four years may notify the commissioner of the intent to terminate enrollment. Within
         90 <br/>
<a id="pl.72.23"></a><var>72.23</var>days of receipt of notice to terminate enrollment, the commissioner shall inform the
         claimant <br/>
<a id="pl.72.24"></a><var>72.24</var>in writing, acknowledging receipt of this notice and indicating the effective date
         of <br/>
<a id="pl.72.25"></a><var>72.25</var>termination from the sustainable forest incentive program. Termination of enrollment
         in <br/>
<a id="pl.72.26"></a><var>72.26</var>the sustainable forest incentive program occurs on January 1 of the fifth calendar
         year that <br/>
<a id="pl.72.27"></a><var>72.27</var>begins after receipt by the commissioner of the termination notice. After the commissioner
         <br/>
<a id="pl.72.28"></a><var>72.28</var>issues an effective date of termination, a claimant wishing to continue the land's
         enrollment <br/>
<a id="pl.72.29"></a><var>72.29</var>in the sustainable forest incentive program beyond the termination date must apply
         for <br/>
<a id="pl.72.30"></a><var>72.30</var>enrollment as prescribed in section 
         <statute_ref>290C.04</statute_ref>. A claimant who withdraws a parcel of land <br/>
<a id="pl.72.31"></a><var>72.31</var>from this program may not reenroll the parcel for a period of three years. Within
         90 days <br/>
<a id="pl.72.32"></a><var>72.32</var>after the termination date, the commissioner shall execute and acknowledge a document
         <br/>
<a id="pl.73.1"></a><var>73.1</var>releasing the land from the covenant required under this chapter. The document must
         be <br/>
<a id="pl.73.2"></a><var>73.2</var>mailed to the claimant and is entitled to be recorded.<br/>
<a id="pl.73.3"></a><var>73.3</var>(b) Notwithstanding paragraph (a), the commissioner may allow early withdrawal from <br/>
<a id="pl.73.4"></a><var>73.4</var>the Sustainable Forest Incentive Act without penalty when the state of Minnesota,
         any local <br/>
<a id="pl.73.5"></a><var>73.5</var>government unit, or any other entity which has the power of eminent domain acquires
         title <br/>
<a id="pl.73.6"></a><var>73.6</var>or possession to the land for a public purpose notwithstanding the provisions of this section. <br/>
<a id="pl.73.7"></a><var>73.7</var>In the case of such an eligible acquisition under this paragraph, the commissioner shall <br/>
<a id="pl.73.8"></a><var>73.8</var>execute and acknowledge a document releasing the land acquired by the state, local
         <br/>
<a id="pl.73.9"></a><var>73.9</var>government unit, or other entity from the covenant. All other enrolled land must remain
         in <br/>
<a id="pl.73.10"></a><var>73.10</var>the program.<br/>
<a id="pl.73.11"></a><var>73.11</var>(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
         shall <br/>
<a id="pl.73.12"></a><var>73.12</var>allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
         land <br/>
<a id="pl.73.13"></a><var>73.13</var>that is subject to fee or easement acquisition or lease to the state of Minnesota
         or a political <br/>
<a id="pl.73.14"></a><var>73.14</var>subdivision of the state for the public purpose of a paved trail. The commissioner
         of natural <br/>
<a id="pl.73.15"></a><var>73.15</var>resources must notify the commissioner of lands acquired under this paragraph that
         are <br/>
<a id="pl.73.16"></a><var>73.16</var>eligible for withdrawal. In the case of an eligible fee or easement acquisition or
         lease under <br/>
<a id="pl.73.17"></a><var>73.17</var>this paragraph, the commissioner shall execute and acknowledge a document releasing
         the <br/>
<a id="pl.73.18"></a><var>73.18</var>land subject to fee or easement acquisition or lease by the state or political subdivision
         of <br/>
<a id="pl.73.19"></a><var>73.19</var>the state.<br/>
<a id="pl.73.20"></a><var>73.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.73.21"></a><var>73.21</var>    Sec. 20. Minnesota Statutes 2016, section 473H.09, is amended to read:<br/>
<a id="pl.73.22"></a><var>73.22</var><b>473H.09 EARLY TERMINATION.</b><br/>
<a id="pl.73.23"></a><var>73.23</var>    Subdivision 1. <b>Public emergency.</b> Termination of an agricultural preserve earlier than <br/>
<a id="pl.73.24"></a><var>73.24</var>a date derived through application of section 
         <statute_ref>473H.08</statute_ref> may be permitted only in the event <br/>
<a id="pl.73.25"></a><var>73.25</var>of a public emergency upon petition from the owner or authority to the governor. The
         <br/>
<a id="pl.73.26"></a><var>73.26</var>determination of a public emergency shall be by the governor through executive order
         <br/>
<a id="pl.73.27"></a><var>73.27</var>pursuant to sections 
         <statute_ref>4.035</statute_ref> and 
         <statute_ref>12.01</statute_ref> to 
         <statute_ref>12.46</statute_ref>. The executive order shall identify the preserve, <br/>
<a id="pl.73.28"></a><var>73.28</var>the reasons requiring the action and the date of termination.<br/>
<a id="pl.73.29"></a><var>73.29</var>    Subd. 2. <b>Death of owner.</b> (a) Within 365 days of the death of an owner, an owner's <br/>
<a id="pl.73.30"></a><var>73.30</var>spouse, or other qualifying person, the surviving owner may elect to terminate the
         agricultural <br/>
<a id="pl.73.31"></a><var>73.31</var>preserve and the covenant allowing the land to be enrolled as an agricultural preserve
         by <br/>
<a id="pl.73.32"></a><var>73.32</var>notifying the authority on a form provided by the commissioner of agriculture. Termination
         <br/>
<a id="pl.74.1"></a><var>74.1</var>of a covenant under this subdivision must be executed and acknowledged in the manner
         <br/>
<a id="pl.74.2"></a><var>74.2</var>required by law to execute and acknowledge a deed.<br/>
<a id="pl.74.3"></a><var>74.3</var>(b) For purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.74.4"></a><var>74.4</var>(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the decedent <br/>
<a id="pl.74.5"></a><var>74.5</var>was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
         <br/>
<a id="pl.74.6"></a><var>74.6</var>land and engage in farming under section 500.24 that owned the agricultural preserve;
         and<br/>
 <a id="pl.74.7"></a><var>74.7</var>(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a <br/>
<a id="pl.74.8"></a><var>74.8</var>trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm <br/>
<a id="pl.74.9"></a><var>74.9</var>land under section 500.24 of which the decedent was a partner, shareholder, or member.<br/>
<a id="pl.74.10"></a><var>74.10</var>(c) When an agricultural preserve is terminated under this subdivision, the property
         is <br/>
<a id="pl.74.11"></a><var>74.11</var>subject to additional taxes in an amount equal to 50 percent of the taxes actually
         levied <br/>
<a id="pl.74.12"></a><var>74.12</var>against the property for the current taxes payable year. The additional taxes are
         extended <br/>
<a id="pl.74.13"></a><var>74.13</var>against the property on the tax list for taxes payable in the current year. The additional
         taxes <br/>
<a id="pl.74.14"></a><var>74.14</var>must be distributed among the jurisdictions levying taxes on the property in proportion
         to <br/>
<a id="pl.74.15"></a><var>74.15</var>the current year's taxes.<br/>
<a id="pl.74.16"></a><var>74.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.74.17"></a><var>74.17</var>    Sec. 21. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:<br/>
<a id="pl.74.18"></a><var>74.18</var>    Subd. 1a. <b>Allowed commercial and industrial operations.</b> (a) Commercial and industrial <br/>
<a id="pl.74.19"></a><var>74.19</var>operations are not allowed on land within an agricultural preserve except:<br/>
<a id="pl.74.20"></a><var>74.20</var>(1) small on-farm commercial or industrial operations normally associated with and
         <br/>
<a id="pl.74.21"></a><var>74.21</var>important to farming in the agricultural preserve area;<br/>
<a id="pl.74.22"></a><var>74.22</var>(2) storage use of existing farm buildings that does not disrupt the integrity of
         the <br/>
<a id="pl.74.23"></a><var>74.23</var>agricultural preserve; and<br/>
<a id="pl.74.24"></a><var>74.24</var>(3) small commercial use of existing farm buildings for trades not disruptive to the
         <br/>
<a id="pl.74.25"></a><var>74.25</var>integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, <br/>
<a id="pl.74.26"></a><var>74.26</var>and similar activities that a farm operator might conduct.; and<br/>
<a id="pl.74.27"></a><var>74.27</var>(4) wireless communication installments and related equipment and structure capable
         <br/>
<a id="pl.74.28"></a><var>74.28</var>of providing technology potentially beneficial to farming activities.<br/>
<a id="pl.74.29"></a><var>74.29</var>(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses <br/>
<a id="pl.74.30"></a><var>74.30</var>(2) and (3), means existing on August 1, 1987.<br/>
<a id="pl.74.31"></a><var>74.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following enactment.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.75.1"></a><var>75.1</var>    Sec. 22. Laws 1996, chapter 471, article 3, section 51, is amended to read:<br/>
<a id="pl.75.2"></a><var>75.2</var>    Sec. 51. <b>RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.</b><br/>
<a id="pl.75.3"></a><var>75.3</var>    Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the Carlton <br/>
<a id="pl.75.4"></a><var>75.4</var>county board of commissioners may levy in and for the unorganized township of Sawyer
         <br/>
<a id="pl.75.5"></a><var>75.5</var>an amount up to $1,500 $2,000 annually for recreational purposes, beginning with taxes <br/>
<a id="pl.75.6"></a><var>75.6</var>payable in 1997 and ending with taxes payable in 2006.<br/>
<a id="pl.75.7"></a><var>75.7</var>    Subd. 2. <b>Effective date.</b> This section is effective June 1, 1996, without local approval.<br/>
<a id="pl.75.8"></a><var>75.8</var><b>EFFECTIVE DATE.</b>This section applies to taxes payable in 2018 and thereafter, and <br/>
<a id="pl.75.9"></a><var>75.9</var>is effective the day after the Carlton County Board of Commissioners and its chief
         clerical <br/>
<a id="pl.75.10"></a><var>75.10</var>officer timely complete their compliance with section 645.021, subdivisions 2 and
         3.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.75.11"></a><var>75.11</var>    Sec. 23. <b>SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL </b><br/>
<a id="pl.75.12"></a><var>75.12</var><b>ASSESSMENT.</b><br/>
<a id="pl.75.13"></a><var>75.13</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied
         by <br/>
<a id="pl.75.14"></a><var>75.14</var>the city of St. Paul for the primary purpose of providing a stadium for a Major League
         <br/>
<a id="pl.75.15"></a><var>75.15</var>Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied
         for <br/>
<a id="pl.75.16"></a><var>75.16</var>public, governmental, and municipal purposes, and is exempt from ad valorem taxation
         by <br/>
<a id="pl.75.17"></a><var>75.17</var>the state or any political subdivision of the state, provided that the properties
         are subject to <br/>
<a id="pl.75.18"></a><var>75.18</var>special assessments levied by a political subdivision for a local improvement in amounts
         <br/>
<a id="pl.75.19"></a><var>75.19</var>proportionate to and not exceeding the special benefit received by the properties
         from the <br/>
<a id="pl.75.20"></a><var>75.20</var>improvement. In determining the special benefit received by the properties, no possible
         use <br/>
<a id="pl.75.21"></a><var>75.21</var>of any of the properties in any manner different from their intended use for providing
         a <br/>
<a id="pl.75.22"></a><var>75.22</var>Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
         <br/>
<a id="pl.75.23"></a><var>75.23</var>Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject
         to a <br/>
<a id="pl.75.24"></a><var>75.24</var>lease or use agreement between the city and another person for uses related to the
         purposes <br/>
<a id="pl.75.25"></a><var>75.25</var>of the operation of the stadium and related parking facilities is exempt from taxation
         <br/>
<a id="pl.75.26"></a><var>75.26</var>regardless of the length of the lease or use agreement. This section, insofar as it
         provides <br/>
<a id="pl.75.27"></a><var>75.27</var>an exemption or special treatment, does not apply to any real property that is leased
         for <br/>
<a id="pl.75.28"></a><var>75.28</var>residential, business, or commercial development or other purposes different from
         those <br/>
<a id="pl.75.29"></a><var>75.29</var>necessary to the provision and operation of the stadium.<br/>
<a id="pl.75.30"></a><var>75.30</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the St. Paul City <br/>
<a id="pl.75.31"></a><var>75.31</var>Council and compliance with Minnesota Statutes, section 645.021.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.76.3"></a><var>76.3</var>    Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read:<br/>
<a id="pl.76.4"></a><var>76.4</var><b>128C.24 LEAGUE FUNDS TRANSFER.</b><br/>
<a id="pl.76.5"></a><var>76.5</var>(a) Beginning July 1, 2007, the Minnesota State High School League shall annually <br/>
<a id="pl.76.6"></a><var>76.6</var>determine the sales tax savings attributable to section 
         <statute_ref>297A.70, subdivision 11</statute_ref> 11a, and <br/>
<a id="pl.76.7"></a><var>76.7</var>annually transfer that amount to a nonprofit charitable foundation created for the
         purpose <br/>
<a id="pl.76.8"></a><var>76.8</var>of promoting high school extracurricular activities. The funds must be used by the
         foundation <br/>
<a id="pl.76.9"></a><var>76.9</var>to make grants to fund, assist, recognize, or promote high school students' participation
         in <br/>
<a id="pl.76.10"></a><var>76.10</var>extracurricular activities. The first priority for funding will be grants for scholarships
         to <br/>
<a id="pl.76.11"></a><var>76.11</var>individuals to offset athletic fees. The foundation must equitably award grants based
         on <br/>
<a id="pl.76.12"></a><var>76.12</var>considerations of gender balance, school size, and geographic location, to the extent
         feasible.<br/>
<a id="pl.76.13"></a><var>76.13</var>(b) By February 1 of each year, the Minnesota State High School League must report
         <br/>
<a id="pl.76.14"></a><var>76.14</var>to the chairs and ranking minority members of the legislative committees and divisions
         with <br/>
<a id="pl.76.15"></a><var>76.15</var>jurisdiction over E-12 education on activities funded by the transfer under this section.
         The <br/>
<a id="pl.76.16"></a><var>76.16</var>report must include the following information for the previous fiscal year beginning
         July <br/>
<a id="pl.76.17"></a><var>76.17</var>1:<br/>
<a id="pl.76.18"></a><var>76.18</var>(1) the number of high schools receiving grants;<br/>
<a id="pl.76.19"></a><var>76.19</var>(2) the amount of grants made to high schools;<br/>
<a id="pl.76.20"></a><var>76.20</var>(3) the number of students benefiting from financial assistance to offset athletic
         fees;<br/>
<a id="pl.76.21"></a><var>76.21</var>(4) the regional breakdown of grants by school; and<br/>
<a id="pl.76.22"></a><var>76.22</var>(5) any other information helpful in assessing the success of the program.<br/>
<a id="pl.76.23"></a><var>76.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.76.24"></a><var>76.24</var>30, 2017, and before July 1, 2027.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.76.25"></a><var>76.25</var>    Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:<br/>
<a id="pl.76.26"></a><var>76.26</var>    Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited to, <br/>
<a id="pl.76.27"></a><var>76.27</var>each of the transactions listed in this subdivision. In applying the provisions of
         this chapter, <br/>
<a id="pl.76.28"></a><var>76.28</var>the terms "tangible personal property" and "retail sale" include the taxable services
         listed <br/>
<a id="pl.76.29"></a><var>76.29</var>in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these
         taxable <br/>
<a id="pl.76.30"></a><var>76.30</var>services, unless specifically provided otherwise. Services performed by an employee
         for <br/>
<a id="pl.76.31"></a><var>76.31</var>an employer are not taxable. Services performed by a partnership or association for
         another <br/>
<a id="pl.77.1"></a><var>77.1</var>partnership or association are not taxable if one of the entities owns or controls
         more than <br/>
<a id="pl.77.2"></a><var>77.2</var>80 percent of the voting power of the equity interest in the other entity. Services
         performed <br/>
<a id="pl.77.3"></a><var>77.3</var>between members of an affiliated group of corporations are not taxable. For purposes
         of <br/>
<a id="pl.77.4"></a><var>77.4</var>the preceding sentence, "affiliated group of corporations" means those entities that
         would <br/>
<a id="pl.77.5"></a><var>77.5</var>be classified as members of an affiliated group as defined under United States Code,
         title <br/>
<a id="pl.77.6"></a><var>77.6</var>26, section 1504, disregarding the exclusions in section 1504(b).<br/>
<a id="pl.77.7"></a><var>77.7</var>    (b) Sale and purchase include:<br/>
<a id="pl.77.8"></a><var>77.8</var>    (1) any transfer of title or possession, or both, of tangible personal property, whether
         <br/>
<a id="pl.77.9"></a><var>77.9</var>absolutely or conditionally, for a consideration in money or by exchange or barter;
         and<br/>
<a id="pl.77.10"></a><var>77.10</var>    (2) the leasing of or the granting of a license to use or consume, for a consideration
         in <br/>
<a id="pl.77.11"></a><var>77.11</var>money or by exchange or barter, tangible personal property, other than a manufactured
         <br/>
<a id="pl.77.12"></a><var>77.12</var>home used for residential purposes for a continuous period of 30 days or more.<br/>
<a id="pl.77.13"></a><var>77.13</var>    (c) Sale and purchase include the production, fabrication, printing, or processing
         of <br/>
<a id="pl.77.14"></a><var>77.14</var>tangible personal property for a consideration for consumers who furnish either directly
         or <br/>
<a id="pl.77.15"></a><var>77.15</var>indirectly the materials used in the production, fabrication, printing, or processing.<br/>
<a id="pl.77.16"></a><var>77.16</var>    (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
         <br/>
<a id="pl.77.17"></a><var>77.17</var>section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited to, the following:<br/>
<a id="pl.77.18"></a><var>77.18</var>    (1) prepared food sold by the retailer;<br/>
<a id="pl.77.19"></a><var>77.19</var>    (2) soft drinks;<br/>
<a id="pl.77.20"></a><var>77.20</var>    (3) candy; and<br/>
<a id="pl.77.21"></a><var>77.21</var>    (4) dietary supplements; and.<br/>
<a id="pl.77.22"></a><var>77.22</var>    (5) all food sold through vending machines.<br/>
<a id="pl.77.23"></a><var>77.23</var>    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
         gas, <br/>
<a id="pl.77.24"></a><var>77.24</var>water, or steam for use or consumption within this state.<br/>
<a id="pl.77.25"></a><var>77.25</var>    (f) A sale and a purchase includes the transfer for a consideration of prewritten
         computer <br/>
<a id="pl.77.26"></a><var>77.26</var>software whether delivered electronically, by load and leave, or otherwise.<br/>
<a id="pl.77.27"></a><var>77.27</var>    (g) A sale and a purchase includes the furnishing for a consideration of the following
         <br/>
<a id="pl.77.28"></a><var>77.28</var>services:<br/>
<a id="pl.77.29"></a><var>77.29</var>    (1) the privilege of admission to places of amusement, recreational areas, or athletic
         <br/>
<a id="pl.77.30"></a><var>77.30</var>events, and the making available of amusement devices, tanning facilities, reducing
         salons, <br/>
<a id="pl.77.31"></a><var>77.31</var>steam baths, health clubs, and spas or athletic facilities;<br/>
<a id="pl.78.1"></a><var>78.1</var>    (2) lodging and related services by a hotel, rooming house, resort, campground, motel,
         <br/>
<a id="pl.78.2"></a><var>78.2</var>or trailer camp, including furnishing the guest of the facility with access to telecommunication
         <br/>
<a id="pl.78.3"></a><var>78.3</var>services, and the granting of any similar license to use real property in a specific
         facility, <br/>
<a id="pl.78.4"></a><var>78.4</var>other than the renting or leasing of it for a continuous period of 30 days or more
         under an <br/>
<a id="pl.78.5"></a><var>78.5</var>enforceable written agreement that may not be terminated without prior notice and
         including <br/>
<a id="pl.78.6"></a><var>78.6</var>accommodations intermediary services provided in connection with other services provided
         <br/>
<a id="pl.78.7"></a><var>78.7</var>under this clause;<br/>
<a id="pl.78.8"></a><var>78.8</var>    (3) nonresidential parking services, whether on a contractual, hourly, or other periodic
         <br/>
<a id="pl.78.9"></a><var>78.9</var>basis, except for parking at a meter;<br/>
<a id="pl.78.10"></a><var>78.10</var>    (4) the granting of membership in a club, association, or other organization if:<br/>
<a id="pl.78.11"></a><var>78.11</var>    (i) the club, association, or other organization makes available for the use of its
         members <br/>
<a id="pl.78.12"></a><var>78.12</var>sports and athletic facilities, without regard to whether a separate charge is assessed
         for use <br/>
<a id="pl.78.13"></a><var>78.13</var>of the facilities; and<br/>
<a id="pl.78.14"></a><var>78.14</var>    (ii) use of the sports and athletic facility is not made available to the general
         public on <br/>
<a id="pl.78.15"></a><var>78.15</var>the same basis as it is made available to members.<br/>
<a id="pl.78.16"></a><var>78.16</var>Granting of membership means both onetime initiation fees and periodic membership
         dues. <br/>
<a id="pl.78.17"></a><var>78.17</var>Sports and athletic facilities include golf courses; tennis, racquetball, handball,
         and squash <br/>
<a id="pl.78.18"></a><var>78.18</var>courts; basketball and volleyball facilities; running tracks; exercise equipment;
         swimming <br/>
<a id="pl.78.19"></a><var>78.19</var>pools; and other similar athletic or sports facilities;<br/>
<a id="pl.78.20"></a><var>78.20</var>    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
         <br/>
<a id="pl.78.21"></a><var>78.21</var>material used in road construction; and delivery of concrete block by a third party
         if the <br/>
<a id="pl.78.22"></a><var>78.22</var>delivery would be subject to the sales tax if provided by the seller of the concrete
         block. <br/>
<a id="pl.78.23"></a><var>78.23</var>For purposes of this clause, "road construction" means construction of:<br/>
<a id="pl.78.24"></a><var>78.24</var>    (i) public roads;<br/>
<a id="pl.78.25"></a><var>78.25</var>    (ii) cartways; and<br/>
<a id="pl.78.26"></a><var>78.26</var>    (iii) private roads in townships located outside of the seven-county metropolitan
         area <br/>
<a id="pl.78.27"></a><var>78.27</var>up to the point of the emergency response location sign; and<br/>
<a id="pl.78.28"></a><var>78.28</var>    (6) services as provided in this clause:<br/>
<a id="pl.78.29"></a><var>78.29</var>    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
         <br/>
<a id="pl.78.30"></a><var>78.30</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
         <br/>
<a id="pl.78.31"></a><var>78.31</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do
         not <br/>
<a id="pl.78.32"></a><var>78.32</var>include services provided by coin operated facilities operated by the customer;<br/>
<a id="pl.79.1"></a><var>79.1</var>    (ii) motor vehicle washing, waxing, and cleaning services, including services provided
         <br/>
<a id="pl.79.2"></a><var>79.2</var>by coin operated facilities operated by the customer, and rustproofing, undercoating,
         and <br/>
<a id="pl.79.3"></a><var>79.3</var>towing of motor vehicles;<br/>
<a id="pl.79.4"></a><var>79.4</var>    (iii) building and residential cleaning, maintenance, and disinfecting services and
         pest <br/>
<a id="pl.79.5"></a><var>79.5</var>control and exterminating services;<br/>
<a id="pl.79.6"></a><var>79.6</var>    (iv) detective, security, burglar, fire alarm, and armored car services; but not including
         <br/>
<a id="pl.79.7"></a><var>79.7</var>services performed within the jurisdiction they serve by off-duty licensed peace officers
         as <br/>
<a id="pl.79.8"></a><var>79.8</var>defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit organization <br/>
<a id="pl.79.9"></a><var>79.9</var>or any organization at the direction of a county for monitoring and electronic surveillance
         <br/>
<a id="pl.79.10"></a><var>79.10</var>of persons placed on in-home detention pursuant to court order or under the direction
         of the <br/>
<a id="pl.79.11"></a><var>79.11</var>Minnesota Department of Corrections;<br/>
<a id="pl.79.12"></a><var>79.12</var>    (v) pet grooming services;<br/>
<a id="pl.79.13"></a><var>79.13</var>    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
         <br/>
<a id="pl.79.14"></a><var>79.14</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
         plant <br/>
<a id="pl.79.15"></a><var>79.15</var>care; tree, bush, shrub, and stump removal, except when performed as part of a land
         clearing <br/>
<a id="pl.79.16"></a><var>79.16</var>contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for public utility <br/>
<a id="pl.79.17"></a><var>79.17</var>lines. Services performed under a construction contract for the installation of shrubbery,
         <br/>
<a id="pl.79.18"></a><var>79.18</var>plants, sod, trees, bushes, and similar items are not taxable;<br/>
<a id="pl.79.19"></a><var>79.19</var>    (vii) massages, except when provided by a licensed health care facility or professional
         <br/>
<a id="pl.79.20"></a><var>79.20</var>or upon written referral from a licensed health care facility or professional for
         treatment of <br/>
<a id="pl.79.21"></a><var>79.21</var>illness, injury, or disease; and<br/>
<a id="pl.79.22"></a><var>79.22</var>    (viii) the furnishing of lodging, board, and care services for animals in kennels
         and other <br/>
<a id="pl.79.23"></a><var>79.23</var>similar arrangements, but excluding veterinary and horse boarding services.<br/>
<a id="pl.79.24"></a><var>79.24</var>    (h) A sale and a purchase includes the furnishing for a consideration of tangible
         personal <br/>
<a id="pl.79.25"></a><var>79.25</var>property or taxable services by the United States or any of its agencies or instrumentalities,
         <br/>
<a id="pl.79.26"></a><var>79.26</var>or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.<br/>
<a id="pl.79.27"></a><var>79.27</var>    (i) A sale and a purchase includes the furnishing for a consideration of <br/>
<a id="pl.79.28"></a><var>79.28</var>telecommunications services, ancillary services associated with telecommunication
         services, <br/>
<a id="pl.79.29"></a><var>79.29</var>and pay television services. Telecommunication services include, but are not limited
         to, the <br/>
<a id="pl.79.30"></a><var>79.30</var>following services, as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground radiotelephone service, <br/>
<a id="pl.79.31"></a><var>79.31</var>mobile telecommunication service, postpaid calling service, prepaid calling service,
         prepaid <br/>
<a id="pl.79.32"></a><var>79.32</var>wireless calling service, and private communication services. The services in this
         paragraph <br/>
<a id="pl.79.33"></a><var>79.33</var>are taxed to the extent allowed under federal law.<br/>
<a id="pl.80.1"></a><var>80.1</var>    (j) A sale and a purchase includes the furnishing for a consideration of installation
         if the <br/>
<a id="pl.80.2"></a><var>80.2</var>installation charges would be subject to the sales tax if the installation were provided
         by <br/>
<a id="pl.80.3"></a><var>80.3</var>the seller of the item being installed.<br/>
<a id="pl.80.4"></a><var>80.4</var>    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
         to a <br/>
<a id="pl.80.5"></a><var>80.5</var>customer when (1) the vehicle is rented by the customer for a consideration, or (2)
         the motor <br/>
<a id="pl.80.6"></a><var>80.6</var>vehicle dealer is reimbursed pursuant to a service contract as defined in section
         
         <statute_ref>59B.02, <br/>
<a id="pl.80.7"></a><var>80.7</var>subdivision
         </statute_ref> 11.<br/>
<a id="pl.80.8"></a><var>80.8</var>    (l) A sale and a purchase includes furnishing for a consideration of specified digital
         <br/>
<a id="pl.80.9"></a><var>80.9</var>products or other digital products or granting the right for a consideration to use
         specified <br/>
<a id="pl.80.10"></a><var>80.10</var>digital products or other digital products on a temporary or permanent basis and regardless
         <br/>
<a id="pl.80.11"></a><var>80.11</var>of whether the purchaser is required to make continued payments for such right. Wherever
         <br/>
<a id="pl.80.12"></a><var>80.12</var>the term "tangible personal property" is used in this chapter, other than in subdivisions
         10 <br/>
<a id="pl.80.13"></a><var>80.13</var>and 38, the provisions also apply to specified digital products, or other digital
         products, <br/>
<a id="pl.80.14"></a><var>80.14</var>unless specifically provided otherwise or the context indicates otherwise.<br/>
<a id="pl.80.15"></a><var>80.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.80.16"></a><var>80.16</var>30, 2017.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.80.17"></a><var>80.17</var>    Sec. 3. Minnesota Statutes 2016, section 297A.61, subdivision 4, is amended to read:<br/>
<a id="pl.80.18"></a><var>80.18</var>    Subd. 4. <b>Retail sale.</b> (a) A "retail sale" means:<br/>
<a id="pl.80.19"></a><var>80.19</var>    (1) any sale, lease, or rental of tangible personal property for any purpose, other
         than <br/>
<a id="pl.80.20"></a><var>80.20</var>resale, sublease, or subrent of items by the purchaser in the normal course of business
         as <br/>
<a id="pl.80.21"></a><var>80.21</var>defined in subdivision 21; and<br/>
<a id="pl.80.22"></a><var>80.22</var>    (2) any sale of a service enumerated in subdivision 3, for any purpose other than
         resale <br/>
<a id="pl.80.23"></a><var>80.23</var>by the purchaser in the normal course of business as defined in subdivision 21.<br/>
<a id="pl.80.24"></a><var>80.24</var>    (b) A sale of property used by the owner only by leasing it to others or by holding
         it in <br/>
<a id="pl.80.25"></a><var>80.25</var>an effort to lease it, and put to no use by the owner other than resale after the
         lease or effort <br/>
<a id="pl.80.26"></a><var>80.26</var>to lease, is a sale of property for resale.<br/>
<a id="pl.80.27"></a><var>80.27</var>    (c) A sale of master computer software that is purchased and used to make copies for
         <br/>
<a id="pl.80.28"></a><var>80.28</var>sale or lease is a sale of property for resale.<br/>
<a id="pl.80.29"></a><var>80.29</var>    (d) A sale of building materials, supplies, and equipment to owners, contractors,
         <br/>
<a id="pl.80.30"></a><var>80.30</var>subcontractors, or builders for the erection of buildings or the alteration, repair,
         or <br/>
<a id="pl.80.31"></a><var>80.31</var>improvement of real property is a retail sale in whatever quantity sold, whether the
         sale is <br/>
<a id="pl.80.32"></a><var>80.32</var>for purposes of resale in the form of real property or otherwise.<br/>
<a id="pl.81.1"></a><var>81.1</var>    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
         for <br/>
<a id="pl.81.2"></a><var>81.2</var>installation of the floor covering is a retail sale and not a sale for resale since
         a sale of floor <br/>
<a id="pl.81.3"></a><var>81.3</var>covering which includes installation is a contract for the improvement of real property.<br/>
<a id="pl.81.4"></a><var>81.4</var>    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
         <br/>
<a id="pl.81.5"></a><var>81.5</var>for installation of the items is a retail sale and not a sale for resale since a sale
         of shrubbery, <br/>
<a id="pl.81.6"></a><var>81.6</var>plants, sod, trees, and similar items that includes installation is a contract for
         the improvement <br/>
<a id="pl.81.7"></a><var>81.7</var>of real property.<br/>
<a id="pl.81.8"></a><var>81.8</var>    (g) A sale of tangible personal property that is awarded as prizes is a retail sale
         and is <br/>
<a id="pl.81.9"></a><var>81.9</var>not considered a sale of property for resale.<br/>
<a id="pl.81.10"></a><var>81.10</var>    (h) A sale of tangible personal property utilized or employed in the furnishing or
         <br/>
<a id="pl.81.11"></a><var>81.11</var>providing of services under subdivision 3, paragraph (g), clause (1), including, but
         not <br/>
<a id="pl.81.12"></a><var>81.12</var>limited to, property given as promotional items, is a retail sale and is not considered
         a sale <br/>
<a id="pl.81.13"></a><var>81.13</var>of property for resale.<br/>
<a id="pl.81.14"></a><var>81.14</var>    (i) A sale of tangible personal property used in conducting lawful gambling under
         chapter <br/>
<a id="pl.81.15"></a><var>81.15</var>349 or the State Lottery under chapter 349A, including, but not limited to, property
         given <br/>
<a id="pl.81.16"></a><var>81.16</var>as promotional items, is a retail sale and is not considered a sale of property for
         resale.<br/>
<a id="pl.81.17"></a><var>81.17</var>    (j) a sale of machines, equipment, or devices that are used to furnish, provide, or
         dispense <br/>
<a id="pl.81.18"></a><var>81.18</var>goods or services, including, but not limited to, coin-operated devices, is a retail
         sale and <br/>
<a id="pl.81.19"></a><var>81.19</var>is not considered a sale of property for resale.<br/>
<a id="pl.81.20"></a><var>81.20</var>    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a
         lease <br/>
<a id="pl.81.21"></a><var>81.21</var>payment becomes due under the terms of the agreement or the trade practices of the
         lessor <br/>
<a id="pl.81.22"></a><var>81.22</var>or (2) in the case of a lease of a motor vehicle, as defined in section 
         <statute_ref>297B.01, subdivision <br/>
<a id="pl.81.23"></a><var>81.23</var>11
         </statute_ref>, but excluding vehicles with a manufacturer's gross vehicle weight rating greater
         than <br/>
<a id="pl.81.24"></a><var>81.24</var>10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease
         is <br/>
<a id="pl.81.25"></a><var>81.25</var>executed.<br/>
<a id="pl.81.26"></a><var>81.26</var>    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer
         of <br/>
<a id="pl.81.27"></a><var>81.27</var>title or possession of the tangible personal property.<br/>
<a id="pl.81.28"></a><var>81.28</var>    (m) A sale of a bundled transaction in which one or more of the products included
         in <br/>
<a id="pl.81.29"></a><var>81.29</var>the bundle is a taxable product is a retail sale, except that if one of the products
         is a <br/>
<a id="pl.81.30"></a><var>81.30</var>telecommunication service, ancillary service, Internet access, or audio or video programming
         <br/>
<a id="pl.81.31"></a><var>81.31</var>service, and the seller has maintained books and records identifying through reasonable
         and <br/>
<a id="pl.81.32"></a><var>81.32</var>verifiable standards the portions of the price that are attributable to the distinct
         and separately <br/>
<a id="pl.82.1"></a><var>82.1</var>identifiable products, then the products are not considered part of a bundled transaction.
         <br/>
<a id="pl.82.2"></a><var>82.2</var>For purposes of this paragraph:<br/>
<a id="pl.82.3"></a><var>82.3</var>    (1) the books and records maintained by the seller must be maintained in the regular
         <br/>
<a id="pl.82.4"></a><var>82.4</var>course of business, and do not include books and records created and maintained by
         the <br/>
<a id="pl.82.5"></a><var>82.5</var>seller primarily for tax purposes;<br/>
<a id="pl.82.6"></a><var>82.6</var>    (2) books and records maintained in the regular course of business include, but are
         not <br/>
<a id="pl.82.7"></a><var>82.7</var>limited to, financial statements, general ledgers, invoicing and billing systems and
         reports, <br/>
<a id="pl.82.8"></a><var>82.8</var>and reports for regulatory tariffs and other regulatory matters; and<br/>
<a id="pl.82.9"></a><var>82.9</var>    (3) books and records are maintained primarily for tax purposes when the books and
         <br/>
<a id="pl.82.10"></a><var>82.10</var>records identify taxable and nontaxable portions of the price, but the seller maintains
         other <br/>
<a id="pl.82.11"></a><var>82.11</var>books and records that identify different prices attributable to the distinct products
         included <br/>
<a id="pl.82.12"></a><var>82.12</var>in the same bundled transaction.<br/>
<a id="pl.82.13"></a><var>82.13</var>    (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or
         body <br/>
<a id="pl.82.14"></a><var>82.14</var>shop business is a retail sale and the sales tax is imposed on the gross receipts
         from the retail <br/>
<a id="pl.82.15"></a><var>82.15</var>sale of the paint and materials. The motor vehicle repair or body shop that purchases
         motor <br/>
<a id="pl.82.16"></a><var>82.16</var>vehicle repair paint and motor vehicle repair materials for resale must either:<br/>
<a id="pl.82.17"></a><var>82.17</var>    (1) separately state each item of paint and each item of materials, and the sales
         price of <br/>
<a id="pl.82.18"></a><var>82.18</var>each, on the invoice to the purchaser; or<br/>
<a id="pl.82.19"></a><var>82.19</var>    (2) in order to calculate the sales price of the paint and materials, use a method
         which <br/>
<a id="pl.82.20"></a><var>82.20</var>estimates the amount and monetary value of the paint and materials used in the repair
         of <br/>
<a id="pl.82.21"></a><var>82.21</var>the motor vehicle by multiplying the number of labor hours by a rate of consideration
         for <br/>
<a id="pl.82.22"></a><var>82.22</var>the paint and materials used in the repair of the motor vehicle following industry
         standard <br/>
<a id="pl.82.23"></a><var>82.23</var>practices that fairly calculate the gross receipts from the retail sale of the motor
         vehicle <br/>
<a id="pl.82.24"></a><var>82.24</var>repair paint and motor vehicle repair materials. An industry standard practice fairly
         calculates <br/>
<a id="pl.82.25"></a><var>82.25</var>the gross receipts if the sales price of the paint and materials used or consumed
         in the repair <br/>
<a id="pl.82.26"></a><var>82.26</var>of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle
         repair or <br/>
<a id="pl.82.27"></a><var>82.27</var>body shop business. Under this clause, the invoice must either separately state the
         "paint <br/>
<a id="pl.82.28"></a><var>82.28</var>and materials" as a single taxable item, or separately state "paint" as a taxable
         item and <br/>
<a id="pl.82.29"></a><var>82.29</var>"materials" as a taxable item. This clause does not apply to wholesale transactions
         at an <br/>
<a id="pl.82.30"></a><var>82.30</var>auto auction facility.<br/>
<a id="pl.82.31"></a><var>82.31</var>    (o) A sale of specified digital products or other digital products to an end user
         with or <br/>
<a id="pl.82.32"></a><var>82.32</var>without rights of permanent use and regardless of whether rights of use are conditioned
         <br/>
<a id="pl.82.33"></a><var>82.33</var>upon payment by the purchaser is a retail sale. When a digital code has been purchased
         that <br/>
<a id="pl.82.34"></a><var>82.34</var>relates to specified digital products or other digital products, the subsequent receipt
         of or <br/>
<a id="pl.83.1"></a><var>83.1</var>access to the related specified digital products or other digital products is not
         a retail sale. <br/>
<a id="pl.83.2"></a><var>83.2</var>For purposes of this paragraph, "end user" does not include a person, including the
         owner <br/>
<a id="pl.83.3"></a><var>83.3</var>or operator of a jukebox or similar device that charges customers for access to specified
         <br/>
<a id="pl.83.4"></a><var>83.4</var>digital products or other digital products, who receives by contract a product transferred
         <br/>
<a id="pl.83.5"></a><var>83.5</var>electronically for further commercial broadcast, rebroadcast, transmission, retransmission,
         <br/>
<a id="pl.83.6"></a><var>83.6</var>licensing, relicensing, distribution, redistribution or exhibition of the product,
         in whole or <br/>
<a id="pl.83.7"></a><var>83.7</var>in part, to another person or persons.<br/>
<a id="pl.83.8"></a><var>83.8</var>    (p) A payment made to a cooperative electric association or public utility as a contribution
         <br/>
<a id="pl.83.9"></a><var>83.9</var>in aid of construction is a contract for improvement to real property and is not a
         retail sale.<br/>
<a id="pl.83.10"></a><var>83.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.83.11"></a><var>83.11</var>30, 2017.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.83.12"></a><var>83.12</var>    Sec. 4. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read:<br/>
<a id="pl.83.13"></a><var>83.13</var>    Subd. 34. <b>Taxable </b><b>food sold through vending machines.</b> "Taxable food sold through <br/>
<a id="pl.83.14"></a><var>83.14</var>vending machines" means food prepared food, soft drinks, or candy dispensed from a <br/>
<a id="pl.83.15"></a><var>83.15</var>machine or other device that accepts payment including honor payments.<br/>
<a id="pl.83.16"></a><var>83.16</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.83.17"></a><var>83.17</var>30, 2017.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.83.18"></a><var>83.18</var>    Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subdivision 1. <b>Definitions.</b> (a) To the extent allowed by the United States Constitution <br/>
<a id="pl.83.20"></a><var>83.20</var>and the laws of the United States, "retailer maintaining a place of business in this
         state," or <br/>
<a id="pl.83.21"></a><var>83.21</var>a similar term, means a retailer:<br/>
<a id="pl.83.22"></a><var>83.22</var>(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
         an <br/>
<a id="pl.83.23"></a><var>83.23</var>office, place of distribution, sales or sample room or place, storage, warehouse, or other <br/>
<a id="pl.83.24"></a><var>83.24</var>place of business, including the employment of a resident of this state who works from a <br/>
<a id="pl.83.25"></a><var>83.25</var>home office in this state; or<br/>
<a id="pl.83.26"></a><var>83.26</var>(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
         <br/>
<a id="pl.83.27"></a><var>83.27</var>canvasser, or marketplace provider, solicitor, or other third party operating in this state <br/>
<a id="pl.83.28"></a><var>83.28</var>under the authority of the retailer or its subsidiary, for any purpose, including
         the repairing, <br/>
<a id="pl.83.29"></a><var>83.29</var>selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for <br/>
<a id="pl.83.30"></a><var>83.30</var>the retailer's goods or services, or the leasing of tangible personal property located
         in this <br/>
<a id="pl.83.31"></a><var>83.31</var>state, whether the place of business or agent, representative, affiliate, salesperson,
         canvasser, <br/>
<a id="pl.83.32"></a><var>83.32</var>or solicitor is located in the state permanently or temporarily, or whether or not
         the retailer, <br/>
<a id="pl.84.1"></a><var>84.1</var>subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by <br/>
<a id="pl.84.2"></a><var>84.2</var>a marketplace provider in this state if the retailer makes sales in this state facilitated
         by a <br/>
<a id="pl.84.3"></a><var>84.3</var>marketplace provider that maintains a place of business in this state.<br/>
<a id="pl.84.4"></a><var>84.4</var>(b) "Destination of a sale" means the location to which the retailer makes delivery
         of <br/>
<a id="pl.84.5"></a><var>84.5</var>the property sold, or causes the property to be delivered, to the purchaser of the
         property, <br/>
<a id="pl.84.6"></a><var>84.6</var>or to the agent or designee of the purchaser. The delivery may be made by any means,
         <br/>
<a id="pl.84.7"></a><var>84.7</var>including the United States Postal Service or a for-hire carrier.<br/>
<a id="pl.84.8"></a><var>84.8</var>(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
         <br/>
<a id="pl.84.9"></a><var>84.9</var>by:<br/>
<a id="pl.84.10"></a><var>84.10</var>(1) listing or advertising for sale by the retailer in any forum tangible personal
         property, <br/>
<a id="pl.84.11"></a><var>84.11</var>services, or digital goods that are subject to tax under this chapter; and<br/>
<a id="pl.84.12"></a><var>84.12</var>(2) either directly or indirectly through agreements or arrangements with third parties
         <br/>
<a id="pl.84.13"></a><var>84.13</var>collecting payment from the customer and transmitting that payment to the retailer
         regardless <br/>
<a id="pl.84.14"></a><var>84.14</var>of whether the marketplace provider receives compensation or other consideration in
         <br/>
<a id="pl.84.15"></a><var>84.15</var>exchange for its services.<br/>
<a id="pl.84.16"></a><var>84.16</var>(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
         <br/>
<a id="pl.84.17"></a><var>84.17</var>goods, services, and digital goods subject to sales and use tax under this chapter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.84.18"></a><var>84.18</var>    Sec. 6. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:<br/>
<a id="pl.84.19"></a><var>84.19</var>    Subd. 2. <b>Retailer maintaining place of business in this state.</b> (a) Except as provided <br/>
<a id="pl.84.20"></a><var>84.20</var>in paragraph (b), a retailer maintaining a place of business in this state who makes retail <br/>
<a id="pl.84.21"></a><var>84.21</var>sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes
         and <br/>
<a id="pl.84.22"></a><var>84.22</var>remit them to the commissioner under section 
         <statute_ref>297A.77</statute_ref>.<br/>
<a id="pl.84.23"></a><var>84.23</var>(b) A retailer with total taxable retail sales to customers in this state of less
         than $10,000 <br/>
<a id="pl.84.24"></a><var>84.24</var>in the 12-month period ending on the last day of the most recently completed calendar
         <br/>
<a id="pl.84.25"></a><var>84.25</var>quarter is not required to collect and remit sales tax if it is determined to be a
         retailer <br/>
<a id="pl.84.26"></a><var>84.26</var>maintaining a place of business in the state solely because it made sales through
         one or more <br/>
<a id="pl.84.27"></a><var>84.27</var>marketplace providers. The provisions of this paragraph do not apply to a retailer
         that is or <br/>
<a id="pl.84.28"></a><var>84.28</var>was registered to collect sales and use tax in this state.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.84.29"></a><var>84.29</var>    Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:<br/>
<a id="pl.84.30"></a><var>84.30</var>    Subd. 4. <b>Affiliated entities.</b> (a) An entity is an "affiliate" of the retailer for purposes of <br/>
<a id="pl.84.31"></a><var>84.31</var>subdivision 1, paragraph (a), if the entity:<br/>
<a id="pl.85.1"></a><var>85.1</var>(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate
         <br/>
<a id="pl.85.2"></a><var>85.2</var>the establishment or maintenance of a market for sales of items by the retailer to
         purchasers <br/>
<a id="pl.85.3"></a><var>85.3</var>in this state or for the provision of services to the retailer's purchasers in this
         state, such as <br/>
<a id="pl.85.4"></a><var>85.4</var>accepting returns of purchases for the retailer, providing assistance in resolving
         customer <br/>
<a id="pl.85.5"></a><var>85.5</var>complaints of the retailer, or providing other services; and<br/>
<a id="pl.85.6"></a><var>85.6</var>(2) the retailer and the entity are related parties has the same or a similar business name <br/>
<a id="pl.85.7"></a><var>85.7</var>to the retailer and sells, from a location or locations in this state, tangible personal
         property, <br/>
<a id="pl.85.8"></a><var>85.8</var>digital goods, or services, taxable under this chapter, that are similar to that sold
         by the <br/>
<a id="pl.85.9"></a><var>85.9</var>retailer;<br/>
<a id="pl.85.10"></a><var>85.10</var>(3) maintains an office, distribution facility, salesroom, warehouse, storage place,
         or <br/>
<a id="pl.85.11"></a><var>85.11</var>other similar place of business in this state to facilitate the delivery of tangible
         personal <br/>
<a id="pl.85.12"></a><var>85.12</var>property, digital goods, or services sold by the retailer to its customers in this
         state;<br/>
<a id="pl.85.13"></a><var>85.13</var>(4) maintains a place of business in this state and uses trademarks, service marks,
         or <br/>
<a id="pl.85.14"></a><var>85.14</var>trade names in this state that are the same or substantially similar to those used
         by the retailer, <br/>
<a id="pl.85.15"></a><var>85.15</var>and that use is done with the express or implied consent of the holder of the marks
         or names;<br/>
<a id="pl.85.16"></a><var>85.16</var>(5) delivers, installs, or assembles tangible personal property in this state, or
         performs <br/>
<a id="pl.85.17"></a><var>85.17</var>maintenance or repair services on tangible personal property in this state, for tangible
         <br/>
<a id="pl.85.18"></a><var>85.18</var>personal property sold by the retailer;<br/>
<a id="pl.85.19"></a><var>85.19</var>(6) facilitates the delivery of tangible personal property to customers of the retailer
         by <br/>
<a id="pl.85.20"></a><var>85.20</var>allowing the customers to pick up tangible personal property sold by the retailer
         at a place <br/>
<a id="pl.85.21"></a><var>85.21</var>of business the entity maintains in this state; or<br/>
<a id="pl.85.22"></a><var>85.22</var>(7) shares management, business systems, business practices, or employees with the
         <br/>
<a id="pl.85.23"></a><var>85.23</var>retailer, or engages in intercompany transactions with the retailer related to the
         activities <br/>
<a id="pl.85.24"></a><var>85.24</var>that establish or maintain the market in this state of the retailer.<br/>
<a id="pl.85.25"></a><var>85.25</var>(b) Two entities are related parties under this section if one of the entities meets
         at least <br/>
<a id="pl.85.26"></a><var>85.26</var>one of the following tests with respect to the other entity:<br/>
<a id="pl.85.27"></a><var>85.27</var>(1) one or both entities is a corporation, and one entity and any party related to
         that entity <br/>
<a id="pl.85.28"></a><var>85.28</var>in a manner that would require an attribution of stock from the corporation to the
         party or <br/>
<a id="pl.85.29"></a><var>85.29</var>from the party to the corporation under the attribution rules of section 318 of the
         Internal <br/>
<a id="pl.85.30"></a><var>85.30</var>Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
         percent <br/>
<a id="pl.85.31"></a><var>85.31</var>of the value of the corporation's outstanding stock;<br/>
<a id="pl.85.32"></a><var>85.32</var>(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
         <br/>
<a id="pl.85.33"></a><var>85.33</var>and the partnership, estate, or trust and its partners or beneficiaries own directly,
         indirectly, <br/>
<a id="pl.86.1"></a><var>86.1</var>beneficially, or constructively, in the aggregate, at least 50 percent of the profits,
         capital, <br/>
<a id="pl.86.2"></a><var>86.2</var>stock, or value of the other entity or both entities; or<br/>
<a id="pl.86.3"></a><var>86.3</var>(3) an individual stockholder and the members of the stockholder's family (as defined
         <br/>
<a id="pl.86.4"></a><var>86.4</var>in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
         or <br/>
<a id="pl.86.5"></a><var>86.5</var>constructively, in the aggregate, at least 50 percent of the value of both entities'
         outstanding <br/>
<a id="pl.86.6"></a><var>86.6</var>stock;<br/>
<a id="pl.86.7"></a><var>86.7</var>(4) the entities are related within the meaning of subsections (b) and (c) of section
         267 <br/>
<a id="pl.86.8"></a><var>86.8</var>or 707(b)(1) of the Internal Revenue Code; or<br/>
<a id="pl.86.9"></a><var>86.9</var>(5) the entities have one or more ownership relationships and the relationships were
         <br/>
<a id="pl.86.10"></a><var>86.10</var>designed with a principal purpose of avoiding the application of this section.<br/>
<a id="pl.86.11"></a><var>86.11</var>(c) An entity is an affiliate under the provisions of this subdivision if the requirements
         <br/>
<a id="pl.86.12"></a><var>86.12</var>of paragraphs (a) and (b) are met during any part of the 12-month period ending on
         the first <br/>
<a id="pl.86.13"></a><var>86.13</var>day of the month before the month in which the sale was made.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.86.14"></a><var>86.14</var>    Sec. 8. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to <br/>
<a id="pl.86.15"></a><var>86.15</var>read:<br/>
<a id="pl.86.16"></a><var>86.16</var>    Subd. 4b. <b>Collection and remittance requirements for marketplace providers and </b><br/>
<a id="pl.86.17"></a><var>86.17</var><b>marketplace retailers.</b> (a) A marketplace provider shall collect sales and use taxes and <br/>
<a id="pl.86.18"></a><var>86.18</var>remit them to the commissioner under section 297A.77 for all facilitated sales for
         a retailer, <br/>
<a id="pl.86.19"></a><var>86.19</var>and is subject to audit on the retail sales it facilitates unless either:<br/>
<a id="pl.86.20"></a><var>86.20</var>(1) the retailer provides a copy of the retailer's registration to collect sales and
         use tax <br/>
<a id="pl.86.21"></a><var>86.21</var>in this state to the marketplace provider before the marketplace provider facilitates
         a sale; <br/>
<a id="pl.86.22"></a><var>86.22</var>or<br/>
<a id="pl.86.23"></a><var>86.23</var>(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
         <br/>
<a id="pl.86.24"></a><var>86.24</var>that the retailer is registered to collect sales and use taxes in this state.<br/>
<a id="pl.86.25"></a><var>86.25</var>(b) Nothing in this subdivision shall be construed to interfere with the ability of
         a <br/>
<a id="pl.86.26"></a><var>86.26</var>marketplace provider and a retailer to enter into an agreement regarding fulfillment
         of the <br/>
<a id="pl.86.27"></a><var>86.27</var>requirements of this chapter.<br/>
<a id="pl.86.28"></a><var>86.28</var>(c) A marketplace provider is not liable under this subdivision for failure to file
         and <br/>
<a id="pl.86.29"></a><var>86.29</var>collect and remit sales and use taxes if the marketplace provider demonstrates that
         the error <br/>
<a id="pl.86.30"></a><var>86.30</var>was due to incorrect or insufficient information given to the marketplace provider
         by the <br/>
<a id="pl.86.31"></a><var>86.31</var>retailer. This paragraph does not apply if the marketplace provider and the marketplace
         <br/>
<a id="pl.86.32"></a><var>86.32</var>retailer are related as defined in subdivision 4, paragraph (b).<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.87.1"></a><var>87.1</var>    Sec. 9. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read:<br/>
<a id="pl.87.2"></a><var>87.2</var>    Subd. 2. <b>Food and food ingredients.</b> Except as otherwise provided in this subdivision, <br/>
<a id="pl.87.3"></a><var>87.3</var>food and food ingredients are exempt. For purposes of this subdivision, "food" and
         "food <br/>
<a id="pl.87.4"></a><var>87.4</var>ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried,
         or <br/>
<a id="pl.87.5"></a><var>87.5</var>dehydrated form, that are sold for ingestion or chewing by humans and are consumed
         for <br/>
<a id="pl.87.6"></a><var>87.6</var>their taste or nutritional value. Food and food ingredients exempt under this subdivision
         do <br/>
<a id="pl.87.7"></a><var>87.7</var>not include candy, soft drinks, food sold through vending machines, dietary supplements, <br/>
<a id="pl.87.8"></a><var>87.8</var>and prepared foods. Food and food ingredients do not include alcoholic beverages and
         <br/>
<a id="pl.87.9"></a><var>87.9</var>tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that
         are <br/>
<a id="pl.87.10"></a><var>87.10</var>suitable for human consumption and contain one-half of one percent or more of alcohol
         by <br/>
<a id="pl.87.11"></a><var>87.11</var>volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing
         or <br/>
<a id="pl.87.12"></a><var>87.12</var>pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision,
         <br/>
<a id="pl.87.13"></a><var>87.13</var>"dietary supplements" means any product, other than tobacco, intended to supplement
         the <br/>
<a id="pl.87.14"></a><var>87.14</var>diet that:<br/>
<a id="pl.87.15"></a><var>87.15</var>(1) contains one or more of the following dietary ingredients:<br/>
<a id="pl.87.16"></a><var>87.16</var>(i) a vitamin;<br/>
<a id="pl.87.17"></a><var>87.17</var>(ii) a mineral;<br/>
<a id="pl.87.18"></a><var>87.18</var>(iii) an herb or other botanical;<br/>
<a id="pl.87.19"></a><var>87.19</var>(iv) an amino acid;<br/>
<a id="pl.87.20"></a><var>87.20</var>(v) a dietary substance for use by humans to supplement the diet by increasing the
         total <br/>
<a id="pl.87.21"></a><var>87.21</var>dietary intake; and<br/>
<a id="pl.87.22"></a><var>87.22</var>(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
         <br/>
<a id="pl.87.23"></a><var>87.23</var>described in items (i) to (v);<br/>
<a id="pl.87.24"></a><var>87.24</var>(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid
         form, <br/>
<a id="pl.87.25"></a><var>87.25</var>or if not intended for ingestion in such form, is not represented as conventional
         food and is <br/>
<a id="pl.87.26"></a><var>87.26</var>not represented for use as a sole item of a meal or of the diet; and<br/>
<a id="pl.87.27"></a><var>87.27</var>(3) is required to be labeled as a dietary supplement, identifiable by the supplement
         facts <br/>
<a id="pl.87.28"></a><var>87.28</var>box found on the label and as required pursuant to Code of Federal Regulations, title
         21, <br/>
<a id="pl.87.29"></a><var>87.29</var>section 101.36.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.87.30"></a><var>87.30</var>    Sec. 10. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read:<br/>
<a id="pl.87.31"></a><var>87.31</var>    Subd. 4. <b>Exempt meals at residential facilities.</b>  Prepared food, candy, and soft drinks <br/>
<a id="pl.87.32"></a><var>87.32</var>served to patients, inmates, or persons residing at hospitals, sanitariums, nursing
         homes, <br/>
<a id="pl.88.1"></a><var>88.1</var>senior citizen homes, and correctional, detention, and detoxification facilities are
         exempt. <br/>
<a id="pl.88.2"></a><var>88.2</var>Taxable food sold through vending machines is not exempt.<br/>
<a id="pl.88.3"></a><var>88.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.88.4"></a><var>88.4</var>30, 2017.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.88.5"></a><var>88.5</var>    Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read:<br/>
<a id="pl.88.6"></a><var>88.6</var>    Subd. 5. <b>Exempt meals at schools.</b> Prepared food, candy, and soft drinks served at <br/>
<a id="pl.88.7"></a><var>88.7</var>public and private elementary, middle, or secondary schools as defined in section
         
         <statute_ref>120A.05</statute_ref> <br/>
<a id="pl.88.8"></a><var>88.8</var>are exempt. Prepared food, candy, and soft drinks served to students at a college,
         university, <br/>
<a id="pl.88.9"></a><var>88.9</var>or private career school under a board contract are exempt. Taxable food sold through <br/>
<a id="pl.88.10"></a><var>88.10</var>vending machines is not exempt.<br/>
<a id="pl.88.11"></a><var>88.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.88.12"></a><var>88.12</var>30, 2017.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.88.13"></a><var>88.13</var>    Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read:<br/>
<a id="pl.88.14"></a><var>88.14</var>    Subd. 6. <b>Other exempt meals.</b> (a) Prepared food, candy, and soft drinks purchased for <br/>
<a id="pl.88.15"></a><var>88.15</var>and served exclusively to individuals who are 60 years of age or over and their spouses
         or <br/>
<a id="pl.88.16"></a><var>88.16</var>to disabled persons and their spouses by governmental agencies, nonprofit organizations,
         <br/>
<a id="pl.88.17"></a><var>88.17</var>or churches, or pursuant to any program funded in whole or in part through United
         States <br/>
<a id="pl.88.18"></a><var>88.18</var>Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served,
         are <br/>
<a id="pl.88.19"></a><var>88.19</var>exempt. Taxable food sold through vending machines is not exempt.<br/>
<a id="pl.88.20"></a><var>88.20</var>(b) Prepared food, candy, and soft drinks purchased for and served exclusively to
         children <br/>
<a id="pl.88.21"></a><var>88.21</var>who are less than 14 years of age or disabled children who are less than 16 years
         of age and <br/>
<a id="pl.88.22"></a><var>88.22</var>who are attending a child care or early childhood education program, are exempt if
         they <br/>
<a id="pl.88.23"></a><var>88.23</var>are:<br/>
<a id="pl.88.24"></a><var>88.24</var>(1) purchased by a nonprofit child care facility that is exempt under section 
         <statute_ref>297A.70, <br/>
<a id="pl.88.25"></a><var>88.25</var>subdivision 4
         </statute_ref>, and that primarily serves families with income of 250 percent or less of <br/>
<a id="pl.88.26"></a><var>88.26</var>federal poverty guidelines; and<br/>
<a id="pl.88.27"></a><var>88.27</var>(2) prepared at the site of the child care facility.<br/>
<a id="pl.88.28"></a><var>88.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.88.29"></a><var>88.29</var>30, 2017.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.89.1"></a><var>89.1</var>    Sec. 13. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.89.2"></a><var>89.2</var>to read:<br/>
<a id="pl.89.3"></a><var>89.3</var>    Subd. 34. <b>Precious metal bullion and bullion coin.</b> (a) Precious metal bullion and <br/>
<a id="pl.89.4"></a><var>89.4</var>bullion coin is exempt. For purposes of this subdivision, "precious metal bullion"
         means <br/>
<a id="pl.89.5"></a><var>89.5</var>bars or rounds that consist of 99.9 percent or more by weight of either gold, silver
         platinum, <br/>
<a id="pl.89.6"></a><var>89.6</var>or palladium and are marked with weight, purity, and content. For purposes of this
         <br/>
<a id="pl.89.7"></a><var>89.7</var>subdivision, "bullion coin" means only the following coins:<br/>
<a id="pl.89.8"></a><var>89.8</var>(1) gold, silver, or platinum American eagle;<br/>
<a id="pl.89.9"></a><var>89.9</var>(2) gold American buffalo;<br/>
<a id="pl.89.10"></a><var>89.10</var>(3) silver Australian koala;<br/>
<a id="pl.89.11"></a><var>89.11</var>(4) silver Australian kookaburra;<br/>
<a id="pl.89.12"></a><var>89.12</var>(5) gold or silver Austrian philharmonic;<br/>
<a id="pl.89.13"></a><var>89.13</var>(6) gold or silver British britannia;<br/>
<a id="pl.89.14"></a><var>89.14</var>(7) gold British sovereign;<br/>
<a id="pl.89.15"></a><var>89.15</var>(8) gold, silver, platinum, or palladium Canadian maple leaf;<br/>
<a id="pl.89.16"></a><var>89.16</var>(9) palladium Isle of Man noble;<br/>
<a id="pl.89.17"></a><var>89.17</var>(10) gold or silver Chinese panda;<br/>
<a id="pl.89.18"></a><var>89.18</var>(11) gold or silver Mexican libertad or peso;<br/>
<a id="pl.89.19"></a><var>89.19</var>(12) gold South African krugerrand;<br/>
<a id="pl.89.20"></a><var>89.20</var>(13) gold French, Swiss, or Belgian 20 francs; and<br/>
<a id="pl.89.21"></a><var>89.21</var>(14) junk United States silver coins issued before 1965 that are at least 90 percent
         silver.<br/>
<a id="pl.89.22"></a><var>89.22</var>(b) The intent of this subdivision is to eliminate the difference in tax treatment
         between <br/>
<a id="pl.89.23"></a><var>89.23</var>the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and
         other <br/>
<a id="pl.89.24"></a><var>89.24</var>investment instruments.<br/>
<a id="pl.89.25"></a><var>89.25</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.89.26"></a><var>89.26</var>30, 2017.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.90.1"></a><var>90.1</var>    Sec. 14. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision <br/>
<a id="pl.90.2"></a><var>90.2</var>to read:<br/>
<a id="pl.90.3"></a><var>90.3</var>    Subd. 11a. <b>Minnesota State High School League tickets and admissions.</b> Tickets and <br/>
<a id="pl.90.4"></a><var>90.4</var>admissions to games, events, and activities sponsored by the Minnesota State High
         School <br/>
<a id="pl.90.5"></a><var>90.5</var>League under chapter 128C are exempt.<br/>
<a id="pl.90.6"></a><var>90.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.90.7"></a><var>90.7</var>30, 2017, and before July 1, 2027.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.90.8"></a><var>90.8</var>    Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:<br/>
<a id="pl.90.9"></a><var>90.9</var>    Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of tangible <br/>
<a id="pl.90.10"></a><var>90.10</var>personal property or services at, and admission charges for fund-raising events sponsored
         <br/>
<a id="pl.90.11"></a><var>90.11</var>by, a nonprofit organization are exempt if:<br/>
<a id="pl.90.12"></a><var>90.12</var>(1) all gross receipts are recorded as such, in accordance with generally accepted
         <br/>
<a id="pl.90.13"></a><var>90.13</var>accounting practices, on the books of the nonprofit organization; and<br/>
<a id="pl.90.14"></a><var>90.14</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely
         <br/>
<a id="pl.90.15"></a><var>90.15</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include
         the <br/>
<a id="pl.90.16"></a><var>90.16</var>sale of prepared food, candy, and soft drinks at the fund-raising event.<br/>
<a id="pl.90.17"></a><var>90.17</var>(b) This exemption is limited in the following manner:<br/>
<a id="pl.90.18"></a><var>90.18</var>(1) it does not apply to admission charges for events involving bingo or other gambling
         <br/>
<a id="pl.90.19"></a><var>90.19</var>activities or to charges for use of amusement devices involving bingo or other gambling
         <br/>
<a id="pl.90.20"></a><var>90.20</var>activities;<br/>
<a id="pl.90.21"></a><var>90.21</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively
         for <br/>
<a id="pl.90.22"></a><var>90.22</var>charitable, religious, or educational purposes;<br/>
<a id="pl.90.23"></a><var>90.23</var>(3) it does not apply unless the organization keeps a separate accounting record,
         including <br/>
<a id="pl.90.24"></a><var>90.24</var>receipts and disbursements from each fund-raising event that documents all deductions
         from <br/>
<a id="pl.90.25"></a><var>90.25</var>gross receipts with receipts and other records;<br/>
<a id="pl.90.26"></a><var>90.26</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation
         as <br/>
<a id="pl.90.27"></a><var>90.27</var>the active or passive agent of a person that is not a nonprofit corporation;<br/>
<a id="pl.90.28"></a><var>90.28</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; and<br/>
<a id="pl.90.29"></a><var>90.29</var>(6) it does not apply to fund-raising events conducted on premises leased for more than
         <br/>
<a id="pl.90.30"></a><var>90.30</var>five days but less than 30 days; and<br/>
<a id="pl.91.1"></a><var>91.1</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization
         <br/>
<a id="pl.91.2"></a><var>91.2</var>and the benefit to the nonprofit organization is less than the total amount of the
         state and <br/>
<a id="pl.91.3"></a><var>91.3</var>local tax revenues forgone by this exemption.<br/>
<a id="pl.91.4"></a><var>91.4</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
         <br/>
<a id="pl.91.5"></a><var>91.5</var>government, corporation, society, association, foundation, or institution organized
         and <br/>
<a id="pl.91.6"></a><var>91.6</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens'
         or veterans' <br/>
<a id="pl.91.7"></a><var>91.7</var>purposes, no part of the net earnings of which inures to the benefit of a private
         individual.<br/>
<a id="pl.91.8"></a><var>91.8</var>(d) For purposes of this subdivision, "fund-raising events" means activities of limited
         <br/>
<a id="pl.91.9"></a><var>91.9</var>duration, not regularly carried out in the normal course of business, that attract
         patrons for <br/>
<a id="pl.91.10"></a><var>91.10</var>community, social, and entertainment purposes, such as auctions, bake sales, ice cream
         <br/>
<a id="pl.91.11"></a><var>91.11</var>socials, block parties, carnivals, competitions, concerts, concession stands, craft
         sales, <br/>
<a id="pl.91.12"></a><var>91.12</var>bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows,
         festivals, <br/>
<a id="pl.91.13"></a><var>91.13</var>galas, special event workshops, sporting activities such as marathons and tournaments,
         and <br/>
<a id="pl.91.14"></a><var>91.14</var>similar events. Fund-raising events do not include the operation of a regular place
         of business <br/>
<a id="pl.91.15"></a><var>91.15</var>in which services are provided or sales are made during regular hours such as bookstores,
         <br/>
<a id="pl.91.16"></a><var>91.16</var>thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled
         classes, or <br/>
<a id="pl.91.17"></a><var>91.17</var>other activities carried out in the normal course of business.<br/>
<a id="pl.91.18"></a><var>91.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.91.19"></a><var>91.19</var>30, 2017.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.91.20"></a><var>91.20</var>    Sec. 16. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:<br/>
<a id="pl.91.21"></a><var>91.21</var>    Subd. 44. <b>Building materials, capital projects.</b> (a) Materials and supplies used or <br/>
<a id="pl.91.22"></a><var>91.22</var>consumed in and equipment incorporated into the construction or improvement of a capital
         <br/>
<a id="pl.91.23"></a><var>91.23</var>project funded partially or wholly under section 
         <statute_ref>297A.9905</statute_ref> are exempt, provided that the <br/>
<a id="pl.91.24"></a><var>91.24</var>project has a total construction cost of at least $40,000,000 within a 24-month period.<br/>
<a id="pl.91.25"></a><var>91.25</var>(b) Materials and supplies used or consumed in and equipment incorporated into the
         <br/>
<a id="pl.91.26"></a><var>91.26</var>construction, remodeling, expansion, or improvement of an ice arena or other buildings
         or <br/>
<a id="pl.91.27"></a><var>91.27</var>facilities owned and operated by the city of Plymouth are exempt. For purposes of
         this <br/>
<a id="pl.91.28"></a><var>91.28</var>subdivision, "facilities" include municipal streets and facilities associated with
         streets <br/>
<a id="pl.91.29"></a><var>91.29</var>including but not limited to lighting, curbs and gutters, and sidewalks. The total
         amount of <br/>
<a id="pl.91.30"></a><var>91.30</var>refund on all building materials, supplies, and equipment that the city may apply
         for under <br/>
<a id="pl.91.31"></a><var>91.31</var>this paragraph is $2,500,000.<br/>
<a id="pl.92.1"></a><var>92.1</var>(c) The tax on purchases exempt under this provision must be imposed and collected as
         <br/>
<a id="pl.92.2"></a><var>92.2</var>if the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied and then refunded in the manner <br/>
<a id="pl.92.3"></a><var>92.3</var>provided in section 
         <statute_ref>297A.75</statute_ref>.<br/>
<a id="pl.92.4"></a><var>92.4</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.92.5"></a><var>92.5</var>made after January 1, 2015.<br/>
 <br/>
<a id="bill.3.17.0"></a><a id="pl.92.6"></a><var>92.6</var>    Sec. 17. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.92.7"></a><var>92.7</var>to read:<br/>
<a id="pl.92.8"></a><var>92.8</var>    Subd. 49. <b>Properties destroyed by fire.</b> Building materials and supplies used in, and <br/>
<a id="pl.92.9"></a><var>92.9</var>equipment incorporated into, the construction or replacement of real property that
         is located <br/>
<a id="pl.92.10"></a><var>92.10</var>in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
         <br/>
<a id="pl.92.11"></a><var>92.11</var>and collected as if the rate under section 297A.62, subdivision 1, applied and then
         refunded <br/>
<a id="pl.92.12"></a><var>92.12</var>in the manner provided in section 297A.75.<br/>
 <a id="pl.92.13"></a><var>92.13</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.92.14"></a><var>92.14</var>made after December 31, 2015, and before July 1, 2018.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.92.15"></a><var>92.15</var>    Sec. 18. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.92.16"></a><var>92.16</var>to read:<br/>
<a id="pl.92.17"></a><var>92.17</var>    Subd. 50. <b>Properties destroyed by fire.</b> (a) Building materials and supplies used in, <br/>
<a id="pl.92.18"></a><var>92.18</var>and equipment incorporated into, the construction or replacement of real property
         that is <br/>
<a id="pl.92.19"></a><var>92.19</var>located in Melrose affected by the fire on September 8, 2016, are exempt.<br/>
<a id="pl.92.20"></a><var>92.20</var>(b) For sales and purchases made after September 30, 2016, and before July 1, 2017,
         <br/>
<a id="pl.92.21"></a><var>92.21</var>the tax must be imposed and collected as if the rate under section 297A.62, subdivision
         1, <br/>
<a id="pl.92.22"></a><var>92.22</var>applied and then refunded in the manner provided in section 297A.75.<br/>
<a id="pl.92.23"></a><var>92.23</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective retroactively for sales and purchases <br/>
<a id="pl.92.24"></a><var>92.24</var>made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective
         for <br/>
<a id="pl.92.25"></a><var>92.25</var>sales and purchases made after September 30, 2016, and before July 1, 2017.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.92.26"></a><var>92.26</var>    Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.92.27"></a><var>92.27</var>to read:<br/>
<a id="pl.92.28"></a><var>92.28</var>    Subd. 51. <b>Building materials; Major League Soccer stadium.</b> Materials and supplies <br/>
<a id="pl.92.29"></a><var>92.29</var>used or consumed in, and equipment incorporated into, the construction of a Major
         League <br/>
<a id="pl.92.30"></a><var>92.30</var>Soccer stadium and related infrastructure constructed in the city of St. Paul are
         exempt. <br/>
<a id="pl.93.1"></a><var>93.1</var>This subdivision expires one year after the date that the first Major League Soccer
         game is <br/>
<a id="pl.93.2"></a><var>93.2</var>played in the stadium.<br/>
<a id="pl.93.3"></a><var>93.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after the <br/>
<a id="pl.93.4"></a><var>93.4</var>day following final enactment.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.93.5"></a><var>93.5</var>    Sec. 20. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:<br/>
<a id="pl.93.6"></a><var>93.6</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the following <br/>
<a id="pl.93.7"></a><var>93.7</var>exempt items must be imposed and collected as if the sale were taxable and the rate
         under <br/>
<a id="pl.93.8"></a><var>93.8</var>section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.93.9"></a><var>93.9</var>    (1) building materials for an agricultural processing facility exempt under section
         <br/>
<statute_ref><a id="pl.93.10"></a><var>93.10</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.93.11"></a><var>93.11</var>    (2) building materials for mineral production facilities exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.93.12"></a><var>93.12</var>subdivision 14
         </statute_ref>;<br/>
<a id="pl.93.13"></a><var>93.13</var>    (3) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision 3</statute_ref>;<br/>
<a id="pl.93.14"></a><var>93.14</var>    (4) building materials used in a residence for disabled veterans exempt under section
         <br/>
<statute_ref><a id="pl.93.15"></a><var>93.15</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.93.16"></a><var>93.16</var>    (5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.93.17"></a><var>93.17</var>    (6) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br/>
<a id="pl.93.18"></a><var>93.18</var>subdivision 23
         </statute_ref>;<br/>
<a id="pl.93.19"></a><var>93.19</var>    (7) materials, supplies, and equipment for municipal electric utility facilities under
         <br/>
<a id="pl.93.20"></a><var>93.20</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.93.21"></a><var>93.21</var>    (8) equipment and materials used for the generation, transmission, and distribution
         of <br/>
<a id="pl.93.22"></a><var>93.22</var>electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, subdivision <br/>
<a id="pl.93.23"></a><var>93.23</var>37;<br/>
<a id="pl.93.24"></a><var>93.24</var>    (9) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision 3, paragraph <br/>
<a id="pl.93.25"></a><var>93.25</var>(a), clause (10);<br/>
<a id="pl.93.26"></a><var>93.26</var>    (10) materials, supplies, and equipment for construction or improvement of projects
         and <br/>
<a id="pl.93.27"></a><var>93.27</var>facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.93.28"></a><var>93.28</var>(11) materials, supplies, and equipment for construction, improvement, or expansion
         <br/>
<a id="pl.93.29"></a><var>93.29</var>of:<br/>
<a id="pl.93.30"></a><var>93.30</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.93.31"></a><var>93.31</var>subdivision 42
         </statute_ref>;<br/>
<a id="pl.94.1"></a><var>94.1</var>(ii) a biopharmaceutical manufacturing facility exempt under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.94.2"></a><var>94.2</var>45
         </statute_ref>;<br/>
<a id="pl.94.3"></a><var>94.3</var>(iii) a research and development facility exempt under section 
         <statute_ref>297A.71, subdivision 46</statute_ref>; <br/>
<a id="pl.94.4"></a><var>94.4</var>and<br/>
<a id="pl.94.5"></a><var>94.5</var>(iv) an industrial measurement manufacturing and controls facility exempt under section
         <br/>
<statute_ref><a id="pl.94.6"></a><var>94.6</var>297A.71, subdivision 47
         </statute_ref>;<br/>
<a id="pl.94.7"></a><var>94.7</var>(12) enterprise information technology equipment and computer software for use in
         a <br/>
<a id="pl.94.8"></a><var>94.8</var>qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>;<br/>
<a id="pl.94.9"></a><var>94.9</var>(13) materials, supplies, and equipment for qualifying capital projects under section
         <br/>
<statute_ref><a id="pl.94.10"></a><var>94.10</var>297A.71, subdivision 44
         </statute_ref>;<br/>
<a id="pl.94.11"></a><var>94.11</var>(14) items purchased for use in providing critical access dental services exempt under
         <br/>
<a id="pl.94.12"></a><var>94.12</var>section 
         <statute_ref>297A.70, subdivision 7</statute_ref>, paragraph (c); and<br/>
<a id="pl.94.13"></a><var>94.13</var>(15) items and services purchased under a business subsidy agreement for use or <br/>
<a id="pl.94.14"></a><var>94.14</var>consumption primarily in greater Minnesota exempt under section 
         <statute_ref>297A.68, subdivision <br/>
<a id="pl.94.15"></a><var>94.15</var>44
         </statute_ref>;<br/>
<a id="pl.94.16"></a><var>94.16</var>(16) building materials, equipment, and supplies for constructing or replacing real
         <br/>
<a id="pl.94.17"></a><var>94.17</var>property exempt under section 297A.71, subdivision 49; and<br/>
<a id="pl.94.18"></a><var>94.18</var>(17) building materials, equipment, and supplies for constructing or replacing real
         <br/>
<a id="pl.94.19"></a><var>94.19</var>property exempt under section 297A.71, subdivision 50.<br/>
<a id="pl.94.20"></a><var>94.20</var><b>EFFECTIVE DATE.</b>(a) Clause (16) is effective retroactively for sales and purchases <br/>
<a id="pl.94.21"></a><var>94.21</var>made after December 31, 2015.<br/>
<a id="pl.94.22"></a><var>94.22</var>(b) Clause (17) is effective retroactively for sales and purchases made after September
         <br/>
<a id="pl.94.23"></a><var>94.23</var>30, 2016.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.94.24"></a><var>94.24</var>    Sec. 21. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:<br/>
<a id="pl.94.25"></a><var>94.25</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.94.26"></a><var>94.26</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
         must <br/>
<a id="pl.94.27"></a><var>94.27</var>be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.94.28"></a><var>94.28</var>    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;<br/>
<a id="pl.94.29"></a><var>94.29</var>    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;<br/>
<a id="pl.94.30"></a><var>94.30</var>    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
         <br/>
<a id="pl.94.31"></a><var>94.31</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.95.1"></a><var>95.1</var>    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
         <br/>
<a id="pl.95.2"></a><var>95.2</var>property;<br/>
<a id="pl.95.3"></a><var>95.3</var>    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;<br/>
<a id="pl.95.4"></a><var>95.4</var>    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility
         or a <br/>
<a id="pl.95.5"></a><var>95.5</var>joint venture of municipal electric utilities;<br/>
<a id="pl.95.6"></a><var>95.6</var>    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
         <br/>
<a id="pl.95.7"></a><var>95.7</var>business; and<br/>
<a id="pl.95.8"></a><var>95.8</var>    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
         <br/>
<a id="pl.95.9"></a><var>95.9</var>entity that owns or contracts for the project or facility;<br/>
<a id="pl.95.10"></a><var>95.10</var>    (9) for subdivision 1, clause (16), the applicant must be the owner or developer of
         the <br/>
<a id="pl.95.11"></a><var>95.11</var>building or project; and<br/>
<a id="pl.95.12"></a><var>95.12</var>    (10) for subdivision 1, clause (17), the applicant must be the owner or developer
         of the <br/>
<a id="pl.95.13"></a><var>95.13</var>building or project..<br/>
<a id="pl.95.14"></a><var>95.14</var><b>EFFECTIVE DATE.</b>(a) Clause (9) is effective retroactively for sales and purchases <br/>
<a id="pl.95.15"></a><var>95.15</var>made after December 31, 2015.<br/>
<a id="pl.95.16"></a><var>95.16</var>(b) Clause (10) is effective retroactively for sales and purchases made after September
         <br/>
<a id="pl.95.17"></a><var>95.17</var>30, 2016.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.95.18"></a><var>95.18</var>    Sec. 22. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:<br/>
<a id="pl.95.19"></a><var>95.19</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information to permit <br/>
<a id="pl.95.20"></a><var>95.20</var>the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
         <br/>
<a id="pl.95.21"></a><var>95.21</var>or builder, under subdivision 1, clauses (3) to (13), or (15), (16), and (17), the contractor, <br/>
<a id="pl.95.22"></a><var>95.22</var>subcontractor, or builder must furnish to the refund applicant a statement including
         the cost <br/>
<a id="pl.95.23"></a><var>95.23</var>of the exempt items and the taxes paid on the items unless otherwise specifically
         provided <br/>
<a id="pl.95.24"></a><var>95.24</var>by this subdivision. The provisions of sections 
         <statute_ref>289A.40</statute_ref> and 
         <statute_ref>289A.50</statute_ref> apply to refunds under <br/>
<a id="pl.95.25"></a><var>95.25</var>this section.<br/>
<a id="pl.95.26"></a><var>95.26</var>    (b) An applicant may not file more than two applications per calendar year for refunds
         <br/>
<a id="pl.95.27"></a><var>95.27</var>for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.95.28"></a><var>95.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.96.1"></a><var>96.1</var>    Sec. 23. <b>EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.</b><br/>
<a id="pl.96.2"></a><var>96.2</var>(a) Notwithstanding the seven-year certification period under Minnesota Statutes,
         section <br/>
<a id="pl.96.3"></a><var>96.3</var>116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
         <br/>
<a id="pl.96.4"></a><var>96.4</var>component distribution center investing a minimum of $200,000,000 and constructing
         a <br/>
<a id="pl.96.5"></a><var>96.5</var>facility at least 700,000 square feet in size is effective for the ten-year period
         beginning on <br/>
<a id="pl.96.6"></a><var>96.6</var>the first day of the calendar month immediately following the date that the commissioner
         <br/>
<a id="pl.96.7"></a><var>96.7</var>informs the business of the award of the benefit.<br/>
<a id="pl.96.8"></a><var>96.8</var>(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes,
         section <br/>
<a id="pl.96.9"></a><var>96.9</var>116J.8738, subdivision 4, the sales tax exemption for an eligible electronic wholesale
         <br/>
<a id="pl.96.10"></a><var>96.10</var>component distribution center investing a minimum of $200,000,000 and constructing
         a <br/>
<a id="pl.96.11"></a><var>96.11</var>facility at least 700,000 square feet in size may be authorized up to $5,000,000 annually
         <br/>
<a id="pl.96.12"></a><var>96.12</var>and up to $40,000,000 during the total period of the agreement.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.96.13"></a><var>96.13</var>    Sec. 24. <b>SEVERABILITY.</b><br/>
<a id="pl.96.14"></a><var>96.14</var>If any provision of sections 5 to 8 or the application thereof is held invalid, such
         invalidity <br/>
<a id="pl.96.15"></a><var>96.15</var>shall not affect the provisions or applications of the sections that can be given
         effect without <br/>
<a id="pl.96.16"></a><var>96.16</var>the invalid provisions or applications.<br/>
<a id="pl.96.17"></a><var>96.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.96.18"></a><var>96.18</var>    Sec. 25. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.96.19"></a><var>96.19</var>(a) The provisions of sections 5 to 8 are effective at the earlier of:<br/>
<a id="pl.96.20"></a><var>96.20</var>(1) a decision by the United States Supreme Court modifying its decision in Quill
         Corp. <br/>
<a id="pl.96.21"></a><var>96.21</var>v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without
         a physical <br/>
<a id="pl.96.22"></a><var>96.22</var>presence in the state to collect and remit sales tax; or<br/>
<a id="pl.96.23"></a><var>96.23</var>(2) July 1, 2018.<br/>
<a id="pl.96.24"></a><var>96.24</var>(b) Notwithstanding paragraph (a) or the provisions of sections 5 to 8, if a federal
         law <br/>
<a id="pl.96.25"></a><var>96.25</var>is enacted authorizing a state to impose a requirement to collect and remit sales
         tax on <br/>
<a id="pl.96.26"></a><var>96.26</var>retailers without a physical presence in the state, the commissioner must enforce
         the <br/>
<a id="pl.96.27"></a><var>96.27</var>provisions of this section and sections 5 to 8 to the extent allowed under federal
         law.<br/>
<a id="pl.96.28"></a><var>96.28</var>(c) The commissioner of revenue shall notify the revisor of statutes when either of
         the <br/>
<a id="pl.96.29"></a><var>96.29</var>provisions in paragraph (a) or (b) apply.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.97.3"></a><var>97.3</var>    Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read:<br/>
<a id="pl.97.4"></a><var>97.4</var>    Subd. 4. <b>Debt service equalization revenue.</b> (a) The debt service equalization revenue <br/>
<a id="pl.97.5"></a><var>97.5</var>of a district equals the sum of the first tier debt service equalization revenue and
         the second <br/>
<a id="pl.97.6"></a><var>97.6</var>tier debt service equalization revenue.<br/>
<a id="pl.97.7"></a><var>97.7</var>    (b) The first tier debt service equalization revenue of a district equals the greater
         of zero <br/>
<a id="pl.97.8"></a><var>97.8</var>or the eligible debt service revenue minus the amount raised by a levy of 
         <statute_ref>15.74 </statute_ref>percent the <br/>
<a id="pl.97.9"></a><var>97.9</var>first tier initial effort rate times the adjusted net tax capacity of the district minus the second <br/>
<a id="pl.97.10"></a><var>97.10</var>tier debt service equalization revenue of the district.<br/>
<a id="pl.97.11"></a><var>97.11</var>    (c) The second tier debt service equalization revenue of a district equals the greater
         of <br/>
<a id="pl.97.12"></a><var>97.12</var>zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24
         percent <br/>
<a id="pl.97.13"></a><var>97.13</var>times the adjusted net tax capacity of the district.<br/>
<a id="pl.97.14"></a><var>97.14</var>(d) The first tier initial effort rate for taxes payable in 2018 is ten percent. The
         initial <br/>
<a id="pl.97.15"></a><var>97.15</var>effort rate for taxes payable in 2019 and later is 15.74 percent.<br/>
<a id="pl.97.16"></a><var>97.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.97.17"></a><var>97.17</var>    Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:<br/>
<a id="pl.97.18"></a><var>97.18</var>    Subd. 5. <b>Equalized debt service levy.</b> (a) The equalized debt service levy of a district <br/>
<a id="pl.97.19"></a><var>97.19</var>equals the sum of the first tier equalized debt service levy and the second tier equalized
         debt <br/>
<a id="pl.97.20"></a><var>97.20</var>service levy.<br/>
<a id="pl.97.21"></a><var>97.21</var>(b) A district's first tier equalized debt service levy equals the district's first
         tier debt <br/>
<a id="pl.97.22"></a><var>97.22</var>service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.97.23"></a><var>97.23</var>(1) the quotient derived by dividing the adjusted net tax capacity of the district
         for the <br/>
<a id="pl.97.24"></a><var>97.24</var>year before the year the levy is certified by the adjusted pupil units in the district
         for the <br/>
<a id="pl.97.25"></a><var>97.25</var>school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.97.26"></a><var>97.26</var>(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or <br/>
<a id="pl.97.27"></a><var>97.27</var>55.33 percent of the initial equalizing factor in fiscal year 2018 and later, 75 percent of the <br/>
<a id="pl.97.28"></a><var>97.28</var>initial equalizing factor in fiscal year 2019, and 55.33 percent of the initial equalizing
         factor <br/>
<a id="pl.97.29"></a><var>97.29</var>in fiscal year 2020 and later.<br/>
<a id="pl.97.30"></a><var>97.30</var>(c) A district's second tier equalized debt service levy equals the district's second
         tier <br/>
<a id="pl.97.31"></a><var>97.31</var>debt service equalization revenue times the lesser of one or the ratio of:<br/>
<a id="pl.98.1"></a><var>98.1</var>(1) the quotient derived by dividing the adjusted net tax capacity of the district
         for the <br/>
<a id="pl.98.2"></a><var>98.2</var>year before the year the levy is certified by the adjusted pupil units in the district
         for the <br/>
<a id="pl.98.3"></a><var>98.3</var>school year ending in the year prior to the year the levy is certified; to<br/>
<a id="pl.98.4"></a><var>98.4</var>(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent
         of <br/>
<a id="pl.98.5"></a><var>98.5</var>the initial equalizing factor in fiscal year 2018 and later.<br/>
<a id="pl.98.6"></a><var>98.6</var>(d) For the purposes of this subdivision, the initial equalizing factor equals the
         quotient <br/>
<a id="pl.98.7"></a><var>98.7</var>derived by dividing the total adjusted net tax capacity of all school districts in
         the state for <br/>
<a id="pl.98.8"></a><var>98.8</var>the year before the year the levy is certified by the total number of adjusted pupil
         units in <br/>
<a id="pl.98.9"></a><var>98.9</var>all school districts in the state in the year before the year the levy is certified.<br/>
<a id="pl.98.10"></a><var>98.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.98.11"></a><var>98.11</var>    Sec. 3. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:<br/>
<a id="pl.98.12"></a><var>98.12</var>    Subd. 6. <b>Referendum equalization levy.</b> (a) A district's referendum equalization levy <br/>
<a id="pl.98.13"></a><var>98.13</var>equals the sum of the first tier referendum equalization levy, the second tier referendum
         <br/>
<a id="pl.98.14"></a><var>98.14</var>equalization levy, and the third tier referendum equalization levy.<br/>
<a id="pl.98.15"></a><var>98.15</var>(b) A district's first tier referendum equalization levy equals the district's first
         tier <br/>
<a id="pl.98.16"></a><var>98.16</var>referendum equalization revenue times the lesser of one or the ratio of the district's
         <br/>
<a id="pl.98.17"></a><var>98.17</var>referendum market value per resident pupil unit to $880,000 $950,000.<br/>
<a id="pl.98.18"></a><var>98.18</var>(c) A district's second tier referendum equalization levy equals the district's second
         tier <br/>
<a id="pl.98.19"></a><var>98.19</var>referendum equalization revenue times the lesser of one or the ratio of the district's
         <br/>
<a id="pl.98.20"></a><var>98.20</var>referendum market value per resident pupil unit to $510,000 $611,000.<br/>
<a id="pl.98.21"></a><var>98.21</var>(d) A district's third tier referendum equalization levy equals the district's third
         tier <br/>
<a id="pl.98.22"></a><var>98.22</var>referendum equalization revenue times the lesser of one or the ratio of the district's
         <br/>
<a id="pl.98.23"></a><var>98.23</var>referendum market value per resident pupil unit to $290,000.<br/>
<a id="pl.98.24"></a><var>98.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2018 and later.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.98.25"></a><var>98.25</var>    Sec. 4. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:<br/>
<a id="pl.98.26"></a><var>98.26</var>    Subd. 10. <b>Payments to school nonoperating funds.</b> Each fiscal year state general fund <br/>
<a id="pl.98.27"></a><var>98.27</var>payments for a district nonoperating fund must be made at the current year aid payment
         <br/>
<a id="pl.98.28"></a><var>98.28</var>percentage of the estimated entitlement during the fiscal year of the entitlement.
         This amount <br/>
<a id="pl.98.29"></a><var>98.29</var>shall be paid in 12 six equal monthly installments beginning in July. The amount of the <br/>
<a id="pl.98.30"></a><var>98.30</var>actual entitlement, after adjustment for actual data, minus the payments made during
         the <br/>
<a id="pl.98.31"></a><var>98.31</var>fiscal year of the entitlement must be paid prior to October 31 of the following school
         year. <br/>
<a id="pl.99.1"></a><var>99.1</var>The commissioner may make advance payments of debt service equalization aid and <br/>
<a id="pl.99.2"></a><var>99.2</var>state-paid tax credits for a district's debt service fund earlier than would occur
         under the <br/>
<a id="pl.99.3"></a><var>99.3</var>preceding schedule if the district submits evidence showing a serious cash flow problem
         in <br/>
<a id="pl.99.4"></a><var>99.4</var>the fund. The commissioner may make earlier payments during the year and, if necessary,
         <br/>
<a id="pl.99.5"></a><var>99.5</var>increase the percent of the entitlement paid to reduce the cash flow problem.<br/>
<a id="pl.99.6"></a><var>99.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning with fiscal year 2019.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.99.7"></a><var>99.7</var>    Sec. 5. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:<br/>
<a id="pl.99.8"></a><var>99.8</var>    Subd. 13. <b>Aid payment percentage.</b> Except as provided in subdivisions 10, 11, 12, 12a, <br/>
<a id="pl.99.9"></a><var>99.9</var>and 14, each fiscal year, all education aids and credits in this chapter and chapters
         120A, <br/>
<a id="pl.99.10"></a><var>99.10</var>120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 
         <statute_ref>273.1392</statute_ref>, <br/>
<a id="pl.99.11"></a><var>99.11</var>shall be paid at the current year aid payment percentage of the estimated entitlement
         during <br/>
<a id="pl.99.12"></a><var>99.12</var>the fiscal year of the entitlement. For the purposes of this subdivision, a district's
         estimated <br/>
<a id="pl.99.13"></a><var>99.13</var>entitlement for special education aid under section 
         <statute_ref>125A.76</statute_ref> for fiscal year 2014 and later <br/>
<a id="pl.99.14"></a><var>99.14</var>equals 97.4 percent of the district's entitlement for the current fiscal year. The
         final adjustment <br/>
<a id="pl.99.15"></a><var>99.15</var>payment, according to subdivision 9, must be the amount of the actual entitlement,
         after <br/>
<a id="pl.99.16"></a><var>99.16</var>adjustment for actual data, minus the payments made during the fiscal year of the
         entitlement.<br/>
<a id="pl.99.17"></a><var>99.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with fiscal year 2019.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.99.18"></a><var>99.18</var>    Sec. 6. <b>[273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.</b><br/>
<a id="pl.99.19"></a><var>99.19</var>    Subdivision 1. <b>Eligibility.</b> All class 2a, 2b, and 2c property under section 273.13, <br/>
<a id="pl.99.20"></a><var>99.20</var>subdivision 23, other than property consisting of the house, garage, and immediately
         <br/>
<a id="pl.99.21"></a><var>99.21</var>surrounding one acre of land of an agricultural homestead, is eligible to receive
         the credit <br/>
<a id="pl.99.22"></a><var>99.22</var>under this section.<br/>
<a id="pl.99.23"></a><var>99.23</var>    Subd. 2. <b>Credit amount.</b> For each qualifying property, the school building bond <br/>
<a id="pl.99.24"></a><var>99.24</var>agricultural credit is equal to 40 percent of the property's eligible net tax capacity
         multiplied <br/>
<a id="pl.99.25"></a><var>99.25</var>by the school debt tax rate determined under section 275.08, subdivision 1b.<br/>
<a id="pl.99.26"></a><var>99.26</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax reductions <br/>
<a id="pl.99.27"></a><var>99.27</var>allowed under this section within the county for each taxes payable year and shall
         certify <br/>
<a id="pl.99.28"></a><var>99.28</var>that amount to the commissioner of revenue as a part of the abstracts of tax lists
         submitted <br/>
<a id="pl.99.29"></a><var>99.29</var>under section 275.29. Any prior year adjustments shall also be certified on the abstracts
         of <br/>
<a id="pl.99.30"></a><var>99.30</var>tax lists. The commissioner shall review the certifications for accuracy, and may
         make such <br/>
<a id="pl.99.31"></a><var>99.31</var>changes as are deemed necessary, or return the certification to the county auditor
         for <br/>
<a id="pl.100.1"></a><var>100.1</var>correction. The credit under this section must be used to reduce the school district
         net tax <br/>
<a id="pl.100.2"></a><var>100.2</var>capacity-based property tax as provided in section 
<statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.100.3"></a><var>100.3</var>    Subd. 4. <b>Payment.</b> The commissioner of revenue shall certify the total of the tax <br/>
<a id="pl.100.4"></a><var>100.4</var>reductions granted under this section for each taxes payable year within each school
         district <br/>
<a id="pl.100.5"></a><var>100.5</var>to the commissioner of education who shall pay the reimbursement amounts to each school
         <br/>
<a id="pl.100.6"></a><var>100.6</var>district as provided in section 
<statute_ref>273.1392</statute_ref>.<br/>
<a id="pl.100.7"></a><var>100.7</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to make the payments required by this <br/>
<a id="pl.100.8"></a><var>100.8</var>section is annually appropriated from the general fund to the commissioner of education.<br/>
<a id="pl.100.9"></a><var>100.9</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.100.10"></a><var>100.10</var>    Sec. 7. Minnesota Statutes 2016, section 273.1392, is amended to read:<br/>
<a id="pl.100.11"></a><var>100.11</var><b>273.1392 PAYMENT; SCHOOL DISTRICTS.</b><br/>
<a id="pl.100.12"></a><var>100.12</var>The amounts of bovine tuberculosis credit reimbursements under section 
         <statute_ref>273.113</statute_ref>; <br/>
<a id="pl.100.13"></a><var>100.13</var>conservation tax credits under section 
         <statute_ref>273.119</statute_ref>; disaster or emergency reimbursement under <br/>
<a id="pl.100.14"></a><var>100.14</var>sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; homestead and agricultural credits under section sections <br/>
<statute_ref><a id="pl.100.15"></a><var>100.15</var>273.1384
         </statute_ref> and 273.1387; aids and credits under section 
         <statute_ref>273.1398</statute_ref>; enterprise zone property <br/>
<a id="pl.100.16"></a><var>100.16</var>credit payments under section 
         <statute_ref>469.171</statute_ref>; and metropolitan agricultural preserve reduction <br/>
<a id="pl.100.17"></a><var>100.17</var>under section 
         <statute_ref>473H.10</statute_ref> for school districts, shall be certified to the Department of Education <br/>
<a id="pl.100.18"></a><var>100.18</var>by the Department of Revenue. The amounts so certified shall be paid according to
         section <br/>
<statute_ref><a id="pl.100.19"></a><var>100.19</var>127A.45
         </statute_ref>, subdivisions 9, 10, and 13.<br/>
<a id="pl.100.20"></a><var>100.20</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.100.21"></a><var>100.21</var>    Sec. 8. Minnesota Statutes 2016, section 273.1393, is amended to read:<br/>
<a id="pl.100.22"></a><var>100.22</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.100.23"></a><var>100.23</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
         <br/>
<a id="pl.100.24"></a><var>100.24</var>by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.100.25"></a><var>100.25</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br/>
<a id="pl.100.26"></a><var>100.26</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.100.27"></a><var>100.27</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.100.28"></a><var>100.28</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.100.29"></a><var>100.29</var>    (5) disparity reduction credit;<br/>
<a id="pl.100.30"></a><var>100.30</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.101.1"></a><var>101.1</var>    (7) the school bond credit as provided in section 273.1387;<br/>
<a id="pl.101.2"></a><var>101.2</var>    (8) agricultural credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.101.3"></a><var>101.3</var>    (8) (9) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.101.4"></a><var>101.4</var>    (9) (10) supplemental homestead credit as provided in section 
         <statute_ref>273.1391</statute_ref>; and<br/>
<a id="pl.101.5"></a><var>101.5</var>    (10) (11) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br/>
<a id="pl.101.6"></a><var>101.6</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.101.7"></a><var>101.7</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.101.8"></a><var>101.8</var>    Sec. 9. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.101.9"></a><var>101.9</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare and <br/>
<a id="pl.101.10"></a><var>101.10</var>the county treasurer shall deliver after November 10 and on or before November 24
         each <br/>
<a id="pl.101.11"></a><var>101.11</var>year, by first class mail to each taxpayer at the address listed on the county's current
         year's <br/>
<a id="pl.101.12"></a><var>101.12</var>assessment roll, a notice of proposed property taxes. Upon written request by the
         taxpayer, <br/>
<a id="pl.101.13"></a><var>101.13</var>the treasurer may send the notice in electronic form or by electronic mail instead
         of on paper <br/>
<a id="pl.101.14"></a><var>101.14</var>or by ordinary mail.<br/>
<a id="pl.101.15"></a><var>101.15</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.101.16"></a><var>101.16</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes
         each <br/>
<a id="pl.101.17"></a><var>101.17</var>taxing authority proposes to collect for taxes payable the following year. In the
         case of a <br/>
<a id="pl.101.18"></a><var>101.18</var>town, or in the case of the state general tax, the final tax amount will be its proposed
         tax. <br/>
<a id="pl.101.19"></a><var>101.19</var>The notice must clearly state for each city that has a population over 500, county,
         school <br/>
<a id="pl.101.20"></a><var>101.20</var>district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and metropolitan taxing <br/>
<a id="pl.101.21"></a><var>101.21</var>districts as defined in paragraph (i), the time and place of a meeting for each taxing
         authority <br/>
<a id="pl.101.22"></a><var>101.22</var>in which the budget and levy will be discussed and public input allowed, prior to
         the final <br/>
<a id="pl.101.23"></a><var>101.23</var>budget and levy determination. The taxing authorities must provide the county auditor
         with <br/>
<a id="pl.101.24"></a><var>101.24</var>the information to be included in the notice on or before the time it certifies its
         proposed <br/>
<a id="pl.101.25"></a><var>101.25</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which
         must <br/>
<a id="pl.101.26"></a><var>101.26</var>occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
         <br/>
<a id="pl.101.27"></a><var>101.27</var>number for the taxing authority that taxpayers may call if they have questions related
         to the <br/>
<a id="pl.101.28"></a><var>101.28</var>notice and an address where comments will be received by mail, except that no notice
         <br/>
<a id="pl.101.29"></a><var>101.29</var>required under this section shall be interpreted as requiring the printing of a personal
         <br/>
<a id="pl.101.30"></a><var>101.30</var>telephone number or address as the contact information for a taxing authority. If
         a taxing <br/>
<a id="pl.101.31"></a><var>101.31</var>authority does not maintain public offices where telephone calls can be received by
         the <br/>
<a id="pl.102.1"></a><var>102.1</var>authority, the authority may inform the county of the lack of a public telephone number
         and <br/>
<a id="pl.102.2"></a><var>102.2</var>the county shall not list a telephone number for that taxing authority.<br/>
<a id="pl.102.3"></a><var>102.3</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.102.4"></a><var>102.4</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used for <br/>
<a id="pl.102.5"></a><var>102.5</var>computing property taxes payable in the following year and for taxes payable in the
         current <br/>
<a id="pl.102.6"></a><var>102.6</var>year as each appears in the records of the county assessor on November 1 of the current
         <br/>
<a id="pl.102.7"></a><var>102.7</var>year; and, in the case of residential property, whether the property is classified
         as homestead <br/>
<a id="pl.102.8"></a><var>102.8</var>or nonhomestead. The notice must clearly inform taxpayers of the years to which the
         market <br/>
<a id="pl.102.9"></a><var>102.9</var>values apply and that the values are final values;<br/>
<a id="pl.102.10"></a><var>102.10</var>    (2) the items listed below, shown separately by county, city or town, and state general
         <br/>
<a id="pl.102.11"></a><var>102.11</var>tax, agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, school building bond agricultural <br/>
<a id="pl.102.12"></a><var>102.12</var>credit under section 273.1387, voter approved school levy, other local school levy, and the <br/>
<a id="pl.102.13"></a><var>102.13</var>sum of the special taxing districts, and as a total of all taxing authorities:<br/>
<a id="pl.102.14"></a><var>102.14</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.102.15"></a><var>102.15</var>    (ii) the proposed tax amount.<br/>
<a id="pl.102.16"></a><var>102.16</var>    If the county levy under clause (2) includes an amount for a lake improvement district
         <br/>
<a id="pl.102.17"></a><var>102.17</var>as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.102.18"></a><var>102.18</var>must be separately stated from the remaining county levy amount.<br/>
<a id="pl.102.19"></a><var>102.19</var>    In the case of a town or the state general tax, the final tax shall also be its proposed
         tax <br/>
<a id="pl.102.20"></a><var>102.20</var>unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a school <br/>
<a id="pl.102.21"></a><var>102.21</var>district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will be held <br/>
<a id="pl.102.22"></a><var>102.22</var>in the school district at the November general election, the county auditor must note
         next <br/>
<a id="pl.102.23"></a><var>102.23</var>to the school district's proposed amount that a referendum is pending and that, if
         approved <br/>
<a id="pl.102.24"></a><var>102.24</var>by the voters, the tax amount may be higher than shown on the notice. In the case
         of the <br/>
<a id="pl.102.25"></a><var>102.25</var>city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed
         separately <br/>
<a id="pl.102.26"></a><var>102.26</var>from the remaining amount of the city's levy. In the case of the city of St. Paul,
         the levy for <br/>
<a id="pl.102.27"></a><var>102.27</var>the St. Paul Library Agency must be listed separately from the remaining amount of
         the <br/>
<a id="pl.102.28"></a><var>102.28</var>city's levy. In the case of Ramsey County, any amount levied under section 
         <statute_ref>134.07</statute_ref> may be <br/>
<a id="pl.102.29"></a><var>102.29</var>listed separately from the remaining amount of the county's levy. In the case of a
         parcel <br/>
<a id="pl.102.30"></a><var>102.30</var>where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
         <br/>
<a id="pl.102.31"></a><var>102.31</var>applies, the proposed tax levy on the captured value or the proposed tax levy on the
         tax <br/>
<a id="pl.102.32"></a><var>102.32</var>capacity subject to the areawide tax must each be stated separately and not included
         in the <br/>
<a id="pl.102.33"></a><var>102.33</var>sum of the special taxing districts; and<br/>
<a id="pl.103.1"></a><var>103.1</var>    (3) the increase or decrease between the total taxes payable in the current year and
         the <br/>
<a id="pl.103.2"></a><var>103.2</var>total proposed taxes, expressed as a percentage.<br/>
<a id="pl.103.3"></a><var>103.3</var>    For purposes of this section, the amount of the tax on homesteads qualifying under
         the <br/>
<a id="pl.103.4"></a><var>103.4</var>senior citizens' property tax deferral program under chapter 290B is the total amount
         of <br/>
<a id="pl.103.5"></a><var>103.5</var>property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.103.6"></a><var>103.6</var>    (e) The notice must clearly state that the proposed or final taxes do not include
         the <br/>
<a id="pl.103.7"></a><var>103.7</var>following:<br/>
<a id="pl.103.8"></a><var>103.8</var>    (1) special assessments;<br/>
<a id="pl.103.9"></a><var>103.9</var>    (2) levies approved by the voters after the date the proposed taxes are certified,
         including <br/>
<a id="pl.103.10"></a><var>103.10</var>bond referenda and school district levy referenda;<br/>
<a id="pl.103.11"></a><var>103.11</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         Monday <br/>
<a id="pl.103.12"></a><var>103.12</var>in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.103.13"></a><var>103.13</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
         <br/>
<a id="pl.103.14"></a><var>103.14</var>after the date the proposed taxes are certified;<br/>
<a id="pl.103.15"></a><var>103.15</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become
         <br/>
<a id="pl.103.16"></a><var>103.16</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.103.17"></a><var>103.17</var>    (6) the contamination tax imposed on properties which received market value reductions
         <br/>
<a id="pl.103.18"></a><var>103.18</var>for contamination.<br/>
<a id="pl.103.19"></a><var>103.19</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or the <br/>
<a id="pl.103.20"></a><var>103.20</var>county treasurer to deliver the notice as required in this section does not invalidate
         the <br/>
<a id="pl.103.21"></a><var>103.21</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.103.22"></a><var>103.22</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.103.23"></a><var>103.23</var>nonhomestead, and satisfactory documentation is provided to the county assessor by
         the <br/>
<a id="pl.103.24"></a><var>103.24</var>applicable deadline, and the property qualifies for the homestead classification in
         that <br/>
<a id="pl.103.25"></a><var>103.25</var>assessment year, the assessor shall reclassify the property to homestead for taxes
         payable <br/>
<a id="pl.103.26"></a><var>103.26</var>in the following year.<br/>
<a id="pl.103.27"></a><var>103.27</var>    (h) In the case of class 4 residential property used as a residence for lease or rental
         <br/>
<a id="pl.103.28"></a><var>103.28</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.103.29"></a><var>103.29</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         renter, <br/>
<a id="pl.103.30"></a><var>103.30</var>or lessee; or<br/>
<a id="pl.103.31"></a><var>103.31</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.104.1"></a><var>104.1</var>    The notice must be mailed or posted by the taxpayer by November 27 or within three
         <br/>
<a id="pl.104.2"></a><var>104.2</var>days of receipt of the notice, whichever is later. A taxpayer may notify the county
         treasurer <br/>
<a id="pl.104.3"></a><var>104.3</var>of the address of the taxpayer, agent, caretaker, or manager of the premises to which
         the <br/>
<a id="pl.104.4"></a><var>104.4</var>notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.104.5"></a><var>104.5</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         <br/>
<a id="pl.104.6"></a><var>104.6</var>districts" means the following taxing districts in the seven-county metropolitan area
         that <br/>
<a id="pl.104.7"></a><var>104.7</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.104.8"></a><var>104.8</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, 
         <statute_ref>473.446</statute_ref>, <br/>
<statute_ref><a id="pl.104.9"></a><var>104.9</var>473.521
         </statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.104.10"></a><var>104.10</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; and<br/>
<a id="pl.104.11"></a><var>104.11</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.104.12"></a><var>104.12</var>    For purposes of this section, any levies made by the regional rail authorities in
         the county <br/>
<a id="pl.104.13"></a><var>104.13</var>of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
         <br/>
<a id="pl.104.14"></a><var>104.14</var>shall be included with the appropriate county's levy.<br/>
<a id="pl.104.15"></a><var>104.15</var>    (j) The governing body of a county, city, or school district may, with the consent
         of the <br/>
<a id="pl.104.16"></a><var>104.16</var>county board, include supplemental information with the statement of proposed property
         <br/>
<a id="pl.104.17"></a><var>104.17</var>taxes about the impact of state aid increases or decreases on property tax increases
         or <br/>
<a id="pl.104.18"></a><var>104.18</var>decreases and on the level of services provided in the affected jurisdiction. This
         supplemental <br/>
<a id="pl.104.19"></a><var>104.19</var>information may include information for the following year, the current year, and
         for as <br/>
<a id="pl.104.20"></a><var>104.20</var>many consecutive preceding years as deemed appropriate by the governing body of the
         <br/>
<a id="pl.104.21"></a><var>104.21</var>county, city, or school district. It may include only information regarding:<br/>
<a id="pl.104.22"></a><var>104.22</var>    (1) the impact of inflation as measured by the implicit price deflator for state and
         local <br/>
<a id="pl.104.23"></a><var>104.23</var>government purchases;<br/>
<a id="pl.104.24"></a><var>104.24</var>    (2) population growth and decline;<br/>
<a id="pl.104.25"></a><var>104.25</var>    (3) state or federal government action; and<br/>
<a id="pl.104.26"></a><var>104.26</var>    (4) other financial factors that affect the level of property taxation and local services
         <br/>
<a id="pl.104.27"></a><var>104.27</var>that the governing body of the county, city, or school district may deem appropriate
         to <br/>
<a id="pl.104.28"></a><var>104.28</var>include.<br/>
<a id="pl.104.29"></a><var>104.29</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.104.30"></a><var>104.30</var>representations and may contain instruction toward further sources of information
         or <br/>
<a id="pl.104.31"></a><var>104.31</var>opportunity for comment.<br/>
<a id="pl.104.32"></a><var>104.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.105.1"></a><var>105.1</var>    Sec. 10. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:<br/>
<a id="pl.105.2"></a><var>105.2</var>    Subd. 2. <b>School district </b><b>in more than one county</b><b> levies; special requirements</b><b>.</b> (a) In <br/>
<a id="pl.105.3"></a><var>105.3</var>school districts lying in more than one county, the clerk shall certify the tax levied
         to the <br/>
<a id="pl.105.4"></a><var>105.4</var>auditor of the county in which the administrative offices of the school district are
         located.<br/>
<a id="pl.105.5"></a><var>105.5</var>(b) The district must identify the portion of the school district levy that is levied
         for debt <br/>
<a id="pl.105.6"></a><var>105.6</var>service at the time the levy is certified under this section. For the purposes of
         this paragraph, <br/>
<a id="pl.105.7"></a><var>105.7</var>"levied for debt service" means levies authorized under sections 123B.53, 123B.535,
         and <br/>
<a id="pl.105.8"></a><var>105.8</var>123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
         reductions <br/>
<a id="pl.105.9"></a><var>105.9</var>under section 475.61, subdivision 4, excluding debt service amounts necessary for
         repayment <br/>
<a id="pl.105.10"></a><var>105.10</var>of other postemployment benefits under section 475.52, subdivision 6.<br/>
<a id="pl.105.11"></a><var>105.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.105.12"></a><var>105.12</var>    Sec. 11. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:<br/>
<a id="pl.105.13"></a><var>105.13</var>    Subd. 1b. <b>Computation of tax rates.</b> (a) The amounts certified to be levied against net <br/>
<a id="pl.105.14"></a><var>105.14</var>tax capacity under section 
         <statute_ref>275.07</statute_ref> by an individual local government unit shall be divided <br/>
<a id="pl.105.15"></a><var>105.15</var>by the total net tax capacity of all taxable properties within the local government
         unit's <br/>
<a id="pl.105.16"></a><var>105.16</var>taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied
         by <br/>
<a id="pl.105.17"></a><var>105.17</var>each property's net tax capacity shall be each property's net tax capacity tax for
         that local <br/>
<a id="pl.105.18"></a><var>105.18</var>government unit before reduction by any credits.<br/>
<a id="pl.105.19"></a><var>105.19</var>(b) The auditor must also determine the school debt tax rate for each school district
         equal <br/>
<a id="pl.105.20"></a><var>105.20</var>to (1) the school debt service levy certified under section 275.07, subdivision 2,
         divided by <br/>
<a id="pl.105.21"></a><var>105.21</var>(2) the total net tax capacity of all taxable property within the district.<br/>
<a id="pl.105.22"></a><var>105.22</var>(c) Any amount certified to the county auditor to be levied against market value shall
         <br/>
<a id="pl.105.23"></a><var>105.23</var>be divided by the total referendum market value of all taxable properties within the
         taxing <br/>
<a id="pl.105.24"></a><var>105.24</var>district. The resulting ratio, the taxing district's new referendum tax rate, multiplied
         by each <br/>
<a id="pl.105.25"></a><var>105.25</var>property's referendum market value shall be each property's new referendum tax before
         <br/>
<a id="pl.105.26"></a><var>105.26</var>reduction by any credits. For the purposes of this subdivision, "referendum market
         value" <br/>
<a id="pl.105.27"></a><var>105.27</var>means the market value as defined in section 
         <statute_ref>126C.01, subdivision 3</statute_ref>.<br/>
<a id="pl.105.28"></a><var>105.28</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.105.29"></a><var>105.29</var>    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.105.30"></a><var>105.30</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing of <br/>
<a id="pl.105.31"></a><var>105.31</var>the tax statements. The commissioner of revenue shall prescribe the form of the property
         <br/>
<a id="pl.105.32"></a><var>105.32</var>tax statement and its contents. The tax statement must not state or imply that property
         tax <br/>
<a id="pl.106.1"></a><var>106.1</var>credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement <br/>
<a id="pl.106.2"></a><var>106.2</var>of the dollar amount due to each taxing authority and the amount of the state tax
         from the <br/>
<a id="pl.106.3"></a><var>106.3</var>parcel of real property for which a particular tax statement is prepared. The dollar
         amounts <br/>
<a id="pl.106.4"></a><var>106.4</var>attributable to the county, the state tax, the voter approved school tax, the other
         local school <br/>
<a id="pl.106.5"></a><var>106.5</var>tax, the township or municipality, and the total of the metropolitan special taxing
         districts <br/>
<a id="pl.106.6"></a><var>106.6</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. The <br/>
<a id="pl.106.7"></a><var>106.7</var>amounts due all other special taxing districts, if any, may be aggregated except that
         any <br/>
<a id="pl.106.8"></a><var>106.8</var>levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         Hennepin, <br/>
<a id="pl.106.9"></a><var>106.9</var>Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line
         directly <br/>
<a id="pl.106.10"></a><var>106.10</var>under the appropriate county's levy. If the county levy under this paragraph includes
         an <br/>
<a id="pl.106.11"></a><var>106.11</var>amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501 </statute_ref>to 
         <statute_ref>103B.581</statute_ref>, <br/>
<a id="pl.106.12"></a><var>106.12</var>the amount attributable for that purpose must be separately stated from the remaining
         county <br/>
<a id="pl.106.13"></a><var>106.13</var>levy amount. In the case of Ramsey County, if the county levy under this paragraph
         includes <br/>
<a id="pl.106.14"></a><var>106.14</var>an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that <br/>
<a id="pl.106.15"></a><var>106.15</var>purpose may be separated from the remaining county levy amount. The amount of the
         tax <br/>
<a id="pl.106.16"></a><var>106.16</var>on homesteads qualifying under the senior citizens' property tax deferral program
         under <br/>
<a id="pl.106.17"></a><var>106.17</var>chapter 290B is the total amount of property tax before subtraction of the deferred
         property <br/>
<a id="pl.106.18"></a><var>106.18</var>tax amount. The amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> <br/>
<a id="pl.106.19"></a><var>106.19</var>to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar amounts, including the dollar
         <br/>
<a id="pl.106.20"></a><var>106.20</var>amount of any special assessments, may be rounded to the nearest even whole dollar.
         For <br/>
<a id="pl.106.21"></a><var>106.21</var>purposes of this section whole odd-numbered dollars may be adjusted to the next higher
         <br/>
<a id="pl.106.22"></a><var>106.22</var>even-numbered dollar. The amount of market value excluded under section 
         <statute_ref>273.11, <br/>
<a id="pl.106.23"></a><var>106.23</var>subdivision 16
         </statute_ref>, if any, must also be listed on the tax statement.<br/>
<a id="pl.106.24"></a><var>106.24</var>    (b) The property tax statements for manufactured homes and sectional structures taxed
         <br/>
<a id="pl.106.25"></a><var>106.25</var>as personal property shall contain the same information that is required on the tax
         statements <br/>
<a id="pl.106.26"></a><var>106.26</var>for real property.<br/>
<a id="pl.106.27"></a><var>106.27</var>    (c) Real and personal property tax statements must contain the following information
         <br/>
<a id="pl.106.28"></a><var>106.28</var>in the order given in this paragraph. The information must contain the current year
         tax <br/>
<a id="pl.106.29"></a><var>106.29</var>information in the right column with the corresponding information for the previous
         year <br/>
<a id="pl.106.30"></a><var>106.30</var>in a column on the left:<br/>
<a id="pl.106.31"></a><var>106.31</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.106.32"></a><var>106.32</var>    (2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, subdivision <br/>
<a id="pl.106.33"></a><var>106.33</var>35;<br/>
<a id="pl.106.34"></a><var>106.34</var>    (3) the property's taxable market value under section 
         <statute_ref>272.03, subdivision 15</statute_ref>;<br/>
<a id="pl.107.1"></a><var>107.1</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.107.2"></a><var>107.2</var>    (5) for homestead agricultural properties, the credit credits under section sections <br/>
<statute_ref><a id="pl.107.3"></a><var>107.3</var>273.1384 and 273.1387
</statute_ref>;<br/>
<a id="pl.107.4"></a><var>107.4</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.107.5"></a><var>107.5</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of credit <br/>
<a id="pl.107.6"></a><var>107.6</var>received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite tax <br/>
<a id="pl.107.7"></a><var>107.7</var>relief"; and<br/>
<a id="pl.107.8"></a><var>107.8</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.107.9"></a><var>107.9</var>    (d) If the county uses envelopes for mailing property tax statements and if the county
         <br/>
<a id="pl.107.10"></a><var>107.10</var>agrees, a taxing district may include a notice with the property tax statement notifying
         <br/>
<a id="pl.107.11"></a><var>107.11</var>taxpayers when the taxing district will begin its budget deliberations for the current
         year, <br/>
<a id="pl.107.12"></a><var>107.12</var>and encouraging taxpayers to attend the hearings. If the county allows notices to
         be included <br/>
<a id="pl.107.13"></a><var>107.13</var>in the envelope containing the property tax statement, and if more than one taxing
         district <br/>
<a id="pl.107.14"></a><var>107.14</var>relative to a given property decides to include a notice with the tax statement, the
         county <br/>
<a id="pl.107.15"></a><var>107.15</var>treasurer or auditor must coordinate the process and may combine the information on
         a <br/>
<a id="pl.107.16"></a><var>107.16</var>single announcement.<br/>
<a id="pl.107.17"></a><var>107.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2018.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.107.18"></a><var>107.18</var>    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:<br/>
<a id="pl.107.19"></a><var>107.19</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater than <br/>
<a id="pl.107.20"></a><var>107.20</var>10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
         <br/>
<a id="pl.107.21"></a><var>107.21</var>percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970;
         plus <br/>
<a id="pl.107.22"></a><var>107.22</var>(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5)
         307.664.<br/>
<a id="pl.107.23"></a><var>107.23</var>    (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
         "city <br/>
<a id="pl.107.24"></a><var>107.24</var>revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
         housing <br/>
<a id="pl.107.25"></a><var>107.25</var>percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
         <br/>
<a id="pl.107.26"></a><var>107.26</var>decline.<br/>
<a id="pl.107.27"></a><var>107.27</var>    (c) For a city with a population less than 2,500, "city revenue need" is the sum of
         410 <br/>
<a id="pl.107.28"></a><var>107.28</var>plus 0.367 times the city's population over 100. The city revenue need under this
         paragraph <br/>
<a id="pl.107.29"></a><var>107.29</var>shall not exceed 630.<br/>
<a id="pl.107.30"></a><var>107.30</var>    (d) For a city with a population of at least 2,500 but less than 3,000, the "city
         revenue <br/>
<a id="pl.107.31"></a><var>107.31</var>need" equals (1) the transition factor times the city's revenue need calculated in
         paragraph <br/>
<a id="pl.107.32"></a><var>107.32</var>(b); plus (2) 630 times the difference between one and the transition factor. For
         a city with <br/>
<a id="pl.108.1"></a><var>108.1</var>a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals <br/>
<a id="pl.108.2"></a><var>108.2</var>(1) the transition factor times the city's revenue need calculated in paragraph (a);
         plus (2) <br/>
<a id="pl.108.3"></a><var>108.3</var>the city's revenue need calculated under the formula in paragraph (b) times the difference
         <br/>
<a id="pl.108.4"></a><var>108.4</var>between one and the transition factor. For purposes of the first sentence of this paragraph, <br/>
<a id="pl.108.5"></a><var>108.5</var>"transition factor" is 0.2 percent times the amount that the city's population exceeds
         the <br/>
<a id="pl.108.6"></a><var>108.6</var>minimum threshold in either of the first two sentences. For purposes of the second sentence <br/>
<a id="pl.108.7"></a><var>108.7</var>of this paragraph, "transition factor" is 0.1 percent times the amount that the city's
         population <br/>
<a id="pl.108.8"></a><var>108.8</var>exceeds the minimum threshold.<br/>
<a id="pl.108.9"></a><var>108.9</var>    (e) The city revenue need cannot be less than zero.<br/>
<a id="pl.108.10"></a><var>108.10</var>    (f) For calendar year 2015 and subsequent years, the city revenue need for a city,
         as <br/>
<a id="pl.108.11"></a><var>108.11</var>determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit
         price <br/>
<a id="pl.108.12"></a><var>108.12</var>deflator for government consumption expenditures and gross investment for state and
         local <br/>
<a id="pl.108.13"></a><var>108.13</var>governments as prepared by the United States Department of Commerce, for the most
         <br/>
<a id="pl.108.14"></a><var>108.14</var>recently available year to the 2013 implicit price deflator for state and local government
         <br/>
<a id="pl.108.15"></a><var>108.15</var>purchases.<br/>
<a id="pl.108.16"></a><var>108.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.108.17"></a><var>108.17</var>and thereafter.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.108.18"></a><var>108.18</var>    Sec. 14. <b>[477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR </b><br/>
<a id="pl.108.19"></a><var>108.19</var><b>CERTAIN OUT-OF-HOME PLACEMENT.</b><br/>
<a id="pl.108.20"></a><var>108.20</var>    Subdivision 1. <b>Definition.</b> For purposes of this section, "out-of-home placement" means <br/>
<a id="pl.108.21"></a><var>108.21</var>24-hour substitute care for an Indian child as defined by section 260C.007, subdivision
         21, <br/>
<a id="pl.108.22"></a><var>108.22</var>placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's
         <br/>
<a id="pl.108.23"></a><var>108.23</var>parent or guardian and for whom the county social services agency or county correctional
         <br/>
<a id="pl.108.24"></a><var>108.24</var>agency has been assigned responsibility for the child's placement and care, which
         includes <br/>
<a id="pl.108.25"></a><var>108.25</var>placement in foster care under section 260C.007, subdivision 18, and a correctional
         facility <br/>
<a id="pl.108.26"></a><var>108.26</var>pursuant to a court order.<br/>
<a id="pl.108.27"></a><var>108.27</var>    Subd. 2. <b>Determination of nonfederal share of costs.</b> (a) By July 1, 2017, each county <br/>
<a id="pl.108.28"></a><var>108.28</var>shall report the following information to the commissioners of human services and
         <br/>
<a id="pl.108.29"></a><var>108.29</var>corrections: (1) the separate amounts paid out of the county's social service agency
         and its <br/>
<a id="pl.108.30"></a><var>108.30</var>corrections budget for out-of-home placement of children under the ICWA in calendar
         years <br/>
<a id="pl.108.31"></a><var>108.31</var>2013, 2014, and 2015; and (2) the number of case days associated with the expenditures
         <br/>
<a id="pl.108.32"></a><var>108.32</var>from each budget. The commissioner of human services shall prescribe the format of
         the <br/>
<a id="pl.108.33"></a><var>108.33</var>report. By July 15, 2017, the commissioner of human services, in consultation with
         the <br/>
<a id="pl.108.34"></a><var>108.34</var>commissioner of corrections, shall certify to the commissioner of revenue and to the
         <br/>
<a id="pl.109.1"></a><var>109.1</var>legislative committees with jurisdiction over local government aids and out-of-home
         <br/>
<a id="pl.109.2"></a><var>109.2</var>placement funding whether the data reported under this subdivision accurately reflect
         total <br/>
<a id="pl.109.3"></a><var>109.3</var>expenditures by counties for out-of-home placement costs of children under the ICWA.<br/>
<a id="pl.109.4"></a><var>109.4</var>(b) By January 1, 2018, and each January 1 thereafter, each county shall report to
         the <br/>
<a id="pl.109.5"></a><var>109.5</var>commissioners of human services and corrections the separate amounts paid out of the
         <br/>
<a id="pl.109.6"></a><var>109.6</var>county's social service agency and its corrections budget for out-of-home placement
         of <br/>
<a id="pl.109.7"></a><var>109.7</var>children under the ICWA in the calendar years two years before the current calendar
         year <br/>
<a id="pl.109.8"></a><var>109.8</var>along with the number of case days associated with the expenditures from each budget.
         The <br/>
<a id="pl.109.9"></a><var>109.9</var>commissioner of human services shall prescribe the format of the report.<br/>
<a id="pl.109.10"></a><var>109.10</var>(c) Until the commissioner of human services develops another mechanism for collecting
         <br/>
<a id="pl.109.11"></a><var>109.11</var>and verifying data on out-of-home placements of children under the ICWA, and the <br/>
<a id="pl.109.12"></a><var>109.12</var>legislature authorizes the use of that data, the data collected under this subdivision
         must be <br/>
<a id="pl.109.13"></a><var>109.13</var>used to calculate payments under subdivision 3. The commissioner of human services
         shall <br/>
<a id="pl.109.14"></a><var>109.14</var>certify the nonfederal out-of-home placement costs for the three prior calendar years
         for <br/>
<a id="pl.109.15"></a><var>109.15</var>each county and the amount of any federal reimbursement received by a tribe under
         the <br/>
<a id="pl.109.16"></a><var>109.16</var>ICWA for the three prior calendar years to the commissioner of revenue by June 1 of
         the <br/>
<a id="pl.109.17"></a><var>109.17</var>year before the aid payment.<br/>
<a id="pl.109.18"></a><var>109.18</var>    Subd. 3. <b>Aid for counties.</b> For aids payable in calendar year 2018 and thereafter, the <br/>
<a id="pl.109.19"></a><var>109.19</var>amount of reimbursement to each county is a county's proportionate share of the appropriation
         <br/>
<a id="pl.109.20"></a><var>109.20</var>in subdivision 6 that remains after the aid for tribes has been paid. Each county's
         <br/>
<a id="pl.109.21"></a><var>109.21</var>proportionate share is based on the county's average nonfederal share of the cost
         for <br/>
<a id="pl.109.22"></a><var>109.22</var>out-of-home placement of children under the ICWA for the three calendar years that
         were <br/>
<a id="pl.109.23"></a><var>109.23</var>certified by the commissioner of human services by June 1 of the prior year, provided
         that <br/>
<a id="pl.109.24"></a><var>109.24</var>the commissioner of human services, in consultation with the commissioner of corrections,
         <br/>
<a id="pl.109.25"></a><var>109.25</var>certifies to the commissioner of revenue that accurate data are available to make
         the aid <br/>
<a id="pl.109.26"></a><var>109.26</var>determination under this section. For aids payable in calendar year 2018, each county's
         <br/>
<a id="pl.109.27"></a><var>109.27</var>proportionate share is based on the county's nonfederal share of the cost for out-of-home
         <br/>
<a id="pl.109.28"></a><var>109.28</var>placement of children under the ICWA that was certified by the commissioner of human
         <br/>
<a id="pl.109.29"></a><var>109.29</var>services by July 15, 2017.<br/>
<a id="pl.109.30"></a><var>109.30</var>    Subd. 4. <b>Aid for tribes.</b> For aids payable in 2018 and thereafter, the amount of <br/>
<a id="pl.109.31"></a><var>109.31</var>reimbursement to each tribe shall be the greater of (1) five percent of the average
         <br/>
<a id="pl.109.32"></a><var>109.32</var>reimbursement amount received from the federal government for out-of-home placement
         <br/>
<a id="pl.109.33"></a><var>109.33</var>costs for the three calendar years that were certified by June 1 of the prior year,
         or (2) <br/>
<a id="pl.109.34"></a><var>109.34</var>$200,000.<br/>
<a id="pl.110.1"></a><var>110.1</var>    Subd. 5. <b>Payments.</b> The commissioner of revenue must compute the amount of the <br/>
<a id="pl.110.2"></a><var>110.2</var>reimbursement aid payable to each county and tribe under this section. On or before
         August <br/>
<a id="pl.110.3"></a><var>110.3</var>1 of each year, the commissioner shall certify the amount to be paid to each county
         and <br/>
<a id="pl.110.4"></a><var>110.4</var>tribe in the following year. The commissioner shall pay reimbursement aid annually
         at the <br/>
<a id="pl.110.5"></a><var>110.5</var>times provided in section 477A.015.<br/>
<a id="pl.110.6"></a><var>110.6</var>    Subd. 6. <b>Appropriation.</b> $2,000,000 is annually appropriated to the commissioner of <br/>
<a id="pl.110.7"></a><var>110.7</var>revenue from the general fund to pay aid under this section.<br/>
<a id="pl.110.8"></a><var>110.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2018.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.110.9"></a><var>110.9</var>    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.110.10"></a><var>110.10</var>    Subd. 8. <b>City formula aid.</b> (a) For aids payable in 2015 2018 and thereafter, the formula <br/>
<a id="pl.110.11"></a><var>110.11</var>aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product <br/>
<a id="pl.110.12"></a><var>110.12</var>of (i) (1) the difference between its unmet need and its formula certified aid in the previous <br/>
<a id="pl.110.13"></a><var>110.13</var>year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage.<br/>
<a id="pl.110.14"></a><var>110.14</var>    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
         <br/>
<a id="pl.110.15"></a><var>110.15</var>year is greater than the sum of its unmet need plus its aid adjustment under subdivision
         13, <br/>
<a id="pl.110.16"></a><var>110.16</var>its formula aid is adjusted to equal its unmet need.<br/>
<a id="pl.110.17"></a><var>110.17</var>    (c) No city may have a formula aid amount less than zero. The aid gap percentage must
         <br/>
<a id="pl.110.18"></a><var>110.18</var>be the same for all cities subject to paragraph (a).<br/>
<a id="pl.110.19"></a><var>110.19</var>    (d) (b) The applicable aid gap percentage must be calculated by the Department of <br/>
<a id="pl.110.20"></a><var>110.20</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available
         <br/>
<a id="pl.110.21"></a><var>110.21</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. The aid gap percentage must be the same for all cities subject <br/>
<a id="pl.110.22"></a><var>110.22</var>to paragraph (a). Data used in calculating aids to cities under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.110.23"></a><var>110.23</var>shall be the most recently available data as of January 1 in the year in which the
         aid is <br/>
<a id="pl.110.24"></a><var>110.24</var>calculated.<br/>
<a id="pl.110.25"></a><var>110.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.110.26"></a><var>110.26</var>and thereafter.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.110.27"></a><var>110.27</var>    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.110.28"></a><var>110.28</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2014 2018 and thereafter, each city <br/>
<a id="pl.110.29"></a><var>110.29</var>if a city's certified aid before any aid adjustment under subdivision 13 for the previous
         year <br/>
<a id="pl.110.30"></a><var>110.30</var>is less than its current unmet need, the city shall receive an aid distribution equal to the sum <br/>
<a id="pl.110.31"></a><var>110.31</var>of (1) its certified aid in the previous year before any aid adjustment under subdivision
         13, <br/>
<a id="pl.111.1"></a><var>111.1</var>(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision <br/>
<a id="pl.111.2"></a><var>111.2</var>13.<br/>
<a id="pl.111.3"></a><var>111.3</var>    (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid <br/>
<a id="pl.111.4"></a><var>111.4</var>adjustment under subdivision 13 for the previous year is equal to or greater than
         its current <br/>
<a id="pl.111.5"></a><var>111.5</var>unmet need, the total aid for a city must not be less than is equal to the greater of (1) its <br/>
<a id="pl.111.6"></a><var>111.6</var>unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified <br/>
<a id="pl.111.7"></a><var>111.7</var>to receive in the previous year minus the lesser of $10 multiplied by its population,
         or five <br/>
<a id="pl.111.8"></a><var>111.8</var>percent of its net levy in the year prior to the aid distribution. No city may have a total aid <br/>
<a id="pl.111.9"></a><var>111.9</var>amount less than $0.<br/>
<a id="pl.111.10"></a><var>111.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.111.11"></a><var>111.11</var>and thereafter.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.111.12"></a><var>111.12</var>    Sec. 17. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:<br/>
<a id="pl.111.13"></a><var>111.13</var>    Subd. 2a. <b>Cities.</b> The total aid paid under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.111.14"></a><var>111.14</var>$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the <br/>
<a id="pl.111.15"></a><var>111.15</var>total aid paid under section 
         <statute_ref>477A.013, subdivision </statute_ref>9, is $519,398,012. For aids payable in <br/>
<a id="pl.111.16"></a><var>111.16</var>2018, the total aid paid under section 477A.013, subdivision 9, is $531,398,012. For
         aids <br/>
<a id="pl.111.17"></a><var>111.17</var>payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision
         9, is <br/>
<a id="pl.111.18"></a><var>111.18</var>$519,398,012.<br/>
<a id="pl.111.19"></a><var>111.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year 2018 <br/>
<a id="pl.111.20"></a><var>111.20</var>and thereafter.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.111.21"></a><var>111.21</var>    Sec. 18. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.111.22"></a><var>111.22</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2014 and thereafter through 2017, the total <br/>
<a id="pl.111.23"></a><var>111.23</var>aid payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $100,795,000. For aids payable in <br/>
<a id="pl.111.24"></a><var>111.24</var>2018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000,
         of <br/>
<a id="pl.111.25"></a><var>111.25</var>which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article
         4, <br/>
<a id="pl.111.26"></a><var>111.26</var>section 6. For aids payable in 2019 through 2024, the total aid payable under section
         <br/>
<a id="pl.111.27"></a><var>111.27</var>477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as
         required <br/>
<a id="pl.111.28"></a><var>111.28</var>under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter,
         <br/>
<a id="pl.111.29"></a><var>111.29</var>the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar <br/>
<a id="pl.111.30"></a><var>111.30</var>year, $500,000 of this appropriation shall be retained by the commissioner of revenue
         to <br/>
<a id="pl.111.31"></a><var>111.31</var>make reimbursements to the commissioner of management and budget for payments made
         <br/>
<a id="pl.111.32"></a><var>111.32</var>under section 
         <statute_ref>611.27</statute_ref>. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.111.33"></a><var>111.33</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.112.1"></a><var>112.1</var>reimbursement in a year shall be included in the next distribution of county need
         aid that <br/>
<a id="pl.112.2"></a><var>112.2</var>is certified to the county auditors for the purpose of property tax reduction for
         the next taxes <br/>
<a id="pl.112.3"></a><var>112.3</var>payable year.<br/>
<a id="pl.112.4"></a><var>112.4</var>    (b) For aids payable in 2014 and thereafter 2017, the total aid under section 
         <statute_ref>477A.0124, <br/>
<a id="pl.112.5"></a><var>112.5</var>subdivision 4
         </statute_ref>, is $104,909,575. For aids payable in 2018, the total aid payable under section <br/>
<a id="pl.112.6"></a><var>112.6</var>477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter,
         the <br/>
<a id="pl.112.7"></a><var>112.7</var>total aid payable under section 477A.0124, subdivision 4, is $104,909,575. The commissioner <br/>
<a id="pl.112.8"></a><var>112.8</var>of revenue shall transfer to the commissioner of management and budget $207,000 annually
         <br/>
<a id="pl.112.9"></a><var>112.9</var>for the cost of preparation of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, and other local <br/>
<a id="pl.112.10"></a><var>112.10</var>government activities. The commissioner of revenue shall transfer to the commissioner
         of <br/>
<a id="pl.112.11"></a><var>112.11</var>education $7,000 annually for the cost of preparation of local impact notes for school
         districts <br/>
<a id="pl.112.12"></a><var>112.12</var>as required by section 
         <statute_ref>3.987</statute_ref>. The commissioner of revenue shall deduct the amounts <br/>
<a id="pl.112.13"></a><var>112.13</var>transferred under this paragraph from the appropriation under this paragraph. The
         amounts <br/>
<a id="pl.112.14"></a><var>112.14</var>transferred are appropriated to the commissioner of management and budget and the
         <br/>
<a id="pl.112.15"></a><var>112.15</var>commissioner of education respectively.<br/>
<a id="pl.112.16"></a><var>112.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.112.17"></a><var>112.17</var>    Sec. 19. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision <br/>
<a id="pl.112.18"></a><var>112.18</var>to read:<br/>
<a id="pl.112.19"></a><var>112.19</var>    Subd. 5a. <b>Large forest easement value reduction.</b> "Large forest easement value <br/>
<a id="pl.112.20"></a><var>112.20</var>reduction" means the market value reduction due to a single forest for the future
         easement <br/>
<a id="pl.112.21"></a><var>112.21</var>on land exceeding 60,000 acres that was acquired as provided in section 84.66.<br/>
<a id="pl.112.22"></a><var>112.22</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for assessment year 2011 <br/>
<a id="pl.112.23"></a><var>112.23</var>and thereafter.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.112.24"></a><var>112.24</var>    Sec. 20. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.112.25"></a><var>112.25</var>    Subdivision 1. <b>Types of land; payments.</b>  The following amounts are annually <br/>
<a id="pl.112.26"></a><var>112.26</var>appropriated to the commissioner of natural resources from the general fund for transfer
         to <br/>
<a id="pl.112.27"></a><var>112.27</var>the commissioner of revenue. The commissioner of revenue shall pay the transferred
         funds <br/>
<a id="pl.112.28"></a><var>112.28</var>to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The amounts, based on the acreage <br/>
<a id="pl.112.29"></a><var>112.29</var>as of July 1 of each year prior to the payment year, are:<br/>
<a id="pl.112.30"></a><var>112.30</var>(1) $5.133 multiplied by the total number of acres of acquired natural resources land
         or, <br/>
<a id="pl.112.31"></a><var>112.31</var>at the county's option three-fourths of one percent of the appraised value of all
         acquired <br/>
<a id="pl.112.32"></a><var>112.32</var>natural resources land in the county, whichever is greater;<br/>
<a id="pl.113.1"></a><var>113.1</var>(2) $5.133, multiplied by the total number of acres of transportation wetland or,
         at the <br/>
<a id="pl.113.2"></a><var>113.2</var>county's option, three-fourths of one percent of the appraised value of all transportation
         <br/>
<a id="pl.113.3"></a><var>113.3</var>wetland in the county, whichever is greater;<br/>
<a id="pl.113.4"></a><var>113.4</var>(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
         at <br/>
<a id="pl.113.5"></a><var>113.5</var>the county's option, three-fourths of one percent of the appraised value of all wildlife
         <br/>
<a id="pl.113.6"></a><var>113.6</var>management land in the county, whichever is greater;<br/>
<a id="pl.113.7"></a><var>113.7</var>(4) $5.133, multiplied by the total number of acres of large forest easement land,
         or, at <br/>
<a id="pl.113.8"></a><var>113.8</var>the county's option, three-fourths of one percent of the large forest easement value
         reduction <br/>
<a id="pl.113.9"></a><var>113.9</var>in the county, whichever is greater;<br/>
<a id="pl.113.10"></a><var>113.10</var>(4) (5) 50 percent of the dollar amount as determined under clause (1), multiplied by <br/>
<a id="pl.113.11"></a><var>113.11</var>the number of acres of military refuge land in the county;<br/>
<a id="pl.113.12"></a><var>113.12</var>(5) (6) $1.50 $2, multiplied by the number of acres of county-administered other natural <br/>
<a id="pl.113.13"></a><var>113.13</var>resources land in the county;<br/>
<a id="pl.113.14"></a><var>113.14</var>(6) (7) $5.133, multiplied by the total number of acres of land utilization project land
         in <br/>
<a id="pl.113.15"></a><var>113.15</var>the county;<br/>
<a id="pl.113.16"></a><var>113.16</var>(7) (8) $1.50 $2, multiplied by the number of acres of commissioner-administered other <br/>
<a id="pl.113.17"></a><var>113.17</var>natural resources land in the county; and<br/>
<a id="pl.113.18"></a><var>113.18</var>    (8) (9) without regard to acreage, and notwithstanding the rules adopted under section <br/>
<statute_ref><a id="pl.113.19"></a><var>113.19</var>84A.55
         </statute_ref>, $300,000 for local assessments under section 
         <statute_ref>84A.55, subdivision 9</statute_ref>, that shall be <br/>
<a id="pl.113.20"></a><var>113.20</var>divided and distributed to the counties containing state-owned lands within a conservation
         <br/>
<a id="pl.113.21"></a><var>113.21</var>area in proportion to each county's percentage of the total annual ditch assessments.<br/>
<a id="pl.113.22"></a><var>113.22</var><b>EFFECTIVE DATE.</b>Clause (4) is effective retroactively for assessment year 2011 <br/>
<a id="pl.113.23"></a><var>113.23</var>and thereafter. Clauses (6) and (8) are effective for payments made in calendar year
         2018 <br/>
<a id="pl.113.24"></a><var>113.24</var>and thereafter.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.113.25"></a><var>113.25</var>    Sec. 21. Minnesota Statutes 2016, section 477A.12, subdivision 2, is amended to read:<br/>
<a id="pl.113.26"></a><var>113.26</var>    Subd. 2. <b>Procedure.</b> (a) Each county auditor shall certify to the Department of Natural <br/>
<a id="pl.113.27"></a><var>113.27</var>Resources during July of each year prior to the payment year: (1)  the number of acres of <br/>
<a id="pl.113.28"></a><var>113.28</var>county-administered other natural resources land within the county; and (2) the assessed <br/>
<a id="pl.113.29"></a><var>113.29</var>value of large forest easement value reduction in the county. The Department of Natural <br/>
<a id="pl.113.30"></a><var>113.30</var>resources may, in addition to the certification of acreage, require descriptive lists
         of land <br/>
<a id="pl.113.31"></a><var>113.31</var>so certified. The commissioner of natural resources shall determine and certify to
         the <br/>
<a id="pl.113.32"></a><var>113.32</var>commissioner of revenue by March 1 of the payment year:<br/>
<a id="pl.114.1"></a><var>114.1</var>(1) the number of acres and most recent appraised value of acquired natural resources
         <br/>
<a id="pl.114.2"></a><var>114.2</var>land, wildlife management land, and military refuge land within each county;<br/>
<a id="pl.114.3"></a><var>114.3</var>(2) the number of acres of commissioner-administered natural resources land within
         <br/>
<a id="pl.114.4"></a><var>114.4</var>each county;<br/>
<a id="pl.114.5"></a><var>114.5</var>(3) the number of acres of county-administered other natural resources land within
         each <br/>
<a id="pl.114.6"></a><var>114.6</var>county, based on the reports filed by each county auditor with the commissioner of
         natural <br/>
<a id="pl.114.7"></a><var>114.7</var>resources; and<br/>
<a id="pl.114.8"></a><var>114.8</var>(4) the number of acres of land utilization project land within each county.<br/>
<a id="pl.114.9"></a><var>114.9</var>(b) The commissioner of transportation shall determine and certify to the commissioner
         <br/>
<a id="pl.114.10"></a><var>114.10</var>of revenue by March 1 of the payment year the number of acres of transportation wetland
         <br/>
<a id="pl.114.11"></a><var>114.11</var>and the appraised value of the land, but only if it exceeds 500 acres in a county.<br/>
<a id="pl.114.12"></a><var>114.12</var>(c) Each auditor of a county that contains state-owned lands within a conservation
         area <br/>
<a id="pl.114.13"></a><var>114.13</var>shall determine and certify to the commissioner of natural resources by May 31 of
         the <br/>
<a id="pl.114.14"></a><var>114.14</var>payment year, the county's ditch assessments for state-owned lands subject to section
         
         <statute_ref>84A.55, <br/>
<a id="pl.114.15"></a><var>114.15</var>subdivision 9
         </statute_ref>. A joint certification for two or more counties may be submitted to the <br/>
<a id="pl.114.16"></a><var>114.16</var>commissioner of natural resources through the Consolidated Conservation Counties Joint
         <br/>
<a id="pl.114.17"></a><var>114.17</var>Powers Board. The commissioner of natural resources shall certify the ditch assessments
         <br/>
<a id="pl.114.18"></a><var>114.18</var>to the commissioner of revenue by June 15 of the payment year.<br/>
<a id="pl.114.19"></a><var>114.19</var>(d) The commissioner of revenue shall determine the distributions provided for in
         this <br/>
<a id="pl.114.20"></a><var>114.20</var>section using: (1) the number of acres and appraised values certified by the commissioner
         <br/>
<a id="pl.114.21"></a><var>114.21</var>of natural resources and the commissioner of transportation by March 1 of the payment
         <br/>
<a id="pl.114.22"></a><var>114.22</var>year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year; and <br/>
<a id="pl.114.23"></a><var>114.23</var>(3) the assessed value of large forest easement value reduction certified by the county
         auditor.<br/>
<a id="pl.114.24"></a><var>114.24</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for assessment year 2011 <br/>
<a id="pl.114.25"></a><var>114.25</var>and thereafter.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.114.26"></a><var>114.26</var>    Sec. 22. Minnesota Statutes 2016, section 477A.14, subdivision 3, is amended to read:<br/>
<a id="pl.114.27"></a><var>114.27</var>    Subd. 3. <b>Distribution for wildlife management lands and military refuge lands.</b> (a) <br/>
<a id="pl.114.28"></a><var>114.28</var>The county treasurer shall allocate the payment for wildlife management land, large forest <br/>
<a id="pl.114.29"></a><var>114.29</var>easement value reduction, and military game refuge land among the county, towns, and <br/>
<a id="pl.114.30"></a><var>114.30</var>school districts on the same basis as if the payments were taxes on the land received
         in the <br/>
<a id="pl.114.31"></a><var>114.31</var>year. Payment of a town's or a school district's allocation must be made by the county
         <br/>
<a id="pl.114.32"></a><var>114.32</var>treasurer to the town or school district within 30 days of receipt of the payment
         to the county. <br/>
<a id="pl.114.33"></a><var>114.33</var>The county's share of the payment shall be deposited in the county general revenue
         fund.<br/>
<a id="pl.115.1"></a><var>115.1</var>(b) The county treasurer of a county with a population over 39,000, but less than
         42,000, <br/>
<a id="pl.115.2"></a><var>115.2</var>in the 1950 federal census shall allocate the payment only among the towns and school
         <br/>
<a id="pl.115.3"></a><var>115.3</var>districts on the same basis as if the payments were taxes on the lands received in
         the current <br/>
<a id="pl.115.4"></a><var>115.4</var>year.<br/>
<a id="pl.115.5"></a><var>115.5</var>(c) If a town received a payment in calendar year 2006 or thereafter under this subdivision,
         <br/>
<a id="pl.115.6"></a><var>115.6</var>and subsequently incorporated as a city, the city shall continue to receive any future
         year's <br/>
<a id="pl.115.7"></a><var>115.7</var>allocations of wildlife land payments that would have been made to the town had it
         not <br/>
<a id="pl.115.8"></a><var>115.8</var>incorporated, provided that the payments shall terminate if the governing body of
         the city <br/>
<a id="pl.115.9"></a><var>115.9</var>passes an ordinance that prohibits hunting within the boundaries of the city.<br/>
<a id="pl.115.10"></a><var>115.10</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for assessment year 2011 <br/>
<a id="pl.115.11"></a><var>115.11</var>and thereafter.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.115.12"></a><var>115.12</var>    Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read:<br/>
<a id="pl.115.13"></a><var>115.13</var><b>477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; </b><br/>
<a id="pl.115.14"></a><var>115.14</var><b>ANNUAL PAYMENTS.</b><br/>
<a id="pl.115.15"></a><var>115.15</var>    (a) In lieu of the payment amount provided under section 
         <statute_ref>477A.12</statute_ref>, subdivision 1, clause <br/>
<a id="pl.115.16"></a><var>115.16</var>(1), the county shall receive an annual payment for state-owned land within the boundary
         <br/>
<a id="pl.115.17"></a><var>115.17</var>of Lake Vermilion-Soudan Underground Mine State Park, established in section
         <statute_ref> 85.012</statute_ref>, <br/>
<a id="pl.115.18"></a><var>115.18</var>subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.<br/>
<a id="pl.115.19"></a><var>115.19</var>    (b) For the purposes of this section, the appraised value of the land acquired for
         Lake <br/>
<a id="pl.115.20"></a><var>115.20</var>Vermilion-Soudan Underground Mine State Park for the first five years after acquisition
         <br/>
<a id="pl.115.21"></a><var>115.21</var>shall be the purchase price of the land, plus the value of any portion of the land
         that is <br/>
<a id="pl.115.22"></a><var>115.22</var>acquired by donation. Thereafter, the appraised value of the state-owned land shall
         be as <br/>
<a id="pl.115.23"></a><var>115.23</var>determined under section 
         <statute_ref>477A.12, subdivision 3</statute_ref>, except that the appraised value of the <br/>
<a id="pl.115.24"></a><var>115.24</var>state-owned land within the park shall not be reduced below the 2010 appraised value
         of <br/>
<a id="pl.115.25"></a><var>115.25</var>the land.<br/>
<a id="pl.115.26"></a><var>115.26</var>    (c) The annual payments under this section shall be distributed to the taxing jurisdictions
         <br/>
<a id="pl.115.27"></a><var>115.27</var>containing the property as follows: one-third to the school districts; one-third to
         the town; <br/>
<a id="pl.115.28"></a><var>115.28</var>and one-third to the county. The payment to school districts is not a county apportionment
         <br/>
<a id="pl.115.29"></a><var>115.29</var>under section 
         <statute_ref>127A.34</statute_ref> and is not subject to aid recapture. Each of those taxing jurisdictions <br/>
<a id="pl.115.30"></a><var>115.30</var>may use the payments for their general purposes.<br/>
<a id="pl.115.31"></a><var>115.31</var>    (d) Except as provided in this section, the payments shall be made as provided in
         sections <br/>
<statute_ref><a id="pl.115.32"></a><var>115.32</var>477A.11
         </statute_ref> to 
         <statute_ref>477A.13</statute_ref>.<br/>
<a id="pl.115.33"></a><var>115.33</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.116.1"></a><var>116.1</var>    Sec. 24. <b>2014 AID PENALTY FORGIVENESS.</b><br/>
<a id="pl.116.2"></a><var>116.2</var>(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         of <br/>
<a id="pl.116.3"></a><var>116.3</var>Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
         <br/>
<a id="pl.116.4"></a><var>116.4</var>that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         that <br/>
<a id="pl.116.5"></a><var>116.5</var>the state auditor certifies to the commissioner of revenue that the city complied
         with all <br/>
<a id="pl.116.6"></a><var>116.6</var>reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3,
         for <br/>
<a id="pl.116.7"></a><var>116.7</var>calendar years 2013 and 2014 by June 1, 2015.<br/>
<a id="pl.116.8"></a><var>116.8</var>(b) The commissioner of revenue shall make payment to each city no later than July
         20, <br/>
<a id="pl.116.9"></a><var>116.9</var>2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to
         the <br/>
<a id="pl.116.10"></a><var>116.10</var>commissioner of revenue to make the payments under this section.<br/>
<a id="pl.116.11"></a><var>116.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.116.12"></a><var>116.12</var>    Sec. 25. <b>BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.</b><br/>
<a id="pl.116.13"></a><var>116.13</var>For a city that incorporated on October 13, 2015, and first qualifies for aid under
         <br/>
<a id="pl.116.14"></a><var>116.14</var>Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's formula
         aid <br/>
<a id="pl.116.15"></a><var>116.15</var>for 2016, used in calculating aid payable in 2017, shall be deemed to equal $115 multiplied
         <br/>
<a id="pl.116.16"></a><var>116.16</var>by its population.<br/>
<a id="pl.116.17"></a><var>116.17</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2017. The 2017 aid <br/>
<a id="pl.116.18"></a><var>116.18</var>payment under section 477A.013, subdivision 9, for a city that qualifies under this
         section <br/>
<a id="pl.116.19"></a><var>116.19</var>shall be recalculated based on this section. The increase shall be treated as an aid
         correction <br/>
<a id="pl.116.20"></a><var>116.20</var>under Minnesota Statutes, section 477A.014, subdivision 3.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.116.21"></a><var>116.21</var>    Sec. 26. <b>2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.</b><br/>
<a id="pl.116.22"></a><var>116.22</var>Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
         <br/>
<a id="pl.116.23"></a><var>116.23</var>shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         Statutes, <br/>
<a id="pl.116.24"></a><var>116.24</var>section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
         <br/>
<a id="pl.116.25"></a><var>116.25</var>3, provided that the state auditor certifies to the commissioner of revenue that it
         received <br/>
<a id="pl.116.26"></a><var>116.26</var>audited financial statements from the city for calendar year 2012 by December 31,
         2013. <br/>
<a id="pl.116.27"></a><var>116.27</var>The commissioner of revenue shall make a payment of $37,473.50 with the first payment
         <br/>
<a id="pl.116.28"></a><var>116.28</var>of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from
         the <br/>
<a id="pl.116.29"></a><var>116.29</var>general fund to the commissioner of revenue in fiscal year 2018 to make this payment.<br/>
<a id="pl.116.30"></a><var>116.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.117.1"></a><var>117.1</var>    Sec. 27. <b>APPROPRIATION; DEBT SERVICE EQUALIZATION AID.</b><br/>
<a id="pl.117.2"></a><var>117.2</var>For fiscal year 2019 only, $14,182,000 is appropriated from the general fund to the
         <br/>
<a id="pl.117.3"></a><var>117.3</var>Department of Education for debt service aid under Minnesota Statutes, section 123B.53.
         <br/>
<a id="pl.117.4"></a><var>117.4</var>This amount is in addition to other appropriations for the same purpose.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.117.5"></a><var>117.5</var>    Sec. 28. <b>APPROPRIATION; FIRE REMEDIATION GRANTS.</b><br/>
<a id="pl.117.6"></a><var>117.6</var>$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner
         <br/>
<a id="pl.117.7"></a><var>117.7</var>of public safety for grants to remediate the effects of fires in the city of Melrose
         on September <br/>
<a id="pl.117.8"></a><var>117.8</var>8, 2016. The commissioner must allocate the grants as follows:<br/>
<a id="pl.117.9"></a><var>117.9</var>(1) $1,296,458 to the city of Melrose; and<br/>
<a id="pl.117.10"></a><var>117.10</var>(2) $95,800 to Stearns County.<br/>
<a id="pl.117.11"></a><var>117.11</var>A grant recipient must use the money appropriated under this section for remediation
         <br/>
<a id="pl.117.12"></a><var>117.12</var>costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
         <br/>
<a id="pl.117.13"></a><var>117.13</var>costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
         <br/>
<a id="pl.117.14"></a><var>117.14</var>incurred by public or private entities as a result of the fires. This is a onetime
         appropriation <br/>
<a id="pl.117.15"></a><var>117.15</var>and is available until June 30, 2018.<br/>
<a id="pl.117.16"></a><var>117.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.117.17"></a><var>117.17</var>    Sec. 29. <b>APPROPRIATION.</b><br/>
<a id="pl.117.18"></a><var>117.18</var>For fiscal year 2019, $28,827,000 is appropriated from the general fund to the <br/>
<a id="pl.117.19"></a><var>117.19</var>commissioner of education for additional referendum equalization aid under Minnesota
         <br/>
<a id="pl.117.20"></a><var>117.20</var>Statutes, section 126C.17, subdivision 7. This amount is in addition to other appropriations
         <br/>
<a id="pl.117.21"></a><var>117.21</var>for the same purpose.<br/>
<br/>
<a id="bill.4.30.0"></a><a id="pl.117.22"></a><var>117.22</var>    Sec. 30. <b>AID REDUCTIONS.</b><br/>
<a id="pl.117.23"></a><var>117.23</var>(a) Notwithstanding any law to the contrary, for aids payable in 2018 and thereafter,
         <br/>
<a id="pl.117.24"></a><var>117.24</var>under Minnesota Statutes, section 477A.013, the total aid payable to the city of Minneapolis
         <br/>
<a id="pl.117.25"></a><var>117.25</var>shall be $50,000,000.<br/>
<a id="pl.117.26"></a><var>117.26</var>(b) The total appropriation under section 477A.03, subdivision 2a, shall be reduced
         by <br/>
<a id="pl.117.27"></a><var>117.27</var>$28,827,000 for aids payable in 2018 and thereafter.<br/>
<a id="pl.117.28"></a><var>117.28</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.118.3"></a><var>118.3</var>    Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br/>
<a id="pl.118.4"></a><var>118.4</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
         Laws 2003, <br/>
<a id="pl.118.5"></a><var>118.5</var>First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article
         5, <br/>
<a id="pl.118.6"></a><var>118.6</var>section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:<br/>
<a id="pl.118.7"></a><var>118.7</var>    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, <br/>
<a id="pl.118.8"></a><var>118.8</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
         <br/>
<a id="pl.118.9"></a><var>118.9</var>impose an additional sales tax of up to one and three-quarter percent on sales transactions
         <br/>
<a id="pl.118.10"></a><var>118.10</var>which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause
         (c). <br/>
<a id="pl.118.11"></a><var>118.11</var>The imposition of this tax shall not be subject to voter referendum under either state
         law or <br/>
<a id="pl.118.12"></a><var>118.12</var>city charter provisions. When the city council determines that the taxes imposed under
         this <br/>
<a id="pl.118.13"></a><var>118.13</var>paragraph at a rate of three-quarters of one percent and other sources of revenue
         produce <br/>
<a id="pl.118.14"></a><var>118.14</var>revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000
         plus <br/>
<a id="pl.118.15"></a><var>118.15</var>issuance and discount costs, issued for capital improvements at the Duluth Entertainment
         <br/>
<a id="pl.118.16"></a><var>118.16</var>and Convention Center, which include a new arena, the rate of tax under this subdivision
         <br/>
<a id="pl.118.17"></a><var>118.17</var>must be reduced by three-quarters of one percent.<br/>
<a id="pl.118.18"></a><var>118.18</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.118.19"></a><var>118.19</var>477A.016
         </statute_ref>, or any other law, ordinance, or city charter provision to the contrary, the city
         of <br/>
<a id="pl.118.20"></a><var>118.20</var>Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent <br/>
<a id="pl.118.21"></a><var>118.21</var>on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
         <br/>
<a id="pl.118.22"></a><var>118.22</var>subdivision 3, clause (c). This tax expires when the city council determines that
         the tax <br/>
<a id="pl.118.23"></a><var>118.23</var>imposed under this paragraph, along with the tax imposed under section 22, paragraph
         (b), <br/>
<a id="pl.118.24"></a><var>118.24</var>has produced revenues sufficient to pay the debt service on bonds in a principal amount
         of <br/>
<a id="pl.118.25"></a><var>118.25</var>no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
         <br/>
<a id="pl.118.26"></a><var>118.26</var>to public facilities to support tourism and recreational activities in that portion
         of the city <br/>
<a id="pl.118.27"></a><var>118.27</var>west of 34th 14th Avenue West and the area south of and including Skyline Parkway.<br/>
<a id="pl.118.28"></a><var>118.28</var>(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
         bonds <br/>
<a id="pl.118.29"></a><var>118.29</var>under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs
         of <br/>
<a id="pl.118.30"></a><var>118.30</var>issuance and any premiums. The proceeds may be used to finance capital improvements
         to <br/>
<a id="pl.118.31"></a><var>118.31</var>public facilities that support tourism and recreational activities in the portion
         of the city <br/>
<a id="pl.118.32"></a><var>118.32</var>west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as <br/>
<a id="pl.118.33"></a><var>118.33</var>described in paragraph (b). The issuance of the bonds is subject to the provisions
         of <br/>
<a id="pl.118.34"></a><var>118.34</var>Minnesota Statutes, chapter 475, except no election shall be required unless required
         by the <br/>
<a id="pl.119.1"></a><var>119.1</var>city charter. The bonds shall not be included in computing net debt. The revenues
         from the <br/>
<a id="pl.119.2"></a><var>119.2</var>taxes that the city of Duluth may impose under paragraph (b) and under section 22,
         paragraph <br/>
<a id="pl.119.3"></a><var>119.3</var>(b), may be pledged to pay principal of and interest on such bonds.<br/>
<a id="pl.119.4"></a><var>119.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.119.5"></a><var>119.5</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.119.6"></a><var>119.6</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.119.7"></a><var>119.7</var>    Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article <br/>
<a id="pl.119.8"></a><var>119.8</var>8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12,
         and Laws <br/>
<a id="pl.119.9"></a><var>119.9</var>2014, chapter 308, article 3, section 22, is amended to read:<br/>
<a id="pl.119.10"></a><var>119.10</var>    Sec. 22. <b>CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.</b><br/>
<a id="pl.119.11"></a><var>119.11</var>    (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, or ordinance, <br/>
<a id="pl.119.12"></a><var>119.12</var>or city charter provision to the contrary, the city of Duluth may, by ordinance, impose
         an <br/>
<a id="pl.119.13"></a><var>119.13</var>additional tax of one percent upon the gross receipts from the sale of lodging for
         periods of <br/>
<a id="pl.119.14"></a><var>119.14</var>less than 30 days in hotels and motels located in the city. The tax shall be collected
         in the <br/>
<a id="pl.119.15"></a><var>119.15</var>same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph
         one. <br/>
<a id="pl.119.16"></a><var>119.16</var>The imposition of this tax shall not be subject to voter referendum under either state
         law or <br/>
<a id="pl.119.17"></a><var>119.17</var>city charter provisions.<br/>
<a id="pl.119.18"></a><var>119.18</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section <br/>
<statute_ref><a id="pl.119.19"></a><var>119.19</var>477A.016
         </statute_ref>, or any other law, ordinance, or city charter provision to the contrary, the city
         of <br/>
<a id="pl.119.20"></a><var>119.20</var>Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent <br/>
<a id="pl.119.21"></a><var>119.21</var>on the gross receipts from the sale of lodging for periods of less than 30 days in
         hotels and <br/>
<a id="pl.119.22"></a><var>119.22</var>motels located in the city. This tax expires when the city council first determines
         that the <br/>
<a id="pl.119.23"></a><var>119.23</var>tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
         <br/>
<a id="pl.119.24"></a><var>119.24</var>(b), has produced revenues sufficient to pay the debt service on bonds in a principal
         amount <br/>
<a id="pl.119.25"></a><var>119.25</var>of no more than $18,000,000, plus issuance and discount costs, to finance capital
         <br/>
<a id="pl.119.26"></a><var>119.26</var>improvements to public facilities to support tourism and recreational activities in
         that portion <br/>
<a id="pl.119.27"></a><var>119.27</var>of the city west of 34th 14th Avenue West and the area south of and including Skyline <br/>
<a id="pl.119.28"></a><var>119.28</var>Parkway.<br/>
<a id="pl.119.29"></a><var>119.29</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.119.30"></a><var>119.30</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.119.31"></a><var>119.31</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.120.1"></a><var>120.1</var>    Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws <br/>
<a id="pl.120.2"></a><var>120.2</var>1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section
         9, and <br/>
<a id="pl.120.3"></a><var>120.3</var>Laws 2009, chapter 88, article 4, section 14, is amended to read:<br/>
<a id="pl.120.4"></a><var>120.4</var>    Subd. 3.  <b>Use of revenues.</b> (a) Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.120.5"></a><var>120.5</var>1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay
         all or a <br/>
<a id="pl.120.6"></a><var>120.6</var>portion of the expenses of constructing and improving facilities as part of an urban
         <br/>
<a id="pl.120.7"></a><var>120.7</var>revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
         <br/>
<a id="pl.120.8"></a><var>120.8</var>include, but are not limited to, acquiring property and paying relocation expenses
         related <br/>
<a id="pl.120.9"></a><var>120.9</var>to the development of Riverfront 2000 and related facilities, and securing or paying
         debt <br/>
<a id="pl.120.10"></a><var>120.10</var>service on bonds or other obligations issued to finance the construction of Riverfront
         2000 <br/>
<a id="pl.120.11"></a><var>120.11</var>and related facilities. For purposes of this section, "Riverfront 2000 and related
         facilities" <br/>
<a id="pl.120.12"></a><var>120.12</var>means a civic-convention center, an arena, a riverfront park, a technology center
         and related <br/>
<a id="pl.120.13"></a><var>120.13</var>educational facilities, and all publicly owned real or personal property that the
         governing <br/>
<a id="pl.120.14"></a><var>120.14</var>body of the city determines will be necessary to facilitate the use of these facilities,
         including <br/>
<a id="pl.120.15"></a><var>120.15</var>but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping.
         It also <br/>
<a id="pl.120.16"></a><var>120.16</var>includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
         <br/>
<a id="pl.120.17"></a><var>120.17</var>Center, for use by Minnesota State University, Mankato.<br/>
<a id="pl.120.18"></a><var>120.18</var>    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         <br/>
<a id="pl.120.19"></a><var>120.19</var>by voters at the November 4, 2016, general election, the city may by ordinance also
         use <br/>
<a id="pl.120.20"></a><var>120.20</var>revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
         <br/>
<a id="pl.120.21"></a><var>120.21</var>plus associated bond costs, to pay all or a portion of the expenses of the following
         capital <br/>
<a id="pl.120.22"></a><var>120.22</var>projects:<br/>
<a id="pl.120.23"></a><var>120.23</var>    (1) construction and improvements to regional recreational facilities including existing
         <br/>
<a id="pl.120.24"></a><var>120.24</var>hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
         municipal <br/>
<a id="pl.120.25"></a><var>120.25</var>swimming pool including improvements to make the pool compliant with the Americans
         <br/>
<a id="pl.120.26"></a><var>120.26</var>with Disabilities Act, and indoor regional athletic facilities;<br/>
 <a id="pl.120.27"></a><var>120.27</var>    (2) improvements to flood control and the levee system;<br/>
<a id="pl.120.28"></a><var>120.28</var>(3) water quality improvement projects in Blue Earth and Nicollet Counties;<br/>
 <a id="pl.120.29"></a><var>120.29</var>(4) expansion of the regional transit building and related multimodal transit <br/>
<a id="pl.120.30"></a><var>120.30</var>improvements;<br/>
<a id="pl.120.31"></a><var>120.31</var>(5) regional public safety and emergency communications improvements and equipment;
         <br/>
<a id="pl.120.32"></a><var>120.32</var>and<br/>
<a id="pl.121.1"></a><var>121.1</var>(6) matching funds for improvements to publicly owned regional facilities including
         a <br/>
<a id="pl.121.2"></a><var>121.2</var>historic museum, supportive housing, and a senior center.<br/>
<a id="pl.121.3"></a><var>121.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.121.4"></a><var>121.4</var>city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.121.5"></a><var>121.5</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.121.6"></a><var>121.6</var>    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws <br/>
<a id="pl.121.7"></a><var>121.7</var>2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
         366, <br/>
<a id="pl.121.8"></a><var>121.8</var>article 7, section 10, is amended to read:<br/>
<a id="pl.121.9"></a><var>121.9</var>    Subd. 4.  <b>Expiration of taxing authority and expenditure limitation.</b> The authority <br/>
<a id="pl.121.10"></a><var>121.10</var>granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
         shall <br/>
<a id="pl.121.11"></a><var>121.11</var>expire on at the earlier of when revenues are sufficient to pay off the bonds, including <br/>
<a id="pl.121.12"></a><var>121.12</var>interest and all other associated bond costs authorized under subdivision 5, or  December <br/>
<a id="pl.121.13"></a><var>121.13</var>31, 2022 2038.<br/>
<a id="pl.121.14"></a><var>121.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.121.15"></a><var>121.15</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.121.16"></a><var>121.16</var>    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:<br/>
<a id="pl.121.17"></a><var>121.17</var>    Subd. 5. <b>Bonds.</b> (a) The city of Mankato may issue general obligation bonds of the city <br/>
<a id="pl.121.18"></a><var>121.18</var>in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
         without <br/>
<a id="pl.121.19"></a><var>121.19</var>election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or <br/>
<a id="pl.121.20"></a><var>121.20</var>a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
         <br/>
<a id="pl.121.21"></a><var>121.21</var>facilities shall not be included in computing any debt limitations applicable to the
         city of <br/>
<a id="pl.121.22"></a><var>121.22</var>Mankato, and the levy of taxes required by section 
         <statute_ref>475.61</statute_ref> to pay principal of and interest <br/>
<a id="pl.121.23"></a><var>121.23</var>on the bonds shall not be subject to any levy limitation or be included in computing
         or <br/>
<a id="pl.121.24"></a><var>121.24</var>applying any levy limitation applicable to the city.<br/>
<a id="pl.121.25"></a><var>121.25</var>    (b) The city of Mankato may issue general obligation bonds of the city in an amount
         not <br/>
<a id="pl.121.26"></a><var>121.26</var>to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
         without <br/>
<a id="pl.121.27"></a><var>121.27</var>election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or <br/>
<a id="pl.121.28"></a><var>121.28</var>a tax to pay them. The debt represented by bonds under this paragraph shall not be
         included <br/>
<a id="pl.121.29"></a><var>121.29</var>in computing any debt limitations applicable to the city of Mankato, and the levy
         of taxes <br/>
<a id="pl.121.30"></a><var>121.30</var>required by Minnesota Statutes, section 
<statute_ref>475.61,</statute_ref> to pay principal of and interest on the bonds, <br/>
<a id="pl.121.31"></a><var>121.31</var>and shall not be subject to any levy limitation or be included in computing or applying
         any <br/>
<a id="pl.121.32"></a><var>121.32</var>levy limitation applicable to the city. The city may use tax revenue in excess of
         one year's <br/>
<a id="pl.122.1"></a><var>122.1</var>principal interest reserve for intended annual bond payments to pay all or a portion
         of the <br/>
<a id="pl.122.2"></a><var>122.2</var>cost of capital improvements authorized in subdivision 3.<br/>
<a id="pl.122.3"></a><var>122.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.122.4"></a><var>122.4</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.122.5"></a><var>122.5</var>    Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws <br/>
<a id="pl.122.6"></a><var>122.6</var>2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
         7, <br/>
<a id="pl.122.7"></a><var>122.7</var>article 4, section 4, is amended to read:<br/>
<a id="pl.122.8"></a><var>122.8</var>    Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.122.9"></a><var>122.9</var>477A.016, or any other contrary provision of law, ordinance, or city charter, the
         city of <br/>
<a id="pl.122.10"></a><var>122.10</var>Hermantown may, by ordinance, impose an additional sales tax of up to one percent
         on <br/>
<a id="pl.122.11"></a><var>122.11</var>sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
         within <br/>
<a id="pl.122.12"></a><var>122.12</var>the city. The proceeds of the tax imposed under this section must be used to meet
         the costs <br/>
<a id="pl.122.13"></a><var>122.13</var>of:<br/>
<a id="pl.122.14"></a><var>122.14</var>    (1) extending a sewer interceptor line;<br/>
<a id="pl.122.15"></a><var>122.15</var>    (2) construction of a booster pump station, reservoirs, and related improvements to
         the <br/>
<a id="pl.122.16"></a><var>122.16</var>water system; and<br/>
<a id="pl.122.17"></a><var>122.17</var>    (3) construction of a building containing a police and fire station and an administrative
         <br/>
<a id="pl.122.18"></a><var>122.18</var>services facility.<br/>
<a id="pl.122.19"></a><var>122.19</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph
         (a), <br/>
<a id="pl.122.20"></a><var>122.20</var>it may increase the tax to one percent to fund the purposes under paragraph (a) provided
         it <br/>
<a id="pl.122.21"></a><var>122.21</var>is approved by the voters at a general election held before December 31, 2012.<br/>
<a id="pl.122.22"></a><var>122.22</var>(c) As approved by the voters at the November 8, 2016, general election, the proceeds
         <br/>
<a id="pl.122.23"></a><var>122.23</var>under this section may also be used to meet the costs of debt service payments for
         <br/>
<a id="pl.122.24"></a><var>122.24</var>construction of the Hermantown Wellness Center.<br/>
<a id="pl.122.25"></a><var>122.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.122.26"></a><var>122.26</var>city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.122.27"></a><var>122.27</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.122.28"></a><var>122.28</var>    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws <br/>
<a id="pl.122.29"></a><var>122.29</var>2006, chapter 259, article 3, section 4, is amended to read:<br/>
<a id="pl.122.30"></a><var>122.30</var>    Subd. 4. <b>Termination.</b> The tax authorized under this section terminates on March 31, <br/>
<a id="pl.122.31"></a><var>122.31</var>2026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
         <br/>
<a id="pl.123.1"></a><var>123.1</var>first determines that sufficient funds have been received from the tax to fund the
         costs, <br/>
<a id="pl.123.2"></a><var>123.2</var>including bonds and associated bond costs for the uses specified in subdivision 1. Any funds <br/>
<a id="pl.123.3"></a><var>123.3</var>remaining after completion of the improvements and retirement or redemption of the
         bonds <br/>
<a id="pl.123.4"></a><var>123.4</var>may be placed in the general fund of the city.<br/>
<a id="pl.123.5"></a><var>123.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.123.6"></a><var>123.6</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.123.7"></a><var>123.7</var>    Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:<br/>
<a id="pl.123.8"></a><var>123.8</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.123.9"></a><var>123.9</var>1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay
         for <br/>
<a id="pl.123.10"></a><var>123.10</var>construction and improvement of a civic and community center and recreational facilities
         <br/>
<a id="pl.123.11"></a><var>123.11</var>to serve all ages, including seniors and youth. Authorized expenses include, but are
         not <br/>
<a id="pl.123.12"></a><var>123.12</var>limited to, acquiring property, paying construction and operating expenses related
         to the <br/>
<a id="pl.123.13"></a><var>123.13</var>development of an authorized facility, funding facilities replacement reserves, and
         paying <br/>
<a id="pl.123.14"></a><var>123.14</var>debt service on bonds or other obligations issued to finance the construction or expansion
         <br/>
<a id="pl.123.15"></a><var>123.15</var>of an authorized facility. The capital expenses for all projects authorized under
         this <br/>
<a id="pl.123.16"></a><var>123.16</var>subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
         <br/>
<a id="pl.123.17"></a><var>123.17</var>equal to the costs related to issuance of the bonds and funding facilities replacement
         reserves.<br/>
<a id="pl.123.18"></a><var>123.18</var>    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         <br/>
<a id="pl.123.19"></a><var>123.19</var>by the voters at the November 8, 2016, general election, the city of New Ulm may by
         <br/>
<a id="pl.123.20"></a><var>123.20</var>ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to
         a <br/>
<a id="pl.123.21"></a><var>123.21</var>maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the
         expenses <br/>
<a id="pl.123.22"></a><var>123.22</var>of the following capital projects:<br/>
<a id="pl.123.23"></a><var>123.23</var>    (1) constructing an indoor water park and making safety improvements to the existing
         <br/>
<a id="pl.123.24"></a><var>123.24</var>recreational center pool;<br/>
<a id="pl.123.25"></a><var>123.25</var>    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;<br/>
<a id="pl.123.26"></a><var>123.26</var>    (3) constructing a winter multipurpose dome;<br/>
<a id="pl.123.27"></a><var>123.27</var>    (4) making improvements to Johnson Park Grandstand; and<br/>
<a id="pl.123.28"></a><var>123.28</var>    (5) making improvements to the entrance road and parking at Hermann Heights Park.<br/>
<a id="pl.123.29"></a><var>123.29</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.123.30"></a><var>123.30</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.123.31"></a><var>123.31</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.124.1"></a><var>124.1</var>    Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
         <br/>
<a id="pl.124.2"></a><var>124.2</var>to read:<br/>
<a id="pl.124.3"></a><var>124.3</var>    Subd. 4a. <b>Bonding authority; additional use and extension of tax.</b> As approved by <br/>
<a id="pl.124.4"></a><var>124.4</var>the voters at the November 8, 2016, general election, and in addition to the bonds
         issued <br/>
<a id="pl.124.5"></a><var>124.5</var>under subdivision 4, the city of New Ulm may issue general obligation bonds of the
         city in <br/>
<a id="pl.124.6"></a><var>124.6</var>an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph
         (b). <br/>
<a id="pl.124.7"></a><var>124.7</var>The debt represented by bonds under this subdivision shall not be included in computing
         <br/>
<a id="pl.124.8"></a><var>124.8</var>any debt limitations applicable to the city of New Ulm, and the levy of taxes required
         by <br/>
<a id="pl.124.9"></a><var>124.9</var>Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
         and shall <br/>
<a id="pl.124.10"></a><var>124.10</var>not be subject to any levy limitation or be included in computing or applying any
         levy <br/>
<a id="pl.124.11"></a><var>124.11</var>limitation applicable to the city.<br/>
<a id="pl.124.12"></a><var>124.12</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.124.13"></a><var>124.13</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.124.14"></a><var>124.14</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.124.15"></a><var>124.15</var>    Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:<br/>
<a id="pl.124.16"></a><var>124.16</var>    Subd. 5. <b>Termination of taxes.</b> The taxes imposed under subdivisions 1 and 2 expire <br/>
<a id="pl.124.17"></a><var>124.17</var>when the city council determines that sufficient funds have been received from the
         taxes to <br/>
<a id="pl.124.18"></a><var>124.18</var>finance the capital and administrative costs for the acquisition, construction, and
         improvement <br/>
<a id="pl.124.19"></a><var>124.19</var>of facilities described in subdivision 3, including the additional use of revenues under <br/>
<a id="pl.124.20"></a><var>124.20</var>subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
         <br/>
<a id="pl.124.21"></a><var>124.21</var>election, and to prepay or retire at maturity the principal, interest, and premium due on
         any <br/>
<a id="pl.124.22"></a><var>124.22</var>bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining <br/>
<a id="pl.124.23"></a><var>124.23</var>after completion of the project and retirement or redemption of the bonds may be placed
         in <br/>
<a id="pl.124.24"></a><var>124.24</var>the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire
         at <br/>
<a id="pl.124.25"></a><var>124.25</var>an earlier time if the city so determines by ordinance.<br/>
<a id="pl.124.26"></a><var>124.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.124.27"></a><var>124.27</var>city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         <br/>
<a id="pl.124.28"></a><var>124.28</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.124.29"></a><var>124.29</var>    Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws <br/>
<a id="pl.124.30"></a><var>124.30</var>2008, chapter 366, article 7, section 12, is amended to read:<br/>
<a id="pl.124.31"></a><var>124.31</var>    Subdivision 1. <b>Sales and use tax.</b> (a) Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.124.32"></a><var>124.32</var>477A.016
         </statute_ref>, or any other provision of law, ordinance, or city charter, if approved by the city
         <br/>
<a id="pl.124.33"></a><var>124.33</var>voters at the first municipal general election held after the date of final enactment
         of this <br/>
<a id="pl.125.1"></a><var>125.1</var>act or at a special election held November 2, 1999, the city of Proctor may impose
         by <br/>
<a id="pl.125.2"></a><var>125.2</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified
         in <br/>
<a id="pl.125.3"></a><var>125.3</var>subdivision 3. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br/>
<a id="pl.125.4"></a><var>125.4</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.125.5"></a><var>125.5</var>(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
         <br/>
<a id="pl.125.6"></a><var>125.6</var>law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
         <br/>
<a id="pl.125.7"></a><var>125.7</var>sales and use tax of up to one-half of one percent, as approved by the voters at the
         November <br/>
<a id="pl.125.8"></a><var>125.8</var>4 election. The revenues received from the additional tax must be used for the purposes
         <br/>
<a id="pl.125.9"></a><var>125.9</var>specified in subdivision 3, paragraph (b).<br/>
<a id="pl.125.10"></a><var>125.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.125.11"></a><var>125.11</var>city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.125.12"></a><var>125.12</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.125.13"></a><var>125.13</var>    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
         <br/>
<a id="pl.125.14"></a><var>125.14</var>as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:<br/>
<a id="pl.125.15"></a><var>125.15</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall be <br/>
<a id="pl.125.16"></a><var>125.16</var>used to pay for lake water quality improvement projects as detailed in the Shell Rock River <br/>
<a id="pl.125.17"></a><var>125.17</var>watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
         <br/>
<a id="pl.125.18"></a><var>125.18</var>any provision of statute, other law, or city charter to the contrary, the city shall
         transfer all <br/>
<a id="pl.125.19"></a><var>125.19</var>revenues from the tax imposed under subdivision 1, as soon as they are received, to
         the <br/>
<a id="pl.125.20"></a><var>125.20</var>Shell Rock River Watershed District. The city is not required to review the intended uses <br/>
<a id="pl.125.21"></a><var>125.21</var>of the revenues by the watershed district, nor is the watershed district required
         to submit to <br/>
<a id="pl.125.22"></a><var>125.22</var>the city proposed budgets, statements, or invoices explaining the intended uses of
         the <br/>
<a id="pl.125.23"></a><var>125.23</var>revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed <br/>
<a id="pl.125.24"></a><var>125.24</var>District shall appear before the city of Albert Lea City Council on a biannual basis
         to present <br/>
<a id="pl.125.25"></a><var>125.25</var>a report of its activities, expenditures, and intended uses of the city sales tax
         revenue.<br/>
<a id="pl.125.26"></a><var>125.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after the chief clerical officer <br/>
<a id="pl.125.27"></a><var>125.27</var>and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
         <br/>
<a id="pl.125.28"></a><var>125.28</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.125.29"></a><var>125.29</var>    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
         <br/>
<a id="pl.125.30"></a><var>125.30</var>as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:<br/>
<a id="pl.125.31"></a><var>125.31</var>    Subd. 4. <b>Termination of taxes.</b> The taxes imposed under this section expire at the earlier <br/>
<a id="pl.125.32"></a><var>125.32</var>of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first <br/>
<a id="pl.125.33"></a><var>125.33</var>determines that the amount of revenues raised to pay for the projects under subdivision
         2, <br/>
<a id="pl.126.1"></a><var>126.1</var>shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after <br/>
<a id="pl.126.2"></a><var>126.2</var>completion of the projects may be placed in the general fund of the city.<br/>
<a id="pl.126.3"></a><var>126.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the chief clerical officer <br/>
<a id="pl.126.4"></a><var>126.4</var>and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
         <br/>
<a id="pl.126.5"></a><var>126.5</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.126.6"></a><var>126.6</var>    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3,
         <br/>
<a id="pl.126.7"></a><var>126.7</var>as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read:<br/>
<a id="pl.126.8"></a><var>126.8</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.126.9"></a><var>126.9</var>1 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes <br/>
<a id="pl.126.10"></a><var>126.10</var>and; (2) to pay for the costs of a community center complex and; (3) to make renovations <br/>
<a id="pl.126.11"></a><var>126.11</var>to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that <br/>
<a id="pl.126.12"></a><var>126.12</var>this use of the tax is subject to the same restrictions that apply to the issuance
         of debt provided <br/>
<a id="pl.126.13"></a><var>126.13</var>in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring <br/>
<a id="pl.126.14"></a><var>126.14</var>property and paying construction expenses related to these improvements, and paying
         debt <br/>
<a id="pl.126.15"></a><var>126.15</var>service on bonds or other obligations issued to finance acquisition and construction
         of these <br/>
<a id="pl.126.16"></a><var>126.16</var>improvements.<br/>
<a id="pl.126.17"></a><var>126.17</var>    (b) Notwithstanding Minnesota Statutes, section 
         <statute_ref>297A.99, subdivisions 2</statute_ref> and 3, if the <br/>
<a id="pl.126.18"></a><var>126.18</var>city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision
         5, <br/>
<a id="pl.126.19"></a><var>126.19</var>paragraph (b), the city must use any amounts in excess of the amounts necessary to
         meet <br/>
<a id="pl.126.20"></a><var>126.20</var>the obligations under paragraph (a) to pay the city's share of debt service on bonds
         issued <br/>
<a id="pl.126.21"></a><var>126.21</var>under Minnesota Statutes, section 
         <statute_ref>469.194</statute_ref>, to fund the Lewis and Clark Regional Water <br/>
<a id="pl.126.22"></a><var>126.22</var>System Project.<br/>
<a id="pl.126.23"></a><var>126.23</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.126.24"></a><var>126.24</var>city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.126.25"></a><var>126.25</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.126.26"></a><var>126.26</var>    Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4,
         <br/>
<a id="pl.126.27"></a><var>126.27</var>is amended to read:<br/>
<a id="pl.126.28"></a><var>126.28</var>    Subd. 4. <b>Bonding authority.</b> (a) If the tax authorized under subdivision 1 is approved <br/>
<a id="pl.126.29"></a><var>126.29</var>by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to
         pay capital <br/>
<a id="pl.126.30"></a><var>126.30</var>and administrative expenses for the improvements described in subdivision 3 in an amount <br/>
<a id="pl.126.31"></a><var>126.31</var>that does not exceed $6,000,000. An election to approve the bonds under Minnesota Statutes, <br/>
<a id="pl.126.32"></a><var>126.32</var>section 
         <statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.127.1"></a><var>127.1</var>    (b) The debt represented by the bonds is not included in computing any debt limitation
         <br/>
<a id="pl.127.2"></a><var>127.2</var>applicable to the city, and any levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to <br/>
<a id="pl.127.3"></a><var>127.3</var>pay principal of and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.127.4"></a><var>127.4</var>    (c) If the Worthington City Council intends to issue debt after June 30, 2017, for
         the <br/>
<a id="pl.127.5"></a><var>127.5</var>purposes of this subdivision, it must pass a resolution stating the intent to issue
         debt and <br/>
<a id="pl.127.6"></a><var>127.6</var>proposing a public hearing. The resolution must be published for two successive weeks
         in <br/>
<a id="pl.127.7"></a><var>127.7</var>the official newspaper of the city together with a notice setting a date for the public
         hearing. <br/>
<a id="pl.127.8"></a><var>127.8</var>The hearing must be held at least two weeks, but not more than four weeks, after the
         first <br/>
<a id="pl.127.9"></a><var>127.9</var>publication after passage of the resolution. Following the public hearing, if the
         city adopts <br/>
<a id="pl.127.10"></a><var>127.10</var>a resolution confirming its intention to issue additional debt, that resolution must
         also be <br/>
<a id="pl.127.11"></a><var>127.11</var>published in the official newspaper of the city, but the resolution is not effective
         for 30 days. <br/>
<a id="pl.127.12"></a><var>127.12</var>If within 30 days after publication of the resolution confirming the city's intention
         to issue <br/>
<a id="pl.127.13"></a><var>127.13</var>additional debt a petition signed by voters equal in number to ten percent of the
         votes cast <br/>
<a id="pl.127.14"></a><var>127.14</var>in the city in the last general election requesting a vote on the proposed resolution
         is filed <br/>
<a id="pl.127.15"></a><var>127.15</var>with the county auditor, the resolution is not effective until it has been submitted
         to the <br/>
<a id="pl.127.16"></a><var>127.16</var>voters in a general or special election and a majority of the votes cast on the question
         of <br/>
<a id="pl.127.17"></a><var>127.17</var>approving the resolution are in the affirmative. The commissioner of revenue shall
         prepare <br/>
<a id="pl.127.18"></a><var>127.18</var>a suggested form of question to be presented at the election.<br/>
<a id="pl.127.19"></a><var>127.19</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.127.20"></a><var>127.20</var>city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.127.21"></a><var>127.21</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.127.22"></a><var>127.22</var>    Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5,
         <br/>
<a id="pl.127.23"></a><var>127.23</var>as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read:<br/>
<a id="pl.127.24"></a><var>127.24</var>    Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and 2 expire <br/>
<a id="pl.127.25"></a><var>127.25</var>at the earlier of (1) ten years, or (2) when the city council determines that the
         amount of <br/>
<a id="pl.127.26"></a><var>127.26</var>revenue received from the taxes is sufficient to pay for the projects under subdivision 3 <br/>
<a id="pl.127.27"></a><var>127.27</var>equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to <br/>
<a id="pl.127.28"></a><var>127.28</var>issuance of bonds under subdivision 4, including interest on the bonds. Any funds
         remaining <br/>
<a id="pl.127.29"></a><var>127.29</var>after completion of the project and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.127.30"></a><var>127.30</var>in a capital project fund of the city. The taxes imposed under subdivisions 1 and
         2 may <br/>
<a id="pl.127.31"></a><var>127.31</var>expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.127.32"></a><var>127.32</var>    (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the
         taxes <br/>
<a id="pl.127.33"></a><var>127.33</var>imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional
         <br/>
<a id="pl.127.34"></a><var>127.34</var>revenues that exceed those necessary to fund the projects and associated financing
         costs <br/>
<a id="pl.128.1"></a><var>128.1</var>listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds
         issued <br/>
<a id="pl.128.2"></a><var>128.2</var>under Minnesota Statutes, section 
         <statute_ref>469.194</statute_ref>, to fund the Lewis and Clark Regional Water <br/>
<a id="pl.128.3"></a><var>128.3</var>System Project.<br/>
<a id="pl.128.4"></a><var>128.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.128.5"></a><var>128.5</var>city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.128.6"></a><var>128.6</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.128.7"></a><var>128.7</var>    Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read:<br/>
<a id="pl.128.8"></a><var>128.8</var>    Sec. 20. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.128.9"></a><var>128.9</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.128.10"></a><var>128.10</var>section 
         <statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city charter, pursuant to the <br/>
<a id="pl.128.11"></a><var>128.11</var>approval of the voters on November 7, 2006, the city of North Mankato may impose by
         <br/>
<a id="pl.128.12"></a><var>128.12</var>ordinance a sales and use tax of one-half of one percent for the purposes specified
         in <br/>
<a id="pl.128.13"></a><var>128.13</var>subdivision 2. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.99</statute_ref>, govern the imposition, <br/>
<a id="pl.128.14"></a><var>128.14</var>administration, collection, and enforcement of the taxes authorized under this subdivision.<br/>
<a id="pl.128.15"></a><var>128.15</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by subdivision 1 <br/>
<a id="pl.128.16"></a><var>128.16</var>must be used to pay all or part of the capital costs of the following projects:<br/>
<a id="pl.128.17"></a><var>128.17</var>    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
         <br/>
<a id="pl.128.18"></a><var>128.18</var>project;<br/>
<a id="pl.128.19"></a><var>128.19</var>    (2) development of regional parks and hiking and biking trails, including construction <br/>
<a id="pl.128.20"></a><var>128.20</var>of regional athletic facilities;<br/>
<a id="pl.128.21"></a><var>128.21</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.128.22"></a><var>128.22</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.128.23"></a><var>128.23</var>    (5) lake improvement projects.<br/>
<a id="pl.128.24"></a><var>128.24</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund
         <br/>
<a id="pl.128.25"></a><var>128.25</var>these projects is $6,000,000 $21,000,000 plus any associated bond costs.<br/>
<a id="pl.128.26"></a><var>128.26</var>    Subd. 2a. <b>Authorization to extend the tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.128.27"></a><var>128.27</var>297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend
         the <br/>
<a id="pl.128.28"></a><var>128.28</var>tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus
         <br/>
<a id="pl.128.29"></a><var>128.29</var>associated bond costs, to fund the projects in subdivision 2 as approved by the voters
         at the <br/>
<a id="pl.128.30"></a><var>128.30</var>November 8, 2016, general election.<br/>
<a id="pl.129.1"></a><var>129.1</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the voters <br/>
<a id="pl.129.2"></a><var>129.2</var>at the November 7, 2006 referendum authorizing the imposition of the taxes in this
         section, <br/>
<a id="pl.129.3"></a><var>129.3</var>may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
         <br/>
<a id="pl.129.4"></a><var>129.4</var>expenses for the projects described in subdivision 2, in an amount that does not exceed
         <br/>
<a id="pl.129.5"></a><var>129.5</var>$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
         <br/>
<statute_ref><a id="pl.129.6"></a><var>129.6</var>475.58
         </statute_ref>, is not required.<br/>
<a id="pl.129.7"></a><var>129.7</var>    (b) The city of North Mankato, pursuant to approval of the voters at the November 8,
         <br/>
<a id="pl.129.8"></a><var>129.8</var>2016, referendum extending the tax fee to provide additional revenue to be spent for
         the <br/>
<a id="pl.129.9"></a><var>129.9</var>projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
         <br/>
<a id="pl.129.10"></a><var>129.10</var>475, to pay capital and administrative expenses for those projects in an amount that
         does <br/>
<a id="pl.129.11"></a><var>129.11</var>not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes,
         <br/>
<a id="pl.129.12"></a><var>129.12</var>section 
<statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.129.13"></a><var>129.13</var>    (c) The debt represented by the bonds is not included in computing any debt limitation
         <br/>
<a id="pl.129.14"></a><var>129.14</var>applicable to the city, and any levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to <br/>
<a id="pl.129.15"></a><var>129.15</var>pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.129.16"></a><var>129.16</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires when the <br/>
<a id="pl.129.17"></a><var>129.17</var>city council determines that the amount of revenues received from the taxes to pay
         for the <br/>
<a id="pl.129.18"></a><var>129.18</var>projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional
         amount <br/>
<a id="pl.129.19"></a><var>129.19</var>needed to pay the costs related to issuance of bonds under subdivision 3, including
         interest <br/>
<a id="pl.129.20"></a><var>129.20</var>on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first <br/>
<a id="pl.129.21"></a><var>129.21</var>equal or exceed $21,000,000 plus the additional amount needed to pay costs related
         to <br/>
<a id="pl.129.22"></a><var>129.22</var>issuance of bonds under subdivision 3, including interest. Any funds remaining after <br/>
<a id="pl.129.23"></a><var>129.23</var>completion of the projects and retirement or redemption of the bonds shall be placed
         in a <br/>
<a id="pl.129.24"></a><var>129.24</var>capital facilities and equipment replacement fund of the city. The tax imposed under
         <br/>
<a id="pl.129.25"></a><var>129.25</var>subdivision 1 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.129.26"></a><var>129.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.129.27"></a><var>129.27</var>city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.129.28"></a><var>129.28</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.129.29"></a><var>129.29</var>    Sec. 18. <b>CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.</b><br/>
<a id="pl.129.30"></a><var>129.30</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.129.31"></a><var>129.31</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.129.32"></a><var>129.32</var>charter, and as approved by the voters at a special election on March 7, 2016, the
         city of <br/>
<a id="pl.129.33"></a><var>129.33</var>East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent
         for <br/>
<a id="pl.129.34"></a><var>129.34</var>the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.130.1"></a><var>130.1</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.130.2"></a><var>130.2</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.130.3"></a><var>130.3</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.130.4"></a><var>130.4</var>under subdivision 1 must be used by the city of East Grand Forks to pay the costs
         of <br/>
<a id="pl.130.5"></a><var>130.5</var>collecting and administering the tax and to finance the capital and administrative
         costs of <br/>
<a id="pl.130.6"></a><var>130.6</var>improvement to the city public swimming pool. Authorized expenses include, but are
         not <br/>
<a id="pl.130.7"></a><var>130.7</var>limited to, paying construction expenses related to the renovation and the development
         of <br/>
<a id="pl.130.8"></a><var>130.8</var>these facilities and improvements, and securing and paying debt service on bonds issued
         <br/>
<a id="pl.130.9"></a><var>130.9</var>under subdivision 3 or other obligations issued to finance improvement of the public
         <br/>
<a id="pl.130.10"></a><var>130.10</var>swimming pool in the city of East Grand Forks.<br/>
<a id="pl.130.11"></a><var>130.11</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of East Grand Forks may issue bonds under <br/>
<a id="pl.130.12"></a><var>130.12</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         <br/>
<a id="pl.130.13"></a><var>130.13</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.130.14"></a><var>130.14</var>subdivision may not exceed $2,820,000, plus an amount to be applied to the payment
         of <br/>
<a id="pl.130.15"></a><var>130.15</var>the costs of issuing the bonds. The bonds may be paid from or secured by any funds
         available <br/>
<a id="pl.130.16"></a><var>130.16</var>to the city of East Grand Forks, including the tax authorized under subdivision 1.
         The <br/>
<a id="pl.130.17"></a><var>130.17</var>issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
         275.60 <br/>
<a id="pl.130.18"></a><var>130.18</var>and 275.61.<br/>
<a id="pl.130.19"></a><var>130.19</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.130.20"></a><var>130.20</var>of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
         to <br/>
<a id="pl.130.21"></a><var>130.21</var>pay principal and interest on the bonds is not subject to any levy limitation. A separate
         <br/>
<a id="pl.130.22"></a><var>130.22</var>election to approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.130.23"></a><var>130.23</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the later <br/>
<a id="pl.130.24"></a><var>130.24</var>of: (1) five years after the tax is first imposed; or (2) when the city council determines
         that <br/>
<a id="pl.130.25"></a><var>130.25</var>$2,820,000 has been received from the tax to pay for the cost of the projects authorized
         <br/>
<a id="pl.130.26"></a><var>130.26</var>under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the <br/>
<a id="pl.130.27"></a><var>130.27</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.130.28"></a><var>130.28</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.130.29"></a><var>130.29</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.130.30"></a><var>130.30</var>time if the city so determines by ordinance.<br/>
<a id="pl.130.31"></a><var>130.31</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.130.32"></a><var>130.32</var>body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions
         <br/>
<a id="pl.130.33"></a><var>130.33</var>2 and 3.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.131.1"></a><var>131.1</var>    Sec. 19. <b>CITY OF EXCELSIOR; TAXES AUTHORIZED.</b><br/>
<a id="pl.131.2"></a><var>131.2</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.131.3"></a><var>131.3</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.131.4"></a><var>131.4</var>charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up
         to one-half <br/>
<a id="pl.131.5"></a><var>131.5</var>of one percent for the purposes specified in subdivision 2, as approved by the voters
         at the <br/>
<a id="pl.131.6"></a><var>131.6</var>November 4, 2014, general election. Except as otherwise provided in this section,
         the <br/>
<a id="pl.131.7"></a><var>131.7</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.131.8"></a><var>131.8</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.131.9"></a><var>131.9</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.131.10"></a><var>131.10</var>under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting
         and <br/>
<a id="pl.131.11"></a><var>131.11</var>administering the tax and to finance the capital and administrative costs of improvements
         <br/>
<a id="pl.131.12"></a><var>131.12</var>to the commons as indicated in the November 2016 findings of the commons master planning
         <br/>
<a id="pl.131.13"></a><var>131.13</var>work group. Authorized expenses include, but are not limited to, improvements for
         <br/>
<a id="pl.131.14"></a><var>131.14</var>walkability and accessibility, enhancement of beach area and facilities, prevention
         and <br/>
<a id="pl.131.15"></a><var>131.15</var>management of shoreline erosion, redesign of the port and bandshell, improvement of
         <br/>
<a id="pl.131.16"></a><var>131.16</var>playground equipment, and securing and paying debt service on bonds issued under <br/>
<a id="pl.131.17"></a><var>131.17</var>subdivision 3 or other obligations issued to the improvements listed in this subdivision
         in <br/>
<a id="pl.131.18"></a><var>131.18</var>the city of Excelsior.<br/>
<a id="pl.131.19"></a><var>131.19</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Excelsior may issue bonds under Minnesota <br/>
<a id="pl.131.20"></a><var>131.20</var>Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized
         in <br/>
<a id="pl.131.21"></a><var>131.21</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.131.22"></a><var>131.22</var>not exceed $7,000,000, plus an amount to be applied to the payment of the costs of
         issuing <br/>
<a id="pl.131.23"></a><var>131.23</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.131.24"></a><var>131.24</var>Excelsior, including the tax authorized under subdivision 1. The issuance of bonds
         under <br/>
<a id="pl.131.25"></a><var>131.25</var>this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.131.26"></a><var>131.26</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.131.27"></a><var>131.27</var>of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.131.28"></a><var>131.28</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.131.29"></a><var>131.29</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.131.30"></a><var>131.30</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the later <br/>
<a id="pl.131.31"></a><var>131.31</var>of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
         that <br/>
<a id="pl.131.32"></a><var>131.32</var>$7,000,000 has been received from the tax to pay for the cost of the projects authorized
         <br/>
<a id="pl.131.33"></a><var>131.33</var>under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the <br/>
<a id="pl.131.34"></a><var>131.34</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.132.1"></a><var>132.1</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.132.2"></a><var>132.2</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.132.3"></a><var>132.3</var>time if the city so determines by ordinance.<br/>
<a id="pl.132.4"></a><var>132.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.132.5"></a><var>132.5</var>body of the city of Excelsior with Minnesota Statutes, section 645.021, subdivisions
         2 and <br/>
<a id="pl.132.6"></a><var>132.6</var>3.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.132.7"></a><var>132.7</var>    Sec. 20. <b>CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.</b><br/>
<a id="pl.132.8"></a><var>132.8</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.132.9"></a><var>132.9</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.132.10"></a><var>132.10</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.132.11"></a><var>132.11</var>of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent
         for <br/>
<a id="pl.132.12"></a><var>132.12</var>the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.132.13"></a><var>132.13</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.132.14"></a><var>132.14</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.132.15"></a><var>132.15</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.132.16"></a><var>132.16</var>under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting
         and <br/>
<a id="pl.132.17"></a><var>132.17</var>administering the tax and to finance the capital and administrative costs of constructing
         and <br/>
<a id="pl.132.18"></a><var>132.18</var>funding recreational amenities, trails, and a community center. The total that may
         be raised <br/>
<a id="pl.132.19"></a><var>132.19</var>from the tax to pay for these projects is limited to $15,000,000, plus the costs related
         to the <br/>
<a id="pl.132.20"></a><var>132.20</var>issuance and paying debt service on bonds for these projects.<br/>
<a id="pl.132.21"></a><var>132.21</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Fairmont may issue bonds under Minnesota <br/>
<a id="pl.132.22"></a><var>132.22</var>Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in <br/>
<a id="pl.132.23"></a><var>132.23</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.132.24"></a><var>132.24</var>not exceed $15,000,000, plus an amount to be applied to the payment of the costs of
         issuing <br/>
<a id="pl.132.25"></a><var>132.25</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.132.26"></a><var>132.26</var>Fairmont, including the tax authorized under subdivision 1. The issuance of bonds
         under <br/>
<a id="pl.132.27"></a><var>132.27</var>this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.132.28"></a><var>132.28</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.132.29"></a><var>132.29</var>of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.132.30"></a><var>132.30</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.132.31"></a><var>132.31</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.132.32"></a><var>132.32</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.132.33"></a><var>132.33</var>earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.133.1"></a><var>133.1</var>that $15,000,000, plus an amount sufficient to pay the costs related to issuing the
         bonds <br/>
<a id="pl.133.2"></a><var>133.2</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.133.3"></a><var>133.3</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.133.4"></a><var>133.4</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.133.5"></a><var>133.5</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.133.6"></a><var>133.6</var>time if the city so determines by ordinance.<br/>
<a id="pl.133.7"></a><var>133.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.133.8"></a><var>133.8</var>body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions
         2 and <br/>
<a id="pl.133.9"></a><var>133.9</var>3.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.133.10"></a><var>133.10</var>    Sec. 21. <b>CITY OF FERGUS FALLS; TAXES AUTHORIZED.</b><br/>
<a id="pl.133.11"></a><var>133.11</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.133.12"></a><var>133.12</var>section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.133.13"></a><var>133.13</var>charter, and as approved by the voters at the November 8, 2016, general election,
         the city <br/>
<a id="pl.133.14"></a><var>133.14</var>of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of
         one <br/>
<a id="pl.133.15"></a><var>133.15</var>percent for the purposes specified in subdivision 2. Except as otherwise provided
         in this <br/>
<a id="pl.133.16"></a><var>133.16</var>section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         <br/>
<a id="pl.133.17"></a><var>133.17</var>administration, collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.133.18"></a><var>133.18</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues from the tax authorized under <br/>
<a id="pl.133.19"></a><var>133.19</var>subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting
         and <br/>
<a id="pl.133.20"></a><var>133.20</var>administering the tax and securing and paying debt service on bonds issued to finance
         all <br/>
<a id="pl.133.21"></a><var>133.21</var>or part of the costs of the expansion and betterment of the Fergus Falls Public Library
         located <br/>
<a id="pl.133.22"></a><var>133.22</var>at 205 East Hampden Avenue in the city of Fergus Falls.<br/>
<a id="pl.133.23"></a><var>133.23</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Fergus Falls may issue bonds under <br/>
<a id="pl.133.24"></a><var>133.24</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
         <br/>
<a id="pl.133.25"></a><var>133.25</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.133.26"></a><var>133.26</var>subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs
         of <br/>
<a id="pl.133.27"></a><var>133.27</var>issuing the bonds. The bonds may be paid from or secured by any funds available to
         the <br/>
<a id="pl.133.28"></a><var>133.28</var>city of Fergus Falls, including the tax authorized under subdivision 1. The issuance
         of bonds <br/>
<a id="pl.133.29"></a><var>133.29</var>under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.<br/>
<a id="pl.133.30"></a><var>133.30</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city, <br/>
<a id="pl.133.31"></a><var>133.31</var>and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
         and <br/>
<a id="pl.133.32"></a><var>133.32</var>interest on the bonds is not subject to any levy limitation. A separate election to
         approve <br/>
<a id="pl.133.33"></a><var>133.33</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.134.1"></a><var>134.1</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.134.2"></a><var>134.2</var>earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council
         determines <br/>
<a id="pl.134.3"></a><var>134.3</var>that $9,800,000 has been received from the tax to pay for the cost of the project
         authorized <br/>
<a id="pl.134.4"></a><var>134.4</var>under subdivision 2, plus an amount sufficient to pay the costs related to the issuance
         of the <br/>
<a id="pl.134.5"></a><var>134.5</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.134.6"></a><var>134.6</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.134.7"></a><var>134.7</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         any <br/>
<a id="pl.134.8"></a><var>134.8</var>earlier time if the city so determines by ordinance.<br/>
<a id="pl.134.9"></a><var>134.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.134.10"></a><var>134.10</var>body of the city of Fergus Falls with Minnesota Statutes, section 645.021, subdivisions
         2 <br/>
<a id="pl.134.11"></a><var>134.11</var>and 3.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.134.12"></a><var>134.12</var>    Sec. 22. <b>CITY OF MOOSE LAKE; TAXES AUTHORIZED.</b><br/>
<a id="pl.134.13"></a><var>134.13</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.134.14"></a><var>134.14</var>section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city
         charter, <br/>
<a id="pl.134.15"></a><var>134.15</var>as approved by the voters at the November 6, 2012, general election, the city of Moose
         Lake <br/>
<a id="pl.134.16"></a><var>134.16</var>may impose, by ordinance, a sales and use tax of up to one-half of one percent for
         the <br/>
<a id="pl.134.17"></a><var>134.17</var>purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.134.18"></a><var>134.18</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.134.19"></a><var>134.19</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.134.20"></a><var>134.20</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.134.21"></a><var>134.21</var>under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
         <br/>
<a id="pl.134.22"></a><var>134.22</var>and administering the tax and to finance the costs of: (1) improvements to the city's
         park <br/>
<a id="pl.134.23"></a><var>134.23</var>system; (2) street and related infrastructure improvements; and (3) municipal arena
         <br/>
<a id="pl.134.24"></a><var>134.24</var>improvements. Authorized costs include construction and engineering costs and associated
         <br/>
<a id="pl.134.25"></a><var>134.25</var>bond costs.<br/>
<a id="pl.134.26"></a><var>134.26</var>    Subd. 3. <b>Bonding authority.</b> The city of Moose Lake may issue bonds under Minnesota <br/>
<a id="pl.134.27"></a><var>134.27</var>Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in <br/>
<a id="pl.134.28"></a><var>134.28</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.134.29"></a><var>134.29</var>not exceed $3,000,000, plus an amount to be applied to the payment of the costs of
         issuing <br/>
<a id="pl.134.30"></a><var>134.30</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.134.31"></a><var>134.31</var>Moose Lake, including the tax authorized under subdivision 1.  The issuance of bonds
         under <br/>
<a id="pl.134.32"></a><var>134.32</var>this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.134.33"></a><var>134.33</var>The bonds are not included in computing any debt limitation applicable to the city
         of <br/>
<a id="pl.134.34"></a><var>134.34</var>Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.135.1"></a><var>135.1</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.135.2"></a><var>135.2</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.135.3"></a><var>135.3</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.135.4"></a><var>135.4</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.135.5"></a><var>135.5</var>that $3,000,000 has been received from the tax to pay for the cost of the projects
         authorized <br/>
<a id="pl.135.6"></a><var>135.6</var>under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the <br/>
<a id="pl.135.7"></a><var>135.7</var>bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         <br/>
<a id="pl.135.8"></a><var>135.8</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.135.9"></a><var>135.9</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.135.10"></a><var>135.10</var>time if the city so determines by ordinance.<br/>
<a id="pl.135.11"></a><var>135.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.135.12"></a><var>135.12</var>body of the city of Moose Lake with Minnesota Statutes, section 645.021, subdivisions
         2 <br/>
<a id="pl.135.13"></a><var>135.13</var>and 3.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.135.14"></a><var>135.14</var>    Sec. 23. <b>CITY OF NEW LONDON; TAX AUTHORIZED.</b><br/>
<a id="pl.135.15"></a><var>135.15</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.135.16"></a><var>135.16</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.135.17"></a><var>135.17</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.135.18"></a><var>135.18</var>of New London may impose, by ordinance, a sales and use tax of one-half of one percent
         <br/>
<a id="pl.135.19"></a><var>135.19</var>for the purposes specified in subdivision 2. Except as otherwise provided in this
         section, <br/>
<a id="pl.135.20"></a><var>135.20</var>the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.135.21"></a><var>135.21</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.135.22"></a><var>135.22</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.135.23"></a><var>135.23</var>under subdivision 1 must be used by the city of New London to pay the costs of collecting
         <br/>
<a id="pl.135.24"></a><var>135.24</var>and administering the tax and to finance the capital and administrative costs of the
         following <br/>
<a id="pl.135.25"></a><var>135.25</var>projects:<br/>
 <a id="pl.135.26"></a><var>135.26</var>(1) construction and equipping of a new library and community room;<br/>
<a id="pl.135.27"></a><var>135.27</var>(2) construction of an ambulance bay at the fire hall; and<br/>
<a id="pl.135.28"></a><var>135.28</var>(3) improvements to the New London Senior Citizen Center.<br/>
<a id="pl.135.29"></a><var>135.29</var>The total that may be raised from the tax to pay for these projects is limited to
         $872,000 <br/>
<a id="pl.135.30"></a><var>135.30</var>plus the costs related to the issuance and paying debt service on bonds for these
         projects.<br/>
<a id="pl.135.31"></a><var>135.31</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of New London may issue bonds under <br/>
<a id="pl.135.32"></a><var>135.32</var>Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         <br/>
<a id="pl.136.1"></a><var>136.1</var>authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this <br/>
<a id="pl.136.2"></a><var>136.2</var>subdivision may not exceed $872,000, plus an amount to be applied to the payment of
         the <br/>
<a id="pl.136.3"></a><var>136.3</var>costs of issuing the bonds. The bonds may be paid from or secured by any funds available
         <br/>
<a id="pl.136.4"></a><var>136.4</var>to the city of New London, including the tax authorized under subdivision 1. The issuance
         <br/>
<a id="pl.136.5"></a><var>136.5</var>of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
         and <br/>
<a id="pl.136.6"></a><var>136.6</var>275.61.<br/>
<a id="pl.136.7"></a><var>136.7</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.136.8"></a><var>136.8</var>of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to
         pay <br/>
<a id="pl.136.9"></a><var>136.9</var>principal and interest on the bonds is not subject to any levy limitation. A separate
         election <br/>
<a id="pl.136.10"></a><var>136.10</var>to approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.136.11"></a><var>136.11</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.136.12"></a><var>136.12</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines <br/>
<a id="pl.136.13"></a><var>136.13</var>that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
         <br/>
<a id="pl.136.14"></a><var>136.14</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.136.15"></a><var>136.15</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.136.16"></a><var>136.16</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.136.17"></a><var>136.17</var>in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.136.18"></a><var>136.18</var>time if the city so determines by ordinance.<br/>
<a id="pl.136.19"></a><var>136.19</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.136.20"></a><var>136.20</var>body of the city of New London with Minnesota Statutes, section 645.021, subdivisions
         2 <br/>
<a id="pl.136.21"></a><var>136.21</var>and 3.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.136.22"></a><var>136.22</var>    Sec. 24. <b>CITY OF NORTH MANKATO; FOOD AND BEVERAGE TAX </b><br/>
<a id="pl.136.23"></a><var>136.23</var><b>AUTHORIZED.</b><br/>
<a id="pl.136.24"></a><var>136.24</var>    Subdivision 1. <b>Food and beverage tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.136.25"></a><var>136.25</var>section 
<statute_ref>477A.016</statute_ref>, or any ordinance, city charter, or other provision of law, the city of North <br/>
<a id="pl.136.26"></a><var>136.26</var>Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts
         <br/>
<a id="pl.136.27"></a><var>136.27</var>on all sales of food and beverages by a restaurant or place of refreshment, as defined
         by <br/>
<a id="pl.136.28"></a><var>136.28</var>resolution of the city, that are located within the city. For purposes of this section,
         "food <br/>
<a id="pl.136.29"></a><var>136.29</var>and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.<br/>
<a id="pl.136.30"></a><var>136.30</var>    Subd. 2. <b>Use of proceeds from tax.</b> The proceeds of any tax imposed under subdivision <br/>
<a id="pl.136.31"></a><var>136.31</var>1 shall be used by the city to pay all or a portion of the expenses of:<br/>
<a id="pl.136.32"></a><var>136.32</var>(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting
         <br/>
<a id="pl.136.33"></a><var>136.33</var>Complex; and<br/>
<a id="pl.137.1"></a><var>137.1</var>(2) for costs related to regional tourism events.<br/>
<a id="pl.137.2"></a><var>137.2</var>Authorized capital expenses include securing or paying debt service on bonds or other
         <br/>
<a id="pl.137.3"></a><var>137.3</var>obligations issued to finance the construction of the Caswell Park Regional Sporting
         Complex <br/>
<a id="pl.137.4"></a><var>137.4</var>facilities.<br/>
<a id="pl.137.5"></a><var>137.5</var>    Subd. 3. <b>Collection, administration, and enforcement.</b> If the city desires, it may enter <br/>
<a id="pl.137.6"></a><var>137.6</var>into an agreement with the commissioner of revenue to administer, collect, and enforce
         the <br/>
<a id="pl.137.7"></a><var>137.7</var>taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect
         the tax, <br/>
<a id="pl.137.8"></a><var>137.8</var>the provisions of Minnesota Statutes, section 
<statute_ref>297A.99</statute_ref>, related to collection, administration, <br/>
<a id="pl.137.9"></a><var>137.9</var>and enforcement apply.<br/>
<a id="pl.137.10"></a><var>137.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.137.11"></a><var>137.11</var>city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section <br/>
<a id="pl.137.12"></a><var>137.12</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.137.13"></a><var>137.13</var>    Sec. 25. <b>CITY OF SLEEPY EYE; LODGING TAX.</b><br/>
<a id="pl.137.14"></a><var>137.14</var>Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
         <br/>
<a id="pl.137.15"></a><var>137.15</var>ordinance, or city charter, the city council for the city of Sleepy Eye may impose,
         by <br/>
<a id="pl.137.16"></a><var>137.16</var>ordinance, a tax of up to two percent on the gross receipts subject to the lodging
         tax under <br/>
<a id="pl.137.17"></a><var>137.17</var>Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         <br/>
<a id="pl.137.18"></a><var>137.18</var>Minnesota Statutes, section 469.190, and the total tax imposed under that section
         and this <br/>
<a id="pl.137.19"></a><var>137.19</var>provision must not exceed five percent. Revenue from the tax imposed under this section
         <br/>
<a id="pl.137.20"></a><var>137.20</var>may only be used for the same purposes as a tax imposed under Minnesota Statutes,
         section <br/>
<a id="pl.137.21"></a><var>137.21</var>469.190.<br/>
<a id="pl.137.22"></a><var>137.22</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.137.23"></a><var>137.23</var>body of the city of Sleepy Eye with Minnesota Statutes, section 645.021, subdivisions
         2 <br/>
<a id="pl.137.24"></a><var>137.24</var>and 3.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.137.25"></a><var>137.25</var>    Sec. 26. <b>CITY OF SPICER; TAX AUTHORIZED.</b><br/>
<a id="pl.137.26"></a><var>137.26</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.137.27"></a><var>137.27</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city <br/>
<a id="pl.137.28"></a><var>137.28</var>charter, and as approved by the voters at the general election of November 8, 2016,
         the city <br/>
<a id="pl.137.29"></a><var>137.29</var>of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent
         for the <br/>
<a id="pl.137.30"></a><var>137.30</var>purposes specified in subdivision 2. Except as otherwise provided in this section,
         the <br/>
<a id="pl.137.31"></a><var>137.31</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         <br/>
<a id="pl.137.32"></a><var>137.32</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.138.1"></a><var>138.1</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.138.2"></a><var>138.2</var>under subdivision 1 must be used by the city of Spicer to pay the costs of collecting
         and <br/>
<a id="pl.138.3"></a><var>138.3</var>administering the tax and to finance the capital and administrative costs of the following
         <br/>
<a id="pl.138.4"></a><var>138.4</var>projects:<br/>
 <a id="pl.138.5"></a><var>138.5</var>(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
         <br/>
<a id="pl.138.6"></a><var>138.6</var>signals at marked Trunk Highway 23;<br/>
<a id="pl.138.7"></a><var>138.7</var>(2) park and trail capital improvements including signage for bicycle share the road
         <br/>
<a id="pl.138.8"></a><var>138.8</var>improvements and replacement of playground and related facilities; and<br/>
<a id="pl.138.9"></a><var>138.9</var>(3) capital improvements to regional community facilities such as the Dethelfs roof
         and <br/>
<a id="pl.138.10"></a><var>138.10</var>window replacement and the Pioneerland branch library roof replacement.<br/>
<a id="pl.138.11"></a><var>138.11</var>    Subd. 3. <b>Bonding authority.</b> (a) The city of Spicer may issue bonds under Minnesota <br/>
<a id="pl.138.12"></a><var>138.12</var>Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in <br/>
<a id="pl.138.13"></a><var>138.13</var>subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may <br/>
<a id="pl.138.14"></a><var>138.14</var>not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing
         <br/>
<a id="pl.138.15"></a><var>138.15</var>the bonds. The bonds may be paid from or secured by any funds available to the city
         of <br/>
<a id="pl.138.16"></a><var>138.16</var>Spicer, including the tax authorized under subdivision 1. The issuance of bonds under
         this <br/>
<a id="pl.138.17"></a><var>138.17</var>subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.138.18"></a><var>138.18</var>(b) The bonds are not included in computing any debt limitation applicable to the
         city <br/>
<a id="pl.138.19"></a><var>138.19</var>of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal <br/>
<a id="pl.138.20"></a><var>138.20</var>and interest on the bonds is not subject to any levy limitation. A separate election
         to approve <br/>
<a id="pl.138.21"></a><var>138.21</var>the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.138.22"></a><var>138.22</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.138.23"></a><var>138.23</var>earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or
         (3) when <br/>
<a id="pl.138.24"></a><var>138.24</var>the city council determines that $800,000, plus an amount sufficient to pay the costs
         related <br/>
<a id="pl.138.25"></a><var>138.25</var>to issuing the bonds authorized under subdivision 3, including interest on the bonds,
         has <br/>
<a id="pl.138.26"></a><var>138.26</var>been received from the tax to pay for the cost of the projects authorized under subdivision
         <br/>
<a id="pl.138.27"></a><var>138.27</var>2. All funds not used to pay collection and administration costs of the tax must be
         used for <br/>
<a id="pl.138.28"></a><var>138.28</var>projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at
         an earlier <br/>
<a id="pl.138.29"></a><var>138.29</var>time if the city so determines by ordinance.<br/>
<a id="pl.138.30"></a><var>138.30</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.138.31"></a><var>138.31</var>body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions
         2 and 3.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.139.1"></a><var>139.1</var>    Sec. 27. <b>CLAY COUNTY; TAX AUTHORIZED.</b><br/>
<a id="pl.139.2"></a><var>139.2</var>    Subdivision 1. <b>Sales and use tax authorization.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.139.3"></a><var>139.3</var>section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance,
         and as <br/>
<a id="pl.139.4"></a><var>139.4</var>approved by the voters at the November 8, 2016, general election, Clay County may
         impose, <br/>
<a id="pl.139.5"></a><var>139.5</var>by ordinance, a sales and use tax of up to one-half of one percent for the purposes
         specified <br/>
<a id="pl.139.6"></a><var>139.6</var>in subdivision 2. Except as otherwise provided in this section, the provisions of
         Minnesota <br/>
<a id="pl.139.7"></a><var>139.7</var>Statutes, section 297A.99, govern the imposition, administration, collection, and
         enforcement <br/>
<a id="pl.139.8"></a><var>139.8</var>of the tax authorized under this subdivision.<br/>
<a id="pl.139.9"></a><var>139.9</var>    Subd. 2. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax authorized <br/>
<a id="pl.139.10"></a><var>139.10</var>under subdivision 1 must be used by Clay County to pay the costs of collecting and
         <br/>
<a id="pl.139.11"></a><var>139.11</var>administering the tax and to finance the capital costs of constructing and equipping
         a new <br/>
<a id="pl.139.12"></a><var>139.12</var>correctional facility, law enforcement center, and related parking facility. Authorized
         <br/>
<a id="pl.139.13"></a><var>139.13</var>expenses include but are not limited to paying design, development, and construction
         costs <br/>
<a id="pl.139.14"></a><var>139.14</var>related to these facilities and improvements, and securing and paying debt service
         on bonds <br/>
<a id="pl.139.15"></a><var>139.15</var>issued under subdivision 3 or other obligations issued to finance the facilities listed
         in this <br/>
<a id="pl.139.16"></a><var>139.16</var>subdivision.<br/>
<a id="pl.139.17"></a><var>139.17</var>    Subd. 3. <b>Bonding authority.</b> Clay County may issue bonds under Minnesota Statutes, <br/>
<a id="pl.139.18"></a><var>139.18</var>chapter 475, to finance all or a portion of the costs of the facilities authorized
         in subdivision <br/>
<a id="pl.139.19"></a><var>139.19</var>2. The aggregate principal amount of bonds issued under this subdivision may not exceed
         <br/>
<a id="pl.139.20"></a><var>139.20</var>$52,000,000, plus an amount to be applied to the payment of the costs of issuing the
         bonds. <br/>
<a id="pl.139.21"></a><var>139.21</var>The bonds may be paid from or secured by any funds available to Clay County, including
         <br/>
<a id="pl.139.22"></a><var>139.22</var>the tax authorized under subdivision 1. The issuance of bonds under this subdivision
         is not <br/>
<a id="pl.139.23"></a><var>139.23</var>subject to Minnesota Statutes, sections 275.60 and 275.61.<br/>
<a id="pl.139.24"></a><var>139.24</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.139.25"></a><var>139.25</var>earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board
         determines <br/>
<a id="pl.139.26"></a><var>139.26</var>that $52,000,000, plus an amount sufficient to pay the costs related to issuance of
         the bonds <br/>
<a id="pl.139.27"></a><var>139.27</var>authorized under subdivision 3, including interest on the bonds, has been received
         from the <br/>
<a id="pl.139.28"></a><var>139.28</var>tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining <br/>
<a id="pl.139.29"></a><var>139.29</var>after payment of all such costs and retirement or redemption of the bonds shall be
         placed <br/>
<a id="pl.139.30"></a><var>139.30</var>in the general fund of the county. The tax imposed under subdivision 1 may expire
         at an <br/>
<a id="pl.139.31"></a><var>139.31</var>earlier time if the county so determines by ordinance.<br/>
<a id="pl.139.32"></a><var>139.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the governing <br/>
<a id="pl.139.33"></a><var>139.33</var>body of Clay County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.140.1"></a><var>140.1</var>    Sec. 28. <b>WOODBURY LODGING TAX.</b><br/>
<a id="pl.140.2"></a><var>140.2</var>Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to
         a <br/>
<a id="pl.140.3"></a><var>140.3</var>tax authorized in Minnesota Statutes, section 469.190, the city of Woodbury may impose
         <br/>
<a id="pl.140.4"></a><var>140.4</var>by ordinance a tax of up to two percent on the gross receipts subject to the lodging
         tax under  <br/>
<a id="pl.140.5"></a><var>140.5</var>Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         <br/>
<a id="pl.140.6"></a><var>140.6</var>Minnesota Statutes, section 469.190, and the total tax imposed by the city under this
         section <br/>
<a id="pl.140.7"></a><var>140.7</var>and Minnesota Statutes, section 469.190, must not exceed five percent. Revenue from
         the <br/>
<a id="pl.140.8"></a><var>140.8</var>tax imposed under this section may only be used for the same purposes as a tax imposed
         <br/>
<a id="pl.140.9"></a><var>140.9</var>under Minnesota Statutes, section 469.190.<br/>
<a id="pl.140.10"></a><var>140.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.140.11"></a><var>140.11</var>city of Woodbury and its chief clerical officer timely complete their compliance with
         <br/>
<a id="pl.140.12"></a><var>140.12</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.140.13"></a><var>140.13</var>    Sec. 29. <b>EFFECTIVE DATE; VALIDATION OF PRIOR ACT.</b><br/>
<a id="pl.140.14"></a><var>140.14</var>Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
         <br/>
<a id="pl.140.15"></a><var>140.15</var>Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010,
         chapter <br/>
<a id="pl.140.16"></a><var>140.16</var>389, article 5, sections 1 and 2, and file its approval with the secretary of state
         by January <br/>
<a id="pl.140.17"></a><var>140.17</var>1, 2015. If approved under this paragraph, actions undertaken by the city pursuant
         to the <br/>
<a id="pl.140.18"></a><var>140.18</var>approval of the voters on November 2, 2010, and otherwise in accordance with those
         laws <br/>
<a id="pl.140.19"></a><var>140.19</var>are validated.<br/>
<a id="pl.140.20"></a><var>140.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, without <br/>
<a id="pl.140.21"></a><var>140.21</var>local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph
         <br/>
<a id="pl.140.22"></a><var>140.22</var>(a).<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.140.25"></a><var>140.25</var>    Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:<br/>
<a id="pl.140.26"></a><var>140.26</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.140.27"></a><var>140.27</var>the meanings given.<br/>
<a id="pl.140.28"></a><var>140.28</var>(b) "Activities" means acquisition of property, clearing of land, site preparation,
         soils <br/>
<a id="pl.140.29"></a><var>140.29</var>correction, removal of hazardous waste or pollution, installation of utilities, construction
         <br/>
<a id="pl.140.30"></a><var>140.30</var>of public or private improvements, and other similar activities, but only to the extent
         that <br/>
<a id="pl.140.31"></a><var>140.31</var>tax increment revenues may be spent for such purposes under other law.<br/>
<a id="pl.141.1"></a><var>141.1</var>(c) "Third party" means an entity other than (1) the person receiving the benefit
         of <br/>
<a id="pl.141.2"></a><var>141.2</var>assistance financed with tax increments, or (2) the municipality or the development
         authority <br/>
<a id="pl.141.3"></a><var>141.3</var>or other person substantially under the control of the municipality.<br/>
<a id="pl.141.4"></a><var>141.4</var>(d) "Revenues derived from tax increments paid by properties in the district" means
         only <br/>
<a id="pl.141.5"></a><var>141.5</var>tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clause (1), and does not include <br/>
<a id="pl.141.6"></a><var>141.6</var>tax increment as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, clauses (2), (3), and (4) to (5).<br/>
<a id="pl.141.7"></a><var>141.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.141.8"></a><var>141.8</var>    Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:<br/>
<a id="pl.141.9"></a><var>141.9</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing district, <br/>
<a id="pl.141.10"></a><var>141.10</var>an amount equal to at least 75 percent of the total revenue derived from tax increments
         paid <br/>
<a id="pl.141.11"></a><var>141.11</var>by properties in the district must be expended on activities in the district or to
         pay bonds, <br/>
<a id="pl.141.12"></a><var>141.12</var>to the extent that the proceeds of the bonds were used to finance activities in the
         district or <br/>
<a id="pl.141.13"></a><var>141.13</var>to pay, or secure payment of, debt service on credit enhanced bonds. For districts,
         other <br/>
<a id="pl.141.14"></a><var>141.14</var>than redevelopment districts for which the request for certification was made after
         June 30, <br/>
<a id="pl.141.15"></a><var>141.15</var>1995, the in-district percentage for purposes of the preceding sentence is 80 percent.
         Not <br/>
<a id="pl.141.16"></a><var>141.16</var>more than 25 percent of the total revenue derived from tax increments paid by properties
         <br/>
<a id="pl.141.17"></a><var>141.17</var>in the district may be expended, through a development fund or otherwise, on activities
         <br/>
<a id="pl.141.18"></a><var>141.18</var>outside of the district but within the defined geographic area of the project except
         to pay, <br/>
<a id="pl.141.19"></a><var>141.19</var>or secure payment of, debt service on credit enhanced bonds. For districts, other
         than <br/>
<a id="pl.141.20"></a><var>141.20</var>redevelopment districts for which the request for certification was made after June
         30, 1995, <br/>
<a id="pl.141.21"></a><var>141.21</var>the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue <br/>
<a id="pl.141.22"></a><var>141.22</var>revenues derived from tax increments for paid by properties in the district that are expended <br/>
<a id="pl.141.23"></a><var>141.23</var>on costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.141.24"></a><var>141.24</var>calculating the percentages that must be expended within and without the district.<br/>
<a id="pl.141.25"></a><var>141.25</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.141.26"></a><var>141.26</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.141.27"></a><var>141.27</var>    (c) All administrative expenses are for activities outside of the district, except
         that if the <br/>
<a id="pl.141.28"></a><var>141.28</var>only expenses for activities outside of the district under this subdivision are for
         the purposes <br/>
<a id="pl.141.29"></a><var>141.29</var>described in paragraph (d), administrative expenses will be considered as expenditures
         for <br/>
<a id="pl.141.30"></a><var>141.30</var>activities in the district.<br/>
<a id="pl.141.31"></a><var>141.31</var>    (d) The authority may elect, in the tax increment financing plan for the district,
         to increase <br/>
<a id="pl.141.32"></a><var>141.32</var>by up to ten percentage points the permitted amount of expenditures for activities
         located <br/>
<a id="pl.141.33"></a><var>141.33</var>outside the geographic area of the district under paragraph (a). As permitted by section
         <br/>
<statute_ref><a id="pl.142.1"></a><var>142.1</var>469.176, subdivision 4k
         </statute_ref>, the expenditures, including the permitted expenditures under <br/>
<a id="pl.142.2"></a><var>142.2</var>paragraph (a), need not be made within the geographic area of the project. Expenditures
         <br/>
<a id="pl.142.3"></a><var>142.3</var>that meet the requirements of this paragraph are legally permitted expenditures of
         the district, <br/>
<a id="pl.142.4"></a><var>142.4</var>notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. To qualify for the increase <br/>
<a id="pl.142.5"></a><var>142.5</var>under this paragraph, the expenditures must:<br/>
<a id="pl.142.6"></a><var>142.6</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified
         <br/>
<a id="pl.142.7"></a><var>142.7</var>low-income building, as that term is used in section 42 of the Internal Revenue Code;
         and<br/>
<a id="pl.142.8"></a><var>142.8</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c)
         of the <br/>
<a id="pl.142.9"></a><var>142.9</var>Internal Revenue Code, less the amount of any credit allowed under section 42 of the
         Internal <br/>
<a id="pl.142.10"></a><var>142.10</var>Revenue Code; and<br/>
<a id="pl.142.11"></a><var>142.11</var>    (3) be used to:<br/>
<a id="pl.142.12"></a><var>142.12</var>    (i) acquire and prepare the site of the housing;<br/>
<a id="pl.142.13"></a><var>142.13</var>    (ii) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.142.14"></a><var>142.14</var>    (iii) make public improvements directly related to the housing; or<br/>
<a id="pl.142.15"></a><var>142.15</var>(4) be used to develop housing:<br/>
<a id="pl.142.16"></a><var>142.16</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.142.17"></a><var>142.17</var>(A) 150 percent of the average market value of single-family homes in that municipality;
         <br/>
<a id="pl.142.18"></a><var>142.18</var>or<br/>
<a id="pl.142.19"></a><var>142.19</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in section
         <br/>
<statute_ref><a id="pl.142.20"></a><var>142.20</var>473.121
         </statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.142.21"></a><var>142.21</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
         demolition <br/>
<a id="pl.142.22"></a><var>142.22</var>of existing structures, site preparation, and pollution abatement on one or more parcels,
         if <br/>
<a id="pl.142.23"></a><var>142.23</var>the parcel contains a residence containing one to four family dwelling units that
         has been <br/>
<a id="pl.142.24"></a><var>142.24</var>vacant for six or more months and is in foreclosure as defined in section 
         <statute_ref>325N.10, subdivision <br/>
<a id="pl.142.25"></a><var>142.25</var>7
         </statute_ref>, but without regard to whether the residence is the owner's principal residence,
         and only <br/>
<a id="pl.142.26"></a><var>142.26</var>after the redemption period has expired.<br/>
<a id="pl.142.27"></a><var>142.27</var>(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.142.28"></a><var>142.28</var>Increments may continue to be expended under this authority after that date, if they
         are used <br/>
<a id="pl.142.29"></a><var>142.29</var>to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
         (a), if <br/>
<a id="pl.142.30"></a><var>142.30</var>December 31, 2016, is considered to be the last date of the five-year period after
         certification <br/>
<a id="pl.142.31"></a><var>142.31</var>under that provision.<br/>
<a id="pl.142.32"></a><var>142.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.143.1"></a><var>143.1</var>    Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.143.2"></a><var>143.2</var>    Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments paid by properties <br/>
<a id="pl.143.3"></a><var>143.3</var>in the district are considered to have been expended on an activity within the district under <br/>
<a id="pl.143.4"></a><var>143.4</var>subdivision 2 only if one of the following occurs:<br/>
<a id="pl.143.5"></a><var>143.5</var>(1) before or within five years after certification of the district, the revenues
         are actually <br/>
<a id="pl.143.6"></a><var>143.6</var>paid to a third party with respect to the activity;<br/>
<a id="pl.143.7"></a><var>143.7</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued
         and <br/>
<a id="pl.143.8"></a><var>143.8</var>sold to a third party before or within five years after certification, the revenues
         are spent to <br/>
<a id="pl.143.9"></a><var>143.9</var>repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
         reasonably <br/>
<a id="pl.143.10"></a><var>143.10</var>expected to be spent before the end of the later of (i) the five-year period, or (ii)
         a reasonable <br/>
<a id="pl.143.11"></a><var>143.11</var>temporary period within the meaning of the use of that term under section 148(c)(1)
         of the <br/>
<a id="pl.143.12"></a><var>143.12</var>Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
         <br/>
<a id="pl.143.13"></a><var>143.13</var>fund;<br/>
<a id="pl.143.14"></a><var>143.14</var>(3) binding contracts with a third party are entered into for performance of the activity
         <br/>
<a id="pl.143.15"></a><var>143.15</var>before or within five years after certification of the district and the revenues are
         spent under <br/>
<a id="pl.143.16"></a><var>143.16</var>the contractual obligation;<br/>
<a id="pl.143.17"></a><var>143.17</var>(4) costs with respect to the activity are paid before or within five years after
         certification <br/>
<a id="pl.143.18"></a><var>143.18</var>of the district and the revenues are spent to reimburse a party for payment of the
         costs, <br/>
<a id="pl.143.19"></a><var>143.19</var>including interest on unreimbursed costs; or<br/>
<a id="pl.143.20"></a><var>143.20</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
         <br/>
<a id="pl.143.21"></a><var>143.21</var>(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
         <br/>
<a id="pl.143.22"></a><var>143.22</var>2, paragraph (e).<br/>
<a id="pl.143.23"></a><var>143.23</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
         the <br/>
<a id="pl.143.24"></a><var>143.24</var>original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.143.25"></a><var>143.25</var>(c) For a redevelopment district or a renewal and renovation district certified after
         June <br/>
<a id="pl.143.26"></a><var>143.26</var>30, 2003, and before April 20, 2009, the five-year periods described in paragraph
         (a) are <br/>
<a id="pl.143.27"></a><var>143.27</var>extended to ten years after certification of the district. For a redevelopment district
         certified <br/>
<a id="pl.143.28"></a><var>143.28</var>after April 20, 2009, and before June 30, 2012, the five-year periods described in
         paragraph <br/>
<a id="pl.143.29"></a><var>143.29</var>(a) are extended to eight years after certification of the district. This extension
         is provided <br/>
<a id="pl.143.30"></a><var>143.30</var>primarily to accommodate delays in development activities due to unanticipated economic
         <br/>
<a id="pl.143.31"></a><var>143.31</var>circumstances.<br/>
<a id="pl.143.32"></a><var>143.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.144.1"></a><var>144.1</var>    Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:<br/>
<a id="pl.144.2"></a><var>144.2</var>    Subd. 7. <b>Interfund loans.</b> (a) The authority or municipality may advance or loan money <br/>
<a id="pl.144.3"></a><var>144.3</var>to finance expenditures under section 
         <statute_ref>469.176, subdivision 4</statute_ref>, from its general fund or any <br/>
<a id="pl.144.4"></a><var>144.4</var>other fund under which it has legal authority to do so.<br/>
<a id="pl.144.5"></a><var>144.5</var>    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         is <br/>
<a id="pl.144.6"></a><var>144.6</var>earliest, the loan or advance must be authorized, by resolution of the governing body or of <br/>
<a id="pl.144.7"></a><var>144.7</var>the authority, whichever has jurisdiction over the fund from which the advance or
         loan is <br/>
<a id="pl.144.8"></a><var>144.8</var>authorized, before money is transferred, advanced, or spent, whichever is earliest.<br/>
<a id="pl.144.9"></a><var>144.9</var>    (c) The resolution may generally grant to the municipality or the authority the power to <br/>
<a id="pl.144.10"></a><var>144.10</var>make interfund loans under one or more tax increment financing plans or for one or
         more <br/>
<a id="pl.144.11"></a><var>144.11</var>districts. The resolution may be adopted before or after the adoption of the tax increment <br/>
<a id="pl.144.12"></a><var>144.12</var>financing plan or the creation of the tax increment financing district from which
         the advance <br/>
<a id="pl.144.13"></a><var>144.13</var>or loan is to be repaid.<br/>
<a id="pl.144.14"></a><var>144.14</var>    (d) The terms and conditions for repayment of the loan must be provided in writing and. <br/>
<a id="pl.144.15"></a><var>144.15</var>The written terms and conditions may be in any form, but must include, at a minimum, the <br/>
<a id="pl.144.16"></a><var>144.16</var>principal amount, the interest rate, and maximum term. Written terms may be modified or <br/>
<a id="pl.144.17"></a><var>144.17</var>amended in writing by the municipality or the authority before the latest decertification
         of <br/>
<a id="pl.144.18"></a><var>144.18</var>any tax increment financing district from which the interfund loan is to be repaid.
         The <br/>
<a id="pl.144.19"></a><var>144.19</var>maximum rate of interest permitted to be charged is limited to the greater of the
         rates <br/>
<a id="pl.144.20"></a><var>144.20</var>specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>as of the date the loan or advance is authorized, <br/>
<a id="pl.144.21"></a><var>144.21</var>unless the written agreement states that the maximum interest rate will fluctuate
         as the <br/>
<a id="pl.144.22"></a><var>144.22</var>interest rates specified under section 
         <statute_ref>270C.40</statute_ref> or 
         <statute_ref>549.09 </statute_ref>are from time to time adjusted. <br/>
<a id="pl.144.23"></a><var>144.23</var>Loans or advances may be structured as draw-down or line-of-credit obligations of
         the <br/>
<a id="pl.144.24"></a><var>144.24</var>lending fund.<br/>
<a id="pl.144.25"></a><var>144.25</var>    (e) The authority shall report in the annual report submitted pursuant to section
         469.175, <br/>
<a id="pl.144.26"></a><var>144.26</var>subdivision 6:<br/>
<a id="pl.144.27"></a><var>144.27</var>    (1) the amount of any interfund loan or advance made in a calendar year; and<br/>
<a id="pl.144.28"></a><var>144.28</var>    (2) any amendment of an interfund loan or advance made in a calendar year.<br/>
<a id="pl.144.29"></a><var>144.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.144.30"></a><var>144.30</var>applies to all districts, regardless of when the request for certification was made.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.145.1"></a><var>145.1</var>    Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:<br/>
<a id="pl.145.2"></a><var>145.2</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.145.3"></a><var>145.3</var>financing plan for a district, the rules under this section apply to a redevelopment
         district, <br/>
<a id="pl.145.4"></a><var>145.4</var>renewal and renovation district, economic development district, soil condition district, or <br/>
<a id="pl.145.5"></a><var>145.5</var>a soil deficiency district established by the city or a development authority of the
         city in the <br/>
<a id="pl.145.6"></a><var>145.6</var>project area.<br/>
<a id="pl.145.7"></a><var>145.7</var>    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
         <br/>
<a id="pl.145.8"></a><var>145.8</var>rules under this subdivision, the city must find by resolution that parcels consisting
         of at <br/>
<a id="pl.145.9"></a><var>145.9</var>least 80 percent of the acreage of the project area (excluding street and railroad
         right of <br/>
<a id="pl.145.10"></a><var>145.10</var>way) are characterized by one or more of the following conditions:<br/>
<a id="pl.145.11"></a><var>145.11</var>    (1) peat or other soils with geotechnical deficiencies that impair development of
         <br/>
<a id="pl.145.12"></a><var>145.12</var>residential or commercial buildings or infrastructure;<br/>
<a id="pl.145.13"></a><var>145.13</var>    (2) soils or terrain that requires substantial filling in order to permit the development
         of <br/>
<a id="pl.145.14"></a><var>145.14</var>commercial or residential buildings or infrastructure;<br/>
<a id="pl.145.15"></a><var>145.15</var>    (3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.145.16"></a><var>145.16</var>    (4) quarries or similar resource extraction sites;<br/>
<a id="pl.145.17"></a><var>145.17</var>    (5) floodway; and<br/>
<a id="pl.145.18"></a><var>145.18</var>    (6) substandard buildings within the meaning of Minnesota Statutes, section 
         <statute_ref>469.174, <br/>
<a id="pl.145.19"></a><var>145.19</var>subdivision 10
         </statute_ref>.<br/>
<a id="pl.145.20"></a><var>145.20</var>    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed
         to be <br/>
<a id="pl.145.21"></a><var>145.21</var>characterized by the relevant condition if at least 70 percent of the area of the
         parcel contains <br/>
<a id="pl.145.22"></a><var>145.22</var>the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
         deemed to <br/>
<a id="pl.145.23"></a><var>145.23</var>be characterized by substandard buildings if the buildings occupy at least 30 percent
         of the <br/>
<a id="pl.145.24"></a><var>145.24</var>area of the parcel.<br/>
<a id="pl.145.25"></a><var>145.25</var>    (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is <br/>
<a id="pl.145.26"></a><var>145.26</var>extended to nine years for any district. The five-year rule under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.145.27"></a><var>145.27</var>469.1763, subdivision 3
         </statute_ref>, is extended to ten years for any district, and section 
         <statute_ref>469.1763, <br/>
<a id="pl.145.28"></a><var>145.28</var>subdivision 4
         </statute_ref>, does not apply to any district.<br/>
<a id="pl.145.29"></a><var>145.29</var>    (e) Notwithstanding anything to the contrary in section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.145.30"></a><var>145.30</var>(a), not more than 80 percent of the total revenue derived from tax increments paid
         by <br/>
<a id="pl.145.31"></a><var>145.31</var>properties in any district (measured over the life of the district) may be expended
         on activities <br/>
<a id="pl.145.32"></a><var>145.32</var>outside the district but within the project area.<br/>
<a id="pl.146.1"></a><var>146.1</var>    (f) For a soil deficiency district:<br/>
<a id="pl.146.2"></a><var>146.2</var>    (1) increments may be collected through 20 years after the receipt by the authority
         of <br/>
<a id="pl.146.3"></a><var>146.3</var>the first increment from the district; and<br/>
<a id="pl.146.4"></a><var>146.4</var>    (2) except as otherwise provided in this subdivision, increments may be used only
         to:<br/>
<a id="pl.146.5"></a><var>146.5</var>    (i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.146.6"></a><var>146.6</var>    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional <br/>
<a id="pl.146.7"></a><var>146.7</var>cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.146.8"></a><var>146.8</var>    (iii) pay for the administrative expenses of the authority allocable to the district.<br/>
<a id="pl.146.9"></a><var>146.9</var>    (g) Increments spent for any infrastructure costs, whether inside a district or outside
         a <br/>
<a id="pl.146.10"></a><var>146.10</var>district but within the project area, are deemed to satisfy the requirements of paragraph
         (f) <br/>
<a id="pl.146.11"></a><var>146.11</var>and Minnesota Statutes, section 
         <statute_ref>469.176, subdivisions 4b, 4c,</statute_ref> and 4j.<br/>
<a id="pl.146.12"></a><var>146.12</var>    (h) Increments from any district may not be used to pay the costs of landfill closure
         or <br/>
<a id="pl.146.13"></a><var>146.13</var>public infrastructure located on the following parcels within the plat known as Burnsville
         <br/>
<a id="pl.146.14"></a><var>146.14</var>Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.<br/>
<a id="pl.146.15"></a><var>146.15</var>    (i) The authority to approve tax increment financing plans to establish tax increment
         <br/>
<a id="pl.146.16"></a><var>146.16</var>financing districts under this section expires on December 31, 2018 2020.<br/>
<a id="pl.146.17"></a><var>146.17</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.146.18"></a><var>146.18</var>of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
         section <br/>
<a id="pl.146.19"></a><var>146.19</var>645.021.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.146.20"></a><var>146.20</var>    Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter <br/>
<a id="pl.146.21"></a><var>146.21</var>382, section 84, is amended to read:<br/>
<a id="pl.146.22"></a><var>146.22</var>    Sec. 17. <b>SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT </b><br/>
<a id="pl.146.23"></a><var>146.23</var><b>FINANCING DISTRICT; SPECIAL RULES.</b><br/>
<a id="pl.146.24"></a><var>146.24</var>(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
         <br/>
<a id="pl.146.25"></a><var>146.25</var>the governing body of the city of Duluth approves the plan for the tax increment financing
         <br/>
<a id="pl.146.26"></a><var>146.26</var>district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
         <br/>
<a id="pl.146.27"></a><var>146.27</var>010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; <br/>
<a id="pl.146.28"></a><var>146.28</var>010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; <br/>
<a id="pl.146.29"></a><var>146.29</var>010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  010-2746-01250; <br/>
<a id="pl.146.30"></a><var>146.30</var>010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; <br/>
<a id="pl.146.31"></a><var>146.31</var>010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; <br/>
<a id="pl.146.32"></a><var>146.32</var>010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; <br/>
<a id="pl.147.1"></a><var>147.1</var>010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; <br/>
<a id="pl.147.2"></a><var>147.2</var>010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
         <br/>
<a id="pl.147.3"></a><var>147.3</var>Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that activities must be undertaken within a five-year <br/>
<a id="pl.147.4"></a><var>147.4</var>period from the date of certification of the tax increment financing district, must
         be <br/>
<a id="pl.147.5"></a><var>147.5</var>considered to be met if the activities are undertaken within five years after the
         date all <br/>
<a id="pl.147.6"></a><var>147.6</var>qualifying parcels are delisted from the Federal Superfund list.<br/>
<a id="pl.147.7"></a><var>147.7</var>(b) The requirements of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 4</statute_ref>, beginning <br/>
<a id="pl.147.8"></a><var>147.8</var>in the sixth year following certification of the district requirement, will begin
         in the sixth <br/>
<a id="pl.147.9"></a><var>147.9</var>year following the date all qualifying parcels are delisted from the Federal Superfund
         list.<br/>
<a id="pl.147.10"></a><var>147.10</var>(c) The action required under Minnesota Statutes, section 
         <statute_ref>469.176</statute_ref>, subdivision 6, are <br/>
<a id="pl.147.11"></a><var>147.11</var>satisfied if the action is commenced within four years after the date all qualifying
         parcels <br/>
<a id="pl.147.12"></a><var>147.12</var>are delisted from the Federal Superfund list and evidence of the action required is
         submitted <br/>
<a id="pl.147.13"></a><var>147.13</var>to the county auditor by February 1 of the fifth year following the year in which
         all qualifying <br/>
<a id="pl.147.14"></a><var>147.14</var>parcels are delisted from the Federal Superfund list.<br/>
<a id="pl.147.15"></a><var>147.15</var>(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
         <br/>
<a id="pl.147.16"></a><var>147.16</var>listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
         of the <br/>
<a id="pl.147.17"></a><var>147.17</var>USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the <br/>
<a id="pl.147.18"></a><var>147.18</var>tax increment financing district.<br/>
<a id="pl.147.19"></a><var>147.19</var>(e) In addition to the reporting requirements of Minnesota Statutes, section 
         <statute_ref>469.175, <br/>
<a id="pl.147.20"></a><var>147.20</var>subdivision 5
         </statute_ref>, the Seaway Port Authority of Duluth shall report the status of all parcels <br/>
<a id="pl.147.21"></a><var>147.21</var>listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund <br/>
<a id="pl.147.22"></a><var>147.22</var>Site (USEPA OU 02). The status report must show the parcel numbers, the listed or
         delisted <br/>
<a id="pl.147.23"></a><var>147.23</var>status, and if delisted, the delisting date.<br/>
<a id="pl.147.24"></a><var>147.24</var>(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
         <br/>
<a id="pl.147.25"></a><var>147.25</var>law to the contrary, the Seaway Port Authority of Duluth may establish an interfund
         loan <br/>
<a id="pl.147.26"></a><var>147.26</var>program before approval of the tax increment financing plan for or the establishment
         of the <br/>
<a id="pl.147.27"></a><var>147.27</var>district authorized by this section. The authority may make loans under this program.
         The <br/>
<a id="pl.147.28"></a><var>147.28</var>proceeds of the loans may be used for any permitted use of increments under this law
         or <br/>
<a id="pl.147.29"></a><var>147.29</var>Minnesota Statutes, section  469.176, for the district and may be repaid with increments
         <br/>
<a id="pl.147.30"></a><var>147.30</var>from the district established under this section. This paragraph applies to any action
         <br/>
<a id="pl.147.31"></a><var>147.31</var>authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.<br/>
<a id="pl.147.32"></a><var>147.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of the <br/>
<a id="pl.147.33"></a><var>147.33</var>city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, <br/>
<a id="pl.147.34"></a><var>147.34</var>subdivision 3.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.148.1"></a><var>148.1</var>    Sec. 7. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:<br/>
<a id="pl.148.2"></a><var>148.2</var>    Subdivision 1. <b>Authority to create districts.</b> (a) The governing body of the city of <br/>
<a id="pl.148.3"></a><var>148.3</var>Edina or its development authority may establish one or more tax increment financing
         <br/>
<a id="pl.148.4"></a><var>148.4</var>housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
         <br/>
<a id="pl.148.5"></a><var>148.5</var>exist on March 31, 2014.<br/>
<a id="pl.148.6"></a><var>148.6</var>(b) The authority to request certification of districts under this section expires
         on June <br/>
<a id="pl.148.7"></a><var>148.7</var>30, 2017 December 31, 2019.<br/>
<a id="pl.148.8"></a><var>148.8</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing body <br/>
<a id="pl.148.9"></a><var>148.9</var>of the city of Edina with the requirements of Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.148.10"></a><var>148.10</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.148.11"></a><var>148.11</var>    Sec. 8. Laws 2014, chapter 308, article 6, section 9, is amended to read:<br/>
<a id="pl.148.12"></a><var>148.12</var>    Sec. 9. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.148.13"></a><var>148.13</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms have <br/>
<a id="pl.148.14"></a><var>148.14</var>the meanings given them.<br/>
<a id="pl.148.15"></a><var>148.15</var>(b) "City" means the city of Maple Grove.<br/>
<a id="pl.148.16"></a><var>148.16</var>(c) "Project area" means all or a portion of the area in the city commencing at a point <br/>
<a id="pl.148.17"></a><var>148.17</var>130 feet East and 120 feet North of the southwest corner of the Southeast Quarter
         of Section <br/>
<a id="pl.148.18"></a><var>148.18</var>23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
         <br/>
<a id="pl.148.19"></a><var>148.19</var>line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
         <br/>
<a id="pl.148.20"></a><var>148.20</var>Lane to a point on the west line of the east one-half of the Southeast Quarter of
         section 23, <br/>
<a id="pl.148.21"></a><var>148.21</var>thence south along said west line a distance of 1,200 feet; thence easterly to the
         east line of <br/>
<a id="pl.148.22"></a><var>148.22</var>Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
         <br/>
<a id="pl.148.23"></a><var>148.23</var>East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West
         a distance <br/>
<a id="pl.148.24"></a><var>148.24</var>of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st
         Avenue <br/>
<a id="pl.148.25"></a><var>148.25</var>North, 650 feet westerly measured at right angles, from the east line of the Northwest
         Quarter <br/>
<a id="pl.148.26"></a><var>148.26</var>of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to
         the west <br/>
<a id="pl.148.27"></a><var>148.27</var>line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North
         55 <br/>
<a id="pl.148.28"></a><var>148.28</var>degrees West to the south line of the Northwest Quarter of the Northwest Quarter of
         Section <br/>
<a id="pl.148.29"></a><var>148.29</var>24; thence West along said south line to the east right-of-way line of Zachary Lane;
         thence <br/>
<a id="pl.148.30"></a><var>148.30</var>North along the east right-of-way line of Zachary Lane to the southwest corner of
         Lot 1, <br/>
<a id="pl.148.31"></a><var>148.31</var>Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line
         of said <br/>
<a id="pl.148.32"></a><var>148.32</var>Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
         thence <br/>
<a id="pl.148.33"></a><var>148.33</var>South along the east line of said Outlot A and its southerly extension to the south
         right-of-way <br/>
<a id="pl.149.1"></a><var>149.1</var>line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
         <br/>
<a id="pl.149.2"></a><var>149.2</var>line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter
         of <br/>
<a id="pl.149.3"></a><var>149.3</var>Section 24; thence South along said east line to the north line of the South Half
         of the <br/>
<a id="pl.149.4"></a><var>149.4</var>Northeast Quarter of Section 24; thence East along said north line to the westerly
         right-of-way <br/>
<a id="pl.149.5"></a><var>149.5</var>line of Jefferson Highway North; thence southerly along the westerly right-of-way
         line of <br/>
<a id="pl.149.6"></a><var>149.6</var>Jefferson Highway to the centerline of CSAH 130; thence continuing South along the
         west <br/>
<a id="pl.149.7"></a><var>149.7</var>right-of-way line of Pilgrim Lane North to the westerly extension of the north line
         of Outlot <br/>
<a id="pl.149.8"></a><var>149.8</var>A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park
         North <br/>
<a id="pl.149.9"></a><var>149.9</var>Fourth Addition to the northeast corner of said Outlot A; thence southerly along the
         east <br/>
<a id="pl.149.10"></a><var>149.10</var>line of said Outlot A to the southeast corner of said Outlot A; thence easterly along
         the south <br/>
<a id="pl.149.11"></a><var>149.11</var>line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line
         of State <br/>
<a id="pl.149.12"></a><var>149.12</var>Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
         <br/>
<a id="pl.149.13"></a><var>149.13</var>westerly right-of-way line of State Highway 169 and the northerly right-of-way line
         of <br/>
<a id="pl.149.14"></a><var>149.14</var>Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
         <br/>
<a id="pl.149.15"></a><var>149.15</var>line of Zachary Lane North; thence northerly along the easterly right-of-way line
         of Zachary <br/>
<a id="pl.149.16"></a><var>149.16</var>Lane North and its northerly extension to the north right-of-way line of CSAH 130;
         thence <br/>
<a id="pl.149.17"></a><var>149.17</var>westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
         <br/>
<a id="pl.149.18"></a><var>149.18</var>and there terminating, provided that the project area includes the rights-of-way for
         all present <br/>
<a id="pl.149.19"></a><var>149.19</var>and future highway interchanges abutting the area described in this paragraph, and may <br/>
<a id="pl.149.20"></a><var>149.20</var>include any additional property necessary to cause the property included in the tax
         increment <br/>
<a id="pl.149.21"></a><var>149.21</var>financing district to consist of complete parcels.<br/>
<a id="pl.149.22"></a><var>149.22</var>(d) "Soil deficiency district" means a type of tax increment financing district consisting
         <br/>
<a id="pl.149.23"></a><var>149.23</var>of a portion of the project area in which the city finds by resolution that the following
         <br/>
<a id="pl.149.24"></a><var>149.24</var>conditions exist:<br/>
<a id="pl.149.25"></a><var>149.25</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage
         in <br/>
<a id="pl.149.26"></a><var>149.26</var>the district require substantial filling, grading, or other physical preparation for
         use; and<br/>
<a id="pl.149.27"></a><var>149.27</var>(2) the estimated cost of the physical preparation under clause (1), but excluding
         costs <br/>
<a id="pl.149.28"></a><var>149.28</var>directly related to roads as defined in Minnesota Statutes, section 
         <statute_ref>160.01</statute_ref>, and local <br/>
<a id="pl.149.29"></a><var>149.29</var>improvements as described in Minnesota Statutes, sections 
         <statute_ref>429.021, subdivision 1</statute_ref>, clauses <br/>
<a id="pl.149.30"></a><var>149.30</var>(1) to (7), (11), and (12), and 
         <statute_ref>430.01</statute_ref>, exceeds the fair market value of the land before <br/>
<a id="pl.149.31"></a><var>149.31</var>completion of the preparation.<br/>
<a id="pl.149.32"></a><var>149.32</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.149.33"></a><var>149.33</var>financing plan for a district, the rules under this section apply to a redevelopment
         district, <br/>
<a id="pl.149.34"></a><var>149.34</var>renewal and renovation district, soil condition district, or soil deficiency district
         established <br/>
<a id="pl.149.35"></a><var>149.35</var>by the city or a development authority of the city in the project area.<br/>
<a id="pl.150.1"></a><var>150.1</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special
         <br/>
<a id="pl.150.2"></a><var>150.2</var>rules under this subdivision, the city must find by resolution that parcels consisting
         of at <br/>
<a id="pl.150.3"></a><var>150.3</var>least 80 percent of the acreage of the project area, excluding street and railroad
         rights-of-way, <br/>
<a id="pl.150.4"></a><var>150.4</var>are characterized by one or more of the following conditions:<br/>
<a id="pl.150.5"></a><var>150.5</var>(1) peat or other soils with geotechnical deficiencies that impair development of
         <br/>
<a id="pl.150.6"></a><var>150.6</var>commercial buildings or infrastructure;<br/>
<a id="pl.150.7"></a><var>150.7</var>(2) soils or terrain that require substantial filling in order to permit the development
         of <br/>
<a id="pl.150.8"></a><var>150.8</var>commercial buildings or infrastructure;<br/>
<a id="pl.150.9"></a><var>150.9</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.150.10"></a><var>150.10</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.150.11"></a><var>150.11</var>(5) floodway; and<br/>
<a id="pl.150.12"></a><var>150.12</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section 
         <statute_ref>469.174, <br/>
<a id="pl.150.13"></a><var>150.13</var>subdivision 10
         </statute_ref>.<br/>
<a id="pl.150.14"></a><var>150.14</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized
         by the <br/>
<a id="pl.150.15"></a><var>150.15</var>relevant condition if at least 70 percent of the area of the parcel contains the relevant
         <br/>
<a id="pl.150.16"></a><var>150.16</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized
         by <br/>
<a id="pl.150.17"></a><var>150.17</var>substandard buildings if substandard buildings occupy at least 30 percent of the area
         of the <br/>
<a id="pl.150.18"></a><var>150.18</var>parcel.<br/>
<a id="pl.150.19"></a><var>150.19</var>(d) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, is <br/>
<a id="pl.150.20"></a><var>150.20</var>extended to eight years for any district, and Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision <br/>
<a id="pl.150.21"></a><var>150.21</var>4
         </statute_ref>, does not apply to any district.<br/>
<a id="pl.150.22"></a><var>150.22</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 
         <statute_ref>469.1763, <br/>
<a id="pl.150.23"></a><var>150.23</var>subdivision 2
         </statute_ref>, paragraph (a), not more than 40 percent of the total revenue derived from tax <br/>
<a id="pl.150.24"></a><var>150.24</var>increments paid by properties in any district, measured over the life of the district,
         may be <br/>
<a id="pl.150.25"></a><var>150.25</var>expended on activities outside the district but within the project area.<br/>
<a id="pl.150.26"></a><var>150.26</var>(f) For a soil deficiency district:<br/>
<a id="pl.150.27"></a><var>150.27</var>(1) increments may be collected through 20 years after the receipt by the authority
         of <br/>
<a id="pl.150.28"></a><var>150.28</var>the first increment from the district;<br/>
<a id="pl.150.29"></a><var>150.29</var>(2) increments may be used only to:<br/>
<a id="pl.150.30"></a><var>150.30</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.151.1"></a><var>151.1</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional <br/>
<a id="pl.151.2"></a><var>151.2</var>cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.151.3"></a><var>151.3</var>(iii) pay for the administrative expenses of the authority allocable to the district;
         and<br/>
<a id="pl.151.4"></a><var>151.4</var>(3) any parcel acquired with increments from the district must be sold at no less
         than <br/>
<a id="pl.151.5"></a><var>151.5</var>their fair market value.<br/>
<a id="pl.151.6"></a><var>151.6</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside
         a <br/>
<a id="pl.151.7"></a><var>151.7</var>district but within the project area, are deemed to satisfy the requirements of Minnesota
         <br/>
<a id="pl.151.8"></a><var>151.8</var>Statutes, section 
         <statute_ref>469.176, subdivision 4j</statute_ref>.<br/>
<a id="pl.151.9"></a><var>151.9</var>(h) The authority to approve tax increment financing plans to establish tax increment
         <br/>
<a id="pl.151.10"></a><var>151.10</var>financing districts under this section expires June 30, 2020.<br/>
<a id="pl.151.11"></a><var>151.11</var>(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
         <br/>
<a id="pl.151.12"></a><var>151.12</var>increments from a soil deficiency district to acquire parcels and for other infrastructure
         costs <br/>
<a id="pl.151.13"></a><var>151.13</var>either inside or outside of the district, but within the project area, if the acquisition
         or <br/>
<a id="pl.151.14"></a><var>151.14</var>infrastructure is for a qualified development. For purposes of this paragraph, a development
         <br/>
<a id="pl.151.15"></a><var>151.15</var>is a qualified development only if all of the following requirements are satisfied:<br/>
<a id="pl.151.16"></a><var>151.16</var>(1) the city finds, by resolution, that the land acquisition and infrastructure are
         undertaken <br/>
<a id="pl.151.17"></a><var>151.17</var>primarily to serve the development;<br/>
<a id="pl.151.18"></a><var>151.18</var>(2) the city has a binding, written commitment and adequate financial assurances from
         <br/>
<a id="pl.151.19"></a><var>151.19</var>the developer that the development will be constructed; and<br/>
<a id="pl.151.20"></a><var>151.20</var>(3) the development does not consist of retail trade or housing improvements.<br/>
<a id="pl.151.21"></a><var>151.21</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.151.22"></a><var>151.22</var>of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
         <br/>
<a id="pl.151.23"></a><var>151.23</var>section 645.021.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.151.24"></a><var>151.24</var>    Sec. 9. <b>CITY OF ANOKA; TAX INCREMENT FINANCING; FIVE-YEAR RULE </b><br/>
<a id="pl.151.25"></a><var>151.25</var><b>EXTENSION.</b><br/>
<a id="pl.151.26"></a><var>151.26</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the <br/>
<a id="pl.151.27"></a><var>151.27</var>city of Anoka's Greens of Anoka redevelopment tax increment financing district is
         deemed <br/>
<a id="pl.151.28"></a><var>151.28</var>to be certified on June 29, 2012, rather than its actual certification date of July
         2, 2012, and <br/>
<a id="pl.151.29"></a><var>151.29</var>the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply
         as if <br/>
<a id="pl.151.30"></a><var>151.30</var>the district were certified on that date.<br/>
<a id="pl.152.1"></a><var>152.1</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.152.2"></a><var>152.2</var>of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
         <br/>
<a id="pl.152.3"></a><var>152.3</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.152.4"></a><var>152.4</var>    Sec. 10. <b>CITY OF COON RAPIDS; TAX INCREMENT FINANCING; EXTENSION </b><br/>
<a id="pl.152.5"></a><var>152.5</var><b>OF DISTRICT.</b><br/>
<a id="pl.152.6"></a><var>152.6</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         1b, <br/>
<a id="pl.152.7"></a><var>152.7</var>or any other law to the contrary, the city of Coon Rapids may collect tax increment
         from <br/>
<a id="pl.152.8"></a><var>152.8</var>District 6-1 Port Riverwalk through December 31, 2038.<br/>
<a id="pl.152.9"></a><var>152.9</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing bodies <br/>
<a id="pl.152.10"></a><var>152.10</var>of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
         <br/>
<a id="pl.152.11"></a><var>152.11</var>the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         <br/>
<a id="pl.152.12"></a><var>152.12</var>subdivision 3.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.152.13"></a><var>152.13</var>    Sec. 11. <b>CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING; </b><br/>
<a id="pl.152.14"></a><var>152.14</var><b>FIVE-YEAR RULE EXTENSION.</b><br/>
<a id="pl.152.15"></a><var>152.15</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         <br/>
<a id="pl.152.16"></a><var>152.16</var>must be undertaken within a five-year period from the date of certification of a tax
         increment <br/>
<a id="pl.152.17"></a><var>152.17</var>financing district, is considered to be met for Tax Increment Financing District No.
         1-12 <br/>
<a id="pl.152.18"></a><var>152.18</var>(Gateway North), administered by the Cottage Grove Economic Development Authority,
         <br/>
<a id="pl.152.19"></a><var>152.19</var>if the activities are undertaken prior to January 1, 2017.<br/>
<a id="pl.152.20"></a><var>152.20</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the chief clerical <br/>
<a id="pl.152.21"></a><var>152.21</var>officer of the governing body of the city of Cottage Grove with the requirements of
         Minnesota <br/>
<a id="pl.152.22"></a><var>152.22</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.152.23"></a><var>152.23</var>    Sec. 12. <b>CITY OF EDINA; TAX INCREMENT FINANCING; APPROVAL OF 2014 </b><br/>
<a id="pl.152.24"></a><var>152.24</var><b>SPECIAL LAW.</b><br/>
<a id="pl.152.25"></a><var>152.25</var>Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
         3, <br/>
<a id="pl.152.26"></a><var>152.26</var>the chief clerical officer of the city of Edina must file with the secretary of state
         certificate <br/>
<a id="pl.152.27"></a><var>152.27</var>of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016,
         and, if <br/>
<a id="pl.152.28"></a><var>152.28</var>the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.152.29"></a><var>152.29</var>subdivision 3, are otherwise complied with, the special law is deemed approved, and
         all <br/>
<a id="pl.152.30"></a><var>152.30</var>actions taken by the city before the effective date of this section in reliance on
         Laws 2014, <br/>
<a id="pl.152.31"></a><var>152.31</var>chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308,
         article <br/>
<a id="pl.152.32"></a><var>152.32</var>6, section 8, and this act.<br/>
<a id="pl.153.1"></a><var>153.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment without <br/>
<a id="pl.153.2"></a><var>153.2</var>local approval as an amendment to the provisions of Laws 2014, chapter 308, article
         6, <br/>
<a id="pl.153.3"></a><var>153.3</var>section 8.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.153.4"></a><var>153.4</var>    Sec. 13. <b>CITY OF MOORHEAD; TAX INCREMENT FINANCING; FIVE-YEAR </b><br/>
<a id="pl.153.5"></a><var>153.5</var><b>RULE EXTENSION.</b><br/>
<a id="pl.153.6"></a><var>153.6</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the <br/>
<a id="pl.153.7"></a><var>153.7</var>city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment TIF district
         is <br/>
<a id="pl.153.8"></a><var>153.8</var>deemed to be certified on June 29, 2012, rather than its actual certification date
         of July 12, <br/>
<a id="pl.153.9"></a><var>153.9</var>2012, and Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
         the district <br/>
<a id="pl.153.10"></a><var>153.10</var>were certified on that date.<br/>
<a id="pl.153.11"></a><var>153.11</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.153.12"></a><var>153.12</var>of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
         <br/>
<a id="pl.153.13"></a><var>153.13</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.153.14"></a><var>153.14</var>    Sec. 14. <b>CITY OF RICHFIELD; TAX INCREMENT FINANCING; EXTENSION </b><br/>
<a id="pl.153.15"></a><var>153.15</var><b>OF DISTRICT.</b><br/>
<a id="pl.153.16"></a><var>153.16</var>Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         law <br/>
<a id="pl.153.17"></a><var>153.17</var>to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in and <br/>
<a id="pl.153.18"></a><var>153.18</var>for the city of Richfield may elect to extend the duration limit of the redevelopment
         tax <br/>
<a id="pl.153.19"></a><var>153.19</var>increment financing district known as the Cedar Avenue Tax Increment Financing District
         <br/>
<a id="pl.153.20"></a><var>153.20</var>established by Laws 2005, chapter 152, article 2, section 25, by ten years.<br/>
<a id="pl.153.21"></a><var>153.21</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city of Richfield, <br/>
<a id="pl.153.22"></a><var>153.22</var>Hennepin County, and Independent School District No. 280 with the requirements of
         <br/>
<a id="pl.153.23"></a><var>153.23</var>Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2
         and 3.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.153.24"></a><var>153.24</var>    Sec. 15. <b>CITY OF RICHFIELD; TAX INCREMENT FINANCING; FIVE-YEAR </b><br/>
<a id="pl.153.25"></a><var>153.25</var><b>RULE EXTENSION.</b><br/>
<a id="pl.153.26"></a><var>153.26</var>The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         <br/>
<a id="pl.153.27"></a><var>153.27</var>must be undertaken within a five-year period from the date of certification of a tax
         increment <br/>
<a id="pl.153.28"></a><var>153.28</var>financing district, are considered to be met for the Lyndale Gardens Tax Increment
         Financing <br/>
<a id="pl.153.29"></a><var>153.29</var>District established by the city of Richfield and the housing and redevelopment authority
         <br/>
<a id="pl.153.30"></a><var>153.30</var>in and for the city of Richfield if the activities are undertaken within seven years
         from the <br/>
<a id="pl.153.31"></a><var>153.31</var>date of certification.<br/>
<a id="pl.154.1"></a><var>154.1</var><b>EFFECTIVE DATE.</b>This section is effective upon the city of Richfield's compliance <br/>
<a id="pl.154.2"></a><var>154.2</var>with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
         645.021, <br/>
<a id="pl.154.3"></a><var>154.3</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.154.4"></a><var>154.4</var>    Sec. 16. <b>CITY OF ST. LOUIS PARK; TAX INCREMENT FINANCING; POOLING </b><br/>
<a id="pl.154.5"></a><var>154.5</var><b>PERCENTAGE INCREASE.</b><br/>
<a id="pl.154.6"></a><var>154.6</var>For purposes of the Elmwood Village Tax Increment Financing District in the city of
         <br/>
<a id="pl.154.7"></a><var>154.7</var>St. Louis Park, including the duration extension authorized by Laws 2009, chapter
         88, article <br/>
<a id="pl.154.8"></a><var>154.8</var>5, section 19, the permitted percentage of increments that may be expended on activities
         <br/>
<a id="pl.154.9"></a><var>154.9</var>outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is
         increased <br/>
<a id="pl.154.10"></a><var>154.10</var>to 30 percent for the district.<br/>
<a id="pl.154.11"></a><var>154.11</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing body <br/>
<a id="pl.154.12"></a><var>154.12</var>of the city of St. Louis Park with the requirements of Minnesota Statutes, section
         645.021, <br/>
<a id="pl.154.13"></a><var>154.13</var>subdivision 3.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.154.14"></a><var>154.14</var>    Sec. 17. <b>CITY OF ST. PAUL; TAX INCREMENT FINANCING; FORD SITE </b><br/>
<a id="pl.154.15"></a><var>154.15</var><b>REDEVELOPMENT.</b><br/>
<a id="pl.154.16"></a><var>154.16</var>(a) For purposes of computing the duration limits under Minnesota Statutes, section
         <br/>
<a id="pl.154.17"></a><var>154.17</var>469.176, subdivision 1b, the housing and redevelopment authority of the city of St.
         Paul <br/>
<a id="pl.154.18"></a><var>154.18</var>may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
         <br/>
<a id="pl.154.19"></a><var>154.19</var>District. This authority is limited to the first four years of increment or increments
         derived <br/>
<a id="pl.154.20"></a><var>154.20</var>from taxes payable in 2023, whichever occurs first.<br/>
<a id="pl.154.21"></a><var>154.21</var>(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
         of <br/>
<a id="pl.154.22"></a><var>154.22</var>applying any limits based on when the district was certified under Minnesota Statutes,
         <br/>
<a id="pl.154.23"></a><var>154.23</var>section 469.176, subdivision 6, or 469.1763, the date of certification for the district
         is deemed <br/>
<a id="pl.154.24"></a><var>154.24</var>to be January 2 of the property tax assessment year for which increment is first received
         <br/>
<a id="pl.154.25"></a><var>154.25</var>under the waiver.<br/>
<a id="pl.154.26"></a><var>154.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017, without local approval <br/>
<a id="pl.154.27"></a><var>154.27</var>under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br/>
<br/>
<a id="bill.6.18.0"></a><a id="pl.154.28"></a><var>154.28</var>    Sec. 18. <b>WASHINGTON COUNTY; TAX INCREMENT FINANCING; SPECIAL </b><br/>
<a id="pl.154.29"></a><var>154.29</var><b>RULES AUTHORIZATION.</b><br/>
<a id="pl.154.30"></a><var>154.30</var>(a) If Washington County elects, upon the adoption of a tax increment financing plan
         <br/>
<a id="pl.154.31"></a><var>154.31</var>for a district, the rules under this section apply to one or more tax increment financing
         <br/>
<a id="pl.155.1"></a><var>155.1</var>districts established by the county or the community development agency of the county.
         <br/>
<a id="pl.155.2"></a><var>155.2</var>The area within which the tax increment districts may be created is located in the
         city of <br/>
<a id="pl.155.3"></a><var>155.3</var>Newport and is south of marked Interstate Highway 494, north of 15th Street extended
         to <br/>
<a id="pl.155.4"></a><var>155.4</var>the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
         <br/>
<a id="pl.155.5"></a><var>155.5</var>61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock
         Crossing <br/>
<a id="pl.155.6"></a><var>155.6</var>Project Area" or "project area."<br/>
<a id="pl.155.7"></a><var>155.7</var>(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
         <br/>
<a id="pl.155.8"></a><var>155.8</var>section 469.174, subdivision 10, do not apply to the parcels identified by parcel
         identification <br/>
<a id="pl.155.9"></a><var>155.9</var>numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, <br/>
<a id="pl.155.10"></a><var>155.10</var>2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, <br/>
<a id="pl.155.11"></a><var>155.11</var>260282244024, and 2602822440023, which are deemed substandard for the purpose of <br/>
<a id="pl.155.12"></a><var>155.12</var>qualifying the district as a redevelopment district.<br/>
<a id="pl.155.13"></a><var>155.13</var>(c) Increments spent outside a district shall only be spent within the project area
         and on <br/>
<a id="pl.155.14"></a><var>155.14</var>costs described in Minnesota Statutes, section 469.176, subdivision 4j.<br/>
<a id="pl.155.15"></a><var>155.15</var>(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
         <br/>
<a id="pl.155.16"></a><var>155.16</var>subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived
         from tax <br/>
<a id="pl.155.17"></a><var>155.17</var>increments paid by properties in any district, measured over the life of the district,
         may be <br/>
<a id="pl.155.18"></a><var>155.18</var>expended on activities outside the district but within the project area. The five-year
         rule <br/>
<a id="pl.155.19"></a><var>155.19</var>under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit
         is nine <br/>
<a id="pl.155.20"></a><var>155.20</var>years.<br/>
<a id="pl.155.21"></a><var>155.21</var>(e) The authority to approve a tax increment financing plan and to establish a tax
         <br/>
<a id="pl.155.22"></a><var>155.22</var>increment financing district under this section expires December 31, 2027.<br/>
<a id="pl.155.23"></a><var>155.23</var><b>EFFECTIVE DATE.</b>This section is effective and shall retroactively include the <br/>
<a id="pl.155.24"></a><var>155.24</var>redevelopment district in the project area approved by Washington County on November
         <br/>
<a id="pl.155.25"></a><var>155.25</var>8, 2016, upon approval by the governing body of the city of Newport and Washington
         <br/>
<a id="pl.155.26"></a><var>155.26</var>County and upon compliance by the county with Minnesota Statutes, section 645.021,
         <br/>
<a id="pl.155.27"></a><var>155.27</var>subdivision 3.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.155.30"></a><var>155.30</var>    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.155.31"></a><var>155.31</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates of <br/>
<a id="pl.155.32"></a><var>155.32</var>indebtedness within the debt limits for a town purpose otherwise authorized by law.
         The <br/>
<a id="pl.155.33"></a><var>155.33</var>certificates shall be payable in not more than ten years and be issued on the terms
         and in <br/>
<a id="pl.156.1"></a><var>156.1</var>the manner as the board may determine, provided that notes issued for projects that eliminate <br/>
<a id="pl.156.2"></a><var>156.2</var>R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in
         not more <br/>
<a id="pl.156.3"></a><var>156.3</var>than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the <br/>
<a id="pl.156.4"></a><var>156.4</var>estimated market value of the town, they shall not be issued for at least ten days
         after <br/>
<a id="pl.156.5"></a><var>156.5</var>publication in a newspaper of general circulation in the town of the board's resolution
         <br/>
<a id="pl.156.6"></a><var>156.6</var>determining to issue them. If within that time, a petition asking for an election
         on the <br/>
<a id="pl.156.7"></a><var>156.7</var>proposition signed by voters equal to ten percent of the number of voters at the last
         regular <br/>
<a id="pl.156.8"></a><var>156.8</var>town election is filed with the clerk, the certificates shall not be issued until
         their issuance <br/>
<a id="pl.156.9"></a><var>156.9</var>has been approved by a majority of the votes cast on the question at a regular or
         special <br/>
<a id="pl.156.10"></a><var>156.10</var>election. A tax levy shall be made to pay the principal and interest on the certificates
         as in <br/>
<a id="pl.156.11"></a><var>156.11</var>the case of bonds.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.156.12"></a><var>156.12</var>    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:<br/>
<a id="pl.156.13"></a><var>156.13</var>    Subd. 2. <b>Equipment acquisition; capital notes.</b> The board may, by resolution and <br/>
<a id="pl.156.14"></a><var>156.14</var>without public referendum, issue capital notes within existing debt limits for the
         purpose <br/>
<a id="pl.156.15"></a><var>156.15</var>of purchasing ambulance and other medical equipment, road construction or maintenance
         <br/>
<a id="pl.156.16"></a><var>156.16</var>equipment, public safety equipment and other capital equipment having an expected
         useful <br/>
<a id="pl.156.17"></a><var>156.17</var>life at least equal to the term of the notes issued. The notes shall be payable in
         not more <br/>
<a id="pl.156.18"></a><var>156.18</var>than ten years and shall be issued on terms and in a manner as the board determines, provided <br/>
<a id="pl.156.19"></a><var>156.19</var>that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph <br/>
<a id="pl.156.20"></a><var>156.20</var>(b), clause (2), must be payable in not more than 20 years. The total principal amount of <br/>
<a id="pl.156.21"></a><var>156.21</var>the notes issued for any fiscal year shall not exceed one percent of the total annual
         budget <br/>
<a id="pl.156.22"></a><var>156.22</var>for that year and shall be issued solely for the purchases authorized in this subdivision.
         A <br/>
<a id="pl.156.23"></a><var>156.23</var>tax levy shall be made for the payment of the principal and interest on such notes
         as in the <br/>
<a id="pl.156.24"></a><var>156.24</var>case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
         <br/>
<a id="pl.156.25"></a><var>156.25</var>and software, whether bundled with machinery or equipment or unbundled. For purposes
         <br/>
<a id="pl.156.26"></a><var>156.26</var>of this subdivision, the term "medical equipment" includes computer hardware and software
         <br/>
<a id="pl.156.27"></a><var>156.27</var>and other intellectual property for use in medical diagnosis, medical procedures,
         research, <br/>
<a id="pl.156.28"></a><var>156.28</var>record keeping, billing, and other hospital applications, together with application
         development <br/>
<a id="pl.156.29"></a><var>156.29</var>services and training related to the use of the computer hardware and software and
         other <br/>
<a id="pl.156.30"></a><var>156.30</var>intellectual property, all without regard to their useful life. For purposes of determining
         the <br/>
<a id="pl.156.31"></a><var>156.31</var>amount of capital notes which the county may issue in any year, the budget of the
         county <br/>
<a id="pl.156.32"></a><var>156.32</var>and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under
         this <br/>
<a id="pl.156.33"></a><var>156.33</var>subdivision shall be in addition to obligations issuable under section 
         <statute_ref>373.01, subdivision <br/>
<a id="pl.156.34"></a><var>156.34</var>3
         </statute_ref>.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.157.1"></a><var>157.1</var>    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:<br/>
<a id="pl.157.2"></a><var>157.2</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.157.3"></a><var>157.3</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
         <br/>
<a id="pl.157.4"></a><var>157.4</var>city may, by resolution and without public referendum, issue capital notes subject
         to the <br/>
<a id="pl.157.5"></a><var>157.5</var>city debt limit to purchase capital equipment.<br/>
<a id="pl.157.6"></a><var>157.6</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.157.7"></a><var>157.7</var>    (1) public safety equipment, ambulance and other medical equipment, road construction
         <br/>
<a id="pl.157.8"></a><var>157.8</var>and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.157.9"></a><var>157.9</var>    (2) computer hardware and software, whether bundled with machinery or equipment or
         <br/>
<a id="pl.157.10"></a><var>157.10</var>unbundled, together with application development services and training related to
         the use <br/>
<a id="pl.157.11"></a><var>157.11</var>of the computer hardware and software.<br/>
<a id="pl.157.12"></a><var>157.12</var>    (c) The equipment or software must have an expected useful life at least as long as
         the <br/>
<a id="pl.157.13"></a><var>157.13</var>term of the notes.<br/>
<a id="pl.157.14"></a><var>157.14</var>    (d) The notes shall be payable in not more than ten years and be issued on terms and
         in <br/>
<a id="pl.157.15"></a><var>157.15</var>the manner the city determines, provided that notes issued for projects that eliminate R-22, <br/>
<a id="pl.157.16"></a><var>157.16</var>as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
         than <br/>
<a id="pl.157.17"></a><var>157.17</var>20 years. The total principal amount of the capital notes issued in a fiscal year shall not
         <br/>
<a id="pl.157.18"></a><var>157.18</var>exceed 0.03 percent of the estimated market value of taxable property in the city
         for that <br/>
<a id="pl.157.19"></a><var>157.19</var>year.<br/>
<a id="pl.157.20"></a><var>157.20</var>    (e) A tax levy shall be made for the payment of the principal and interest on the
         notes, <br/>
<a id="pl.157.21"></a><var>157.21</var>in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.157.22"></a><var>157.22</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds
         of the <br/>
<a id="pl.157.23"></a><var>157.23</var>governing body of the city.<br/>
<a id="pl.157.24"></a><var>157.24</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
         <br/>
<a id="pl.157.25"></a><var>157.25</var>city may also issue capital notes subject to its debt limit in the manner and subject
         to the <br/>
<a id="pl.157.26"></a><var>157.26</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.157.27"></a><var>157.27</var>    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:<br/>
<a id="pl.157.28"></a><var>157.28</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.157.29"></a><var>157.29</var>    (a) The council may issue certificates of indebtedness or capital notes subject to
         the city <br/>
<a id="pl.157.30"></a><var>157.30</var>debt limits to purchase capital equipment.<br/>
<a id="pl.157.31"></a><var>157.31</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.158.1"></a><var>158.1</var>    (1) public safety equipment, ambulance and other medical equipment, road construction
         <br/>
<a id="pl.158.2"></a><var>158.2</var>and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.158.3"></a><var>158.3</var>    (2) computer hardware and software, whether bundled with machinery or equipment or
         <br/>
<a id="pl.158.4"></a><var>158.4</var>unbundled, together with application development services and training related to
         the use <br/>
<a id="pl.158.5"></a><var>158.5</var>of the computer hardware or software.<br/>
<a id="pl.158.6"></a><var>158.6</var>    (c) The equipment or software must have an expected useful life at least as long as
         the <br/>
<a id="pl.158.7"></a><var>158.7</var>terms of the certificates or notes.<br/>
<a id="pl.158.8"></a><var>158.8</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall
         be <br/>
<a id="pl.158.9"></a><var>158.9</var>issued on such terms and in such manner as the council may determine, provided, however, <br/>
<a id="pl.158.10"></a><var>158.10</var>that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph <br/>
<a id="pl.158.11"></a><var>158.11</var>(b), clause (2), must be payable in not more than 20 years.<br/>
<a id="pl.158.12"></a><var>158.12</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         <br/>
<a id="pl.158.13"></a><var>158.13</var>exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they shall <br/>
<a id="pl.158.14"></a><var>158.14</var>not be issued for at least ten days after publication in the official newspaper of
         a council <br/>
<a id="pl.158.15"></a><var>158.15</var>resolution determining to issue them; and if before the end of that time, a petition
         asking <br/>
<a id="pl.158.16"></a><var>158.16</var>for an election on the proposition signed by voters equal to ten percent of the number
         of <br/>
<a id="pl.158.17"></a><var>158.17</var>voters at the last regular municipal election is filed with the clerk, such certificates
         or notes <br/>
<a id="pl.158.18"></a><var>158.18</var>shall not be issued until the proposition of their issuance has been approved by a
         majority <br/>
<a id="pl.158.19"></a><var>158.19</var>of the votes cast on the question at a regular or special election.<br/>
<a id="pl.158.20"></a><var>158.20</var>    (f) A tax levy shall be made for the payment of the principal and interest on such
         <br/>
<a id="pl.158.21"></a><var>158.21</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.158.22"></a><var>158.22</var>    Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:<br/>
<a id="pl.158.23"></a><var>158.23</var>    Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the general <br/>
<a id="pl.158.24"></a><var>158.24</var>obligation of the general jurisdiction governmental unit as additional security for
         bonds <br/>
<a id="pl.158.25"></a><var>158.25</var>payable from income or revenues of the project or the authority. The authority must
         find <br/>
<a id="pl.158.26"></a><var>158.26</var>that the pledged revenues will equal or exceed 110 percent of the principal and interest
         due <br/>
<a id="pl.158.27"></a><var>158.27</var>on the bonds for each year. The proceeds of the bonds must be used for a qualified
         housing <br/>
<a id="pl.158.28"></a><var>158.28</var>development project or projects. The obligations must be issued and sold in the manner
         and <br/>
<a id="pl.158.29"></a><var>158.29</var>following the procedures provided by chapter 475, except the obligations are not subject
         to <br/>
<a id="pl.158.30"></a><var>158.30</var>approval by the electors, and the maturities may extend to not more than 35 years
         for <br/>
<a id="pl.158.31"></a><var>158.31</var>obligations sold to finance housing for the elderly and 40 years for other obligations
         issued <br/>
<a id="pl.158.32"></a><var>158.32</var>under this subdivision. The authority is the municipality for purposes of chapter
         475.<br/>
<a id="pl.159.1"></a><var>159.1</var>    (b) The principal amount of the issue must be approved by the governing body of the
         <br/>
<a id="pl.159.2"></a><var>159.2</var>general jurisdiction governmental unit whose general obligation is pledged. Public
         hearings <br/>
<a id="pl.159.3"></a><var>159.3</var>must be held on issuance of the obligations by both the authority and the general
         jurisdiction <br/>
<a id="pl.159.4"></a><var>159.4</var>governmental unit. The hearings must be held at least 15 days, but not more than 120
         days, <br/>
<a id="pl.159.5"></a><var>159.5</var>before the sale of the obligations.<br/>
<a id="pl.159.6"></a><var>159.6</var>    (c) The maximum amount of general obligation bonds that may be issued and outstanding
         <br/>
<a id="pl.159.7"></a><var>159.7</var>under this section equals the greater of (1) one-half of one percent of the estimated
         market <br/>
<a id="pl.159.8"></a><var>159.8</var>value of the general jurisdiction governmental unit whose general obligation is pledged,
         or <br/>
<a id="pl.159.9"></a><var>159.9</var>(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, <br/>
<a id="pl.159.10"></a><var>159.10</var>the outstanding general obligation bonds of all cities in the county or counties issued
         under <br/>
<a id="pl.159.11"></a><var>159.11</var>this subdivision must be added in calculating the limit under clause (1).<br/>
<a id="pl.159.12"></a><var>159.12</var>    (d) "General jurisdiction governmental unit" means the city in which the housing <br/>
<a id="pl.159.13"></a><var>159.13</var>development project is located. In the case of a county or multicounty authority,
         the county <br/>
<a id="pl.159.14"></a><var>159.14</var>or counties may act as the general jurisdiction governmental unit. In the case of
         a multicounty <br/>
<a id="pl.159.15"></a><var>159.15</var>authority, the pledge of the general obligation is a pledge of a tax on the taxable
         property <br/>
<a id="pl.159.16"></a><var>159.16</var>in each of the counties.<br/>
<a id="pl.159.17"></a><var>159.17</var>    (e) "Qualified housing development project" means a housing development project <br/>
<a id="pl.159.18"></a><var>159.18</var>providing housing either for the elderly or for individuals and families with incomes
         not <br/>
<a id="pl.159.19"></a><var>159.19</var>greater than 80 percent of the median family income as estimated by the United States
         <br/>
<a id="pl.159.20"></a><var>159.20</var>Department of Housing and Urban Development for the standard metropolitan statistical
         <br/>
<a id="pl.159.21"></a><var>159.21</var>area or the nonmetropolitan county in which the project is located. The project must
         be <br/>
<a id="pl.159.22"></a><var>159.22</var>owned for the term of the bonds either by the authority or by a limited partnership
         or other <br/>
<a id="pl.159.23"></a><var>159.23</var>entity in which the authority or another entity under the sole control of the authority
         is the <br/>
<a id="pl.159.24"></a><var>159.24</var>sole general partner and the partnership or other entity must receive (1) an allocation
         from <br/>
<a id="pl.159.25"></a><var>159.25</var>the Department of Management and Budget or an entitlement issuer of tax-exempt bonding
         <br/>
<a id="pl.159.26"></a><var>159.26</var>authority for the project and a preliminary determination by the Minnesota Housing
         Finance <br/>
<a id="pl.159.27"></a><var>159.27</var>Agency or the applicable suballocator of tax credits that the project will qualify
         for four <br/>
<a id="pl.159.28"></a><var>159.28</var>percent low-income housing tax credits or (2) a reservation of nine percent low-income
         <br/>
<a id="pl.159.29"></a><var>159.29</var>housing tax credits from the Minnesota Housing Finance Agency or a suballocator of
         tax <br/>
<a id="pl.159.30"></a><var>159.30</var>credits for the project. A qualified housing development project may admit nonelderly
         <br/>
<a id="pl.159.31"></a><var>159.31</var>individuals and families with higher incomes if:<br/>
<a id="pl.159.32"></a><var>159.32</var>    (1) three years have passed since initial occupancy;<br/>
<a id="pl.160.1"></a><var>160.1</var>    (2) the authority finds the project is experiencing unanticipated vacancies resulting
         in <br/>
<a id="pl.160.2"></a><var>160.2</var>insufficient revenues, because of changes in population or other unforeseen circumstances
         <br/>
<a id="pl.160.3"></a><var>160.3</var>that occurred after the initial finding of adequate revenues; and<br/>
<a id="pl.160.4"></a><var>160.4</var>    (3) the authority finds a tax levy or payment from general assets of the general jurisdiction
         <br/>
<a id="pl.160.5"></a><var>160.5</var>governmental unit will be necessary to pay debt service on the bonds if higher income
         <br/>
<a id="pl.160.6"></a><var>160.6</var>individuals or families are not admitted.<br/>
<a id="pl.160.7"></a><var>160.7</var>    (f) The authority may issue bonds to refund bonds issued under this subdivision in
         <br/>
<a id="pl.160.8"></a><var>160.8</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br/>
<a id="pl.160.9"></a><var>160.9</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply
         to the <br/>
<a id="pl.160.10"></a><var>160.10</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
         after <br/>
<a id="pl.160.11"></a><var>160.11</var>July 1, 1992.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.160.12"></a><var>160.12</var>    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:<br/>
<a id="pl.160.13"></a><var>160.13</var>    Subdivision 1. <b>Establishment.</b> An economic development authority may create and <br/>
<a id="pl.160.14"></a><var>160.14</var>define the boundaries of economic development districts at any place or places within
         the <br/>
<a id="pl.160.15"></a><var>160.15</var>city, except that the district boundaries must be contiguous, and may use the powers
         granted <br/>
<a id="pl.160.16"></a><var>160.16</var>in sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref> to carry out its purposes. First the authority must hold a <br/>
<a id="pl.160.17"></a><var>160.17</var>public hearing on the matter. At least ten days before the hearing, the authority
         shall publish <br/>
<a id="pl.160.18"></a><var>160.18</var>notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority <br/>
<a id="pl.160.19"></a><var>160.19</var>shall find that an economic development district is proper and desirable to establish
         and <br/>
<a id="pl.160.20"></a><var>160.20</var>develop within the city.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.160.21"></a><var>160.21</var>    Sec. 7. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:<br/>
<a id="pl.160.22"></a><var>160.22</var>    Subd. 3b. <b>Street reconstruction and bituminous overlays.</b> (a) A municipality may, <br/>
<a id="pl.160.23"></a><var>160.23</var>without regard to the election requirement under subdivision 1, issue and sell obligations
         <br/>
<a id="pl.160.24"></a><var>160.24</var>for street reconstruction or bituminous overlays, if the following conditions are
         met:<br/>
<a id="pl.160.25"></a><var>160.25</var>    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
         plan <br/>
<a id="pl.160.26"></a><var>160.26</var>that describes the street reconstruction or overlay to be financed, the estimated
         costs, and <br/>
<a id="pl.160.27"></a><var>160.27</var>any planned reconstruction or overlay of other streets in the municipality over the
         next five <br/>
<a id="pl.160.28"></a><var>160.28</var>years, and the plan and issuance of the obligations has been approved by a vote of
         all a <br/>
<a id="pl.160.29"></a><var>160.29</var>majority of the members of the governing body present at the meeting following a public <br/>
<a id="pl.160.30"></a><var>160.30</var>hearing for which notice has been published in the official newspaper at least ten
         days but <br/>
<a id="pl.160.31"></a><var>160.31</var>not more than 28 days prior to the hearing; and<br/>
<a id="pl.161.1"></a><var>161.1</var>    (2) if a petition requesting a vote on the issuance is signed by voters equal to five
         percent <br/>
<a id="pl.161.2"></a><var>161.2</var>of the votes cast in the last municipal general election and is filed with the municipal
         clerk <br/>
<a id="pl.161.3"></a><var>161.3</var>within 30 days of the public hearing, the municipality may issue the bonds only after
         <br/>
<a id="pl.161.4"></a><var>161.4</var>obtaining the approval of a majority of the voters voting on the question of the issuance
         of <br/>
<a id="pl.161.5"></a><var>161.5</var>the obligations. If the municipality elects not to submit the question to the voters,
         the <br/>
<a id="pl.161.6"></a><var>161.6</var>municipality shall not propose the issuance of bonds under this section for the same
         purpose <br/>
<a id="pl.161.7"></a><var>161.7</var>and in the same amount for a period of 365 days from the date of receipt of the petition.
         If <br/>
<a id="pl.161.8"></a><var>161.8</var>the question of issuing the bonds is submitted and not approved by the voters, the
         provisions <br/>
<a id="pl.161.9"></a><var>161.9</var>of section 
         <statute_ref>475.58, subdivision 1a</statute_ref>, shall apply.<br/>
<a id="pl.161.10"></a><var>161.10</var>    (b) Obligations issued under this subdivision are subject to the debt limit of the
         <br/>
<a id="pl.161.11"></a><var>161.11</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br/>
<a id="pl.161.12"></a><var>161.12</var>    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
         <br/>
<a id="pl.161.13"></a><var>161.13</var>includes utility replacement and relocation and other activities incidental to the
         street <br/>
<a id="pl.161.14"></a><var>161.14</var>reconstruction, turn lanes and other improvements having a substantial public safety
         function, <br/>
<a id="pl.161.15"></a><var>161.15</var>realignments, other modifications to intersect with state and county roads, and the
         local <br/>
<a id="pl.161.16"></a><var>161.16</var>share of state and county road projects. For purposes of this subdivision, "street
         <br/>
<a id="pl.161.17"></a><var>161.17</var>reconstruction" includes expenditures for street reconstruction that have been incurred
         by <br/>
<a id="pl.161.18"></a><var>161.18</var>a municipality before approval of a street reconstruction plan, if such expenditures
         are <br/>
<a id="pl.161.19"></a><var>161.19</var>included in a street reconstruction plan approved on or before the date of the public
         hearing <br/>
<a id="pl.161.20"></a><var>161.20</var>under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.<br/>
<a id="pl.161.21"></a><var>161.21</var>    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
         <br/>
<a id="pl.161.22"></a><var>161.22</var>modifications, and the local share of state and county road projects, street reconstruction
         <br/>
<a id="pl.161.23"></a><var>161.23</var>and bituminous overlays does not include the portion of project cost allocable to
         widening <br/>
<a id="pl.161.24"></a><var>161.24</var>a street or adding curbs and gutters where none previously existed.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.161.25"></a><var>161.25</var>    Sec. 8. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:<br/>
<a id="pl.161.26"></a><var>161.26</var>    Subd. 2. <b>Requirements waived.</b> The requirements as to public sale shall not apply:<br/>
<a id="pl.161.27"></a><var>161.27</var>(1) to obligations issued under the provisions of a home rule charter or of a law
         <br/>
<a id="pl.161.28"></a><var>161.28</var>specifically authorizing a different method of sale, or authorizing them to be issued
         in such <br/>
<a id="pl.161.29"></a><var>161.29</var>manner or on such terms and conditions as the governing body may determine;<br/>
<a id="pl.161.30"></a><var>161.30</var>(2) to obligations sold by an issuer in an amount not exceeding the total sum of <br/>
<a id="pl.161.31"></a><var>161.31</var>$1,200,000 in any 12-month period;<br/>
<a id="pl.162.1"></a><var>162.1</var>(3) to obligations issued by a governing body other than a school board in anticipation
         <br/>
<a id="pl.162.2"></a><var>162.2</var>of the collection of taxes or other revenues appropriated for expenditure in a single
         year, if <br/>
<a id="pl.162.3"></a><var>162.3</var>sold in accordance with the most favorable of two or more proposals solicited privately;<br/>
<a id="pl.162.4"></a><var>162.4</var>(4) to obligations sold to any board, department, or agency of the United States of
         <br/>
<a id="pl.162.5"></a><var>162.5</var>America or of the state of Minnesota, in accordance with rules or regulations promulgated
         <br/>
<a id="pl.162.6"></a><var>162.6</var>by such board, department, or agency;<br/>
<a id="pl.162.7"></a><var>162.7</var>(5) to obligations issued to fund pension and retirement fund liabilities under section
         <br/>
<statute_ref><a id="pl.162.8"></a><var>162.8</var>475.52, subdivision 6
         </statute_ref>, obligations issued with tender options under section 
         <statute_ref>475.54, <br/>
<a id="pl.162.9"></a><var>162.9</var>subdivision 5a
         </statute_ref>, crossover refunding obligations referred to in section 
         <statute_ref>475.67, subdivision <br/>
<a id="pl.162.10"></a><var>162.10</var>13
         </statute_ref>, and any issue of obligations comprised in whole or in part of obligations bearing
         interest <br/>
<a id="pl.162.11"></a><var>162.11</var>at a rate or rates which vary periodically referred to in section 
         <statute_ref>475.56</statute_ref>;<br/>
<a id="pl.162.12"></a><var>162.12</var>(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
         <br/>
<a id="pl.162.13"></a><var>162.13</var>authorized by law, if the governing body of the municipality, on the advice of bond
         counsel <br/>
<a id="pl.162.14"></a><var>162.14</var>or special tax counsel, determines that interest on the obligations cannot be represented
         to <br/>
<a id="pl.162.15"></a><var>162.15</var>be excluded from gross income for purposes of federal income taxation;<br/>
<a id="pl.162.16"></a><var>162.16</var>(7) to obligations issued in the form of an installment purchase contract, lease purchase
         <br/>
<a id="pl.162.17"></a><var>162.17</var>agreement, or other similar agreement;<br/>
<a id="pl.162.18"></a><var>162.18</var>(8) to obligations sold under a bond reinvestment program; and<br/>
<a id="pl.162.19"></a><var>162.19</var>(9) if the municipality has retained an independent financial advisor municipal adviser, <br/>
<a id="pl.162.20"></a><var>162.20</var>obligations which the governing body determines shall be sold by private negotiation.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.162.23"></a><var>162.23</var>    Section 1. Minnesota Statutes 2016, section 287.08, is amended to read:<br/>
<a id="pl.162.24"></a><var>162.24</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br/>
<a id="pl.162.25"></a><var>162.25</var>    (a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of any <br/>
<a id="pl.162.26"></a><var>162.26</var>county in this state in which the real property or some part is located at or before
         the time <br/>
<a id="pl.162.27"></a><var>162.27</var>of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage
         and <br/>
<a id="pl.162.28"></a><var>162.28</var>the receipt is conclusive proof that the tax has been paid in the amount stated and
         authorizes <br/>
<a id="pl.162.29"></a><var>162.29</var>any county recorder or registrar of titles to record the mortgage. Its form, in substance,
         shall <br/>
<a id="pl.162.30"></a><var>162.30</var>be "registration tax hereon of ..................... dollars paid." If the mortgage
         is exempt from <br/>
<a id="pl.162.31"></a><var>162.31</var>taxation the endorsement shall, in substance, be "exempt from registration tax." In
         either <br/>
<a id="pl.162.32"></a><var>162.32</var>case the receipt must be signed by the treasurer. In case the treasurer is unable
         to determine <br/>
<a id="pl.163.1"></a><var>163.1</var>whether a claim of exemption should be allowed, the tax must be paid as in the case
         of a <br/>
<a id="pl.163.2"></a><var>163.2</var>taxable mortgage. For documents submitted electronically, the endorsements and tax
         amount <br/>
<a id="pl.163.3"></a><var>163.3</var>shall be affixed electronically and no signature by the treasurer will be required.
         The actual <br/>
<a id="pl.163.4"></a><var>163.4</var>payment method must be arranged in advance between the submitter and the receiving
         <br/>
<a id="pl.163.5"></a><var>163.5</var>county.<br/>
<a id="pl.163.6"></a><var>163.6</var>    (b) The county treasurer may refund in whole or in part any mortgage registry tax
         <br/>
<a id="pl.163.7"></a><var>163.7</var>overpayment if a written application by the taxpayer is submitted to the county treasurer
         <br/>
<a id="pl.163.8"></a><var>163.8</var>within 3-1/2 years from the date of the overpayment. If the county has not issued
         a denial <br/>
<a id="pl.163.9"></a><var>163.9</var>of the application, the taxpayer may bring an action in Tax Court in the county in
         which <br/>
<a id="pl.163.10"></a><var>163.10</var>the tax was paid at any time after the expiration of six months from the time that
         the <br/>
<a id="pl.163.11"></a><var>163.11</var>application was submitted. A denial of refund may be appealed within 60 days from
         the <br/>
<a id="pl.163.12"></a><var>163.12</var>date of the denial by bringing an action in Tax Court in the county in which the tax
         was <br/>
<a id="pl.163.13"></a><var>163.13</var>paid. The action is commenced by the serving of a petition for relief on the county
         treasurer, <br/>
<a id="pl.163.14"></a><var>163.14</var>and by filing a copy with the court. The county attorney shall defend the action.
         The county <br/>
<a id="pl.163.15"></a><var>163.15</var>treasurer shall notify the treasurer of each county that has or would receive a portion
         of the <br/>
<a id="pl.163.16"></a><var>163.16</var>tax as paid.<br/>
<a id="pl.163.17"></a><var>163.17</var>    (c) If the county treasurer determines a refund should be paid, or if a refund is
         ordered <br/>
<a id="pl.163.18"></a><var>163.18</var>by the court, the county treasurer of each county that actually received a portion
         of the tax <br/>
<a id="pl.163.19"></a><var>163.19</var>shall immediately pay a proportionate share of three percent of the refund using any
         available <br/>
<a id="pl.163.20"></a><var>163.20</var>county funds. The county treasurer of each county that received, or would have received,
         <br/>
<a id="pl.163.21"></a><var>163.21</var>a portion of the tax shall also pay their county's proportionate share of the remaining
         97 <br/>
<a id="pl.163.22"></a><var>163.22</var>percent of the court-ordered refund on or before the 20th day of the following month
         using <br/>
<a id="pl.163.23"></a><var>163.23</var>solely the mortgage registry tax funds that would be paid to the commissioner of revenue
         <br/>
<a id="pl.163.24"></a><var>163.24</var>on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under this procedure are insufficient <br/>
<a id="pl.163.25"></a><var>163.25</var>to fully fund 97 percent of the court-ordered refund, the county treasurer of the
         county in <br/>
<a id="pl.163.26"></a><var>163.26</var>which the action was brought shall file a claim with the commissioner of revenue under
         <br/>
<a id="pl.163.27"></a><var>163.27</var>section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of the refund, and shall pay over the <br/>
<a id="pl.163.28"></a><var>163.28</var>remaining portion upon receipt of a warrant from the state issued pursuant to the
         claim.<br/>
<a id="pl.163.29"></a><var>163.29</var>    (d) When any mortgage covers real property located in more than one county in this
         <br/>
<a id="pl.163.30"></a><var>163.30</var>state the total tax must be paid to the treasurer of the county where the mortgage
         is first <br/>
<a id="pl.163.31"></a><var>163.31</var>presented for recording, and the payment must be receipted as provided in paragraph
         (a). <br/>
<a id="pl.163.32"></a><var>163.32</var>If the principal debt or obligation secured by such a multiple county mortgage exceeds
         <br/>
<a id="pl.163.33"></a><var>163.33</var>$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the <br/>
<a id="pl.163.34"></a><var>163.34</var>commissioner of revenue and the nonstate portion of the tax must be divided and paid over <br/>
<a id="pl.163.35"></a><var>163.35</var>by the county treasurer receiving it commissioner of revenue, on or before the 20th day of <br/>
<a id="pl.164.1"></a><var>164.1</var>each month after receipt, to the county or counties entitled in the ratio that the
         estimated <br/>
<a id="pl.164.2"></a><var>164.2</var>market value of the real property covered by the mortgage in each county bears to
         the <br/>
<a id="pl.164.3"></a><var>164.3</var>estimated market value of all the real property in this state described in the mortgage.
         In <br/>
<a id="pl.164.4"></a><var>164.4</var>making the division and payment the county treasurer commissioner of revenue shall send <br/>
<a id="pl.164.5"></a><var>164.5</var>a statement giving the description of the real property described in the mortgage
         and the <br/>
<a id="pl.164.6"></a><var>164.6</var>estimated market value of the part located in each county. For this purpose, the treasurer of <br/>
<a id="pl.164.7"></a><var>164.7</var>any county commissioner of revenue may require the treasurer of any other county to certify <br/>
<a id="pl.164.8"></a><var>164.8</var>to the former the estimated market value of any tract of real property in any mortgage in <br/>
<a id="pl.164.9"></a><var>164.9</var>the county.<br/>
<a id="pl.164.10"></a><var>164.10</var>    (e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The mortgagee <br/>
<a id="pl.164.11"></a><var>164.11</var>may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
         <br/>
<a id="pl.164.12"></a><var>164.12</var>collects money from the mortgagor to remit the tax on behalf of the mortgagor, the
         mortgagee <br/>
<a id="pl.164.13"></a><var>164.13</var>has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount
         of the tax <br/>
<a id="pl.164.14"></a><var>164.14</var>collected for that purpose and the mortgagor is relieved of any further obligation
         to pay the <br/>
<a id="pl.164.15"></a><var>164.15</var>tax as to the amount collected by the mortgagee for this purpose.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.164.16"></a><var>164.16</var>    Sec. 2. Minnesota Statutes 2016, section 295.53, subdivision 1, is amended to read:<br/>
<a id="pl.164.17"></a><var>164.17</var>    Subdivision 1. <b>Exemptions.</b> (a) The following payments are excluded from the gross <br/>
<a id="pl.164.18"></a><var>164.18</var>revenues subject to the hospital, surgical center, or health care provider taxes under
         sections <br/>
<statute_ref><a id="pl.164.19"></a><var>164.19</var>295.50
         </statute_ref> to 
         <statute_ref>295.59</statute_ref>:<br/>
<a id="pl.164.20"></a><var>164.20</var>(1) payments received for services provided under the Medicare program, including
         <br/>
<a id="pl.164.21"></a><var>164.21</var>payments received from the government, and organizations governed by sections 1833
         and <br/>
<a id="pl.164.22"></a><var>164.22</var>1876 of title XVIII of the federal Social Security Act, United States Code, title
         42, section <br/>
<a id="pl.164.23"></a><var>164.23</var>1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the
         Medicare <br/>
<a id="pl.164.24"></a><var>164.24</var>enrollee or by a Medicare supplemental coverage as defined in section 
         <statute_ref>62A.011, subdivision <br/>
<a id="pl.164.25"></a><var>164.25</var>3
         </statute_ref>, clause (10), or by Medicaid payments under title XIX of the federal Social Security
         Act. <br/>
<a id="pl.164.26"></a><var>164.26</var>Payments for services not covered by Medicare are taxable;<br/>
<a id="pl.164.27"></a><var>164.27</var>(2) payments received for home health care services;<br/>
<a id="pl.164.28"></a><var>164.28</var>(3) payments received from hospitals or surgical centers for goods and services on
         which <br/>
<a id="pl.164.29"></a><var>164.29</var>liability for tax is imposed under section 
         <statute_ref>295.52</statute_ref> or the source of funds for the payment is <br/>
<a id="pl.164.30"></a><var>164.30</var>exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.164.31"></a><var>164.31</var>(4) payments received from health care providers for goods and services on which <br/>
<a id="pl.164.32"></a><var>164.32</var>liability for tax is imposed under this chapter or the source of funds for the payment
         is <br/>
<a id="pl.164.33"></a><var>164.33</var>exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.165.1"></a><var>165.1</var>(5) amounts paid for legend drugs, other than nutritional products and blood and blood
         <br/>
<a id="pl.165.2"></a><var>165.2</var>components, to a wholesale drug distributor who is subject to tax under section 
         <statute_ref>295.52, <br/>
<a id="pl.165.3"></a><var>165.3</var>subdivision 3
         </statute_ref>, reduced by reimbursements received for legend drugs otherwise exempt <br/>
<a id="pl.165.4"></a><var>165.4</var>under this chapter;<br/>
<a id="pl.165.5"></a><var>165.5</var>(6) payments received by a health care provider or the wholly owned subsidiary of
         a <br/>
<a id="pl.165.6"></a><var>165.6</var>health care provider for care provided outside Minnesota;<br/>
<a id="pl.165.7"></a><var>165.7</var>(7) payments received from the chemical dependency fund under chapter 254B;<br/>
<a id="pl.165.8"></a><var>165.8</var>(8) payments received in the nature of charitable donations that are not designated
         for <br/>
<a id="pl.165.9"></a><var>165.9</var>providing patient services to a specific individual or group;<br/>
<a id="pl.165.10"></a><var>165.10</var>(9) payments received for providing patient services incurred through a formal program
         <br/>
<a id="pl.165.11"></a><var>165.11</var>of health care research conducted in conformity with federal regulations governing
         research <br/>
<a id="pl.165.12"></a><var>165.12</var>on human subjects. Payments received from patients or from other persons paying on
         behalf <br/>
<a id="pl.165.13"></a><var>165.13</var>of the patients are subject to tax;<br/>
<a id="pl.165.14"></a><var>165.14</var>(10) payments received from any governmental agency for services benefiting the public,
         <br/>
<a id="pl.165.15"></a><var>165.15</var>not including payments made by the government in its capacity as an employer or insurer
         <br/>
<a id="pl.165.16"></a><var>165.16</var>or payments made by the government for services provided under general assistance
         medical <br/>
<a id="pl.165.17"></a><var>165.17</var>care, the MinnesotaCare program, or the medical assistance program governed by title
         XIX <br/>
<a id="pl.165.18"></a><var>165.18</var>of the federal Social Security Act, United States Code, title 42, sections 1396 to
         1396v;<br/>
<a id="pl.165.19"></a><var>165.19</var>(11) government payments received by the commissioner of human services for <br/>
<a id="pl.165.20"></a><var>165.20</var>state-operated services;<br/>
<a id="pl.165.21"></a><var>165.21</var>(12) payments received by a health care provider for hearing aids and related equipment
         <br/>
<a id="pl.165.22"></a><var>165.22</var>or prescription eyewear delivered outside of Minnesota;<br/>
<a id="pl.165.23"></a><var>165.23</var>(13) payments received by an educational institution from student tuition, student
         activity <br/>
<a id="pl.165.24"></a><var>165.24</var>fees, health care service fees, government appropriations, donations, or grants, and
         for <br/>
<a id="pl.165.25"></a><var>165.25</var>services identified in and provided under an individualized education program as defined
         <br/>
<a id="pl.165.26"></a><var>165.26</var>in section 
         <statute_ref>256B.0625</statute_ref> or Code of Federal Regulations, chapter 34, section 300.340(a). Fee <br/>
<a id="pl.165.27"></a><var>165.27</var>for service payments and payments for extended coverage are taxable;<br/>
<a id="pl.165.28"></a><var>165.28</var>(14) payments received under the federal Employees Health Benefits Act, United States
         <br/>
<a id="pl.165.29"></a><var>165.29</var>Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990.
         <br/>
<a id="pl.165.30"></a><var>165.30</var>Enrollee deductibles, coinsurance, and co-payments are subject to tax; and<br/>
<a id="pl.165.31"></a><var>165.31</var>(15) payments received under the federal Tricare program, Code of Federal Regulations,
         <br/>
<a id="pl.165.32"></a><var>165.32</var>title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments
         are subject <br/>
<a id="pl.165.33"></a><var>165.33</var>to tax.<br/>
<a id="pl.166.1"></a><var>166.1</var>(b) Payments received by wholesale drug distributors for legend drugs sold directly
         to <br/>
<a id="pl.166.2"></a><var>166.2</var>veterinarians or veterinary bulk purchasing organizations are excluded from the gross
         <br/>
<a id="pl.166.3"></a><var>166.3</var>revenues subject to the wholesale drug distributor tax under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>.<br/>
<a id="pl.166.4"></a><var>166.4</var>(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision
         <br/>
<a id="pl.166.5"></a><var>166.5</var>1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under
         sections <br/>
<a id="pl.166.6"></a><var>166.6</var>295.50 to 295.59.<br/>
<a id="pl.166.7"></a><var>166.7</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for gross revenues received <br/>
<a id="pl.166.8"></a><var>166.8</var>on or after July 1, 2016.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.166.9"></a><var>166.9</var>    Sec. 3. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:<br/>
<a id="pl.166.10"></a><var>166.10</var>    Subd. 7. <b>Aviation gasoline.</b> "Aviation gasoline" means any gasoline that is capable of <br/>
<a id="pl.166.11"></a><var>166.11</var>use for the purpose of producing or generating used to produce or generate power for <br/>
<a id="pl.166.12"></a><var>166.12</var>propelling internal combustion engine aircraft, that meets the specifications in ASTM <br/>
<a id="pl.166.13"></a><var>166.13</var>specification D910-11, and that either.<br/>
<a id="pl.166.14"></a><var>166.14</var>    Aviation gasoline includes any gasoline:<br/>
<a id="pl.166.15"></a><var>166.15</var>    (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor
         <br/>
<a id="pl.166.16"></a><var>166.16</var>or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as
         "aviation <br/>
<a id="pl.166.17"></a><var>166.17</var>gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM <br/>
<a id="pl.166.18"></a><var>166.18</var>specification as gasoline appropriate for use in producing or generating power for
         propelling <br/>
<a id="pl.166.19"></a><var>166.19</var>internal combustion engine aircraft; or<br/>
<a id="pl.166.20"></a><var>166.20</var>    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored,
         <br/>
<a id="pl.166.21"></a><var>166.21</var>or withdrawn from storage by any person, to be used for the purpose of producing or
         <br/>
<a id="pl.166.22"></a><var>166.22</var>generating power for propelling internal combustion engine aircraft sold to a dealer of <br/>
<a id="pl.166.23"></a><var>166.23</var>aviation gasoline for dispensing directly into the fuel tank of an aircraft.<br/>
<a id="pl.166.24"></a><var>166.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment except <br/>
<a id="pl.166.25"></a><var>166.25</var>that the change to clause (2) is effective for sales and purchases made after June
         30, 2017.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.166.26"></a><var>166.26</var>    Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:<br/>
<a id="pl.166.27"></a><var>166.27</var>    Subd. 12. <b>Compressed natural gas or CNG.</b> "Compressed natural gas" or "CNG" <br/>
<a id="pl.166.28"></a><var>166.28</var>means natural gas, primarily methane, condensed under high pressure and stored in
         specially <br/>
<a id="pl.166.29"></a><var>166.29</var>designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
         <br/>
<a id="pl.166.30"></a><var>166.30</var>of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic <br/>
<a id="pl.166.31"></a><var>166.31</var>foot.<br/>
<a id="pl.167.1"></a><var>167.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.167.2"></a><var>167.2</var>30, 2017.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.167.3"></a><var>167.3</var>    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to <br/>
<a id="pl.167.4"></a><var>167.4</var>read:<br/>
<a id="pl.167.5"></a><var>167.5</var>    Subd. 13a. <b>Dealer of aviation gasoline.</b> "Dealer of aviation gasoline" means any person <br/>
<a id="pl.167.6"></a><var>167.6</var>who sells gasoline on the premises of an airport as defined under section 360.013,
         subdivision <br/>
<a id="pl.167.7"></a><var>167.7</var>39, to be dispensed directly into the fuel tank of an aircraft.<br/>
<a id="pl.167.8"></a><var>167.8</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.167.9"></a><var>167.9</var>30, 2017.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.167.10"></a><var>167.10</var>    Sec. 6. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:<br/>
<a id="pl.167.11"></a><var>167.11</var>    Subd. 4. <b>Exemptions.</b> The provisions of subdivision 1 do not apply to gasoline or <br/>
<a id="pl.167.12"></a><var>167.12</var>denatured ethanol purchased by:<br/>
<a id="pl.167.13"></a><var>167.13</var>    (1) a transit system or transit provider receiving financial assistance or reimbursement
         <br/>
<a id="pl.167.14"></a><var>167.14</var>under section 
         <statute_ref>174.24</statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>;<br/>
<a id="pl.167.15"></a><var>167.15</var>    (2) providers of transportation to recipients of medical assistance home and <br/>
<a id="pl.167.16"></a><var>167.16</var>community-based services waivers enrolled in day programs, including adult day care,
         <br/>
<a id="pl.167.17"></a><var>167.17</var>family adult day care, day treatment and habilitation, prevocational services, and
         structured <br/>
<a id="pl.167.18"></a><var>167.18</var>day services;<br/>
<a id="pl.167.19"></a><var>167.19</var>(3) an ambulance service licensed under chapter 144E;<br/>
<a id="pl.167.20"></a><var>167.20</var>(4) providers of medical or dental services by a federally qualified health center,
         as <br/>
<a id="pl.167.21"></a><var>167.21</var>defined under title 19 of the Social Security Act, as amended by Section 4161 of the
         Omnibus <br/>
<a id="pl.167.22"></a><var>167.22</var>Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
         <br/>
<a id="pl.167.23"></a><var>167.23</var>medical unit; or<br/>
<a id="pl.167.24"></a><var>167.24</var>    (5) a licensed distributor to be delivered to a terminal for use in blending; or<br/>
<a id="pl.167.25"></a><var>167.25</var>    (6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended
         to <br/>
<a id="pl.167.26"></a><var>167.26</var>be dispensed directly into the fuel tank of an aircraft.<br/>
<a id="pl.167.27"></a><var>167.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.167.28"></a><var>167.28</var>30, 2017.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.167.29"></a><var>167.29</var>    Sec. 7. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:<br/>
<a id="pl.167.30"></a><var>167.30</var>    Subd. 2. <b>Rate of tax.</b> The special fuel excise tax is imposed at the following rates:<br/>
<a id="pl.168.1"></a><var>168.1</var>    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.<br/>
<a id="pl.168.2"></a><var>168.2</var>    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.<br/>
<a id="pl.168.3"></a><var>168.3</var>    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; <br/>
<a id="pl.168.4"></a><var>168.4</var>or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
         <br/>
<a id="pl.168.5"></a><var>168.5</var>as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
         <br/>
<a id="pl.168.6"></a><var>168.6</var>gas or 126.67 cubic feet.<br/>
<a id="pl.168.7"></a><var>168.7</var>    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
         specified <br/>
<a id="pl.168.8"></a><var>168.8</var>in section 
         <statute_ref>296A.07, subdivision 2</statute_ref>. The tax is payable in the form and manner prescribed <br/>
<a id="pl.168.9"></a><var>168.9</var>by the commissioner.<br/>
<a id="pl.168.10"></a><var>168.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.168.11"></a><var>168.11</var>30, 2017.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.168.12"></a><var>168.12</var>    Sec. 8. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:<br/>
<a id="pl.168.13"></a><var>168.13</var>    Subdivision 1. <b>Monthly gasoline report; shrinkage allowance.</b> (a) Except as provided <br/>
<a id="pl.168.14"></a><var>168.14</var>in paragraph (e), on or before the 23rd day of each month, every person who is required
         to <br/>
<a id="pl.168.15"></a><var>168.15</var>pay a gasoline tax shall file with the commissioner a report, in the form and manner
         <br/>
<a id="pl.168.16"></a><var>168.16</var>prescribed by the commissioner, showing the number of gallons of petroleum products
         <br/>
<a id="pl.168.17"></a><var>168.17</var>received by the reporter during the preceding calendar month, and other information
         the <br/>
<a id="pl.168.18"></a><var>168.18</var>commissioner may require. A written report is deemed to have been filed as required
         in this <br/>
<a id="pl.168.19"></a><var>168.19</var>subdivision if postmarked on or before the 23rd day of the month in which the tax
         is payable.<br/>
<a id="pl.168.20"></a><var>168.20</var>(b) The number of gallons of gasoline must be reported in United States standard liquid
         <br/>
<a id="pl.168.21"></a><var>168.21</var>gallons, 231 cubic inches, except that the commissioner may upon written application
         and <br/>
<a id="pl.168.22"></a><var>168.22</var>for cause shown permit the distributor to report the number of gallons of gasoline
         as corrected <br/>
<a id="pl.168.23"></a><var>168.23</var>to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline
         covered <br/>
<a id="pl.168.24"></a><var>168.24</var>in the application and allowed by the commissioner must continue to be reported by
         the <br/>
<a id="pl.168.25"></a><var>168.25</var>distributor on the adjusted basis for a period of one year from the date of the granting
         of <br/>
<a id="pl.168.26"></a><var>168.26</var>the application. The number of gallons of petroleum products other than gasoline must
         be <br/>
<a id="pl.168.27"></a><var>168.27</var>reported as originally invoiced. Each report must show separately the number of gallons
         of <br/>
<a id="pl.168.28"></a><var>168.28</var>aviation gasoline received by the reporter during each calendar month and the number of <br/>
<a id="pl.168.29"></a><var>168.29</var>gallons of gasoline sold to a dealer of aviation gasoline during each calendar month.<br/>
<a id="pl.168.30"></a><var>168.30</var>(c) Each report must also include the amount of gasoline tax on gasoline received
         by <br/>
<a id="pl.168.31"></a><var>168.31</var>the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
         <br/>
<a id="pl.168.32"></a><var>168.32</var>of the quantity of gasoline received by a distributor shall be made for evaporation
         and loss. <br/>
<a id="pl.169.1"></a><var>169.1</var>At the time of reporting, the reporter shall submit satisfactory evidence that one-third
         of the <br/>
<a id="pl.169.2"></a><var>169.2</var>2.5 percent deduction has been credited or paid to dealers on quantities sold to them.<br/>
<a id="pl.169.3"></a><var>169.3</var>(d) Each report shall contain a confession of judgment for the amount of the tax shown
         <br/>
<a id="pl.169.4"></a><var>169.4</var>due to the extent not timely paid.<br/>
<a id="pl.169.5"></a><var>169.5</var>(e) Under certain circumstances and with the approval of the commissioner, taxpayers
         <br/>
<a id="pl.169.6"></a><var>169.6</var>may be allowed to file reports annually.<br/>
<a id="pl.169.7"></a><var>169.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.169.8"></a><var>169.8</var>30, 2017.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.169.9"></a><var>169.9</var>    Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:<br/>
<a id="pl.169.10"></a><var>169.10</var>    Subd. 4. <b>Failure to use or sell for intended purpose; report required.</b> (a) Any person <br/>
<a id="pl.169.11"></a><var>169.11</var>who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for <br/>
<a id="pl.169.12"></a><var>169.12</var>aircraft use, and who has paid the excise taxes due directly or indirectly through the amount <br/>
<a id="pl.169.13"></a><var>169.13</var>of the tax being included in the price, or otherwise, and uses said gasoline or special
         fuel <br/>
<a id="pl.169.14"></a><var>169.14</var>in motor vehicles or knowingly sells it to any person for use in motor vehicles shall,
         on or <br/>
<a id="pl.169.15"></a><var>169.15</var>before the 23rd day of the month following that in which such gasoline or special
         fuel was <br/>
<a id="pl.169.16"></a><var>169.16</var>so used or sold, report the fact of the use or sale to the commissioner in the form
         and manner <br/>
<a id="pl.169.17"></a><var>169.17</var>prescribed by the commissioner.<br/>
<a id="pl.169.18"></a><var>169.18</var>(b) Any person who buys gasoline other than aviation gasoline and who has paid the <br/>
<a id="pl.169.19"></a><var>169.19</var>motor vehicle gasoline excise tax directly or indirectly through the amount of the
         tax being <br/>
<a id="pl.169.20"></a><var>169.20</var>included in the price of the gasoline, or otherwise, who knowingly sells such gasoline
         to <br/>
<a id="pl.169.21"></a><var>169.21</var>any person to be used for the purpose of producing or generating power for propelling
         <br/>
<a id="pl.169.22"></a><var>169.22</var>aircraft, or who receives, stores, or withdraws from storage gasoline to be used for
         that <br/>
<a id="pl.169.23"></a><var>169.23</var>purpose, shall, on or before the 23rd day of the month following that in which such
         gasoline <br/>
<a id="pl.169.24"></a><var>169.24</var>was so sold, stored, or withdrawn from storage, report the fact of the sale, storage,
         or <br/>
<a id="pl.169.25"></a><var>169.25</var>withdrawal from storage to the commissioner in the form and manner prescribed by the
         <br/>
<a id="pl.169.26"></a><var>169.26</var>commissioner.<br/>
<a id="pl.169.27"></a><var>169.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.169.28"></a><var>169.28</var>30, 2017.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.169.29"></a><var>169.29</var>    Sec. 10. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:<br/>
<a id="pl.169.30"></a><var>169.30</var>    Subd. 2. <b>Fuel used in other vehicle; claim for refund.</b> Any person who buys and uses <br/>
<a id="pl.169.31"></a><var>169.31</var>gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except
         as <br/>
<a id="pl.169.32"></a><var>169.32</var>provided in clause (2), or motorboats, or special fuel for a qualifying purpose other
         than <br/>
<a id="pl.170.1"></a><var>170.1</var>use in licensed motor vehicles, and who paid the tax directly or indirectly through
         the amount <br/>
<a id="pl.170.2"></a><var>170.2</var>of the tax being included in the price of the gasoline or special fuel, or otherwise,
         shall be <br/>
<a id="pl.170.3"></a><var>170.3</var>reimbursed and repaid the amount of the tax paid upon filing with the commissioner
         a claim <br/>
<a id="pl.170.4"></a><var>170.4</var>for refund in the form and manner prescribed by the commissioner, and containing the
         <br/>
<a id="pl.170.5"></a><var>170.5</var>information the commissioner shall require. By signing any such claim which is false
         or <br/>
<a id="pl.170.6"></a><var>170.6</var>fraudulent, the applicant shall be subject to the penalties provided in this chapter
         for <br/>
<a id="pl.170.7"></a><var>170.7</var>knowingly making a false claim. The claim shall set forth the total amount of the
         gasoline <br/>
<a id="pl.170.8"></a><var>170.8</var>so purchased and used by the applicant other than in motor vehicles, or special fuel
         purchased <br/>
<a id="pl.170.9"></a><var>170.9</var>and used by the applicant other than in licensed motor vehicles, and shall state when
         and <br/>
<a id="pl.170.10"></a><var>170.10</var>for what purpose it was used. When a claim contains an error in computation or preparation,
         <br/>
<a id="pl.170.11"></a><var>170.11</var>the commissioner is authorized to adjust the claim in accordance with the evidence
         shown <br/>
<a id="pl.170.12"></a><var>170.12</var>on the claim or other information available to the commissioner. The commissioner,
         on <br/>
<a id="pl.170.13"></a><var>170.13</var>being satisfied that the claimant is entitled to the payments, shall approve the claim
         and <br/>
<a id="pl.170.14"></a><var>170.14</var>transmit it to the commissioner of management and budget. The words "gasoline" or
         "special <br/>
<a id="pl.170.15"></a><var>170.15</var>fuel" as used in this subdivision do not include aviation gasoline or special fuel
         for aircraft. <br/>
<a id="pl.170.16"></a><var>170.16</var>Gasoline or special fuel bought and used for a "qualifying purpose" means:<br/>
<a id="pl.170.17"></a><var>170.17</var>    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
         <br/>
<a id="pl.170.18"></a><var>170.18</var>situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose"
         have <br/>
<a id="pl.170.19"></a><var>170.19</var>the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue
         Code <br/>
<a id="pl.170.20"></a><var>170.20</var>as defined in section 
         <statute_ref>289A.02</statute_ref>, subdivision 7.<br/>
<a id="pl.170.21"></a><var>170.21</var>    (2) Gasoline or special fuel used for off-highway business use.<br/>
<a id="pl.170.22"></a><var>170.22</var>    (i) "Off-highway business use" means any use off the public highway by a person in
         <br/>
<a id="pl.170.23"></a><var>170.23</var>that person's trade, business, or activity for the production of income.<br/>
<a id="pl.170.24"></a><var>170.24</var>    (ii) Off-highway business use includes use of a passenger snowmobile off the public
         <br/>
<a id="pl.170.25"></a><var>170.25</var>highways as part of the operations of a resort as defined in section 
         <statute_ref>157.15, subdivision 11</statute_ref>; <br/>
<a id="pl.170.26"></a><var>170.26</var>and use of gasoline or special fuel to operate a power takeoff unit on a vehicle,
         but not <br/>
<a id="pl.170.27"></a><var>170.27</var>including fuel consumed during idling time.<br/>
<a id="pl.170.28"></a><var>170.28</var>    (iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
         <br/>
<a id="pl.170.29"></a><var>170.29</var>at the time of use, is registered or is required to be registered for highway use
         under the <br/>
<a id="pl.170.30"></a><var>170.30</var>laws of any state or foreign country; or use of a licensed motor vehicle fuel tank
         in lieu of <br/>
<a id="pl.170.31"></a><var>170.31</var>a separate storage tank for storing fuel to be used for a qualifying purpose, as defined
         in <br/>
<a id="pl.170.32"></a><var>170.32</var>this section. Fuel purchased to be used for a qualifying purpose cannot be placed
         in the fuel <br/>
<a id="pl.170.33"></a><var>170.33</var>tank of a licensed motor vehicle and must be stored in a separate supply tank.<br/>
<a id="pl.171.1"></a><var>171.1</var>    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
         <br/>
<a id="pl.171.2"></a><var>171.2</var>in Minnesota, and shipped by interstate carrier to destinations in other states or
         foreign <br/>
<a id="pl.171.3"></a><var>171.3</var>countries.<br/>
<a id="pl.171.4"></a><var>171.4</var>    (4) Special fuel used in one of the following:<br/>
<a id="pl.171.5"></a><var>171.5</var>    (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that
         the <br/>
<a id="pl.171.6"></a><var>171.6</var>unit has an engine separate from the one used to propel the vehicle and the fuel is
         used <br/>
<a id="pl.171.7"></a><var>171.7</var>exclusively for the unit;<br/>
<a id="pl.171.8"></a><var>171.8</var>    (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
         <br/>
<a id="pl.171.9"></a><var>171.9</var>semitrailers within a cargo yard, warehouse facility, or intermodal facility; or<br/>
<a id="pl.171.10"></a><var>171.10</var>    (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor
         vehicle, <br/>
<a id="pl.171.11"></a><var>171.11</var>whether or not the unit or engine is fueled from the same or a different fuel tank
         as that <br/>
<a id="pl.171.12"></a><var>171.12</var>from which the motor vehicle is fueled.<br/>
<a id="pl.171.13"></a><var>171.13</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.171.14"></a><var>171.14</var>30, 2017.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.171.15"></a><var>171.15</var>    Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:<br/>
<a id="pl.171.16"></a><var>171.16</var>    Subd. 3. <b>Refund on graduated basis.</b> Any person who has directly or indirectly paid <br/>
<a id="pl.171.17"></a><var>171.17</var>the excise tax on aviation gasoline or special fuel for aircraft use provided for
         by this chapter <br/>
<a id="pl.171.18"></a><var>171.18</var>and has either paid the airflight property tax under section 
         <statute_ref>270.072 or is an aerial applicator <br/>
<a id="pl.171.19"></a><var>171.19</var>with a category B, general aerial license, under section 18B.33,
</statute_ref> shall, as to all such aviation <br/>
<a id="pl.171.20"></a><var>171.20</var>gasoline and special fuel received, stored, or withdrawn from storage by the person
         in this <br/>
<a id="pl.171.21"></a><var>171.21</var>state in any calendar year and not sold or otherwise disposed of to others, or intended
         for <br/>
<a id="pl.171.22"></a><var>171.22</var>sale or other disposition to others, on which such tax has been so paid, be entitled
         to the <br/>
<a id="pl.171.23"></a><var>171.23</var>following graduated reductions in such tax for that calendar year, to be obtained
         by means <br/>
<a id="pl.171.24"></a><var>171.24</var>of the following refunds:<br/>
<a id="pl.171.25"></a><var>171.25</var>(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but <br/>
<a id="pl.171.26"></a><var>171.26</var>five cents per gallon;<br/>
<a id="pl.171.27"></a><var>171.27</var>(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and <br/>
<a id="pl.171.28"></a><var>171.28</var>not more than 150,000 gallons, all but two cents per gallon;<br/>
<a id="pl.171.29"></a><var>171.29</var>(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and <br/>
<a id="pl.171.30"></a><var>171.30</var>not more than 200,000 gallons, all but one cent per gallon;<br/>
<a id="pl.171.31"></a><var>171.31</var>(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half <br/>
<a id="pl.171.32"></a><var>171.32</var>cent per gallon.<br/>
<a id="pl.172.1"></a><var>172.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.172.2"></a><var>172.2</var>30, 2017.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.172.3"></a><var>172.3</var>    Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:<br/>
<a id="pl.172.4"></a><var>172.4</var>    Subdivision 1. <b>Retention.</b> All distributors, dealers, special fuel dealers, bulk purchasers, <br/>
<a id="pl.172.5"></a><var>172.5</var>dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record <br/>
<a id="pl.172.6"></a><var>172.6</var>of all purchases, transfers, sales, and use of petroleum products and special fuel,
         including <br/>
<a id="pl.172.7"></a><var>172.7</var>copies of all sales tickets issued, in a form and manner approved by the commissioner,
         and <br/>
<a id="pl.172.8"></a><var>172.8</var>shall retain all such records for 3-1/2 years.<br/>
<a id="pl.172.9"></a><var>172.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.172.10"></a><var>172.10</var>30, 2017.<br/>
<br/>
<a id="bill.8.13.0"></a><a id="pl.172.11"></a><var>172.11</var>    Sec. 13. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:<br/>
<a id="pl.172.12"></a><var>172.12</var>    Subd. 19. <b>Petroleum products.</b> The following petroleum products are exempt:<br/>
<a id="pl.172.13"></a><var>172.13</var>(1) products upon which a tax has been imposed and paid under chapter 296A, and for
         <br/>
<a id="pl.172.14"></a><var>172.14</var>which no refund has been or will be allowed because the buyer used the fuel for nonhighway
         <br/>
<a id="pl.172.15"></a><var>172.15</var>use;<br/>
<a id="pl.172.16"></a><var>172.16</var>(2) products that are used in the improvement of agricultural land by constructing,
         <br/>
<a id="pl.172.17"></a><var>172.17</var>maintaining, and repairing drainage ditches, tile drainage systems, grass waterways,
         water <br/>
<a id="pl.172.18"></a><var>172.18</var>impoundment, and other erosion control structures;<br/>
<a id="pl.172.19"></a><var>172.19</var>(3) products purchased by a transit system receiving financial assistance under section
         <br/>
<statute_ref><a id="pl.172.20"></a><var>172.20</var>174.24
         </statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>;<br/>
<a id="pl.172.21"></a><var>172.21</var>(4) products purchased by an ambulance service licensed under chapter 144E;<br/>
<a id="pl.172.22"></a><var>172.22</var>(5) products used in a passenger snowmobile, as defined in section 
         <statute_ref>296A.01, subdivision <br/>
<a id="pl.172.23"></a><var>172.23</var>39
         </statute_ref>, for off-highway business use as part of the operations of a resort as provided under
         <br/>
<a id="pl.172.24"></a><var>172.24</var>section 
         <statute_ref>296A.16, subdivision 2</statute_ref>, clause (2);<br/>
<a id="pl.172.25"></a><var>172.25</var>(6) products purchased by a state or a political subdivision of a state for use in
         motor <br/>
<a id="pl.172.26"></a><var>172.26</var>vehicles exempt from registration under section 
         <statute_ref>168.012, subdivision 1</statute_ref>, paragraph (b);<br/>
<a id="pl.172.27"></a><var>172.27</var>(7) products purchased by providers of transportation to recipients of medical assistance
         <br/>
<a id="pl.172.28"></a><var>172.28</var>home and community-based services waivers enrolled in day programs, including adult
         day <br/>
<a id="pl.172.29"></a><var>172.29</var>care, family adult day care, day treatment and habilitation, prevocational services,
         and <br/>
<a id="pl.172.30"></a><var>172.30</var>structured day services; or<br/>
<a id="pl.173.1"></a><var>173.1</var>(8) products used in a motor vehicle used exclusively as a mobile medical unit for
         the <br/>
<a id="pl.173.2"></a><var>173.2</var>provision of medical or dental services by a federally qualified health center, as
         defined <br/>
<a id="pl.173.3"></a><var>173.3</var>under title 19 of the federal Social Security Act, as amended by Section 4161 of the
         Omnibus <br/>
<a id="pl.173.4"></a><var>173.4</var>Budget Reconciliation Act of 1990; or<br/>
<a id="pl.173.5"></a><var>173.5</var>(9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
         <br/>
<a id="pl.173.6"></a><var>173.6</var>2, clause (4).<br/>
<a id="pl.173.7"></a><var>173.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after June <br/>
<a id="pl.173.8"></a><var>173.8</var>30, 2017.<br/>
<br/>
<a id="bill.8.14.0"></a><a id="pl.173.9"></a><var>173.9</var>    Sec. 14. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision <br/>
<a id="pl.173.10"></a><var>173.10</var>to read:<br/>
<a id="pl.173.11"></a><var>173.11</var>    Subd. 6. <b>Small winery credit.</b> (a) A qualified winery producing wine or cider is entitled <br/>
<a id="pl.173.12"></a><var>173.12</var>to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to
         (g), on the <br/>
<a id="pl.173.13"></a><var>173.13</var>wine or cider sold in any fiscal year beginning July 1. A qualified winery may take
         the credit <br/>
<a id="pl.173.14"></a><var>173.14</var>on the 18th day of each month, but the total credit allowed may not exceed, in any
         fiscal <br/>
<a id="pl.173.15"></a><var>173.15</var>year, the lesser of:<br/>
<a id="pl.173.16"></a><var>173.16</var>(1) the liability for tax; or<br/>
 <a id="pl.173.17"></a><var>173.17</var>(2) $136,275.<br/>
<a id="pl.173.18"></a><var>173.18</var>(b) For purposes of this subdivision, "qualified winery" means a winery, whether or
         not <br/>
<a id="pl.173.19"></a><var>173.19</var>located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually.<br/>
<a id="pl.173.20"></a><var>173.20</var>(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall
         <br/>
<a id="pl.173.21"></a><var>173.21</var>provide a report to the chairs and ranking minority members of the legislative committees
         <br/>
<a id="pl.173.22"></a><var>173.22</var>having jurisdiction over taxes that includes the following information for the previous
         fiscal <br/>
<a id="pl.173.23"></a><var>173.23</var>year, regarding the credit authorized under this subdivision:<br/>
<a id="pl.173.24"></a><var>173.24</var>(1) the total amount of the tax expenditure for the credit, including the amount of
         credits <br/>
<a id="pl.173.25"></a><var>173.25</var>claimed by Minnesota small wineries and out-of-state small wineries; and<br/>
<a id="pl.173.26"></a><var>173.26</var>(2) the number of claimants for the credit, including the number of Minnesota small
         <br/>
<a id="pl.173.27"></a><var>173.27</var>wineries and the number of out-of-state small wineries.<br/>
<a id="pl.173.28"></a><var>173.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.8.15.0"></a><a id="pl.173.29"></a><var>173.29</var>    Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read:<br/>
<a id="pl.173.30"></a><var>173.30</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.174.1"></a><var>174.1</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         <br/>
<a id="pl.174.2"></a><var>174.2</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by the <br/>
<a id="pl.174.3"></a><var>174.3</var>Iron Range Resources and Rehabilitation Board in a separate taconite economic development
         <br/>
<a id="pl.174.4"></a><var>174.4</var>fund for each taconite and direct reduced ore producer. Money from the fund for each
         <br/>
<a id="pl.174.5"></a><var>174.5</var>producer shall be released by the commissioner after review by a joint committee consisting
         <br/>
<a id="pl.174.6"></a><var>174.6</var>of an equal number of representatives of the salaried employees and the nonsalaried
         <br/>
<a id="pl.174.7"></a><var>174.7</var>production and maintenance employees of that producer. The District 11 director of
         the <br/>
<a id="pl.174.8"></a><var>174.8</var>United States Steelworkers of America, on advice of each local employee president,
         shall <br/>
<a id="pl.174.9"></a><var>174.9</var>select the employee members. In nonorganized operations, the employee committee shall
         <br/>
<a id="pl.174.10"></a><var>174.10</var>be elected by the nonsalaried production and maintenance employees. The review must
         be <br/>
<a id="pl.174.11"></a><var>174.11</var>completed no later than six months after the producer presents a proposal for expenditure
         <br/>
<a id="pl.174.12"></a><var>174.12</var>of the funds to the committee. The funds held pursuant to this section may be released
         only <br/>
<a id="pl.174.13"></a><var>174.13</var>for workforce development and associated public facility improvement, concurrent <br/>
<a id="pl.174.14"></a><var>174.14</var>reclamation, or for acquisition of plant and stationary mining equipment and facilities for <br/>
<a id="pl.174.15"></a><var>174.15</var>the producer or for research and development in Minnesota on new mining, or taconite,
         <br/>
<a id="pl.174.16"></a><var>174.16</var>iron, or steel production technology, but only if the producer provides a matching
         expenditure <br/>
<a id="pl.174.17"></a><var>174.17</var>equal to the amount of the distribution to be used for the same purpose beginning
         with <br/>
<a id="pl.174.18"></a><var>174.18</var>distributions in 2014. Effective for proposals for expenditures of money from the
         fund <br/>
<a id="pl.174.19"></a><var>174.19</var>beginning May 26, 2007, the commissioner may not release the funds before the next
         <br/>
<a id="pl.174.20"></a><var>174.20</var>scheduled meeting of the board. If a proposed expenditure is not approved by the board,
         <br/>
<a id="pl.174.21"></a><var>174.21</var>the funds must be deposited in the Taconite Environmental Protection Fund under sections
         <br/>
<statute_ref><a id="pl.174.22"></a><var>174.22</var>298.222
         </statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses money which has been released from the fund prior <br/>
<a id="pl.174.23"></a><var>174.23</var>to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and
         the <br/>
<a id="pl.174.24"></a><var>174.24</var>producer removes the piece of equipment from the taconite tax relief area defined
         in section <br/>
<statute_ref><a id="pl.174.25"></a><var>174.25</var>273.134
         </statute_ref> within ten years from the date of receipt of the money from the fund, a portion of
         <br/>
<a id="pl.174.26"></a><var>174.26</var>the money granted from the fund must be repaid to the taconite economic development
         <br/>
<a id="pl.174.27"></a><var>174.27</var>fund. The portion of the money to be repaid is 100 percent of the grant if the equipment
         is <br/>
<a id="pl.174.28"></a><var>174.28</var>removed from the taconite tax relief area within 12 months after receipt of the money
         from <br/>
<a id="pl.174.29"></a><var>174.29</var>the fund, declining by ten percent for each of the subsequent nine years during which
         the <br/>
<a id="pl.174.30"></a><var>174.30</var>equipment remains within the taconite tax relief area. If a taconite production facility
         is sold <br/>
<a id="pl.174.31"></a><var>174.31</var>after operations at the facility had ceased, any money remaining in the fund for the
         former <br/>
<a id="pl.174.32"></a><var>174.32</var>producer may be released to the purchaser of the facility on the terms otherwise applicable
         <br/>
<a id="pl.174.33"></a><var>174.33</var>to the former producer under this section. If a producer fails to provide matching
         funds for <br/>
<a id="pl.174.34"></a><var>174.34</var>a proposed expenditure within six months after the commissioner approves release of
         the <br/>
<a id="pl.174.35"></a><var>174.35</var>funds, the funds are available for release to another producer in proportion to the
         distribution <br/>
<a id="pl.174.36"></a><var>174.36</var>provided and under the conditions of this section. Any portion of the fund which is
         not <br/>
<a id="pl.175.1"></a><var>175.1</var>released by the commissioner within one year of its deposit in the fund shall be divided
         <br/>
<a id="pl.175.2"></a><var>175.2</var>between the taconite environmental protection fund created in section 
         <statute_ref>298.223 </statute_ref>and the <br/>
<a id="pl.175.3"></a><var>175.3</var>Douglas J. Johnson economic protection trust fund created in section 
         <statute_ref>298.292</statute_ref> for placement <br/>
<a id="pl.175.4"></a><var>175.4</var>in their respective special accounts. Two-thirds of the unreleased funds shall be
         distributed <br/>
<a id="pl.175.5"></a><var>175.5</var>to the taconite environmental protection fund and one-third to the Douglas J. Johnson
         <br/>
<a id="pl.175.6"></a><var>175.6</var>economic protection trust fund.<br/>
<a id="pl.175.7"></a><var>175.7</var>    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.175.8"></a><var>175.8</var>distributions and the review process, an amount equal to ten cents per taxable ton
         of <br/>
<a id="pl.175.9"></a><var>175.9</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed
         under <br/>
<a id="pl.175.10"></a><var>175.10</var>paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
         <br/>
<a id="pl.175.11"></a><var>175.11</var>wood product facility located in the taconite tax relief area and in a county that
         contains a <br/>
<a id="pl.175.12"></a><var>175.12</var>city of the first class. This amount must be deducted from the distribution under
         paragraph <br/>
<a id="pl.175.13"></a><var>175.13</var>(a) for which a matching expenditure by the producer is not required. The granting
         of the <br/>
<a id="pl.175.14"></a><var>175.14</var>loan or grant is subject to approval by the board. If the money is provided as a loan,
         interest <br/>
<a id="pl.175.15"></a><var>175.15</var>must be payable on the loan at the rate prescribed in section 
         <statute_ref>298.2213, subdivision 3</statute_ref>. (ii) <br/>
<a id="pl.175.16"></a><var>175.16</var>Repayments of the loan and interest, if any, must be deposited in the taconite environment
         <br/>
<a id="pl.175.17"></a><var>175.17</var>protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a loan or grant is not made under this <br/>
<a id="pl.175.18"></a><var>175.18</var>paragraph by July 1, 2012, the amount that had been made available for the loan under
         this <br/>
<a id="pl.175.19"></a><var>175.19</var>paragraph must be transferred to the taconite environment protection fund under sections
         <br/>
<statute_ref><a id="pl.175.20"></a><var>175.20</var>298.222
         </statute_ref> to 
         <statute_ref>298.225</statute_ref>. (iii) Money distributed in 2008 to the fund established under this section <br/>
<a id="pl.175.21"></a><var>175.21</var>that exceeds ten cents per ton is available to qualifying producers under paragraph
         (a) on a <br/>
<a id="pl.175.22"></a><var>175.22</var>pro rata basis.<br/>
<a id="pl.175.23"></a><var>175.23</var>(c) Repayment or transfer of money to the taconite environmental protection fund under
         <br/>
<a id="pl.175.24"></a><var>175.24</var>paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation
         <br/>
<a id="pl.175.25"></a><var>175.25</var>Board for public works projects in house legislative districts in the same proportion
         as <br/>
<a id="pl.175.26"></a><var>175.26</var>taxable tonnage of production in 2007 in each house legislative district, for distribution
         in <br/>
<a id="pl.175.27"></a><var>175.27</var>2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
         <br/>
<a id="pl.175.28"></a><var>175.28</var>Notwithstanding any other law to the contrary, expenditures under this paragraph do
         not <br/>
<a id="pl.175.29"></a><var>175.29</var>require approval by the governor. For purposes of this paragraph, "house legislative
         districts" <br/>
<a id="pl.175.30"></a><var>175.30</var>means the legislative districts in existence on May 15, 2009.<br/>
<a id="pl.175.31"></a><var>175.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.16.0"></a><a id="pl.175.32"></a><var>175.32</var>    Sec. 16. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, <br/>
<a id="pl.175.33"></a><var>175.33</var>article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended
         to read:<br/>
<a id="pl.175.34"></a><var>175.34</var>    Sec. 58. <b>2010 DISTRIBUTIONS ONLY.</b><br/>
<a id="pl.176.1"></a><var>176.1</var>    For distributions in 2010 only, a special fund is established to receive the sum of
         the <br/>
<a id="pl.176.2"></a><var>176.2</var>following amounts that otherwise would be allocated under Minnesota Statutes, section
         <br/>
<statute_ref><a id="pl.176.3"></a><var>176.3</var>298.28, subdivision 6
         </statute_ref>. The following amounts are allocated to St. Louis County acting as <br/>
<a id="pl.176.4"></a><var>176.4</var>the fiscal agent for the recipients for the specific purposes:<br/>
<a id="pl.176.5"></a><var>176.5</var>    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives
         <br/>
<a id="pl.176.6"></a><var>176.6</var>for at least two dentists to establish dental practices in high-need areas of the
         taconite tax <br/>
<a id="pl.176.7"></a><var>176.7</var>relief area;<br/>
<a id="pl.176.8"></a><var>176.8</var>(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
         <br/>
<a id="pl.176.9"></a><var>176.9</var>heat at the Olcott Park Greenhouse/Virginia Commons project;<br/>
<a id="pl.176.10"></a><var>176.10</var>(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
         repairs <br/>
<a id="pl.176.11"></a><var>176.11</var>at the Miners Memorial;<br/>
<a id="pl.176.12"></a><var>176.12</var>(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
         of <br/>
<a id="pl.176.13"></a><var>176.13</var>Highway 142/Grant and Park Avenues;<br/>
<a id="pl.176.14"></a><var>176.14</var>(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades
         <br/>
<a id="pl.176.15"></a><var>176.15</var>and capital improvements to the public arena in Coleraine;<br/>
<a id="pl.176.16"></a><var>176.16</var>(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
         <br/>
<a id="pl.176.17"></a><var>176.17</var>pumphouse modifications;<br/>
<a id="pl.176.18"></a><var>176.18</var>(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial
         <br/>
<a id="pl.176.19"></a><var>176.19</var>claims for water damage due to water and flood-related damage caused by the Canisteo
         Pit;<br/>
<a id="pl.176.20"></a><var>176.20</var>(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child
         <br/>
<a id="pl.176.21"></a><var>176.21</var>care center;<br/>
<a id="pl.176.22"></a><var>176.22</var>(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;<br/>
<a id="pl.176.23"></a><var>176.23</var>(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library
         <br/>
<a id="pl.176.24"></a><var>176.24</var>project;<br/>
<a id="pl.176.25"></a><var>176.25</var>(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
         water <br/>
<a id="pl.176.26"></a><var>176.26</var>and sewer services for Lakewood Housing;<br/>
<a id="pl.176.27"></a><var>176.27</var>(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the
         <br/>
<a id="pl.176.28"></a><var>176.28</var>Children's Museum;<br/>
<a id="pl.176.29"></a><var>176.29</var>(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
         <br/>
<a id="pl.176.30"></a><var>176.30</var>corrections. This amount must be matched by local sources;<br/>
<a id="pl.176.31"></a><var>176.31</var>(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;<br/>
<a id="pl.177.1"></a><var>177.1</var>(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;<br/>
<a id="pl.177.2"></a><var>177.2</var>(16) 0.159 cent per ton must be paid to Aitkin County for a trail;<br/>
<a id="pl.177.3"></a><var>177.3</var>(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad
         <br/>
<a id="pl.177.4"></a><var>177.4</var>crossing;<br/>
<a id="pl.177.5"></a><var>177.5</var>(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping
         <br/>
<a id="pl.177.6"></a><var>177.6</var>of the community center parking lot;<br/>
<a id="pl.177.7"></a><var>177.7</var>(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;<br/>
<a id="pl.177.8"></a><var>177.8</var>(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements,
         <br/>
<a id="pl.177.9"></a><var>177.9</var>milling, and overlay for Summit Street between Alaska Avenue and Highway 135;<br/>
<a id="pl.177.10"></a><var>177.10</var>(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
         <br/>
<a id="pl.177.11"></a><var>177.11</var>replacements and improvements in the Northeast Lower Alley area;<br/>
<a id="pl.177.12"></a><var>177.12</var>(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz
         <br/>
<a id="pl.177.13"></a><var>177.13</var>Road culvert;<br/>
<a id="pl.177.14"></a><var>177.14</var>(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
         <br/>
<a id="pl.177.15"></a><var>177.15</var>Street and associated infrastructure;<br/>
<a id="pl.177.16"></a><var>177.16</var>(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements
         <br/>
<a id="pl.177.17"></a><var>177.17</var>at the Park Ridge development;<br/>
<a id="pl.177.18"></a><var>177.18</var>(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
         and <br/>
<a id="pl.177.19"></a><var>177.19</var>site preparation for its renewable and sustainable energy park;<br/>
<a id="pl.177.20"></a><var>177.20</var>(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer <br/>
<a id="pl.177.21"></a><var>177.21</var>improvements;<br/>
<a id="pl.177.22"></a><var>177.22</var>(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding
         <br/>
<a id="pl.177.23"></a><var>177.23</var>for the Summit Addition;<br/>
<a id="pl.177.24"></a><var>177.24</var>(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
         <br/>
<a id="pl.177.25"></a><var>177.25</var>improvements;<br/>
<a id="pl.177.26"></a><var>177.26</var>(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer
         <br/>
<a id="pl.177.27"></a><var>177.27</var>infrastructure improvements;<br/>
<a id="pl.177.28"></a><var>177.28</var>(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
         <br/>
<a id="pl.177.29"></a><var>177.29</var>improvements;<br/>
<a id="pl.177.30"></a><var>177.30</var>(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge <br/>
<a id="pl.177.31"></a><var>177.31</var>improvements and land purchase, provided that if the city sells or otherwise disposes
         of any <br/>
<a id="pl.178.1"></a><var>178.1</var>of the land purchased with the money provided under this clause within a period of
         ten five <br/>
<a id="pl.178.2"></a><var>178.2</var>years after it was purchased, the city must transfer a portion of the proceeds of
         the sale equal <br/>
<a id="pl.178.3"></a><var>178.3</var>to the amount of the purchase price paid from the money provided under this clause
         to the <br/>
<a id="pl.178.4"></a><var>178.4</var>commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite
         <br/>
<a id="pl.178.5"></a><var>178.5</var>environmental protection fund to be used for the purposes of the fund under Minnesota
         <br/>
<a id="pl.178.6"></a><var>178.6</var>Statutes, section 
         <statute_ref>298.223</statute_ref>;<br/>
<a id="pl.178.7"></a><var>178.7</var>(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
         <br/>
<a id="pl.178.8"></a><var>178.8</var>improvements;<br/>
<a id="pl.178.9"></a><var>178.9</var>(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer <br/>
<a id="pl.178.10"></a><var>178.10</var>improvements;<br/>
<a id="pl.178.11"></a><var>178.11</var>(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
         <br/>
<a id="pl.178.12"></a><var>178.12</var>improvements;<br/>
<a id="pl.178.13"></a><var>178.13</var>(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer <br/>
<a id="pl.178.14"></a><var>178.14</var>improvements;<br/>
<a id="pl.178.15"></a><var>178.15</var>(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
         <br/>
<a id="pl.178.16"></a><var>178.16</var>improvements;<br/>
<a id="pl.178.17"></a><var>178.17</var>(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure <br/>
<a id="pl.178.18"></a><var>178.18</var>improvements;<br/>
<a id="pl.178.19"></a><var>178.19</var>(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;<br/>
<a id="pl.178.20"></a><var>178.20</var>(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
         <br/>
<a id="pl.178.21"></a><var>178.21</var>infrastructure improvements;<br/>
<a id="pl.178.22"></a><var>178.22</var>(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
         <br/>
<a id="pl.178.23"></a><var>178.23</var>improvements at the athletic facility;<br/>
<a id="pl.178.24"></a><var>178.24</var>(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
         <br/>
<a id="pl.178.25"></a><var>178.25</var>improvements;<br/>
<a id="pl.178.26"></a><var>178.26</var>(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure
         <br/>
<a id="pl.178.27"></a><var>178.27</var>related to a housing development;<br/>
<a id="pl.178.28"></a><var>178.28</var>(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;<br/>
<a id="pl.178.29"></a><var>178.29</var>(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a
         nonprofit <br/>
<a id="pl.178.30"></a><var>178.30</var>for a signage kiosk;<br/>
<a id="pl.179.1"></a><var>179.1</var>(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
         lines <br/>
<a id="pl.179.2"></a><var>179.2</var>and adjacent development near County State-Aid Highway 24; and<br/>
<a id="pl.179.3"></a><var>179.3</var>(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
         wall <br/>
<a id="pl.179.4"></a><var>179.4</var>infrastructure around the athletic complex.<br/>
<a id="pl.179.5"></a><var>179.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.17.0"></a><a id="pl.179.6"></a><var>179.6</var>    Sec. 17. <b>CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED </b><br/>
<a id="pl.179.7"></a><var>179.7</var><b>TACONITE TAX PROCEEDS.</b><br/>
<a id="pl.179.8"></a><var>179.8</var>The commissioner of Iron Range Resources and Rehabilitation may use any unspent <br/>
<a id="pl.179.9"></a><var>179.9</var>amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5,
         clause <br/>
<a id="pl.179.10"></a><var>179.10</var>(19), remaining as of May 22, 2016, for the specific purposes identified in that section.
         <br/>
<a id="pl.179.11"></a><var>179.11</var>Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a),
         or any <br/>
<a id="pl.179.12"></a><var>179.12</var>other law to the contrary, interest accrued on this amount shall also be distributed
         to the <br/>
<a id="pl.179.13"></a><var>179.13</var>recipient. Amounts under this section are available until expended and do not lapse
         or cancel <br/>
<a id="pl.179.14"></a><var>179.14</var>under Minnesota Statutes, section 16A.28.<br/>
<a id="pl.179.15"></a><var>179.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 22, 2016.<br/>
<br/>
<a id="bill.8.18.0"></a><a id="pl.179.16"></a><var>179.16</var>    Sec. 18. <b>2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION.</b><br/>
<a id="pl.179.17"></a><var>179.17</var>(a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph
         (a), <br/>
<a id="pl.179.18"></a><var>179.18</var>25.1 cents per taxable ton of the tax collected under Minnesota Statutes, section
         298.24, for <br/>
<a id="pl.179.19"></a><var>179.19</var>production year 2016, may be transferred by the commissioner of Iron Range Resources
         <br/>
<a id="pl.179.20"></a><var>179.20</var>and Rehabilitation, as provided in paragraph (b), to the taconite economic development
         <br/>
<a id="pl.179.21"></a><var>179.21</var>fund under Minnesota Statutes, section 298.227.<br/>
<a id="pl.179.22"></a><var>179.22</var>(b) If the amount is transferred by the commissioner of Iron Range Resources and <br/>
<a id="pl.179.23"></a><var>179.23</var>Rehabilitation under paragraph (a), two-thirds shall be transferred from the taconite
         <br/>
<a id="pl.179.24"></a><var>179.24</var>environmental protection fund, and one-third shall be transferred from the Douglas
         J. Johnson <br/>
<a id="pl.179.25"></a><var>179.25</var>economic protection fund, and deposited into the taconite economic development fund
         by <br/>
<a id="pl.179.26"></a><var>179.26</var>June 30, 2017.<br/>
<a id="pl.179.27"></a><var>179.27</var>(c) Money from the taconite economic development fund shall be released as provided
         <br/>
<a id="pl.179.28"></a><var>179.28</var>in Minnesota Statutes, section 298.227, except that no distribution shall be made
         to a taconite <br/>
<a id="pl.179.29"></a><var>179.29</var>producer's fund unless the producer has timely paid its tax under Minnesota Statutes,
         section <br/>
<a id="pl.179.30"></a><var>179.30</var>298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided
         for <br/>
<a id="pl.179.31"></a><var>179.31</var>by administrative agreement.<br/>
<a id="pl.179.32"></a><var>179.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.19.0"></a><a id="pl.180.1"></a><var>180.1</var>    Sec. 19. <b>APPROPRIATION CANCELLATION.</b><br/>
<a id="pl.180.2"></a><var>180.2</var>All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt
         <br/>
<a id="pl.180.3"></a><var>180.3</var>Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are
         canceled <br/>
<a id="pl.180.4"></a><var>180.4</var>to the Minnesota 21st century fund on June 1, 2017.<br/>
<br/>
<a id="bill.8.20.0"></a><a id="pl.180.5"></a><var>180.5</var>    Sec. 20. <b> REPEALER.</b><br/>
<a id="pl.180.6"></a><var>180.6</var>Minnesota Rules, part 8125.1300, subpart 3, is repealed.<br/>
<a id="pl.180.7"></a><var>180.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.180.10"></a><var>180.10</var>    Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:<br/>
<a id="pl.180.11"></a><var>180.11</var>    Subd. 7. <b>Iron Range resources and rehabilitation </b><b>Board</b><b>.</b> After seeking a <br/>
<a id="pl.180.12"></a><var>180.12</var>recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner <br/>
<a id="pl.180.13"></a><var>180.13</var>of Iron Range resources and rehabilitation Board may purchase insurance it considers the <br/>
<a id="pl.180.14"></a><var>180.14</var>commissioner deems necessary and appropriate to insure facilities operated by the board.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.180.15"></a><var>180.15</var>    Sec. 2. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:<br/>
<a id="pl.180.16"></a><var>180.16</var>    Subd. 2. <b>Use of fund.</b> The commissioner shall use money in the fund to make loans or, <br/>
<a id="pl.180.17"></a><var>180.17</var>including forgivable loans, equity investments or grants for infrastructure in mineral, steel, <br/>
<a id="pl.180.18"></a><var>180.18</var>or any other industry processing, production, manufacturing, or technology project
         that <br/>
<a id="pl.180.19"></a><var>180.19</var>would enhance the economic diversification and that is located within the taconite
         relief <br/>
<a id="pl.180.20"></a><var>180.20</var>tax area as defined under section 
         <statute_ref>273.134</statute_ref>. The commissioner must, prior to making any <br/>
<a id="pl.180.21"></a><var>180.21</var>loans or equity investments and after consultation with industry and public officials,
         develop <br/>
<a id="pl.180.22"></a><var>180.22</var>a strategy for making loans and, equity investments or grants for infrastructure that assists <br/>
<a id="pl.180.23"></a><var>180.23</var>the taconite relief area in retaining and enhancing its economic competitiveness.
         Money in <br/>
<a id="pl.180.24"></a><var>180.24</var>the fund may also be used to pay for the costs of carrying out the commissioner's
         due <br/>
<a id="pl.180.25"></a><var>180.25</var>diligence duties under this section.<br/>
<a id="pl.180.26"></a><var>180.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.180.27"></a><var>180.27</var>    Sec. 3. Minnesota Statutes 2016, section 116J.424, is amended to read:<br/>
<a id="pl.180.28"></a><var>180.28</var><b>116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD </b><br/>
<a id="pl.180.29"></a><var>180.29</var><b>CONTRIBUTION.</b><br/>
<a id="pl.181.1"></a><var>181.1</var>The commissioner of the Iron Range resources and rehabilitation Board with approval <br/>
<a id="pl.181.2"></a><var>181.2</var>by the board, may provide an equal match for any loan or equity investment made for a <br/>
<a id="pl.181.3"></a><var>181.3</var>project located in the tax relief area defined in section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, by the <br/>
<a id="pl.181.4"></a><var>181.4</var>Minnesota 21st century fund created by section 
         <statute_ref>116J.423</statute_ref>. The match may be in the form <br/>
<a id="pl.181.5"></a><var>181.5</var>of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
         <br/>
<a id="pl.181.6"></a><var>181.6</var>investment. The state shall not acquire an equity interest because of an equity investment
         <br/>
<a id="pl.181.7"></a><var>181.7</var>or loan by the board under this section and the board at its sole discretion commissioner, <br/>
<a id="pl.181.8"></a><var>181.8</var>after consultation with the Iron Range Resources and Rehabilitation Board, shall have the <br/>
<a id="pl.181.9"></a><var>181.9</var>sole discretion to decide what interest it the board acquires in a project. The commissioner <br/>
<a id="pl.181.10"></a><var>181.10</var>of employment and economic development may require a commitment from the board <br/>
<a id="pl.181.11"></a><var>181.11</var>commissioner to make the match prior to disbursing money from the fund.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.181.12"></a><var>181.12</var>    Sec. 4. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:<br/>
<a id="pl.181.13"></a><var>181.13</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.181.14"></a><var>181.14</var>the meanings given them in this subdivision.<br/>
<a id="pl.181.15"></a><var>181.15</var>(b) "Area development rate" means a rate schedule established by a utility that provides
         <br/>
<a id="pl.181.16"></a><var>181.16</var>customers within an area development zone service under a base utility rate schedule,
         except <br/>
<a id="pl.181.17"></a><var>181.17</var>that charges may be reduced from the base rate as agreed upon by the utility and the
         customer <br/>
<a id="pl.181.18"></a><var>181.18</var>consistent with this section.<br/>
<a id="pl.181.19"></a><var>181.19</var>(c) "Area development zone" means a contiguous or noncontiguous area designated by
         <br/>
<a id="pl.181.20"></a><var>181.20</var>an authority or municipality for development or redevelopment and within which one
         of <br/>
<a id="pl.181.21"></a><var>181.21</var>the following conditions exists:<br/>
<a id="pl.181.22"></a><var>181.22</var>(1) obsolete buildings not suitable for improvement or conversion or other identified
         <br/>
<a id="pl.181.23"></a><var>181.23</var>hazards to the health, safety, and general well-being of the community;<br/>
<a id="pl.181.24"></a><var>181.24</var>(2) buildings in need of substantial rehabilitation or in substandard condition; or<br/>
<a id="pl.181.25"></a><var>181.25</var>(3) low values and damaged investments.<br/>
<a id="pl.181.26"></a><var>181.26</var>(d) "Authority" means a rural development financing authority established under sections
         <br/>
<statute_ref><a id="pl.181.27"></a><var>181.27</var>469.142
         </statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority established under sections <br/>
<statute_ref><a id="pl.181.28"></a><var>181.28</var>469.001
         </statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority established under sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>; an <br/>
<a id="pl.181.29"></a><var>181.29</var>economic development authority established under sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>; a <br/>
<a id="pl.181.30"></a><var>181.30</var>redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>; the commissioner of Iron <br/>
<a id="pl.181.31"></a><var>181.31</var>Range resources and rehabilitation, acting after consultation with the board established <br/>
<a id="pl.181.32"></a><var>181.32</var>under section 
         <statute_ref>298.22</statute_ref>; a municipality that is administering a development district created <br/>
<a id="pl.181.33"></a><var>181.33</var>under sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.133</statute_ref> or any special law; a municipality that undertakes a <br/>
<a id="pl.182.1"></a><var>182.1</var>project under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town located outside the metropolitan <br/>
<a id="pl.182.2"></a><var>182.2</var>area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>, or with a population of 5,000 persons or <br/>
<a id="pl.182.3"></a><var>182.3</var>less; or a municipality that exercises the powers of a port authority under any general
         or <br/>
<a id="pl.182.4"></a><var>182.4</var>special law.<br/>
<a id="pl.182.5"></a><var>182.5</var>(e) "Municipality" means a city, however organized, and, with respect to a project
         <br/>
<a id="pl.182.6"></a><var>182.6</var>undertaken under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, "municipality" has the meaning given in <br/>
<a id="pl.182.7"></a><var>182.7</var>sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, and, with respect to a project undertaken under sections 
         <statute_ref>469.142</statute_ref> <br/>
<a id="pl.182.8"></a><var>182.8</var>to 
         <statute_ref>469.151</statute_ref> or a county or multicounty project undertaken under sections 
         <statute_ref>469.004</statute_ref> to 
         <statute_ref>469.008</statute_ref>, <br/>
<a id="pl.182.9"></a><var>182.9</var>also includes any county.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.182.10"></a><var>182.10</var>    Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:<br/>
<a id="pl.182.11"></a><var>182.11</var>    Subd. 8. <b>Municipality.</b> "Municipality" means a city, town, or township located in whole <br/>
<a id="pl.182.12"></a><var>182.12</var>or part within the area. If a municipality is located partly within and partly without
         the area, <br/>
<a id="pl.182.13"></a><var>182.13</var>the references in sections 
         <statute_ref>276A.01</statute_ref> to 
         <statute_ref>276A.09</statute_ref> to property or any portion thereof subject to <br/>
<a id="pl.182.14"></a><var>182.14</var>taxation or taxing jurisdiction within the municipality are to the property or portion
         thereof <br/>
<a id="pl.182.15"></a><var>182.15</var>that is located in that portion of the municipality within the area, except that the
         fiscal <br/>
<a id="pl.182.16"></a><var>182.16</var>capacity of the municipality must be computed upon the basis of the valuation and
         population <br/>
<a id="pl.182.17"></a><var>182.17</var>of the entire municipality. A municipality shall be excluded from the area if its
         municipal <br/>
<a id="pl.182.18"></a><var>182.18</var>comprehensive zoning and planning policies conscientiously exclude most <br/>
<a id="pl.182.19"></a><var>182.19</var>commercial-industrial development, for reasons other than preserving an agricultural
         use. <br/>
<a id="pl.182.20"></a><var>182.20</var>The commissioner of Iron Range resources and rehabilitation Board and the commissioner <br/>
<a id="pl.182.21"></a><var>182.21</var>of revenue shall jointly make this determination annually and shall notify those municipalities
         <br/>
<a id="pl.182.22"></a><var>182.22</var>that are ineligible to participate in the tax base sharing program provided in this
         chapter for <br/>
<a id="pl.182.23"></a><var>182.23</var>the following year. Before making the joint determination, the commissioner of Iron Range <br/>
<a id="pl.182.24"></a><var>182.24</var>resources and rehabilitation shall seek a recommendation from the Iron Range Resources
         <br/>
<a id="pl.182.25"></a><var>182.25</var>and Rehabilitation Board.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.182.26"></a><var>182.26</var>    Sec. 6. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:<br/>
<a id="pl.182.27"></a><var>182.27</var>    Subd. 17. <b>School fund allocation.</b> (a) "School fund allocation" means an amount up to <br/>
<a id="pl.182.28"></a><var>182.28</var>25 percent of the areawide levy certified by the commissioner of Iron Range resources and <br/>
<a id="pl.182.29"></a><var>182.29</var>rehabilitation, after seeking a recommendation from the Iron Range Resources and <br/>
<a id="pl.182.30"></a><var>182.30</var>Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation <br/>
<a id="pl.182.31"></a><var>182.31</var>and cooperatively operated school account under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br/>
<a id="pl.182.32"></a><var>182.32</var>(b) The allocation under paragraph (a) shall only be made after the commissioner of <br/>
<a id="pl.182.33"></a><var>182.33</var>Iron Range resources and rehabilitation, after seeking a recommendation from the Iron <br/>
<a id="pl.183.1"></a><var>183.1</var>Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range <br/>
<a id="pl.183.2"></a><var>183.2</var>school consolidation and cooperatively operated account has insufficient funds to
         make <br/>
<a id="pl.183.3"></a><var>183.3</var>payments as authorized under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.183.4"></a><var>183.4</var>    Sec. 7. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:<br/>
<a id="pl.183.5"></a><var>183.5</var>    Subdivision 1. <b>Development.</b> In any county where the county board by proper resolution <br/>
<a id="pl.183.6"></a><var>183.6</var>sets aside funds for forest development pursuant to section 
         <statute_ref>282.08</statute_ref>, clause (5), item (i), or <br/>
<a id="pl.183.7"></a><var>183.7</var>section 
         <statute_ref>459.06, subdivision 2</statute_ref>, the commissioner of Iron Range resources and rehabilitation <br/>
<a id="pl.183.8"></a><var>183.8</var>with the approval of the, after seeking a recommendation from the Iron Range Resources <br/>
<a id="pl.183.9"></a><var>183.9</var>and Rehabilitation Board, may upon request of the county board assist said county in carrying <br/>
<a id="pl.183.10"></a><var>183.10</var>out any project for the long range development of its forest resources through matching
         of <br/>
<a id="pl.183.11"></a><var>183.11</var>funds or otherwise.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.183.12"></a><var>183.12</var>    Sec. 8. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:<br/>
<a id="pl.183.13"></a><var>183.13</var>    Subd. 8. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue of the <br/>
<a id="pl.183.14"></a><var>183.14</var>state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to <br/>
<a id="pl.183.15"></a><var>183.15</var>298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.<br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.183.16"></a><var>183.16</var>    Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:<br/>
<a id="pl.183.17"></a><var>183.17</var>    Subdivision 1. <b>The Office of </b><b>the </b><b>Commissioner of Iron Range Resources and </b><br/>
<a id="pl.183.18"></a><var>183.18</var><b>Rehabilitation.</b> (a) The Office of the Commissioner of Iron Range Resources and <br/>
<a id="pl.183.19"></a><var>183.19</var>Rehabilitation is created as an agency in the executive branch of state government.
         The <br/>
<a id="pl.183.20"></a><var>183.20</var>governor shall appoint the commissioner of Iron Range resources and rehabilitation
         under <br/>
<a id="pl.183.21"></a><var>183.21</var>section 
         <statute_ref>15.06</statute_ref>. The commissioner may expend amounts appropriated to the commissioner <br/>
<a id="pl.183.22"></a><var>183.22</var>or the board for projects after submitting the expenditure to the board for a recommendation
         <br/>
<a id="pl.183.23"></a><var>183.23</var>under subdivision 1a.<br/>
<a id="pl.183.24"></a><var>183.24</var>(b) The commissioner may hold other positions or appointments that are not incompatible
         <br/>
<a id="pl.183.25"></a><var>183.25</var>with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
         <br/>
<a id="pl.183.26"></a><var>183.26</var>may appoint a deputy commissioner. All expenses of the commissioner, including the
         <br/>
<a id="pl.183.27"></a><var>183.27</var>payment of staff and other assistance as may be necessary, must be paid out of the
         amounts <br/>
<a id="pl.183.28"></a><var>183.28</var>appropriated by section 
         <statute_ref>298.28</statute_ref> or otherwise made available by law to the commissioner. <br/>
<a id="pl.183.29"></a><var>183.29</var>Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
         <br/>
<a id="pl.183.30"></a><var>183.30</var>options available under section 
         <statute_ref>471.345</statute_ref> when the commissioner determines it is in the best <br/>
<a id="pl.183.31"></a><var>183.31</var>interest of the agency. The agency is not subject to sections 
         <statute_ref>16E.016</statute_ref> and 
         <statute_ref>16C.05. The agency <br/>
<a id="pl.183.32"></a><var>183.32</var>has the authority to reimburse any nongovernmental manager operating state-owned facilities
            <br/>
<a id="pl.184.1"></a><var>184.1</var>within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment,
            or <br/>
<a id="pl.184.2"></a><var>184.2</var>other items used in the operations at such facilities
</statute_ref>.<br/>
<a id="pl.184.3"></a><var>184.3</var>(c) When the commissioner determines that distress and unemployment exists or may
         <br/>
<a id="pl.184.4"></a><var>184.4</var>exist in the future in any county by reason of the removal of natural resources or
         a possibly <br/>
<a id="pl.184.5"></a><var>184.5</var>limited use of natural resources in the future and any resulting decrease in employment,
         the <br/>
<a id="pl.184.6"></a><var>184.6</var>commissioner may use whatever amounts of the appropriation made to the commissioner
         <br/>
<a id="pl.184.7"></a><var>184.7</var>of revenue in section 
         <statute_ref>298.28</statute_ref> that are determined to be necessary and proper in the <br/>
<a id="pl.184.8"></a><var>184.8</var>development of the remaining resources of the county and in the vocational training
         and <br/>
<a id="pl.184.9"></a><var>184.9</var>rehabilitation of its residents, except that the amount needed to cover cost overruns awarded <br/>
<a id="pl.184.10"></a><var>184.10</var>to a contractor by an arbitrator in relation to a contract awarded by the commissioner
         or in <br/>
<a id="pl.184.11"></a><var>184.11</var>effect after July 1, 1985, is appropriated from the general fund. For the purposes of this <br/>
<a id="pl.184.12"></a><var>184.12</var>section, "development of remaining resources" includes, but is not limited to, the
         promotion <br/>
<a id="pl.184.13"></a><var>184.13</var>of tourism.<br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.184.14"></a><var>184.14</var>    Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:<br/>
<a id="pl.184.15"></a><var>184.15</var>    Subd. 1a. <b>Iron Range Resources and Rehabilitation Board.</b> The Iron Range Resources <br/>
<a id="pl.184.16"></a><var>184.16</var>and Rehabilitation Board consists of the state senators and representatives elected
         from state <br/>
<a id="pl.184.17"></a><var>184.17</var>senatorial or legislative districts in which one-third or more of the residents reside
         in a <br/>
<a id="pl.184.18"></a><var>184.18</var>taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>. One additional state senator shall <br/>
<a id="pl.184.19"></a><var>184.19</var>also be appointed by the senate Subcommittee on Committees of the Committee on Rules
         <br/>
<a id="pl.184.20"></a><var>184.20</var>and Administration. All expenditures and projects made by the commissioner shall first
         be <br/>
<a id="pl.184.21"></a><var>184.21</var>submitted to the board for approval. The board shall recommend approval or disapproval <br/>
<a id="pl.184.22"></a><var>184.22</var>or modification of the expenditures and projects. The expenses of the board shall be paid <br/>
<a id="pl.184.23"></a><var>184.23</var>by the state from the funds raised pursuant to this section. Members of the board
         may be <br/>
<a id="pl.184.24"></a><var>184.24</var>reimbursed for expenses in the manner provided in sections 
         <statute_ref>3.099</statute_ref>, subdivision 1, and 
         <statute_ref>3.101</statute_ref>, <br/>
<a id="pl.184.25"></a><var>184.25</var>and may receive per diem payments during the interims between legislative sessions
         in the <br/>
<a id="pl.184.26"></a><var>184.26</var>manner provided in section 
         <statute_ref>3.099, subdivision 1</statute_ref>.<br/>
<a id="pl.184.27"></a><var>184.27</var>The members shall be appointed in January of every odd-numbered year, and shall serve
         <br/>
<a id="pl.184.28"></a><var>184.28</var>until January of the next odd-numbered year. Vacancies on the board shall be filled
         in the <br/>
<a id="pl.184.29"></a><var>184.29</var>same manner as original members were chosen.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.184.30"></a><var>184.30</var>    Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:<br/>
<a id="pl.184.31"></a><var>184.31</var>    Subd. 5a. <b>Forest trust.</b> The commissioner, upon approval by after requesting a <br/>
<a id="pl.184.32"></a><var>184.32</var>recommendation from the board, may purchase forest lands in the taconite assistance area <br/>
<a id="pl.184.33"></a><var>184.33</var>defined in under section 
         <statute_ref>273.1341 </statute_ref>with funds specifically authorized for the purchase. The <br/>
<a id="pl.185.1"></a><var>185.1</var>acquired forest lands must be held in trust for the benefit of the citizens of the
         taconite <br/>
<a id="pl.185.2"></a><var>185.2</var>assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands
         shall be <br/>
<a id="pl.185.3"></a><var>185.3</var>managed and developed for recreation and economic development purposes. The <br/>
<a id="pl.185.4"></a><var>185.4</var>commissioner, upon approval by after requesting a recommendation from the board, may <br/>
<a id="pl.185.5"></a><var>185.5</var>sell forest lands purchased under this subdivision if the board finds commissioner determines <br/>
<a id="pl.185.6"></a><var>185.6</var>that the sale advances the purposes of the trust. Proceeds derived from the management
         or <br/>
<a id="pl.185.7"></a><var>185.7</var>sale of the lands and from the sale of timber or removal of gravel or other minerals
         from <br/>
<a id="pl.185.8"></a><var>185.8</var>these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account
         <br/>
<a id="pl.185.9"></a><var>185.9</var>that is established within the state financial accounts. Funds may be expended from
         the <br/>
<a id="pl.185.10"></a><var>185.10</var>account upon approval by after the commissioner has sought a recommendation from the <br/>
<a id="pl.185.11"></a><var>185.11</var>board, to purchase, manage, administer, convey interests in, and improve the forest
         lands. <br/>
<a id="pl.185.12"></a><var>185.12</var>With approval by After the commissioner has sought a recommendation from the board, <br/>
<a id="pl.185.13"></a><var>185.13</var>money in the Iron Range Miners' Memorial Forest account may be transferred into the
         <br/>
<a id="pl.185.14"></a><var>185.14</var>corpus of the Douglas J. Johnson economic protection trust fund established under
         sections <br/>
<statute_ref><a id="pl.185.15"></a><var>185.15</var>298.291 
         </statute_ref>to 
         <statute_ref>298.294</statute_ref>. The property acquired under the authority granted by this subdivision <br/>
<a id="pl.185.16"></a><var>185.16</var>and income derived from the property or the operation or management of the property
         are <br/>
<a id="pl.185.17"></a><var>185.17</var>exempt from taxation by the state or its political subdivisions while held by the
         forest trust.<br/>
<br/>
<a id="bill.9.12.0"></a><a id="pl.185.18"></a><var>185.18</var>    Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:<br/>
<a id="pl.185.19"></a><var>185.19</var>    Subd. 6. <b>Private entity participation.</b> After seeking a recommendation from the board, <br/>
<a id="pl.185.20"></a><var>185.20</var>the commissioner may acquire an equity interest in any project for which it the commissioner <br/>
<a id="pl.185.21"></a><var>185.21</var>provides funding. The commissioner may establish, participate in the management of,
         and <br/>
<a id="pl.185.22"></a><var>185.22</var>dispose of the assets of charitable foundations, nonprofit limited liability companies,
         and <br/>
<a id="pl.185.23"></a><var>185.23</var>nonprofit corporations associated with any project for which it provides funding,
         including <br/>
<a id="pl.185.24"></a><var>185.24</var>specifically, but without limitation, a corporation within the meaning of section
         
         <statute_ref>317A.011, <br/>
<a id="pl.185.25"></a><var>185.25</var>subdivision 6
         </statute_ref>.<br/>
<br/>
<a id="bill.9.13.0"></a><a id="pl.185.26"></a><var>185.26</var>    Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:<br/>
<a id="pl.185.27"></a><var>185.27</var>    Subd. 10. <b>Sale or privatization of functions.</b> The commissioner of Iron Range resources <br/>
<a id="pl.185.28"></a><var>185.28</var>and rehabilitation may not sell or privatize the Ironworld Minnesota Discovery Center or <br/>
<a id="pl.185.29"></a><var>185.29</var>Giants Ridge Golf and Ski Resort without prior approval by the board.<br/>
<br/>
<a id="bill.9.14.0"></a><a id="pl.185.30"></a><var>185.30</var>    Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:<br/>
<a id="pl.185.31"></a><var>185.31</var>    Subd. 11. <b>Budgeting.</b> The commissioner of Iron Range resources and rehabilitation <br/>
<a id="pl.185.32"></a><var>185.32</var>shall annually prepare a budget for operational expenditures, programs, and projects,
         and <br/>
<a id="pl.185.33"></a><var>185.33</var>submit it to the Iron Range Resources and Rehabilitation Board for approval. After the <br/>
<a id="pl.186.1"></a><var>186.1</var>budget is approved by the board and the governor, the commissioner may spend money
         in <br/>
<a id="pl.186.2"></a><var>186.2</var>accordance with the approved budget.<br/>
<br/>
<a id="bill.9.15.0"></a><a id="pl.186.3"></a><var>186.3</var>    Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read:<br/>
<a id="pl.186.4"></a><var>186.4</var><b>298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.</b><br/>
<a id="pl.186.5"></a><var>186.5</var>(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
         pursuant <br/>
<a id="pl.186.6"></a><var>186.6</var>to the terms of any contract entered into by the state under authority of section
         
         <statute_ref>298.22</statute_ref> and <br/>
<a id="pl.186.7"></a><var>186.7</var>any fees which may, in the discretion of the commissioner of Iron Range resources
         and <br/>
<a id="pl.186.8"></a><var>186.8</var>rehabilitation, be charged in connection with any project pursuant to that section
         as amended, <br/>
<a id="pl.186.9"></a><var>186.9</var>shall be deposited in the state treasury to the credit of the Iron Range Resources
         and <br/>
<a id="pl.186.10"></a><var>186.10</var>Rehabilitation Board account in the special revenue fund and are hereby appropriated
         for <br/>
<a id="pl.186.11"></a><var>186.11</var>the purposes of section 
         <statute_ref>298.22</statute_ref>.<br/>
<a id="pl.186.12"></a><var>186.12</var>(b) Notwithstanding section 
         <statute_ref>16A.013</statute_ref>, merchandise may be accepted by the commissioner <br/>
<a id="pl.186.13"></a><var>186.13</var>of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts
         <br/>
<a id="pl.186.14"></a><var>186.14</var>if the commissioner determines that the merchandise can be used for special event
         prizes <br/>
<a id="pl.186.15"></a><var>186.15</var>or mementos at facilities operated by the board. Nothing in this paragraph authorizes
         the <br/>
<a id="pl.186.16"></a><var>186.16</var>commissioner or a member of the board to receive merchandise for personal use.<br/>
<a id="pl.186.17"></a><var>186.17</var>(c) All fees charged by the commissioner in connection with public use of the state-owned
         <br/>
<a id="pl.186.18"></a><var>186.18</var>ski and golf facilities at the Giants Ridge Recreation Area and all other revenues
         derived <br/>
<a id="pl.186.19"></a><var>186.19</var>by the commissioner from the operation or lease of those facilities and from the lease,
         sale, <br/>
<a id="pl.186.20"></a><var>186.20</var>or other disposition of undeveloped lands at the Giants Ridge Recreation Area must
         be <br/>
<a id="pl.186.21"></a><var>186.21</var>deposited into an Iron Range Resources and Rehabilitation Board account that is created
         <br/>
<a id="pl.186.22"></a><var>186.22</var>within the state enterprise fund. All funds deposited in the enterprise fund account
         are <br/>
<a id="pl.186.23"></a><var>186.23</var>appropriated to the commissioner to be expended, subject to approval by after seeking a <br/>
<a id="pl.186.24"></a><var>186.24</var>recommendation from the board, as follows:<br/>
<a id="pl.186.25"></a><var>186.25</var>(1) to pay costs associated with the construction, equipping, operation, repair, or
         <br/>
<a id="pl.186.26"></a><var>186.26</var>improvement of the Giants Ridge Recreation Area facilities or lands;<br/>
<a id="pl.186.27"></a><var>186.27</var>(2) to pay principal, interest and associated bond issuance, reserve, and servicing
         costs <br/>
<a id="pl.186.28"></a><var>186.28</var>associated with the financing of the facilities; and<br/>
<a id="pl.186.29"></a><var>186.29</var>(3) to pay the costs of any other project authorized under section 
         <statute_ref>298.22</statute_ref>.<br/>
<br/>
<a id="bill.9.16.0"></a><a id="pl.186.30"></a><var>186.30</var>    Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:<br/>
<a id="pl.186.31"></a><var>186.31</var>    Subd. 3. <b>Project approval.</b> All projects authorized by this section shall be submitted <br/>
<a id="pl.186.32"></a><var>186.32</var>by the commissioner to the Iron Range Resources and Rehabilitation Board for approval <br/>
<a id="pl.187.1"></a><var>187.1</var>by a recommendation from the board. Prior to the commencement of a project involving <br/>
<a id="pl.187.2"></a><var>187.2</var>the exercise by the commissioner of any authority of sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.179</statute_ref>, the <br/>
<a id="pl.187.3"></a><var>187.3</var>governing body of each municipality in which any part of the project is located and
         the <br/>
<a id="pl.187.4"></a><var>187.4</var>county board of any county containing portions of the project not located in an incorporated
         <br/>
<a id="pl.187.5"></a><var>187.5</var>area shall by majority vote approve or disapprove the project. Any project approved
         by the <br/>
<a id="pl.187.6"></a><var>187.6</var>board commissioner and the applicable governing bodies, if any, together with detailed <br/>
<a id="pl.187.7"></a><var>187.7</var>information concerning the project, its costs, the sources of its funding, and the
         amount of <br/>
<a id="pl.187.8"></a><var>187.8</var>any bonded indebtedness to be incurred in connection with the project, shall be transmitted
         <br/>
<a id="pl.187.9"></a><var>187.9</var>to the governor, who shall approve, disapprove, or return the proposal for additional
         <br/>
<a id="pl.187.10"></a><var>187.10</var>consideration within 30 days of receipt. No project authorized under this section
         shall be <br/>
<a id="pl.187.11"></a><var>187.11</var>undertaken, and no obligations shall be issued and no tax increments shall be expended
         for <br/>
<a id="pl.187.12"></a><var>187.12</var>a project authorized under this section until the project has been approved by the
         governor.<br/>
<br/>
<a id="bill.9.17.0"></a><a id="pl.187.13"></a><var>187.13</var>    Sec. 17. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:<br/>
<a id="pl.187.14"></a><var>187.14</var>    Subdivision 1. <b>Creation; purposes.</b> A fund called the taconite environmental protection <br/>
<a id="pl.187.15"></a><var>187.15</var>fund is created for the purpose of reclaiming, restoring and enhancing those areas
         of northeast <br/>
<a id="pl.187.16"></a><var>187.16</var>Minnesota located within the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>, that are <br/>
<a id="pl.187.17"></a><var>187.17</var>adversely affected by the environmentally damaging operations involved in mining taconite
         <br/>
<a id="pl.187.18"></a><var>187.18</var>and iron ore and producing iron ore concentrate and for the purpose of promoting the
         <br/>
<a id="pl.187.19"></a><var>187.19</var>economic development of northeast Minnesota. The taconite environmental protection
         fund <br/>
<a id="pl.187.20"></a><var>187.20</var>shall be used for the following purposes:<br/>
<a id="pl.187.21"></a><var>187.21</var>(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
         <br/>
<a id="pl.187.22"></a><var>187.22</var>Board determines are in need of study and which will determine the environmental problems
         <br/>
<a id="pl.187.23"></a><var>187.23</var>requiring remedial action;<br/>
<a id="pl.187.24"></a><var>187.24</var>(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
         for <br/>
<a id="pl.187.25"></a><var>187.25</var>by state law;<br/>
<a id="pl.187.26"></a><var>187.26</var>(3) local economic development projects but only if those projects are approved by
         the <br/>
<a id="pl.187.27"></a><var>187.27</var>commissioner after seeking a recommendation of the projects from the board, and public <br/>
<a id="pl.187.28"></a><var>187.28</var>works, including construction of sewer and water systems located within the taconite
         <br/>
<a id="pl.187.29"></a><var>187.29</var>assistance area defined in section 
         <statute_ref>273.1341</statute_ref>;<br/>
<a id="pl.187.30"></a><var>187.30</var>(4) monitoring of mineral industry related health problems among mining employees;
         <br/>
<a id="pl.187.31"></a><var>187.31</var>and<br/>
<a id="pl.187.32"></a><var>187.32</var>(5) local public works projects under section 
         <statute_ref>298.227</statute_ref>, paragraph (c).<br/>
<br/>
<a id="bill.9.18.0"></a><a id="pl.188.1"></a><var>188.1</var>    Sec. 18. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:<br/>
<a id="pl.188.2"></a><var>188.2</var>    Subd. 2. <b>Administration.</b> (a) The taconite area environmental protection fund shall be <br/>
<a id="pl.188.3"></a><var>188.3</var>administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
         <br/>
<a id="pl.188.4"></a><var>188.4</var>The commissioner shall by September 1 of each year submit to the board a list of projects
         <br/>
<a id="pl.188.5"></a><var>188.5</var>to be funded from the taconite area environmental protection fund, with such supporting
         <br/>
<a id="pl.188.6"></a><var>188.6</var>information including description of the projects, plans, and cost estimates as may
         be <br/>
<a id="pl.188.7"></a><var>188.7</var>necessary.<br/>
<a id="pl.188.8"></a><var>188.8</var>    (b) Each year no less than one-half of the amounts deposited into the taconite <br/>
<a id="pl.188.9"></a><var>188.9</var>environmental protection fund must be used for public works projects, including construction
         <br/>
<a id="pl.188.10"></a><var>188.10</var>of sewer and water systems, as specified under subdivision 1, clause (3). the Iron
         Range <br/>
<a id="pl.188.11"></a><var>188.11</var>Resources and Rehabilitation Board may waive the requirements of this paragraph.<br/>
<a id="pl.188.12"></a><var>188.12</var>    (c) Upon approval by the board, the list of projects approved under this subdivision
         shall <br/>
<a id="pl.188.13"></a><var>188.13</var>be submitted to the governor by November 1 of each year. By December 1 of each year,
         <br/>
<a id="pl.188.14"></a><var>188.14</var>the governor shall approve or disapprove, or return for further consideration, each
         project.  <br/>
<a id="pl.188.15"></a><var>188.15</var>The commissioner must seek review of the projects by the board. Funds for a project may <br/>
<a id="pl.188.16"></a><var>188.16</var>be expended only upon approval of the project by the board and the governor. The <br/>
<a id="pl.188.17"></a><var>188.17</var>commissioner may submit supplemental projects to the board and governor for approval
         at <br/>
<a id="pl.188.18"></a><var>188.18</var>any time after seeking review of the projects by the board.<br/>
<br/>
<a id="bill.9.19.0"></a><a id="pl.188.19"></a><var>188.19</var>    Sec. 19. Minnesota Statutes 2016, section 298.227, is amended to read:<br/>
<a id="pl.188.20"></a><var>188.20</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.188.21"></a><var>188.21</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         <br/>
<a id="pl.188.22"></a><var>188.22</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by the <br/>
<a id="pl.188.23"></a><var>188.23</var>Iron Range Resources and Rehabilitation Board in a separate taconite economic development
         <br/>
<a id="pl.188.24"></a><var>188.24</var>fund for each taconite and direct reduced ore producer. Money from the fund for each
         <br/>
<a id="pl.188.25"></a><var>188.25</var>producer shall be released by the commissioner after review by a joint committee consisting
         <br/>
<a id="pl.188.26"></a><var>188.26</var>of an equal number of representatives of the salaried employees and the nonsalaried
         <br/>
<a id="pl.188.27"></a><var>188.27</var>production and maintenance employees of that producer. The District 11 director of
         the <br/>
<a id="pl.188.28"></a><var>188.28</var>United States Steelworkers of America, on advice of each local employee president,
         shall <br/>
<a id="pl.188.29"></a><var>188.29</var>select the employee members. In nonorganized operations, the employee committee shall
         <br/>
<a id="pl.188.30"></a><var>188.30</var>be elected by the nonsalaried production and maintenance employees. The review must
         be <br/>
<a id="pl.188.31"></a><var>188.31</var>completed no later than six months after the producer presents a proposal for expenditure
         <br/>
<a id="pl.188.32"></a><var>188.32</var>of the funds to the committee. The funds held pursuant to this section may be released
         only <br/>
<a id="pl.188.33"></a><var>188.33</var>for workforce development and associated public facility improvement, or for acquisition
         <br/>
<a id="pl.188.34"></a><var>188.34</var>of plant and stationary mining equipment and facilities for the producer or for research
         and <br/>
<a id="pl.189.1"></a><var>189.1</var>development in Minnesota on new mining, or taconite, iron, or steel production technology,
         <br/>
<a id="pl.189.2"></a><var>189.2</var>but only if the producer provides a matching expenditure equal to the amount of the
         <br/>
<a id="pl.189.3"></a><var>189.3</var>distribution to be used for the same purpose beginning with distributions in 2014.
         Effective <br/>
<a id="pl.189.4"></a><var>189.4</var>for proposals for expenditures of money from the fund beginning May 26, 2007, the
         <br/>
<a id="pl.189.5"></a><var>189.5</var>commissioner may not release the funds before the next scheduled meeting of the board.
         If <br/>
<a id="pl.189.6"></a><var>189.6</var>a proposed expenditure is not approved by the commissioner, after seeking a recommendation <br/>
<a id="pl.189.7"></a><var>189.7</var>from the board, the funds must be deposited in the Taconite Environmental Protection Fund
         <br/>
<a id="pl.189.8"></a><var>189.8</var>under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses money which has been released from <br/>
<a id="pl.189.9"></a><var>189.9</var>the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining
         <br/>
<a id="pl.189.10"></a><var>189.10</var>shovels, and the producer removes the piece of equipment from the taconite tax relief
         area <br/>
<a id="pl.189.11"></a><var>189.11</var>defined in section 
<statute_ref>273.134</statute_ref> within ten years from the date of receipt of the money from the <br/>
<a id="pl.189.12"></a><var>189.12</var>fund, a portion of the money granted from the fund must be repaid to the taconite
         economic <br/>
<a id="pl.189.13"></a><var>189.13</var>development fund. The portion of the money to be repaid is 100 percent of the grant
         if the <br/>
<a id="pl.189.14"></a><var>189.14</var>equipment is removed from the taconite tax relief area within 12 months after receipt
         of the <br/>
<a id="pl.189.15"></a><var>189.15</var>money from the fund, declining by ten percent for each of the subsequent nine years
         during <br/>
<a id="pl.189.16"></a><var>189.16</var>which the equipment remains within the taconite tax relief area. If a taconite production <br/>
<a id="pl.189.17"></a><var>189.17</var>facility is sold after operations at the facility had ceased, any money remaining
         in the fund <br/>
<a id="pl.189.18"></a><var>189.18</var>for the former producer may be released to the purchaser of the facility on the terms
         otherwise <br/>
<a id="pl.189.19"></a><var>189.19</var>applicable to the former producer under this section. If a producer fails to provide
         matching <br/>
<a id="pl.189.20"></a><var>189.20</var>funds for a proposed expenditure within six months after the commissioner approves
         release <br/>
<a id="pl.189.21"></a><var>189.21</var>of the funds, the funds are available for release to another producer in proportion
         to the <br/>
<a id="pl.189.22"></a><var>189.22</var>distribution provided and under the conditions of this section. Any portion of the
         fund which <br/>
<a id="pl.189.23"></a><var>189.23</var>is not released by the commissioner within one year of its deposit in the fund shall
         be divided <br/>
<a id="pl.189.24"></a><var>189.24</var>between the taconite environmental protection fund created in section 
         <statute_ref>298.223 </statute_ref>and the <br/>
<a id="pl.189.25"></a><var>189.25</var>Douglas J. Johnson economic protection trust fund created in section 
         <statute_ref>298.292</statute_ref> for placement <br/>
<a id="pl.189.26"></a><var>189.26</var>in their respective special accounts. Two-thirds of the unreleased funds shall be
         distributed <br/>
<a id="pl.189.27"></a><var>189.27</var>to the taconite environmental protection fund and one-third to the Douglas J. Johnson
         <br/>
<a id="pl.189.28"></a><var>189.28</var>economic protection trust fund.<br/>
<a id="pl.189.29"></a><var>189.29</var>    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.189.30"></a><var>189.30</var>distributions and the review process, an amount equal to ten cents per taxable ton
         of <br/>
<a id="pl.189.31"></a><var>189.31</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed
         under <br/>
<a id="pl.189.32"></a><var>189.32</var>paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
         <br/>
<a id="pl.189.33"></a><var>189.33</var>wood product facility located in the taconite tax relief area and in a county that
         contains a <br/>
<a id="pl.189.34"></a><var>189.34</var>city of the first class. This amount must be deducted from the distribution under
         paragraph <br/>
<a id="pl.189.35"></a><var>189.35</var>(a) for which a matching expenditure by the producer is not required. The granting
         of the <br/>
<a id="pl.189.36"></a><var>189.36</var>loan or grant is subject to approval by the board. If the money is provided as a loan,
         interest <br/>
<a id="pl.190.1"></a><var>190.1</var>must be payable on the loan at the rate prescribed in section 
<statute_ref>298.2213, subdivision 3</statute_ref>. (ii) <br/>
<a id="pl.190.2"></a><var>190.2</var>Repayments of the loan and interest, if any, must be deposited in the taconite environment
         <br/>
<a id="pl.190.3"></a><var>190.3</var>protection fund under sections 
<statute_ref>298.222</statute_ref> to 
<statute_ref>298.225</statute_ref>. If a loan or grant is not made under this <br/>
<a id="pl.190.4"></a><var>190.4</var>paragraph by July 1, 2012, the amount that had been made available for the loan under
         this <br/>
<a id="pl.190.5"></a><var>190.5</var>paragraph must be transferred to the taconite environment protection fund under sections
         <br/>
<statute_ref><a id="pl.190.6"></a><var>190.6</var>298.222
</statute_ref> to 
<statute_ref>298.225</statute_ref>. (iii) Money distributed in 2008 to the fund established under this section <br/>
<a id="pl.190.7"></a><var>190.7</var>that exceeds ten cents per ton is available to qualifying producers under paragraph
         (a) on a <br/>
<a id="pl.190.8"></a><var>190.8</var>pro rata basis.<br/>
<a id="pl.190.9"></a><var>190.9</var>(c) Repayment or transfer of money to the taconite environmental protection fund under
         <br/>
<a id="pl.190.10"></a><var>190.10</var>paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
         <br/>
<a id="pl.190.11"></a><var>190.11</var>Board for public works projects in house legislative districts in the same proportion
         as <br/>
<a id="pl.190.12"></a><var>190.12</var>taxable tonnage of production in 2007 in each house legislative district, for distribution
         in <br/>
<a id="pl.190.13"></a><var>190.13</var>2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
         <br/>
<a id="pl.190.14"></a><var>190.14</var>Notwithstanding any other law to the contrary, expenditures under this paragraph do
         not <br/>
<a id="pl.190.15"></a><var>190.15</var>require approval by the governor. For purposes of this paragraph, "house legislative
         districts" <br/>
<a id="pl.190.16"></a><var>190.16</var>means the legislative districts in existence on May 15, 2009.<br/>
<br/>
<a id="bill.9.20.0"></a><a id="pl.190.17"></a><var>190.17</var>    Sec. 20. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:<br/>
<a id="pl.190.18"></a><var>190.18</var>    Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school account.</b><br/>
<a id="pl.190.19"></a><var>190.19</var>(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation
         <br/>
<a id="pl.190.20"></a><var>190.20</var>Board to be deposited in the Iron Range school consolidation and cooperatively operated
         <br/>
<a id="pl.190.21"></a><var>190.21</var>school account that is hereby created:<br/>
<a id="pl.190.22"></a><var>190.22</var>(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
         imposed <br/>
<a id="pl.190.23"></a><var>190.23</var>under section 
         <statute_ref>298.24</statute_ref>; and<br/>
<a id="pl.190.24"></a><var>190.24</var>(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
         <br/>
<a id="pl.190.25"></a><var>190.25</var>under section 
         <statute_ref>298.24</statute_ref>;<br/>
<a id="pl.190.26"></a><var>190.26</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3);<br/>
<a id="pl.190.27"></a><var>190.27</var>(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
         <br/>
<a id="pl.190.28"></a><var>190.28</var>proceeds attributable to the increase in the implicit price deflator as provided in
         section <br/>
<statute_ref><a id="pl.190.29"></a><var>190.29</var>298.24, subdivision 1
         </statute_ref>, with the remaining one-third to be distributed to the Douglas J. <br/>
<a id="pl.190.30"></a><var>190.30</var>Johnson economic protection trust fund;<br/>
<a id="pl.190.31"></a><var>190.31</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
         <br/>
<a id="pl.190.32"></a><var>190.32</var>tax proceeds attributable to the increase in the implicit price deflator as provided
         in section <br/>
<statute_ref><a id="pl.191.1"></a><var>191.1</var>298.24, subdivision 1
         </statute_ref>, for distribution years 2015 and 2016, with the remaining one-third <br/>
<a id="pl.191.2"></a><var>191.2</var>to be distributed to the Douglas J. Johnson economic protection trust fund; and<br/>
<a id="pl.191.3"></a><var>191.3</var>(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
         <br/>
<a id="pl.191.4"></a><var>191.4</var>tax proceeds attributable to the increase in the implicit price deflator as provided
         in section <br/>
<statute_ref><a id="pl.191.5"></a><var>191.5</var>298.24, subdivision 1
         </statute_ref>, for distribution years 2015, 2016, and 2017, with the remaining <br/>
<a id="pl.191.6"></a><var>191.6</var>one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
         and<br/>
<a id="pl.191.7"></a><var>191.7</var>(4) any other amount as provided by law.<br/>
<a id="pl.191.8"></a><var>191.8</var>(b) Expenditures from this account may be approved as ongoing annual expenditures <br/>
<a id="pl.191.9"></a><var>191.9</var>and shall be made only to provide disbursements to assist school districts with the payment
         <br/>
<a id="pl.191.10"></a><var>191.10</var>of bonds that were issued for qualified school projects, or for any other school disbursement
         <br/>
<a id="pl.191.11"></a><var>191.11</var>as approved by the commissioner of Iron Range resources and rehabilitation after the <br/>
<a id="pl.191.12"></a><var>191.12</var>commissioner of Iron Range resources and rehabilitation has sought review of the <br/>
<a id="pl.191.13"></a><var>191.13</var>expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this <br/>
<a id="pl.191.14"></a><var>191.14</var>section, "qualified school projects" means school projects within the taconite assistance
         <br/>
<a id="pl.191.15"></a><var>191.15</var>area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were (1) approved, by referendum, after April 3, <br/>
<a id="pl.191.16"></a><var>191.16</var>2006; and (2) approved by the commissioner of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br/>
<a id="pl.191.17"></a><var>191.17</var>(c) Beginning in fiscal year 2019, the disbursement to school districts for payments
         for <br/>
<a id="pl.191.18"></a><var>191.18</var>bonds issued under section 
         <statute_ref>123A.482</statute_ref>, subdivision 9, must be increased each year to offset <br/>
<a id="pl.191.19"></a><var>191.19</var>any reduction in debt service equalization aid that the school district qualifies
         for in that <br/>
<a id="pl.191.20"></a><var>191.20</var>year, under section 
         <statute_ref>123B.53, subdivision 6</statute_ref>, compared with the amount the school district <br/>
<a id="pl.191.21"></a><var>191.21</var>qualified for in fiscal year 2018.<br/>
<a id="pl.191.22"></a><var>191.22</var>(d) No expenditure under this section shall be made unless approved by seven members <br/>
<a id="pl.191.23"></a><var>191.23</var>of the commissioner of Iron Range resources and rehabilitation after seeking review
         of the <br/>
<a id="pl.191.24"></a><var>191.24</var>expenditure from the Iron Range Resources and Rehabilitation Board.<br/>
<br/>
<a id="bill.9.21.0"></a><a id="pl.191.25"></a><var>191.25</var>    Sec. 21. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:<br/>
<a id="pl.191.26"></a><var>191.26</var>    Subd. 9d. <b>Iron Range higher education account.</b> Five cents per taxable ton must be <br/>
<a id="pl.191.27"></a><var>191.27</var>allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
         an Iron <br/>
<a id="pl.191.28"></a><var>191.28</var>Range higher education account that is hereby created, to be used for higher education
         <br/>
<a id="pl.191.29"></a><var>191.29</var>programs conducted at educational institutions in the taconite assistance area defined
         in <br/>
<a id="pl.191.30"></a><var>191.30</var>section 
         <statute_ref>273.1341</statute_ref>. The Iron Range Higher Education committee under section 
         <statute_ref>298.2214,</statute_ref> <br/>
<a id="pl.191.31"></a><var>191.31</var>and the Iron Range Resources and Rehabilitation Board commissioner of Iron Range <br/>
<a id="pl.191.32"></a><var>191.32</var>resources and rehabilitation must approve all expenditures from the account, after seeking <br/>
<a id="pl.192.1"></a><var>192.1</var>review and recommendation of the expenditures from the Iron Range Resources and <br/>
<a id="pl.192.2"></a><var>192.2</var>Rehabilitation Board.<br/>
<br/>
<a id="bill.9.22.0"></a><a id="pl.192.3"></a><var>192.3</var>    Sec. 22. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:<br/>
<a id="pl.192.4"></a><var>192.4</var>    Subd. 2. <b>Use of money.</b> Money in the Douglas J. Johnson economic protection trust <br/>
<a id="pl.192.5"></a><var>192.5</var>fund may be used for the following purposes:<br/>
<a id="pl.192.6"></a><var>192.6</var>    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
         <br/>
<a id="pl.192.7"></a><var>192.7</var>with private sources of financing, but a loan to a private enterprise shall be for
         a principal <br/>
<a id="pl.192.8"></a><var>192.8</var>amount not to exceed one-half of the cost of the project for which financing is sought,
         and <br/>
<a id="pl.192.9"></a><var>192.9</var>the rate of interest on a loan to a private enterprise shall be no less than the lesser
         of eight <br/>
<a id="pl.192.10"></a><var>192.10</var>percent or an interest rate three percentage points less than a full faith and credit
         obligation <br/>
<a id="pl.192.11"></a><var>192.11</var>of the United States government of comparable maturity, at the time that the loan
         is approved;<br/>
<a id="pl.192.12"></a><var>192.12</var>    (2) to fund reserve accounts established to secure the payment when due of the principal
         <br/>
<a id="pl.192.13"></a><var>192.13</var>of and interest on bonds issued pursuant to section 
         <statute_ref>298.2211</statute_ref>;<br/>
<a id="pl.192.14"></a><var>192.14</var>    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
         on <br/>
<a id="pl.192.15"></a><var>192.15</var>bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
         or <br/>
<a id="pl.192.16"></a><var>192.16</var>retrofitting heating facilities in connection with district heating systems or systems
         utilizing <br/>
<a id="pl.192.17"></a><var>192.17</var>alternative energy sources;<br/>
<a id="pl.192.18"></a><var>192.18</var>    (4) to invest in a venture capital fund or enterprise that will provide capital to
         other <br/>
<a id="pl.192.19"></a><var>192.19</var>entities that are engaging in, or that will engage in, projects or programs that have
         the <br/>
<a id="pl.192.20"></a><var>192.20</var>purposes set forth in subdivision 1. No investments may be made in a venture capital
         fund <br/>
<a id="pl.192.21"></a><var>192.21</var>or enterprise unless at least two other unrelated investors make investments of at
         least <br/>
<a id="pl.192.22"></a><var>192.22</var>$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
         J. <br/>
<a id="pl.192.23"></a><var>192.23</var>Johnson economic protection trust fund may not exceed the amount of the largest investment
         <br/>
<a id="pl.192.24"></a><var>192.24</var>by an unrelated investor in the venture capital fund or enterprise. For purposes of
         this <br/>
<a id="pl.192.25"></a><var>192.25</var>subdivision, an "unrelated investor" is a person or entity that is not related to
         the entity in <br/>
<a id="pl.192.26"></a><var>192.26</var>which the investment is made or to any individual who owns more than 40 percent of
         the <br/>
<a id="pl.192.27"></a><var>192.27</var>value of the entity, in any of the following relationships: spouse, parent, child,
         sibling, <br/>
<a id="pl.192.28"></a><var>192.28</var>employee, or owner of an interest in the entity that exceeds ten percent of the value
         of all <br/>
<a id="pl.192.29"></a><var>192.29</var>interests in it. For purposes of determining the limitations under this clause, the
         amount of <br/>
<a id="pl.192.30"></a><var>192.30</var>investments made by an investor other than the Douglas J. Johnson economic protection
         <br/>
<a id="pl.192.31"></a><var>192.31</var>trust fund is the sum of all investments made in the venture capital fund or enterprise
         during <br/>
<a id="pl.192.32"></a><var>192.32</var>the period beginning one year before the date of the investment by the Douglas J.
         Johnson <br/>
<a id="pl.192.33"></a><var>192.33</var>economic protection trust fund; and<br/>
<a id="pl.193.1"></a><var>193.1</var>    (5) to purchase forest land in the taconite assistance area defined in section 
         <statute_ref>273.1341 </statute_ref>to <br/>
<a id="pl.193.2"></a><var>193.2</var>be held and managed as a public trust for the benefit of the area for the purposes
         authorized <br/>
<a id="pl.193.3"></a><var>193.3</var>in section 
         <statute_ref>298.22, subdivision 5a</statute_ref>. Property purchased under this section may be sold by the <br/>
<a id="pl.193.4"></a><var>193.4</var>commissioner upon approval by after seeking a recommendation from the board. The net <br/>
<a id="pl.193.5"></a><var>193.5</var>proceeds must be deposited in the trust fund for the purposes and uses of this section.<br/>
<a id="pl.193.6"></a><var>193.6</var>    Money from the trust fund shall be expended only in or for the benefit of the taconite
         <br/>
<a id="pl.193.7"></a><var>193.7</var>assistance area defined in section 
         <statute_ref>273.1341</statute_ref>.<br/>
<br/>
<a id="bill.9.23.0"></a><a id="pl.193.8"></a><var>193.8</var>    Sec. 23. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:<br/>
<a id="pl.193.9"></a><var>193.9</var>    Subdivision 1. <b>Project approval.</b> (a) The commissioner of Iron Range resources and <br/>
<a id="pl.193.10"></a><var>193.10</var>rehabilitation, after seeking a recommendation from the board and commissioner shall by <br/>
<a id="pl.193.11"></a><var>193.11</var>August 1 of each year prepare a list of projects to be funded, may expend funds for projects <br/>
<a id="pl.193.12"></a><var>193.12</var>to be funded from the Douglas J. Johnson economic protection trust with necessary <br/>
<a id="pl.193.13"></a><var>193.13</var>supporting information including description of the projects, plans, and cost estimates.
         These <br/>
<a id="pl.193.14"></a><var>193.14</var>projects shall be consistent with the priorities established in section 
         <statute_ref>298.292</statute_ref> and shall not <br/>
<a id="pl.193.15"></a><var>193.15</var>be approved by the board commissioner unless it the commissioner, after seeking a <br/>
<a id="pl.193.16"></a><var>193.16</var>recommendation from the board, finds that:<br/>
<a id="pl.193.17"></a><var>193.17</var>(a) (1) the project will materially assist, directly or indirectly, the creation of additional
         <br/>
<a id="pl.193.18"></a><var>193.18</var>long-term employment opportunities;<br/>
<a id="pl.193.19"></a><var>193.19</var>(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and<br/>
<a id="pl.193.20"></a><var>193.20</var>(c) (3) in the case of assistance to private enterprise, the project will serve a sound <br/>
<a id="pl.193.21"></a><var>193.21</var>business purpose.<br/>
<a id="pl.193.22"></a><var>193.22</var>(b) Each project must be approved by over one-half of all of the members of the board <br/>
<a id="pl.193.23"></a><var>193.23</var>and the commissioner of Iron Range resources and rehabilitation after seeking a <br/>
<a id="pl.193.24"></a><var>193.24</var>recommendation from the board for the project. The list of projects shall be submitted to <br/>
<a id="pl.193.25"></a><var>193.25</var>the governor, who shall, by November 15 of each year, approve or disapprove, or return
         <br/>
<a id="pl.193.26"></a><var>193.26</var>for further consideration, each project. The money for a project may be expended only
         upon <br/>
<a id="pl.193.27"></a><var>193.27</var>approval of the project by the governor. The board may submit supplemental projects
         for <br/>
<a id="pl.193.28"></a><var>193.28</var>approval at any time.<br/>
<br/>
<a id="bill.9.24.0"></a><a id="pl.193.29"></a><var>193.29</var>    Sec. 24. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:<br/>
<a id="pl.193.30"></a><var>193.30</var>    Subd. 2. <b>Expenditure of funds.</b> (a) Before January 1, 2028, funds may be expended on <br/>
<a id="pl.193.31"></a><var>193.31</var>projects and for administration of the trust fund only from the net interest, earnings,
         and <br/>
<a id="pl.193.32"></a><var>193.32</var>dividends arising from the investment of the trust at any time, including net interest,
         earnings, <br/>
<a id="pl.194.1"></a><var>194.1</var>and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available
         for <br/>
<a id="pl.194.2"></a><var>194.2</var>use in fiscal year 1983, except that any amount required to be paid out of the trust
         fund to <br/>
<a id="pl.194.3"></a><var>194.3</var>provide the property tax relief specified in Laws 1977, chapter 423, article X, section
         4, and <br/>
<a id="pl.194.4"></a><var>194.4</var>to make school bond payments and payments to recipients of taconite production tax
         proceeds <br/>
<a id="pl.194.5"></a><var>194.5</var>pursuant to section 
         <statute_ref>298.225</statute_ref>, may be taken from the corpus of the trust.<br/>
<a id="pl.194.6"></a><var>194.6</var>    (b) Additionally, upon recommendation by the commissioner after seeking a <br/>
<a id="pl.194.7"></a><var>194.7</var>recommendation from the board, up to $13,000,000 from the corpus of the trust may be <br/>
<a id="pl.194.8"></a><var>194.8</var>made available for use as provided in subdivision 4, and up to $10,000,000 from the
         corpus <br/>
<a id="pl.194.9"></a><var>194.9</var>of the trust may be made available for use as provided in section 
         <statute_ref>298.2961</statute_ref>.<br/>
<a id="pl.194.10"></a><var>194.10</var>    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the
         trust <br/>
<a id="pl.194.11"></a><var>194.11</var>on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
         <br/>
<a id="pl.194.12"></a><var>194.12</var>made available under section 
         <statute_ref>298.28, subdivision 4</statute_ref>, and Laws 2002, chapter 377, article 8, <br/>
<a id="pl.194.13"></a><var>194.13</var>section 17, may be expended on projects. Funds may be expended for projects under
         this <br/>
<a id="pl.194.14"></a><var>194.14</var>paragraph only if the project:<br/>
<a id="pl.194.15"></a><var>194.15</var>    (1) is for the purposes established under section 
         <statute_ref>298.292, subdivision 1</statute_ref>, clause (1) or <br/>
<a id="pl.194.16"></a><var>194.16</var>(2); and<br/>
<a id="pl.194.17"></a><var>194.17</var>    (2) is approved by two-thirds of all of the members of the commissioner after seeking <br/>
<a id="pl.194.18"></a><var>194.18</var>a recommendation from the board.<br/>
<a id="pl.194.19"></a><var>194.19</var>No money made available under this paragraph or paragraph (d) can be used for <br/>
<a id="pl.194.20"></a><var>194.20</var>administrative or operating expenses of the Iron Range Resources and Rehabilitation
         Board <br/>
<a id="pl.194.21"></a><var>194.21</var>or expenses relating to any facilities owned or operated by the board on May 18, 2002.<br/>
<a id="pl.194.22"></a><var>194.22</var>    (d) Upon recommendation by a unanimous vote of all members the commissioner after <br/>
<a id="pl.194.23"></a><var>194.23</var>seeking a recommendation of the board, amounts in addition to those authorized under <br/>
<a id="pl.194.24"></a><var>194.24</var>paragraphs (a), (b), and (c) may be expended on projects described in section 
         <statute_ref>298.292, <br/>
<a id="pl.194.25"></a><var>194.25</var>subdivision 1
         </statute_ref>.<br/>
<a id="pl.194.26"></a><var>194.26</var>    (e) Annual administrative costs, not including detailed engineering expenses for the
         <br/>
<a id="pl.194.27"></a><var>194.27</var>projects, shall not exceed five percent of the net interest, dividends, and earnings
         arising <br/>
<a id="pl.194.28"></a><var>194.28</var>from the trust in the preceding fiscal year.<br/>
<a id="pl.194.29"></a><var>194.29</var>    (f) Principal and interest received in repayment of loans made pursuant to this section,
         <br/>
<a id="pl.194.30"></a><var>194.30</var>and earnings on other investments made under section 
         <statute_ref>298.292, subdivision 2</statute_ref>, clause (4), <br/>
<a id="pl.194.31"></a><var>194.31</var>shall be deposited in the state treasury and credited to the trust. These receipts
         are <br/>
<a id="pl.194.32"></a><var>194.32</var>appropriated to the board for the purposes of sections 
         <statute_ref>298.291</statute_ref> to 
         <statute_ref>298.298</statute_ref>.<br/>
<a id="pl.195.1"></a><var>195.1</var>    (g) Additionally, notwithstanding section 
         <statute_ref>298.293</statute_ref>, upon the approval of the commissioner <br/>
<a id="pl.195.2"></a><var>195.2</var>of Iron Range resources and rehabilitation, after seeking a recommendation from the board, <br/>
<a id="pl.195.3"></a><var>195.3</var>money from the corpus of the trust may be expanded to purchase forest lands within
         the <br/>
<a id="pl.195.4"></a><var>195.4</var>taconite assistance area as provided in sections 
         <statute_ref>298.22</statute_ref>, subdivision 5a, and 
         <statute_ref>298.292, <br/>
<a id="pl.195.5"></a><var>195.5</var>subdivision 2
         </statute_ref>, clause (5).<br/>
<br/>
<a id="bill.9.25.0"></a><a id="pl.195.6"></a><var>195.6</var>    Sec. 25. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:<br/>
<a id="pl.195.7"></a><var>195.7</var>    Subd. 4. <b>Temporary loan authority.</b> (a) After seeking a recommendation from the <br/>
<a id="pl.195.8"></a><var>195.8</var>board, the commissioner of Iron Range resources and rehabilitation may recommend that <br/>
<a id="pl.195.9"></a><var>195.9</var>use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, <br/>
<a id="pl.195.10"></a><var>195.10</var>grants, or equity investments as provided in this subdivision. The money would be
         available <br/>
<a id="pl.195.11"></a><var>195.11</var>for loans for construction and equipping of facilities constituting (1) a value added
         iron <br/>
<a id="pl.195.12"></a><var>195.12</var>products plant, which may be either a new plant or a facility incorporated into an
         existing <br/>
<a id="pl.195.13"></a><var>195.13</var>plant that produces iron upgraded to a minimum of 75 percent iron content or any iron
         alloy <br/>
<a id="pl.195.14"></a><var>195.14</var>with a total minimum metallic content of 90 percent; or (2) a new mine or minerals
         processing <br/>
<a id="pl.195.15"></a><var>195.15</var>plant for any mineral subject to the net proceeds tax imposed under section 
         <statute_ref>298.015</statute_ref>. A loan <br/>
<a id="pl.195.16"></a><var>195.16</var>or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.<br/>
<a id="pl.195.17"></a><var>195.17</var>(b) Additionally, the board commissioner of Iron Range resources and rehabilitation <br/>
<a id="pl.195.18"></a><var>195.18</var>must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
         from <br/>
<a id="pl.195.19"></a><var>195.19</var>the investment of the trust after June 30, 1996, to be used for grants, loans, loan
         guarantees, <br/>
<a id="pl.195.20"></a><var>195.20</var>or equity investments for the purposes set forth in paragraph (a). This amount must
         be <br/>
<a id="pl.195.21"></a><var>195.21</var>reserved until it is used as described in this subdivision.<br/>
<a id="pl.195.22"></a><var>195.22</var>(c) Additionally, the board commissioner may recommend that up to $5,500,000 from <br/>
<a id="pl.195.23"></a><var>195.23</var>the corpus of the trust may be used for additional grants, loans, loan guarantees,
         or equity <br/>
<a id="pl.195.24"></a><var>195.24</var>investments for the purposes set forth in paragraph (a).<br/>
<a id="pl.195.25"></a><var>195.25</var>(d) The commissioner of Iron Range resources and rehabilitation, after seeking a <br/>
<a id="pl.195.26"></a><var>195.26</var>recommendation from the board, may require that it the board receive an equity percentage <br/>
<a id="pl.195.27"></a><var>195.27</var>in any project to which it contributes under this section.<br/>
<br/>
<a id="bill.9.26.0"></a><a id="pl.195.28"></a><var>195.28</var>    Sec. 26. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:<br/>
<a id="pl.195.29"></a><var>195.29</var>    Subd. 2. <b>Projects; approval.</b> (a) Projects funded must be for:<br/>
<a id="pl.195.30"></a><var>195.30</var>    (1) environmentally unique reclamation projects; or<br/>
<a id="pl.195.31"></a><var>195.31</var>    (2) pit or plant repairs, expansions, or modernizations other than for a value added
         iron <br/>
<a id="pl.195.32"></a><var>195.32</var>products plant.<br/>
<a id="pl.196.1"></a><var>196.1</var>    (b) To be proposed by the board, a project must be approved by Before the commissioner <br/>
<a id="pl.196.2"></a><var>196.2</var>may propose a project, the commissioner must seek a recommendation from the board. The <br/>
<a id="pl.196.3"></a><var>196.3</var>money for a project may be spent only upon approval of the project by the governor.
         The <br/>
<a id="pl.196.4"></a><var>196.4</var>board commissioner may submit a supplemental projects project for approval at any time <br/>
<a id="pl.196.5"></a><var>196.5</var>after seeking a recommendation for the project from the board.<br/>
<a id="pl.196.6"></a><var>196.6</var>    (c) The board commissioner may require that it the board receive an equity percentage <br/>
<a id="pl.196.7"></a><var>196.7</var>in any project to which it contributes under this section.<br/>
<br/>
<a id="bill.9.27.0"></a><a id="pl.196.8"></a><var>196.8</var>    Sec. 27. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:<br/>
<a id="pl.196.9"></a><var>196.9</var>    Subd. 4. <b>Grant and loan fund.</b> (a) A fund is established to receive distributions under <br/>
<a id="pl.196.10"></a><var>196.10</var>section 
         <statute_ref>298.28, subdivision 9b</statute_ref>, and to make grants or loans as provided in this subdivision. <br/>
<a id="pl.196.11"></a><var>196.11</var>Any grant or loan made under this subdivision must first be approved by the commissioner <br/>
<a id="pl.196.12"></a><var>196.12</var>after seeking a recommendation from the board, established under section 
         <statute_ref>298.22</statute_ref>.<br/>
<a id="pl.196.13"></a><var>196.13</var>    (b) All distributions received in 2009 and subsequent years are allocated for projects
         <br/>
<a id="pl.196.14"></a><var>196.14</var>under section 
         <statute_ref>298.223</statute_ref>, subdivision 1.<br/>
<br/>
<a id="bill.9.28.0"></a><a id="pl.196.15"></a><var>196.15</var>    Sec. 28. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:<br/>
<a id="pl.196.16"></a><var>196.16</var>    Subd. 2. <b>Unmined iron ore; valuation petition.</b> When in the opinion of the duly <br/>
<a id="pl.196.17"></a><var>196.17</var>constituted authorities of a taxing district there are in existence reserves of unmined
         iron <br/>
<a id="pl.196.18"></a><var>196.18</var>ore located in such district, these authorities may petition the commissioner of Iron Range <br/>
<a id="pl.196.19"></a><var>196.19</var>resources and rehabilitation Board for authority to petition the county assessor to verify the <br/>
<a id="pl.196.20"></a><var>196.20</var>existence of such reserves and to ascertain the value thereof by drilling in a manner
         consistent <br/>
<a id="pl.196.21"></a><var>196.21</var>with established engineering and geological exploration methods, in order that such
         taxing <br/>
<a id="pl.196.22"></a><var>196.22</var>district may be able to forecast in a proper manner its future economic and fiscal
         potentials. <br/>
<a id="pl.196.23"></a><var>196.23</var>The commissioner of Iron Range resources and rehabilitation may grant the authority
         to <br/>
<a id="pl.196.24"></a><var>196.24</var>petition after seeking a recommendation from the Iron Range Resources and Rehabilitation
         <br/>
<a id="pl.196.25"></a><var>196.25</var>Board.<br/>
<br/>
<a id="bill.9.29.0"></a><a id="pl.196.26"></a><var>196.26</var>    Sec. 29. <b>IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY </b><br/>
<a id="pl.196.27"></a><var>196.27</var><b>SEPARATION INCENTIVE PROGRAM AUTHORIZATION.</b><br/>
<a id="pl.196.28"></a><var>196.28</var>(a) "Commissioner" as used in this section means the commissioner of the Iron Range
         <br/>
<a id="pl.196.29"></a><var>196.29</var>Resources and Rehabilitation Board unless otherwise specified.<br/>
<a id="pl.196.30"></a><var>196.30</var>(b) Notwithstanding any law to the contrary, the commissioner, in consultation with
         the <br/>
<a id="pl.196.31"></a><var>196.31</var>commissioner of management and budget, shall offer a targeted early separation incentive
         <br/>
<a id="pl.196.32"></a><var>196.32</var>program for employees of the commissioner who have attained the age of 60 years or
         who <br/>
<a id="pl.197.1"></a><var>197.1</var>have received credit for at least 30 years of allowable service under the provisions
         of <br/>
<a id="pl.197.2"></a><var>197.2</var>Minnesota Statutes, chapter 352.  The commissioner shall also offer a targeted separation
         <br/>
<a id="pl.197.3"></a><var>197.3</var>incentive program for employees of the commissioner whose positions are in support
         of <br/>
<a id="pl.197.4"></a><var>197.4</var>operations at Giants Ridge and will be eliminated if the agency no longer directly
         manages <br/>
<a id="pl.197.5"></a><var>197.5</var>Giants Ridge operations.<br/>
<a id="pl.197.6"></a><var>197.6</var>(c) The early separation incentive program may include one or more of the following:<br/>
<a id="pl.197.7"></a><var>197.7</var>(1) employer-paid postseparation health, medical, and dental insurance until age 65;
         and<br/>
<a id="pl.197.8"></a><var>197.8</var>(2) cash incentives that may, but are not required to be, used to purchase additional
         years <br/>
<a id="pl.197.9"></a><var>197.9</var>of service credit through the Minnesota State Retirement System, to the extent that
         the <br/>
<a id="pl.197.10"></a><var>197.10</var>purchases are otherwise authorized by law.<br/>
<a id="pl.197.11"></a><var>197.11</var>(d) The commissioner shall establish eligibility requirements for employees to receive
         <br/>
<a id="pl.197.12"></a><var>197.12</var>an incentive.<br/>
<a id="pl.197.13"></a><var>197.13</var>(e) The commissioner, consistent with the established program provisions under paragraph
         <br/>
<a id="pl.197.14"></a><var>197.14</var>(b), and with the eligibility requirements under paragraph (f), may designate specific
         <br/>
<a id="pl.197.15"></a><var>197.15</var>programs or employees as eligible to be offered the incentive program.<br/>
<a id="pl.197.16"></a><var>197.16</var>(f) Acceptance of the offered incentive must be voluntary on the part of the employee
         <br/>
<a id="pl.197.17"></a><var>197.17</var>and must be in writing. The incentive may only be offered at the sole discretion of
         the <br/>
<a id="pl.197.18"></a><var>197.18</var>commissioner.<br/>
<a id="pl.197.19"></a><var>197.19</var>(g) The cost of the incentive is payable solely by funds made available to the <br/>
<a id="pl.197.20"></a><var>197.20</var>commissioner by law, but only on prior approval of the expenditures by the commissioner,
         <br/>
<a id="pl.197.21"></a><var>197.21</var>after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.<br/>
<a id="pl.197.22"></a><var>197.22</var>(h) Unilateral implementation of this section by the commissioner is not an unfair
         labor <br/>
<a id="pl.197.23"></a><var>197.23</var>practice under Minnesota Statutes, chapter 179A.<br/>
<a id="pl.197.24"></a><var>197.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. This <br/>
<a id="pl.197.25"></a><var>197.25</var>section is repealed July 30, 2019.<br/>
<br/>
<a id="bill.9.30.0"></a><a id="pl.197.26"></a><var>197.26</var>    Sec. 30. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.197.27"></a><var>197.27</var>The revisor of statutes shall identify and propose necessary changes to Minnesota
         Statutes <br/>
<a id="pl.197.28"></a><var>197.28</var>and Minnesota Rules that are consistent with the goals of this act to (i) transfer
         discretionary <br/>
<a id="pl.197.29"></a><var>197.29</var>approval authority for all expenditures and projects from the Iron Range Resources
         and <br/>
<a id="pl.197.30"></a><var>197.30</var>Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation,
         and <br/>
<a id="pl.197.31"></a><var>197.31</var>(ii) provide that the commissioner must, in good faith, seek the review and recommendation
         <br/>
<a id="pl.197.32"></a><var>197.32</var>of the board, as required, before exercising approval authority. The revisor shall
         submit the <br/>
<a id="pl.198.1"></a><var>198.1</var>proposal, in a form ready for introduction, during the 2018 regular legislative session
         to the <br/>
<a id="pl.198.2"></a><var>198.2</var>chairs and ranking minority members of the senate and house of representatives committees
         <br/>
<a id="pl.198.3"></a><var>198.3</var>with jurisdiction over taxes.<br/>
<br/>
<a id="bill.9.31.0"></a><a id="pl.198.4"></a><var>198.4</var>    Sec. 31. <b> REPEALER.</b><br/>
<a id="pl.198.5"></a><var>198.5</var>Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4,
         5, <br/>
<a id="pl.198.6"></a><var>198.6</var>and 6; and 298.298, are repealed.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="pl.198.9"></a><var>198.9</var><b>PROVISIONS</b><br/>

<a id="bill.10.1.0"></a><a id="pl.198.10"></a><var>198.10</var>    Section 1. <b>[289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; </b><br/>
<a id="pl.198.11"></a><var>198.11</var><b>DEFINITIONS.</b><br/>
<a id="pl.198.12"></a><var>198.12</var>(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12,
         and <br/>
<a id="pl.198.13"></a><var>198.13</var>609.5316, subdivision 3, the following terms have the meanings given.<br/>
<a id="pl.198.14"></a><var>198.14</var>(b) "Automated sales suppression device" or "zapper" means a software program, carried
         <br/>
<a id="pl.198.15"></a><var>198.15</var>on any tangible medium, or accessed through any other means, that falsifies the electronic
         <br/>
<a id="pl.198.16"></a><var>198.16</var>records of electronic cash registers and other point-of-sale systems including, but
         not limited <br/>
<a id="pl.198.17"></a><var>198.17</var>to, transaction data and transaction reports.<br/>
<a id="pl.198.18"></a><var>198.18</var>(c) "Electronic cash register" means a device that keeps a register or supporting
         documents <br/>
<a id="pl.198.19"></a><var>198.19</var>through the means of an electronic device or computer system designed to record transaction
         <br/>
<a id="pl.198.20"></a><var>198.20</var>data for the purpose of computing, compiling, or processing retail sales transaction
         data in <br/>
<a id="pl.198.21"></a><var>198.21</var>whatever manner.<br/>
<a id="pl.198.22"></a><var>198.22</var>(d) "Phantom-ware" means hidden preinstalled or later-installed programming option
         <br/>
<a id="pl.198.23"></a><var>198.23</var>embedded in the operating system of an electronic cash register or hardwired into
         the <br/>
<a id="pl.198.24"></a><var>198.24</var>electronic cash register that can be used to create a virtual second electronic cash
         register <br/>
<a id="pl.198.25"></a><var>198.25</var>or may eliminate or manipulate transaction records that may or may not be preserved
         in <br/>
<a id="pl.198.26"></a><var>198.26</var>digital formats to represent the true or manipulated record of transactions in the
         electronic <br/>
<a id="pl.198.27"></a><var>198.27</var>cash register.<br/>
<a id="pl.198.28"></a><var>198.28</var>(e) "Transaction data" includes items purchased by a customer, the price of each item,
         <br/>
<a id="pl.198.29"></a><var>198.29</var>the taxability determination for each item, a segregated tax amount for each of the
         taxed <br/>
<a id="pl.198.30"></a><var>198.30</var>items, the date and time of the purchase, the name, address, and identification number
         of <br/>
<a id="pl.198.31"></a><var>198.31</var>the vendor, and the receipt or invoice number of the transaction.<br/>
<a id="pl.199.1"></a><var>199.1</var>(f) "Transaction report" means a report documenting, but not limited to, the sales,
         taxes <br/>
<a id="pl.199.2"></a><var>199.2</var>collected, media totals, and discount voids at an electronic cash register that is
         printed on <br/>
<a id="pl.199.3"></a><var>199.3</var>cash register tape at the end of a day or shift, or a report documenting every action
         at an <br/>
<a id="pl.199.4"></a><var>199.4</var>electronic cash register that is stored electronically.<br/>
<a id="pl.199.5"></a><var>199.5</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated in Minnesota <br/>
<a id="pl.199.6"></a><var>199.6</var>Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur
         on or after <br/>
<a id="pl.199.7"></a><var>199.7</var>August 1, 2017.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.199.8"></a><var>199.8</var>    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to <br/>
<a id="pl.199.9"></a><var>199.9</var>read:<br/>
<a id="pl.199.10"></a><var>199.10</var>    Subd. 32. <b>Sales suppression.</b> (a) A person who:<br/>
<a id="pl.199.11"></a><var>199.11</var>(1) sells;<br/>
<a id="pl.199.12"></a><var>199.12</var>(2) transfers;<br/>
<a id="pl.199.13"></a><var>199.13</var>(3) develops;<br/>
<a id="pl.199.14"></a><var>199.14</var>(4) manufactures; or<br/>
<a id="pl.199.15"></a><var>199.15</var>(5) possesses with the intent to sell or transfer<br/>
<a id="pl.199.16"></a><var>199.16</var>an automated sales suppression device, zapper, phantom-ware, or similar device capable
         of <br/>
<a id="pl.199.17"></a><var>199.17</var>being used to commit tax fraud or suppress sales is liable for a civil penalty calculated
         under <br/>
<a id="pl.199.18"></a><var>199.18</var>paragraph (b).<br/>
<a id="pl.199.19"></a><var>199.19</var>(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
         <br/>
<a id="pl.199.20"></a><var>199.20</var>amount of all taxes and penalties due that are attributable to the use of any automated
         sales <br/>
<a id="pl.199.21"></a><var>199.21</var>suppression device, zapper, phantom-ware, or similar device facilitated by the sale,
         transfer, <br/>
<a id="pl.199.22"></a><var>199.22</var>development, or manufacture of the automated sales suppression device, zapper, <br/>
<a id="pl.199.23"></a><var>199.23</var>phantom-ware, or similar device by the person.<br/>
<a id="pl.199.24"></a><var>199.24</var>(c) The definitions in section 289A.14 apply to this subdivision.<br/>
<a id="pl.199.25"></a><var>199.25</var>(d) This subdivision does not apply to the commissioner, a person acting at the direction
         <br/>
<a id="pl.199.26"></a><var>199.26</var>of the commissioner, an agent of the commissioner, law enforcement agencies, or <br/>
<a id="pl.199.27"></a><var>199.27</var>postsecondary education institutions that possess an automated sales suppression device,
         <br/>
<a id="pl.199.28"></a><var>199.28</var>zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         <br/>
<a id="pl.199.29"></a><var>199.29</var>sales suppression devices, zappers, or phantom-ware.<br/>
<a id="pl.199.30"></a><var>199.30</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated that occur on <br/>
<a id="pl.199.31"></a><var>199.31</var>or after August 1, 2017.<br/>
<br/>
<a id="bill.10.3.0"></a><a id="pl.200.1"></a><var>200.1</var>    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to <br/>
<a id="pl.200.2"></a><var>200.2</var>read:<br/>
<a id="pl.200.3"></a><var>200.3</var>    Subd. 12. <b>Felony.</b> (a) A person who sells, purchases, installs, transfers, develops, <br/>
<a id="pl.200.4"></a><var>200.4</var>manufactures, or uses an automated sales suppression device, zapper, phantom-ware,
         or <br/>
<a id="pl.200.5"></a><var>200.5</var>similar device knowing that the device or phantom-ware is capable of being used to
         commit <br/>
<a id="pl.200.6"></a><var>200.6</var>tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment
         for <br/>
<a id="pl.200.7"></a><var>200.7</var>not more than five years or to a payment of a fine of not more than $10,000, or both.<br/>
 <a id="pl.200.8"></a><var>200.8</var>(b) An automated sales suppression device, zapper, phantom-ware, and any other device
         <br/>
<a id="pl.200.9"></a><var>200.9</var>containing an automated sales suppression, zapper, or phantom-ware device or software
         is <br/>
<a id="pl.200.10"></a><var>200.10</var>contraband and subject to forfeiture under section 609.5316.<br/>
<a id="pl.200.11"></a><var>200.11</var>(c) The definitions in section 289A.14 apply to this subdivision.<br/>
<a id="pl.200.12"></a><var>200.12</var>(d) This subdivision does not apply to the commissioner, a person acting at the direction
         <br/>
<a id="pl.200.13"></a><var>200.13</var>of the commissioner, an agent of the commissioner, law enforcement agencies, or <br/>
<a id="pl.200.14"></a><var>200.14</var>postsecondary education institutions that possess an automated sales suppression device,
         <br/>
<a id="pl.200.15"></a><var>200.15</var>zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         <br/>
<a id="pl.200.16"></a><var>200.16</var>sales suppression devices, zappers, or phantom-ware.<br/>
<a id="pl.200.17"></a><var>200.17</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated that occur on <br/>
<a id="pl.200.18"></a><var>200.18</var>or after August 1, 2017.<br/>
<br/>
<a id="bill.10.4.0"></a><a id="pl.200.19"></a><var>200.19</var>    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:<br/>
<a id="pl.200.20"></a><var>200.20</var>    Subd. 3. <b>Weapons, telephone cloning paraphernalia, </b><b>automated sales suppression </b><br/>
<a id="pl.200.21"></a><var>200.21</var><b>devices, </b><b>and bullet-resistant vests.</b> Weapons used are contraband and must be summarily <br/>
<a id="pl.200.22"></a><var>200.22</var>forfeited to the appropriate agency upon conviction of the weapon's owner or possessor
         for <br/>
<a id="pl.200.23"></a><var>200.23</var>a controlled substance crime; for any offense of this chapter or chapter 624, or for
         a violation <br/>
<a id="pl.200.24"></a><var>200.24</var>of an order for protection under section 
         <statute_ref>518B.01, subdivision 14</statute_ref>. Bullet-resistant vests, as <br/>
<a id="pl.200.25"></a><var>200.25</var>defined in section 
         <statute_ref>609.486</statute_ref>, worn or possessed during the commission or attempted <br/>
<a id="pl.200.26"></a><var>200.26</var>commission of a crime are contraband and must be summarily forfeited to the appropriate
         <br/>
<a id="pl.200.27"></a><var>200.27</var>agency upon conviction of the owner or possessor for a controlled substance crime
         or for <br/>
<a id="pl.200.28"></a><var>200.28</var>any offense of this chapter. Telephone cloning paraphernalia used in a violation of
         section <br/>
<statute_ref><a id="pl.200.29"></a><var>200.29</var>609.894
         </statute_ref>, and automated sales suppression devices, phantom-ware, and other devices <br/>
<a id="pl.200.30"></a><var>200.30</var>containing an automated sales suppression or phantom-ware device or software used
         in <br/>
<a id="pl.200.31"></a><var>200.31</var>violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited <br/>
<a id="pl.200.32"></a><var>200.32</var>to the appropriate agency upon a conviction.<br/>
<a id="pl.201.1"></a><var>201.1</var><b>EFFECTIVE DATE.</b>This section is effective for activities enumerated in Minnesota <br/>
<a id="pl.201.2"></a><var>201.2</var>Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="pl.201.5"></a><var>201.5</var><b>PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES</b><br/>

<a id="bill.11.1.0"></a><a id="pl.201.6"></a><var>201.6</var>    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:<br/>
<a id="pl.201.7"></a><var>201.7</var>    Subd. 11. <b>Information included in income tax return.</b> (a) The return must state:<br/>
<a id="pl.201.8"></a><var>201.8</var>    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
         address <br/>
<a id="pl.201.9"></a><var>201.9</var>of the taxpayer in the same name or names and same address as the taxpayer has used
         in <br/>
<a id="pl.201.10"></a><var>201.10</var>making the taxpayer's income tax return to the United States;<br/>
<a id="pl.201.11"></a><var>201.11</var>    (2) the date or dates of birth of the taxpayer or taxpayers;<br/>
<a id="pl.201.12"></a><var>201.12</var>    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
         number <br/>
<a id="pl.201.13"></a><var>201.13</var>has been issued by the United States with respect to the taxpayers; and<br/>
<a id="pl.201.14"></a><var>201.14</var>    (4) the amount of the taxable income of the taxpayer as it appears on the federal
         return <br/>
<a id="pl.201.15"></a><var>201.15</var>for the taxable year to which the Minnesota state return applies.<br/>
<a id="pl.201.16"></a><var>201.16</var>    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a
         copy <br/>
<a id="pl.201.17"></a><var>201.17</var>of the federal income tax return that the taxpayer has filed or is about to file for
         the period, <br/>
<a id="pl.201.18"></a><var>201.18</var>unless the taxpayer is eligible to telefile the federal return and does file the Minnesota
         return <br/>
<a id="pl.201.19"></a><var>201.19</var>by telefiling.<br/>
<a id="pl.201.20"></a><var>201.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.201.21"></a><var>201.21</var>    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:<br/>
<a id="pl.201.22"></a><var>201.22</var>    Subd. 16. <b>Tax refund or return preparers; electronic filing; paper filing fee imposed.</b><br/>
<a id="pl.201.23"></a><var>201.23</var>(a) A "tax refund or return preparer," as defined in section 
         <statute_ref>289A.60, subdivision 13</statute_ref>, paragraph <br/>
<a id="pl.201.24"></a><var>201.24</var>(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
         <br/>
<a id="pl.201.25"></a><var>201.25</var>Code, and who reasonably expects to prepare more than ten Minnesota individual income, <br/>
<a id="pl.201.26"></a><var>201.26</var>corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior <br/>
<a id="pl.201.27"></a><var>201.27</var>calendar year must file all Minnesota individual income, corporate franchise, S corporation, <br/>
<a id="pl.201.28"></a><var>201.28</var>partnership, or fiduciary income tax returns prepared for that calendar year by electronic <br/>
<a id="pl.201.29"></a><var>201.29</var>means.<br/>
<a id="pl.201.30"></a><var>201.30</var>(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the
         return <br/>
<a id="pl.201.31"></a><var>201.31</var>that the taxpayer did not want the return filed by electronic means.<br/>
<a id="pl.202.1"></a><var>202.1</var>(c) For each return that is not filed electronically by a tax refund or return preparer
         under <br/>
<a id="pl.202.2"></a><var>202.2</var>this subdivision, including returns filed under paragraph (b), a paper filing fee
         of $5 is <br/>
<a id="pl.202.3"></a><var>202.3</var>imposed upon the preparer. The fee is collected from the preparer in the same manner
         as <br/>
<a id="pl.202.4"></a><var>202.4</var>income tax. The fee does not apply to returns that the commissioner requires to be
         filed in <br/>
<a id="pl.202.5"></a><var>202.5</var>paper form.<br/>
<a id="pl.202.6"></a><var>202.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.202.7"></a><var>202.7</var>31, 2016.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.202.8"></a><var>202.8</var>    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:<br/>
<a id="pl.202.9"></a><var>202.9</var>    Subd. 2. <b>Withholding statement.</b> (a) A person required to deduct and withhold from <br/>
<a id="pl.202.10"></a><var>202.10</var>an employee a tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, or <br/>
<a id="pl.202.11"></a><var>202.11</var>who would have been required to deduct and withhold a tax under section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.202.12"></a><var>202.12</var>2a
         </statute_ref> or 3, or persons required to withhold tax under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, determined <br/>
<a id="pl.202.13"></a><var>202.13</var>without regard to section 
         <statute_ref>290.92, subdivision 19</statute_ref>, if the employee or payee had claimed no <br/>
<a id="pl.202.14"></a><var>202.14</var>more than one withholding exemption, or who paid wages or made payments not subject
         <br/>
<a id="pl.202.15"></a><var>202.15</var>to withholding under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, to an <br/>
<a id="pl.202.16"></a><var>202.16</var>employee or person receiving royalty payments in excess of $600, or who has entered
         into <br/>
<a id="pl.202.17"></a><var>202.17</var>a voluntary withholding agreement with a payee under section 
         <statute_ref>290.92, subdivision 20</statute_ref>, must <br/>
<a id="pl.202.18"></a><var>202.18</var>give every employee or person receiving royalty payments in respect to the remuneration
         <br/>
<a id="pl.202.19"></a><var>202.19</var>paid by the person to the employee or person receiving royalty payments during the
         calendar <br/>
<a id="pl.202.20"></a><var>202.20</var>year, on or before January 31 of the succeeding year, or, if employment is terminated
         before <br/>
<a id="pl.202.21"></a><var>202.21</var>the close of the calendar year, within 30 days after the date of receipt of a written
         request <br/>
<a id="pl.202.22"></a><var>202.22</var>from the employee if the 30-day period ends before January 31, a written statement
         showing <br/>
<a id="pl.202.23"></a><var>202.23</var>the following:<br/>
<a id="pl.202.24"></a><var>202.24</var>    (1) name of the person;<br/>
<a id="pl.202.25"></a><var>202.25</var>    (2) the name of the employee or payee and the employee's or payee's Social Security
         <br/>
<a id="pl.202.26"></a><var>202.26</var>account number;<br/>
<a id="pl.202.27"></a><var>202.27</var>    (3) the total amount of wages as that term is defined in section 
         <statute_ref>290.92, subdivision 1</statute_ref>, <br/>
<a id="pl.202.28"></a><var>202.28</var>paragraph (1); the total amount of remuneration subject to withholding under section
         
         <statute_ref>290.92, <br/>
<a id="pl.202.29"></a><var>202.29</var>subdivision 20
         </statute_ref>; the amount of sick pay as required under section 6051(f) of the Internal <br/>
<a id="pl.202.30"></a><var>202.30</var>Revenue Code; and the amount of royalties subject to withholding under section 
         <statute_ref>290.923, <br/>
<a id="pl.202.31"></a><var>202.31</var>subdivision 2
         </statute_ref>; and<br/>
<a id="pl.202.32"></a><var>202.32</var>    (4) the total amount deducted and withheld as tax under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> <br/>
<a id="pl.202.33"></a><var>202.33</var>or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>.<br/>
<a id="pl.203.1"></a><var>203.1</var>    (b) The statement required to be furnished by paragraph (a) with respect to any <br/>
<a id="pl.203.2"></a><var>203.2</var>remuneration must be furnished at those times, must contain the information required,
         and <br/>
<a id="pl.203.3"></a><var>203.3</var>must be in the form the commissioner prescribes.<br/>
<a id="pl.203.4"></a><var>203.4</var>    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
         <br/>
<a id="pl.203.5"></a><var>203.5</var>not in excess of 30 days, to employers or payers required to give the statements to
         their <br/>
<a id="pl.203.6"></a><var>203.6</var>employees or payees under this subdivision.<br/>
<a id="pl.203.7"></a><var>203.7</var>    (d) A duplicate of any statement made under this subdivision and in accordance with
         <br/>
<a id="pl.203.8"></a><var>203.8</var>rules prescribed by the commissioner, along with a reconciliation in the form the <br/>
<a id="pl.203.9"></a><var>203.9</var>commissioner prescribes of the statements for the calendar year, including a reconciliation
         <br/>
<a id="pl.203.10"></a><var>203.10</var>of the quarterly returns required to be filed under subdivision 1, must be filed with the <br/>
<a id="pl.203.11"></a><var>203.11</var>commissioner on or before February 28 January 31 of the year after the payments were <br/>
<a id="pl.203.12"></a><var>203.12</var>made.<br/>
<a id="pl.203.13"></a><var>203.13</var>    (e) If an employer cancels the employer's Minnesota withholding account number required
         <br/>
<a id="pl.203.14"></a><var>203.14</var>by section 
         <statute_ref>290.92, subdivision 24</statute_ref>, the information required by paragraph (d), must be filed <br/>
<a id="pl.203.15"></a><var>203.15</var>with the commissioner within 30 days of the end of the quarter in which the employer
         <br/>
<a id="pl.203.16"></a><var>203.16</var>cancels its account number.<br/>
<a id="pl.203.17"></a><var>203.17</var>    (f) The employer must submit the statements required to be sent to the commissioner
         in <br/>
<a id="pl.203.18"></a><var>203.18</var>the same manner required to satisfy the federal reporting requirements of section
         6011(e) <br/>
<a id="pl.203.19"></a><var>203.19</var>of the Internal Revenue Code and the regulations issued under it. An employer must
         submit <br/>
<a id="pl.203.20"></a><var>203.20</var>statements to the commissioner required by this section by electronic means if the
         employer <br/>
<a id="pl.203.21"></a><var>203.21</var>is required to send more than 25 statements to the commissioner, even though the employer
         <br/>
<a id="pl.203.22"></a><var>203.22</var>is not required to submit the returns federally by electronic means. For statements
         issued <br/>
<a id="pl.203.23"></a><var>203.23</var>for wages paid in 2011 and after, the threshold is ten. All statements issued for
         withholding <br/>
<a id="pl.203.24"></a><var>203.24</var>required under section 
<statute_ref>290.92</statute_ref> are aggregated for purposes of determining whether the <br/>
<a id="pl.203.25"></a><var>203.25</var>electronic submission threshold is met. The commissioner shall prescribe the content, format, <br/>
<a id="pl.203.26"></a><var>203.26</var>and manner of the statement pursuant to section 270C.30.<br/>
<a id="pl.203.27"></a><var>203.27</var>    (g) A "third-party bulk filer" as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph <br/>
<a id="pl.203.28"></a><var>203.28</var>(a), clause (2), must submit the returns required by this subdivision and subdivision
         1, <br/>
<a id="pl.203.29"></a><var>203.29</var>paragraph (a), with the commissioner by electronic means.<br/>
<a id="pl.203.30"></a><var>203.30</var><b>EFFECTIVE DATE.</b>This section is effective for statements required to be sent to the <br/>
<a id="pl.203.31"></a><var>203.31</var>commissioner after December 31, 2017, except that the date change in paragraph (d)
         is <br/>
<a id="pl.203.32"></a><var>203.32</var>effective for wages paid after December 31, 2016.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.204.1"></a><var>204.1</var>    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:<br/>
<a id="pl.204.2"></a><var>204.2</var>    Subd. 14. <b>Regulated investment companies;</b><b> Reporting</b><b> exempt interest and</b><b> </b><br/>
<a id="pl.204.3"></a><var>204.3</var><b>exempt-interest dividends.</b> (a) A regulated investment company paying $10 or more in <br/>
<a id="pl.204.4"></a><var>204.4</var>exempt-interest dividends to an individual who is a resident of Minnesota, or any person <br/>
<a id="pl.204.5"></a><var>204.5</var>receiving $10 or more of exempt interest or exempt-interest dividends and paying as
         nominee <br/>
<a id="pl.204.6"></a><var>204.6</var>to an individual who is a resident of Minnesota, must make a return indicating the amount <br/>
<a id="pl.204.7"></a><var>204.7</var>of the exempt interest or exempt-interest dividends, the name, address, and Social Security <br/>
<a id="pl.204.8"></a><var>204.8</var>number of the recipient, and any other information that the commissioner specifies.
         The <br/>
<a id="pl.204.9"></a><var>204.9</var>return must be provided to the shareholder recipient by February 15 of the year following <br/>
<a id="pl.204.10"></a><var>204.10</var>the year of the payment. The return provided to the shareholder recipient must include a <br/>
<a id="pl.204.11"></a><var>204.11</var>clear statement, in the form prescribed by the commissioner, that the exempt interest or <br/>
<a id="pl.204.12"></a><var>204.12</var>exempt-interest dividends must be included in the computation of Minnesota taxable
         income. <br/>
<a id="pl.204.13"></a><var>204.13</var>By June 1 of each year, the regulated investment company payor must file a copy of the <br/>
<a id="pl.204.14"></a><var>204.14</var>return with the commissioner.<br/>
<a id="pl.204.15"></a><var>204.15</var>    (b) For purposes of this subdivision, the following definitions apply.<br/>
<a id="pl.204.16"></a><var>204.16</var>    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
         <br/>
<a id="pl.204.17"></a><var>204.17</var>852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
         <br/>
<a id="pl.204.18"></a><var>204.18</var>dividends that are not required to be added to federal taxable income under section
         
         <statute_ref>290.0131, <br/>
<a id="pl.204.19"></a><var>204.19</var>subdivision 2
         </statute_ref>, paragraph (b).<br/>
<a id="pl.204.20"></a><var>204.20</var>    (2) "Regulated investment company" means regulated investment company as defined <br/>
<a id="pl.204.21"></a><var>204.21</var>in section 851(a) of the Internal Revenue Code or a fund of the regulated investment
         company <br/>
<a id="pl.204.22"></a><var>204.22</var>as defined in section 851(g) of the Internal Revenue Code.<br/>
<a id="pl.204.23"></a><var>204.23</var>    (3) "Exempt interest" means income on obligations of any state other than Minnesota,
         <br/>
<a id="pl.204.24"></a><var>204.24</var>or a political or governmental subdivision, municipality, or governmental agency or
         <br/>
<a id="pl.204.25"></a><var>204.25</var>instrumentality of any state other than Minnesota, and exempt from federal income
         taxes <br/>
<a id="pl.204.26"></a><var>204.26</var>under the Internal Revenue Code or any other federal statute.<br/>
<a id="pl.204.27"></a><var>204.27</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed after <br/>
<a id="pl.204.28"></a><var>204.28</var>December 31, 2017.<br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.204.29"></a><var>204.29</var>    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to <br/>
<a id="pl.204.30"></a><var>204.30</var>read:<br/>
<a id="pl.204.31"></a><var>204.31</var>    Subd. 2a. <b>Annual withholding returns; eligible employers.</b> (a) An employer who <br/>
<a id="pl.204.32"></a><var>204.32</var>deducts and withholds an amount required to be withheld by section 290.92 may file
         an <br/>
<a id="pl.204.33"></a><var>204.33</var>annual return and make an annual payment of the amount required to be deducted and
         <br/>
<a id="pl.205.1"></a><var>205.1</var>withheld for that calendar year if the employer has received a notification under
         paragraph <br/>
<a id="pl.205.2"></a><var>205.2</var>(b). The ability to elect to file an annual return continues through the year following
         the <br/>
<a id="pl.205.3"></a><var>205.3</var>year where an employer is required to deduct and withhold more than $500.<br/>
<a id="pl.205.4"></a><var>205.4</var>(b) The commissioner is authorized to determine which employers are eligible to file
         <br/>
<a id="pl.205.5"></a><var>205.5</var>an annual return and to notify employers who newly qualify to file an annual return
         because <br/>
<a id="pl.205.6"></a><var>205.6</var>the amount an employer is required to deduct and withhold for that calendar year is
         $500 <br/>
<a id="pl.205.7"></a><var>205.7</var>or less based on the most recent period of four consecutive quarters for which the
         <br/>
<a id="pl.205.8"></a><var>205.8</var>commissioner has compiled data on that employer's withholding tax for that period.
         At the <br/>
<a id="pl.205.9"></a><var>205.9</var>time of notification, eligible employers may still decide to file returns and make
         deposits <br/>
<a id="pl.205.10"></a><var>205.10</var>quarterly. An employer who decides to file returns and make deposits quarterly is
         required <br/>
<a id="pl.205.11"></a><var>205.11</var>to make all returns and deposits required by this chapter and, notwithstanding paragraph
         <br/>
<a id="pl.205.12"></a><var>205.12</var>(a), is subject to all applicable penalties for failing to do so.<br/>
<a id="pl.205.13"></a><var>205.13</var>(c) If, at the end of any calendar month other than the last month of the calendar
         year, <br/>
<a id="pl.205.14"></a><var>205.14</var>the aggregate amount of undeposited tax withheld by an employer who has elected to
         file <br/>
<a id="pl.205.15"></a><var>205.15</var>an annual return exceeds $500, the employer must deposit the aggregate amount with
         the <br/>
<a id="pl.205.16"></a><var>205.16</var>commissioner within 30 days of the end of the calendar month.<br/>
<a id="pl.205.17"></a><var>205.17</var>(d) If an employer who has elected to file an annual return ceases to pay wages for
         which <br/>
<a id="pl.205.18"></a><var>205.18</var>withholding is required, the employer must file a final return and deposit any undeposited
         <br/>
<a id="pl.205.19"></a><var>205.19</var>tax within 30 days of the end of the calendar month following the month in which the
         <br/>
<a id="pl.205.20"></a><var>205.20</var>employer ceased paying wages.<br/>
<a id="pl.205.21"></a><var>205.21</var>(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
         <br/>
<a id="pl.205.22"></a><var>205.22</var>must file the return and pay the tax not previously deposited before February 1 of
         the year <br/>
<a id="pl.205.23"></a><var>205.23</var>following the year in which the tax was withheld.<br/>
<a id="pl.205.24"></a><var>205.24</var>(f) A notification to an employer regarding eligibility to file an annual return under
         <br/>
<a id="pl.205.25"></a><var>205.25</var>Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).<br/>
<a id="pl.205.26"></a><var>205.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.205.27"></a><var>205.27</var>31, 2016.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.205.28"></a><var>205.28</var>    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:<br/>
<a id="pl.205.29"></a><var>205.29</var>    Subd. 2. <b>Withholding from wages, entertainer withholding, withholding from </b><br/>
<a id="pl.205.30"></a><var>205.30</var><b>payments to out-of-state contractors, and withholding by partnerships, small business
         </b><br/>
<a id="pl.205.31"></a><var>205.31</var><b>corporations, trusts.</b> (a) Except as provided in section 289A.18, subdivision 2a, a tax <br/>
<a id="pl.205.32"></a><var>205.32</var>required to be deducted and withheld during the quarterly period must be paid on or
         before <br/>
<a id="pl.205.33"></a><var>205.33</var>the last day of the month following the close of the quarterly period, unless an earlier
         time <br/>
<a id="pl.206.1"></a><var>206.1</var>for payment is provided. A tax required to be deducted and withheld from compensation
         <br/>
<a id="pl.206.2"></a><var>206.2</var>of an entertainer and from a payment to an out-of-state contractor must be paid on
         or before <br/>
<a id="pl.206.3"></a><var>206.3</var>the date the return for such tax must be filed under section 
         <statute_ref>289A.18, subdivision 2</statute_ref>. Taxes <br/>
<a id="pl.206.4"></a><var>206.4</var>required to be deducted and withheld by partnerships, S corporations, and trusts must
         be <br/>
<a id="pl.206.5"></a><var>206.5</var>paid on a quarterly basis as estimated taxes under section 
         <statute_ref>289A.25</statute_ref> for partnerships and <br/>
<a id="pl.206.6"></a><var>206.6</var>trusts and under section 
         <statute_ref>289A.26</statute_ref> for S corporations.<br/>
<a id="pl.206.7"></a><var>206.7</var>(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
         <br/>
<a id="pl.206.8"></a><var>206.8</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision 2</statute_ref>, must deposit tax <br/>
<a id="pl.206.9"></a><var>206.9</var>withheld under those sections with the commissioner within the time allowed to deposit
         the <br/>
<a id="pl.206.10"></a><var>206.10</var>employer's federal withheld employment taxes under Code of Federal Regulations, title
         26, <br/>
<a id="pl.206.11"></a><var>206.11</var>section 31.6302-1, as amended through December 31, 2001, without regard to the safe
         <br/>
<a id="pl.206.12"></a><var>206.12</var>harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
         Taxpayers <br/>
<a id="pl.206.13"></a><var>206.13</var>must submit a copy of their federal notice of deposit status to the commissioner upon
         request <br/>
<a id="pl.206.14"></a><var>206.14</var>by the commissioner.<br/>
<a id="pl.206.15"></a><var>206.15</var>(c) The commissioner may prescribe by rule other return periods or deposit requirements.
         <br/>
<a id="pl.206.16"></a><var>206.16</var>In prescribing the reporting period, the commissioner may classify payors according
         to the <br/>
<a id="pl.206.17"></a><var>206.17</var>amount of their tax liability and may adopt an appropriate reporting period for the
         class that <br/>
<a id="pl.206.18"></a><var>206.18</var>the commissioner judges to be consistent with efficient tax collection. In no event
         will the <br/>
<a id="pl.206.19"></a><var>206.19</var>duration of the reporting period be more than one year.<br/>
<a id="pl.206.20"></a><var>206.20</var>(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
         <br/>
<a id="pl.206.21"></a><var>206.21</var>with respect to both the tax and the amount to be deducted must be made, without interest,
         <br/>
<a id="pl.206.22"></a><var>206.22</var>in the manner and at the times the commissioner prescribes. If the underpayment cannot
         be <br/>
<a id="pl.206.23"></a><var>206.23</var>adjusted, the amount of the underpayment will be assessed and collected in the manner
         and <br/>
<a id="pl.206.24"></a><var>206.24</var>at the times the commissioner prescribes.<br/>
<a id="pl.206.25"></a><var>206.25</var>(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year
         ending <br/>
<a id="pl.206.26"></a><var>206.26</var>June 30, the employer must remit each required deposit for wages paid in all subsequent
         <br/>
<a id="pl.206.27"></a><var>206.27</var>calendar years by electronic means.<br/>
<a id="pl.206.28"></a><var>206.28</var>(f) A third-party bulk filer as defined in section 
         <statute_ref>290.92, subdivision 30</statute_ref>, paragraph (a), <br/>
<a id="pl.206.29"></a><var>206.29</var>clause (2), who remits withholding deposits must remit all deposits by electronic
         means as <br/>
<a id="pl.206.30"></a><var>206.30</var>provided in paragraph (e), regardless of the aggregate amount of tax withheld during
         a fiscal <br/>
<a id="pl.206.31"></a><var>206.31</var>year for all of the employers.<br/>
<a id="pl.206.32"></a><var>206.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.206.33"></a><var>206.33</var>31, 2016.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.207.1"></a><var>207.1</var>    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:<br/>
<a id="pl.207.2"></a><var>207.2</var>    Subdivision 1. <b>Individual income, fiduciary income, mining company, corporate </b><br/>
<a id="pl.207.3"></a><var>207.3</var><b>franchise, and entertainment taxes.</b> (a) Individual income, fiduciary income, mining <br/>
<a id="pl.207.4"></a><var>207.4</var>company, and corporate franchise taxes, and interest and penalties, must be paid by
         the <br/>
<a id="pl.207.5"></a><var>207.5</var>taxpayer upon whom the tax is imposed, except in the following cases:<br/>
<a id="pl.207.6"></a><var>207.6</var>(1) The tax due from a decedent for that part of the taxable year in which the decedent
         <br/>
<a id="pl.207.7"></a><var>207.7</var>died during which the decedent was alive and the taxes, interest, and penalty due
         for the <br/>
<a id="pl.207.8"></a><var>207.8</var>prior years must be paid by the decedent's personal representative, if any. If there
         is no <br/>
<a id="pl.207.9"></a><var>207.9</var>personal representative, the taxes, interest, and penalty must be paid by the transferees,
         as <br/>
<a id="pl.207.10"></a><var>207.10</var>defined in section 
         <statute_ref>270C.58, subdivision 3</statute_ref>, to the extent they receive property from the <br/>
<a id="pl.207.11"></a><var>207.11</var>decedent;<br/>
<a id="pl.207.12"></a><var>207.12</var>(2) The tax due from an infant or other incompetent person must be paid by the person's
         <br/>
<a id="pl.207.13"></a><var>207.13</var>guardian or other person authorized or permitted by law to act for the person;<br/>
<a id="pl.207.14"></a><var>207.14</var>(3) The tax due from the estate of a decedent must be paid by the estate's personal
         <br/>
<a id="pl.207.15"></a><var>207.15</var>representative;<br/>
<a id="pl.207.16"></a><var>207.16</var>(4) The tax due from a trust, including those within the definition of a corporation,
         as <br/>
<a id="pl.207.17"></a><var>207.17</var>defined in section 
         <statute_ref>290.01, subdivision 4</statute_ref>, must be paid by a trustee; and<br/>
<a id="pl.207.18"></a><var>207.18</var>(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
         <br/>
<a id="pl.207.19"></a><var>207.19</var>trustee in bankruptcy, assignee, or other conservator, must be paid by the person
         in charge <br/>
<a id="pl.207.20"></a><var>207.20</var>of the business or property so far as the tax is due to the income from the business
         or property.<br/>
<a id="pl.207.21"></a><var>207.21</var>(b) Entertainment taxes are the joint and several liability of the entertainer and
         the <br/>
<a id="pl.207.22"></a><var>207.22</var>entertainment entity. The payor is liable to the state for the payment of the tax
         required to <br/>
<a id="pl.207.23"></a><var>207.23</var>be deducted and withheld under section 
         <statute_ref>290.9201, subdivision 7</statute_ref>, and is not liable to the <br/>
<a id="pl.207.24"></a><var>207.24</var>entertainer for the amount of the payment.<br/>
<a id="pl.207.25"></a><var>207.25</var>(c) The tax taxes imposed under section sections 289A.35 and
<statute_ref>290.0922</statute_ref> on partnerships <br/>
<a id="pl.207.26"></a><var>207.26</var>is are the joint and several liability of the partnership and the general partners.<br/>
<a id="pl.207.27"></a><var>207.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.8.0"></a><a id="pl.207.28"></a><var>207.28</var>    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:<br/>
<a id="pl.207.29"></a><var>207.29</var><b>289A.35 ASSESSMENTS ON RETURNS.</b><br/>
<a id="pl.207.30"></a><var>207.30</var>(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
         <br/>
<a id="pl.207.31"></a><var>207.31</var>income, items of federal tax preferences, or federal credit amounts to make them conform
         <br/>
<a id="pl.207.32"></a><var>207.32</var>with the provisions of chapter 290 or section 
         <statute_ref>298.01</statute_ref>. If a return has been filed, the <br/>
<a id="pl.208.1"></a><var>208.1</var>commissioner shall enter the liability reported on the return and may make any audit
         or <br/>
<a id="pl.208.2"></a><var>208.2</var>investigation that is considered necessary.<br/>
<a id="pl.208.3"></a><var>208.3</var>(b) Upon petition by a taxpayer, and when the commissioner determines that it is in
         the <br/>
<a id="pl.208.4"></a><var>208.4</var>best interest of the state, the commissioner may allow S corporations and partnerships
         to <br/>
<a id="pl.208.5"></a><var>208.5</var>receive orders of assessment issued under section 270C.33, subdivision 4, on behalf
         of their <br/>
<a id="pl.208.6"></a><var>208.6</var>owners, and to pay liabilities shown on such orders. In such cases, the owners' liability
         must <br/>
<a id="pl.208.7"></a><var>208.7</var>be calculated using the method provided in section 289A.08, subdivision 7, paragraph
         (b).<br/>
<a id="pl.208.8"></a><var>208.8</var>(c) A taxpayer may petition the commissioner for the use of the method described in
         <br/>
<a id="pl.208.9"></a><var>208.9</var>paragraph (b) after the taxpayer is notified that an audit has been initiated and
         before an <br/>
<a id="pl.208.10"></a><var>208.10</var>order of assessment has been issued.<br/>
<a id="pl.208.11"></a><var>208.11</var>(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
         <br/>
<a id="pl.208.12"></a><var>208.12</var>of a taxpayer cannot be appealed to the Tax Court or any other court.<br/>
<a id="pl.208.13"></a><var>208.13</var>(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under <br/>
<a id="pl.208.14"></a><var>208.14</var>chapter 291. In the case of a return filed pursuant to section 
         <statute_ref>289A.10</statute_ref>, the commissioner <br/>
<a id="pl.208.15"></a><var>208.15</var>shall notify the estate no later than nine months after the filing date, as provided
         by section <br/>
<statute_ref><a id="pl.208.16"></a><var>208.16</var>289A.38, subdivision 2
         </statute_ref>, whether the return is under examination or the return has been <br/>
<a id="pl.208.17"></a><var>208.17</var>processed as filed.<br/>
<a id="pl.208.18"></a><var>208.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.9.0"></a><a id="pl.208.19"></a><var>208.19</var>    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:<br/>
<a id="pl.208.20"></a><var>208.20</var>    Subd. 28. <b>Preparer identification number.</b> Any Minnesota individual income tax return <br/>
<a id="pl.208.21"></a><var>208.21</var>or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
         <br/>
<a id="pl.208.22"></a><var>208.22</var>13, paragraph (f), shall bear the identification number the preparer is required to
         use federally <br/>
<a id="pl.208.23"></a><var>208.23</var>under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer
         who <br/>
<a id="pl.208.24"></a><var>208.24</var>prepares a Minnesota individual income tax return required by section 289A.08, subdivisions <br/>
<a id="pl.208.25"></a><var>208.25</var>1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required <br/>
<a id="pl.208.26"></a><var>208.26</var>number on the return or claim is subject to a penalty of $50 for each failure.<br/>
<a id="pl.208.27"></a><var>208.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after December <br/>
<a id="pl.208.28"></a><var>208.28</var>31, 2016.<br/>
<br/>
<a id="bill.11.10.0"></a><a id="pl.208.29"></a><var>208.29</var>    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:<br/>
<a id="pl.208.30"></a><var>208.30</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.208.31"></a><var>208.31</var>the meanings given.<br/>
<a id="pl.209.1"></a><var>209.1</var>(b) "Long-term care insurance" means a policy that:<br/>
<a id="pl.209.2"></a><var>209.2</var>(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
         <br/>
<a id="pl.209.3"></a><var>209.3</var>the 7.5 percent adjusted gross income test; or meets the requirements given in section 
         <statute_ref>62A.46</statute_ref>; <br/>
<a id="pl.209.4"></a><var>209.4</var>or provides similar coverage issued under the laws of another jurisdiction; and<br/>
<a id="pl.209.5"></a><var>209.5</var>(2) has a lifetime long-term care benefit limit of not less than $100,000; and<br/>
<a id="pl.209.6"></a><var>209.6</var>(3) has been offered in compliance with the inflation protection requirements of section
         <br/>
<statute_ref><a id="pl.209.7"></a><var>209.7</var>62S.23
         </statute_ref>.<br/>
<a id="pl.209.8"></a><var>209.8</var>(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.<br/>
<a id="pl.209.9"></a><var>209.9</var>(d) "Premiums deducted in determining federal taxable income" means the lesser of
         (1) <br/>
<a id="pl.209.10"></a><var>209.10</var>long-term care insurance premiums that qualify as deductions under section 213 of
         the <br/>
<a id="pl.209.11"></a><var>209.11</var>Internal Revenue Code; and (2) the total amount deductible for medical care under
         section <br/>
<a id="pl.209.12"></a><var>209.12</var>213 of the Internal Revenue Code.<br/>
<a id="pl.209.13"></a><var>209.13</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years beginning <br/>
<a id="pl.209.14"></a><var>209.14</var>after December 31, 2012.<br/>
<br/>
<a id="bill.11.11.0"></a><a id="pl.209.15"></a><var>209.15</var>    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:<br/>
<a id="pl.209.16"></a><var>209.16</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, the following terms have the meanings <br/>
<a id="pl.209.17"></a><var>209.17</var>given.<br/>
<a id="pl.209.18"></a><var>209.18</var>    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         research <br/>
<a id="pl.209.19"></a><var>209.19</var>payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
         it does <br/>
<a id="pl.209.20"></a><var>209.20</var>not include expenses incurred for qualified research or basic research conducted outside
         <br/>
<a id="pl.209.21"></a><var>209.21</var>the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code;
         and <br/>
<a id="pl.209.22"></a><var>209.22</var>(ii) contributions to a nonprofit corporation established and operated pursuant to
         the <br/>
<a id="pl.209.23"></a><var>209.23</var>provisions of chapter 317A for the purpose of promoting the establishment and expansion
         <br/>
<a id="pl.209.24"></a><var>209.24</var>of business in this state, provided the contributions are invested by the nonprofit
         corporation <br/>
<a id="pl.209.25"></a><var>209.25</var>for the purpose of providing funds for small, technologically innovative enterprises
         in <br/>
<a id="pl.209.26"></a><var>209.26</var>Minnesota during the early stages of their development.<br/>
<a id="pl.209.27"></a><var>209.27</var>    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         <br/>
<a id="pl.209.28"></a><var>209.28</var>Internal Revenue Code, except that the term does not include qualified research conducted
         <br/>
<a id="pl.209.29"></a><var>209.29</var>outside the state of Minnesota.<br/>
<a id="pl.209.30"></a><var>209.30</var>    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
         <br/>
<a id="pl.209.31"></a><var>209.31</var>Code, except that the average annual gross receipts and aggregate gross receipts must be <br/>
<a id="pl.210.1"></a><var>210.1</var>calculated using Minnesota sales or receipts under section 
         <statute_ref>290.191</statute_ref> and the definitions <br/>
<a id="pl.210.2"></a><var>210.2</var>contained in clauses paragraphs (a) and (b) shall apply.<br/>
<a id="pl.210.3"></a><var>210.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.12.0"></a><a id="pl.210.4"></a><var>210.4</var>    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:<br/>
<a id="pl.210.5"></a><var>210.5</var>    Subd. 2. <b>Income not derived from conduct of a trade or business.</b> The income of a <br/>
<a id="pl.210.6"></a><var>210.6</var>taxpayer subject to the allocation rules that is not derived from the conduct of a
         trade or <br/>
<a id="pl.210.7"></a><var>210.7</var>business must be assigned in accordance with paragraphs (a) to (f):<br/>
<a id="pl.210.8"></a><var>210.8</var>    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
         <br/>
<a id="pl.210.9"></a><var>210.9</var>3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to
         the extent <br/>
<a id="pl.210.10"></a><var>210.10</var>that, the work of the employee is performed within it; all other income from such
         sources <br/>
<a id="pl.210.11"></a><var>210.11</var>is treated as income from sources without this state.<br/>
<a id="pl.210.12"></a><var>210.12</var>    Severance pay shall be considered income from labor or personal or professional services.<br/>
<a id="pl.210.13"></a><var>210.13</var>    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
         <br/>
<a id="pl.210.14"></a><var>210.14</var>or entertainer, income from compensation for labor or personal services performed
         within <br/>
<a id="pl.210.15"></a><var>210.15</var>this state shall be determined in the following manner:<br/>
<a id="pl.210.16"></a><var>210.16</var>    (i) The amount of income to be assigned to Minnesota for an individual who is a <br/>
<a id="pl.210.17"></a><var>210.17</var>nonresident salaried athletic team employee shall be determined by using a fraction
         in which <br/>
<a id="pl.210.18"></a><var>210.18</var>the denominator contains the total number of days in which the individual is under
         a duty <br/>
<a id="pl.210.19"></a><var>210.19</var>to perform for the employer, and the numerator is the total number of those days spent
         in <br/>
<a id="pl.210.20"></a><var>210.20</var>Minnesota. For purposes of this paragraph, off-season training activities, unless
         conducted <br/>
<a id="pl.210.21"></a><var>210.21</var>at the team's facilities as part of a team imposed program, are not included in the
         total number <br/>
<a id="pl.210.22"></a><var>210.22</var>of duty days. Bonuses earned as a result of play during the regular season or for
         participation <br/>
<a id="pl.210.23"></a><var>210.23</var>in championship, play-off, or all-star games must be allocated under the formula.
         Signing <br/>
<a id="pl.210.24"></a><var>210.24</var>bonuses are not subject to allocation under the formula if they are not conditional
         on playing <br/>
<a id="pl.210.25"></a><var>210.25</var>any games for the team, are payable separately from any other compensation, and are
         <br/>
<a id="pl.210.26"></a><var>210.26</var>nonrefundable; and<br/>
<a id="pl.210.27"></a><var>210.27</var>    (ii) The amount of income to be assigned to Minnesota for an individual who is a <br/>
<a id="pl.210.28"></a><var>210.28</var>nonresident, and who is an athlete or entertainer not listed in clause (i), for that
         person's <br/>
<a id="pl.210.29"></a><var>210.29</var>athletic or entertainment performance in Minnesota shall be determined by assigning
         to this <br/>
<a id="pl.210.30"></a><var>210.30</var>state all income from performances or athletic contests in this state.<br/>
<a id="pl.210.31"></a><var>210.31</var>    (3) For purposes of this section, amounts received by a nonresident as "retirement
         income" <br/>
<a id="pl.210.32"></a><var>210.32</var>as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
         <br/>
<a id="pl.210.33"></a><var>210.33</var>Law 104-95, are not considered income derived from carrying on a trade or business
         or <br/>
<a id="pl.211.1"></a><var>211.1</var>from wages or other compensation for work an employee performed in Minnesota, and
         are <br/>
<a id="pl.211.2"></a><var>211.2</var>not taxable under this chapter.<br/>
<a id="pl.211.3"></a><var>211.3</var>    (b) Income or gains from tangible property located in this state that is not employed
         in <br/>
<a id="pl.211.4"></a><var>211.4</var>the business of the recipient of the income or gains must be assigned to this state.<br/>
<a id="pl.211.5"></a><var>211.5</var>    (c) Income or gains from intangible personal property not employed in the business
         of <br/>
<a id="pl.211.6"></a><var>211.6</var>the recipient of the income or gains must be assigned to this state if the recipient
         of the <br/>
<a id="pl.211.7"></a><var>211.7</var>income or gains is a resident of this state or is a resident trust or estate.<br/>
<a id="pl.211.8"></a><var>211.8</var>    Gain on the sale of a partnership interest is allocable to this state in the ratio
         of the <br/>
<a id="pl.211.9"></a><var>211.9</var>original cost of partnership tangible property in this state to the original cost
         of partnership <br/>
<a id="pl.211.10"></a><var>211.10</var>tangible property everywhere, determined at the time of the sale. If more than 50
         percent <br/>
<a id="pl.211.11"></a><var>211.11</var>of the value of the partnership's assets consists of intangibles, gain or loss from
         the sale of <br/>
<a id="pl.211.12"></a><var>211.12</var>the partnership interest is allocated to this state in accordance with the sales factor
         of the <br/>
<a id="pl.211.13"></a><var>211.13</var>partnership for its first full tax period immediately preceding the tax period of
         the partnership <br/>
<a id="pl.211.14"></a><var>211.14</var>during which the partnership interest was sold.<br/>
<a id="pl.211.15"></a><var>211.15</var>Gain on the sale of an interest in a single member limited liability company that
         is <br/>
<a id="pl.211.16"></a><var>211.16</var>disregarded for federal income tax purposes is allocable to this state as if the single
         member <br/>
<a id="pl.211.17"></a><var>211.17</var>limited liability company did not exist and the assets of the limited liability company
         are <br/>
<a id="pl.211.18"></a><var>211.18</var>personally owned by the sole member.<br/>
<a id="pl.211.19"></a><var>211.19</var>    Gain on the sale of goodwill or income from a covenant not to compete that is connected
         <br/>
<a id="pl.211.20"></a><var>211.20</var>with a business operating all or partially in Minnesota is allocated to this state
         to the extent <br/>
<a id="pl.211.21"></a><var>211.21</var>that the income from the business in the year preceding the year of sale was assignable <br/>
<a id="pl.211.22"></a><var>211.22</var>allocable to Minnesota under subdivision 3.<br/>
<a id="pl.211.23"></a><var>211.23</var>    When an employer pays an employee for a covenant not to compete, the income allocated
         <br/>
<a id="pl.211.24"></a><var>211.24</var>to this state is in the ratio of the employee's service in Minnesota in the calendar
         year <br/>
<a id="pl.211.25"></a><var>211.25</var>preceding leaving the employment of the employer over the total services performed
         by the <br/>
<a id="pl.211.26"></a><var>211.26</var>employee for the employer in that year.<br/>
<a id="pl.211.27"></a><var>211.27</var>    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned
         <br/>
<a id="pl.211.28"></a><var>211.28</var>to this state. In this paragraph, "bet" has the meaning given in section 
         <statute_ref>609.75, subdivision <br/>
<a id="pl.211.29"></a><var>211.29</var>2
         </statute_ref>, as limited by section 
         <statute_ref>609.75, subdivision 3</statute_ref>, clauses (1), (2), and (3).<br/>
<a id="pl.211.30"></a><var>211.30</var>    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of
         the <br/>
<a id="pl.211.31"></a><var>211.31</var>taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.<br/>
<a id="pl.211.32"></a><var>211.32</var>    (f) For the purposes of this section, working as an employee shall not be considered
         to <br/>
<a id="pl.211.33"></a><var>211.33</var>be conducting a trade or business.<br/>
<a id="pl.212.1"></a><var>212.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.13.0"></a><a id="pl.212.2"></a><var>212.2</var>    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:<br/>
<a id="pl.212.3"></a><var>212.3</var>    Subdivision 1. <b>Partners, not partnership, subject to tax.</b> Except as provided under <br/>
<a id="pl.212.4"></a><var>212.4</var>section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax <br/>
<a id="pl.212.5"></a><var>212.5</var>imposed by this chapter, but is subject to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>. Persons <br/>
<a id="pl.212.6"></a><var>212.6</var>carrying on business as partners shall be liable for income tax only in their separate
         or <br/>
<a id="pl.212.7"></a><var>212.7</var>individual capacities.<br/>
<a id="pl.212.8"></a><var>212.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.14.0"></a><a id="pl.212.9"></a><var>212.9</var>    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:<br/>
<a id="pl.212.10"></a><var>212.10</var><b>290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.</b><br/>
<a id="pl.212.11"></a><var>212.11</var>(a) The owner or managing agent of any property for which rent is paid for occupancy <br/>
<a id="pl.212.12"></a><var>212.12</var>as a homestead must furnish a certificate of rent paid to a person who is a renter
         on December <br/>
<a id="pl.212.13"></a><var>212.13</var>31, in the form prescribed by the commissioner. If the renter moves before December
         31, <br/>
<a id="pl.212.14"></a><var>212.14</var>the owner or managing agent may give the certificate to the renter at the time of
         moving, <br/>
<a id="pl.212.15"></a><var>212.15</var>or mail the certificate to the forwarding address if an address has been provided
         by the <br/>
<a id="pl.212.16"></a><var>212.16</var>renter. The certificate must be made available to the renter before February 1 of
         the year <br/>
<a id="pl.212.17"></a><var>212.17</var>following the year in which the rent was paid. The owner or managing agent must retain
         a <br/>
<a id="pl.212.18"></a><var>212.18</var>duplicate of each certificate or an equivalent record showing the same information
         for a <br/>
<a id="pl.212.19"></a><var>212.19</var>period of three years. The duplicate or other record must be made available to the
         <br/>
<a id="pl.212.20"></a><var>212.20</var>commissioner upon request.<br/>
<a id="pl.212.21"></a><var>212.21</var>(b) The commissioner may require the owner or managing agent, through a simple <br/>
<a id="pl.212.22"></a><var>212.22</var>process, to furnish to the commissioner on or before March 1 a copy of each certificate
         of <br/>
<a id="pl.212.23"></a><var>212.23</var>rent paid furnished to a renter for rent paid in the prior year, in the content, format,
         and <br/>
<a id="pl.212.24"></a><var>212.24</var>manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
         <br/>
<a id="pl.212.25"></a><var>212.25</var>the commissioner, after consulting with representatives of owners or managing agents,
         shall <br/>
<a id="pl.212.26"></a><var>212.26</var>develop an implementation and administration plan for the requirements of this paragraph
         <br/>
<a id="pl.212.27"></a><var>212.27</var>that attempts to minimize financial burdens, administration and compliance costs,
         and takes <br/>
<a id="pl.212.28"></a><var>212.28</var>into consideration existing systems of owners and managing agents.<br/>
<a id="pl.212.29"></a><var>212.29</var>(c) For the purposes of this section, "owner" includes a park owner as defined under
         <br/>
<a id="pl.212.30"></a><var>212.30</var>section 
         <statute_ref>327C.01, subdivision 6</statute_ref>, and "property" includes a lot as defined under section <br/>
<statute_ref><a id="pl.212.31"></a><var>212.31</var>327C.01, subdivision 3
         </statute_ref>.<br/>
<a id="pl.213.1"></a><var>213.1</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of rent paid furnished to <br/>
<a id="pl.213.2"></a><var>213.2</var>a renter for rent paid after December 31, 2016.<br/>
<br/>
<a id="bill.11.15.0"></a><a id="pl.213.3"></a><var>213.3</var>    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:<br/>
<a id="pl.213.4"></a><var>213.4</var>    Subd. 2. <b>Additions.</b> The following amounts, to the extent deducted in computing or <br/>
<a id="pl.213.5"></a><var>213.5</var>otherwise excluded from the federal taxable estate, must be added in computing the <br/>
<a id="pl.213.6"></a><var>213.6</var>Minnesota taxable estate:<br/>
<a id="pl.213.7"></a><var>213.7</var>(1) the amount of the deduction for state death taxes allowed under section 2058 of
         the <br/>
<a id="pl.213.8"></a><var>213.8</var>Internal Revenue Code;<br/>
<a id="pl.213.9"></a><var>213.9</var>(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
         <br/>
<a id="pl.213.10"></a><var>213.10</var>of the Internal Revenue Code; and<br/>
<a id="pl.213.11"></a><var>213.11</var>(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
         <br/>
<a id="pl.213.12"></a><var>213.12</var>Revenue Code, made by the decedent within three years of the date of death. For purposes
         <br/>
<a id="pl.213.13"></a><var>213.13</var>of this clause, the amount of the addition equals the value of the gift under section
         2512 of <br/>
<a id="pl.213.14"></a><var>213.14</var>the Internal Revenue Code and excludes any value of the gift included in the federal
         estate.<br/>
<a id="pl.213.15"></a><var>213.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.213.16"></a><var>213.16</var>dying after June 30, 2013.<br/>
<br/>
<a id="bill.11.16.0"></a><a id="pl.213.17"></a><var>213.17</var>    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:<br/>
<a id="pl.213.18"></a><var>213.18</var>    Subd. 3. <b>Subtraction.</b> The following amounts, to the extent included in computing the <br/>
<a id="pl.213.19"></a><var>213.19</var>federal taxable estate, may be subtracted in computing the Minnesota taxable estate
         but <br/>
<a id="pl.213.20"></a><var>213.20</var>must not reduce the Minnesota taxable estate to less than zero:<br/>
<a id="pl.213.21"></a><var>213.21</var>(1) the value of property subject to an election under section 291.03, subdivision
         1d; <br/>
<a id="pl.213.22"></a><var>213.22</var>and<br/>
<a id="pl.213.23"></a><var>213.23</var>(2) the value of qualified small business property under section 
         <statute_ref>291.03, subdivision 9</statute_ref>, <br/>
<a id="pl.213.24"></a><var>213.24</var>and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision 10</statute_ref>, or the result <br/>
<a id="pl.213.25"></a><var>213.25</var>of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) items (i) <br/>
<a id="pl.213.26"></a><var>213.26</var>to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but <br/>
<a id="pl.213.27"></a><var>213.27</var>must not reduce the Minnesota taxable estate to less than zero:<br/>
<a id="pl.213.28"></a><var>213.28</var>(1) (i) $1,200,000 for estates of decedents dying in 2014;<br/>
<a id="pl.213.29"></a><var>213.29</var>(2) (ii) $1,400,000 for estates of decedents dying in 2015;<br/>
<a id="pl.213.30"></a><var>213.30</var>(3) (iii) $1,600,000 for estates of decedents dying in 2016;<br/>
<a id="pl.214.1"></a><var>214.1</var>(4) (iv) $1,800,000 for estates of decedents dying in 2017; and<br/>
<a id="pl.214.2"></a><var>214.2</var>(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.<br/>
<a id="pl.214.3"></a><var>214.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.214.4"></a><var>214.4</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.11.17.0"></a><a id="pl.214.5"></a><var>214.5</var>    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:<br/>
<a id="pl.214.6"></a><var>214.6</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.214.7"></a><var>214.7</var>requirements is qualified small business property:<br/>
<a id="pl.214.8"></a><var>214.8</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.214.9"></a><var>214.9</var>(2) The property consists of the assets of a trade or business or shares of stock
         or other <br/>
<a id="pl.214.10"></a><var>214.10</var>ownership interests in a corporation or other entity engaged in a trade or business.
         Shares <br/>
<a id="pl.214.11"></a><var>214.11</var>of stock in a corporation or an ownership interest in another type of entity do not
         qualify <br/>
<a id="pl.214.12"></a><var>214.12</var>under this subdivision if the shares or ownership interests are traded on a public
         stock <br/>
<a id="pl.214.13"></a><var>214.13</var>exchange at any time during the three-year period ending on the decedent's date of
         death. <br/>
<a id="pl.214.14"></a><var>214.14</var>For purposes of this subdivision, an ownership interest includes the interest the
         decedent is <br/>
<a id="pl.214.15"></a><var>214.15</var>deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br/>
<a id="pl.214.16"></a><var>214.16</var>(3) During the taxable year that ended before the decedent's death, the trade or business
         <br/>
<a id="pl.214.17"></a><var>214.17</var>must not have been a passive activity within the meaning of section 469(c) of the
         Internal <br/>
<a id="pl.214.18"></a><var>214.18</var>Revenue Code, and the decedent or the decedent's spouse must have materially participated
         <br/>
<a id="pl.214.19"></a><var>214.19</var>in the trade or business within the meaning of section 469(h) of the Internal Revenue
         Code, <br/>
<a id="pl.214.20"></a><var>214.20</var>excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
         <br/>
<a id="pl.214.21"></a><var>214.21</var>by United States Treasury Department regulation that substitutes material participation
         in <br/>
<a id="pl.214.22"></a><var>214.22</var>prior taxable years for material participation in the taxable year that ended before
         the <br/>
<a id="pl.214.23"></a><var>214.23</var>decedent's death.<br/>
<a id="pl.214.24"></a><var>214.24</var>(4) The gross annual sales of the trade or business were $10,000,000 or less for the
         last <br/>
<a id="pl.214.25"></a><var>214.25</var>taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.214.26"></a><var>214.26</var>(5) The property does not consist of include:<br/>
<a id="pl.214.27"></a><var>214.27</var>(i) cash,;<br/>
<a id="pl.214.28"></a><var>214.28</var>(ii) cash equivalents,;<br/>
<a id="pl.214.29"></a><var>214.29</var>(iii) publicly traded securities,; or<br/>
<a id="pl.214.30"></a><var>214.30</var>(iv) any assets not used in the operation of the trade or business.<br/>
<a id="pl.215.1"></a><var>215.1</var>(6) For property consisting of shares of stock or other ownership interests in an entity,
         <br/>
<a id="pl.215.2"></a><var>215.2</var>the value of cash, cash equivalents, publicly traded securities, or assets not used in the <br/>
<a id="pl.215.3"></a><var>215.3</var>operation of the trade or business held by the corporation or other entity items described in <br/>
<a id="pl.215.4"></a><var>215.4</var>clause (5) must be deducted from the value of the property qualifying under this subdivision <br/>
<a id="pl.215.5"></a><var>215.5</var>in proportion to the decedent's share of ownership of the entity on the date of death excluded <br/>
<a id="pl.215.6"></a><var>215.6</var>in the valuation of the decedent's interest in the entity.<br/>
<a id="pl.215.7"></a><var>215.7</var>(6) (7) The decedent continuously owned the property, including property the decedent <br/>
<a id="pl.215.8"></a><var>215.8</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,
         for <br/>
<a id="pl.215.9"></a><var>215.9</var>the three-year period ending on the date of death of the decedent. In the case of
         a sole <br/>
<a id="pl.215.10"></a><var>215.10</var>proprietor, if the property replaced similar property within the three-year period,
         the <br/>
<a id="pl.215.11"></a><var>215.11</var>replacement property will be treated as having been owned for the three-year period
         ending <br/>
<a id="pl.215.12"></a><var>215.12</var>on the date of death of the decedent.<br/>
<a id="pl.215.13"></a><var>215.13</var>(7) (8) For three years following the date of death of the decedent, the trade or business
         <br/>
<a id="pl.215.14"></a><var>215.14</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue
         Code, <br/>
<a id="pl.215.15"></a><var>215.15</var>and a family member materially participates in the operation of the trade or business
         within <br/>
<a id="pl.215.16"></a><var>215.16</var>the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
         <br/>
<a id="pl.215.17"></a><var>215.17</var>of the Internal Revenue Code and any other provision provided by United States Treasury
         <br/>
<a id="pl.215.18"></a><var>215.18</var>Department regulation that substitutes material participation in prior taxable years
         for <br/>
<a id="pl.215.19"></a><var>215.19</var>material participation in the three years following the date of death of the decedent.<br/>
<a id="pl.215.20"></a><var>215.20</var>(8) (9) The estate and the qualified heir elect to treat the property as qualified small
         <br/>
<a id="pl.215.21"></a><var>215.21</var>business property and agree, in the form prescribed by the commissioner, to pay the
         recapture <br/>
<a id="pl.215.22"></a><var>215.22</var>tax under subdivision 11, if applicable.<br/>
<a id="pl.215.23"></a><var>215.23</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.215.24"></a><var>215.24</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.11.18.0"></a><a id="pl.215.25"></a><var>215.25</var>    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:<br/>
<a id="pl.215.26"></a><var>215.26</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and before <br/>
<a id="pl.215.27"></a><var>215.27</var>the death of the qualified heir, the qualified heir disposes of any interest in the
         qualified <br/>
<a id="pl.215.28"></a><var>215.28</var>property, other than by a disposition to a family member, or a family member ceases
         to <br/>
<a id="pl.215.29"></a><var>215.29</var>satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
         estate <br/>
<a id="pl.215.30"></a><var>215.30</var>tax is imposed on the property. In the case of a sole proprietor, if the qualified
         heir replaces <br/>
<a id="pl.215.31"></a><var>215.31</var>qualified small business property excluded under subdivision 9 with similar property,
         then <br/>
<a id="pl.215.32"></a><var>215.32</var>the qualified heir will not be treated as having disposed of an interest in the qualified
         property.<br/>
<a id="pl.216.1"></a><var>216.1</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by
         the <br/>
<a id="pl.216.2"></a><var>216.2</var>estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.216.3"></a><var>216.3</var>(c) The additional tax under this subdivision is due on the day which is six months
         after <br/>
<a id="pl.216.4"></a><var>216.4</var>the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.216.5"></a><var>216.5</var>(d) This subdivision shall not apply as a result of any of the following:<br/>
<a id="pl.216.6"></a><var>216.6</var>(1) a portion of qualified farm property consisting of less than one-fifth of the
         acreage <br/>
<a id="pl.216.7"></a><var>216.7</var>of the property is reclassified as class 2b property under section 273.13, subdivision
         23, and <br/>
<a id="pl.216.8"></a><var>216.8</var>the qualified heir has not substantially altered the reclassified property during
         the three-year <br/>
<a id="pl.216.9"></a><var>216.9</var>holding period; or<br/>
<a id="pl.216.10"></a><var>216.10</var>(2) a portion of qualified farm property classified as 2a property at the death of
         the <br/>
<a id="pl.216.11"></a><var>216.11</var>decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of
         a residence, <br/>
<a id="pl.216.12"></a><var>216.12</var>garage, and immediately surrounding one acre of land is reclassified as 4bb property
         during <br/>
<a id="pl.216.13"></a><var>216.13</var>the three-year holding period, and the qualified heir has not substantially altered
         the property.<br/>
<a id="pl.216.14"></a><var>216.14</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.216.15"></a><var>216.15</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.11.19.0"></a><a id="pl.216.16"></a><var>216.16</var>    Sec. 19. <b> REPEALER.</b><br/>
<a id="pl.216.17"></a><var>216.17</var>(a) Minnesota Rules, part 8092.1400, is repealed.<br/>
<a id="pl.216.18"></a><var>216.18</var>(b) Minnesota Rules, part 8092.2000, is repealed.<br/>
<a id="pl.216.19"></a><var>216.19</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br/>
<a id="pl.216.20"></a><var>216.20</var>December 31, 2016, except that notifications from the Department of Revenue to employers
         <br/>
<a id="pl.216.21"></a><var>216.21</var>regarding eligibility to file an annual return for taxes withheld in calendar year
         2017 remain <br/>
<a id="pl.216.22"></a><var>216.22</var>in force. Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="pl.216.25"></a><var>216.25</var><b>PROVISIONS; PROPERTY TAX</b><br/>

<a id="bill.12.1.0"></a><a id="pl.216.26"></a><var>216.26</var>    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:<br/>
<a id="pl.216.27"></a><var>216.27</var>    Subd. 2. <b>Income property assessment data.</b> The following data collected by political <br/>
<a id="pl.216.28"></a><var>216.28</var>subdivisions and the state from individuals or business entities concerning income properties <br/>
<a id="pl.216.29"></a><var>216.29</var>are classified as private or nonpublic data pursuant to section 
         <statute_ref>13.02, subdivisions 9</statute_ref> and 12:<br/>
<a id="pl.216.30"></a><var>216.30</var>(a) detailed income and expense figures;<br/>
<a id="pl.216.31"></a><var>216.31</var>(b) average vacancy factors;<br/>
<a id="pl.217.1"></a><var>217.1</var>(c) verified net rentable areas or net usable areas, whichever is appropriate;<br/>
<a id="pl.217.2"></a><var>217.2</var>(d) anticipated income and expenses;<br/>
<a id="pl.217.3"></a><var>217.3</var>(e) projected vacancy factors; and<br/>
<a id="pl.217.4"></a><var>217.4</var>(f) lease information.<br/>
<a id="pl.217.5"></a><var>217.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.217.6"></a><var>217.6</var>    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:<br/>
<a id="pl.217.7"></a><var>217.7</var>    Subd. 2. <b>Air commerce.</b> (a) "Air commerce" means the transportation by aircraft of <br/>
<a id="pl.217.8"></a><var>217.8</var>persons or property for hire in interstate, intrastate, or international transportation
         on regularly <br/>
<a id="pl.217.9"></a><var>217.9</var>scheduled flights or on intermittent or irregularly timed flights by airline companies and <br/>
<a id="pl.217.10"></a><var>217.10</var>includes transportation by any airline company making three or more flights in or
         out of <br/>
<a id="pl.217.11"></a><var>217.11</var>Minnesota, or within Minnesota, during a calendar year.<br/>
<a id="pl.217.12"></a><var>217.12</var>(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
         <br/>
<a id="pl.217.13"></a><var>217.13</var>flight, a flight arranged at the convenience of an airline and the person contracting
         for the <br/>
<a id="pl.217.14"></a><var>217.14</var>transportation, or a charter flight. It includes any airline company making three
         or more <br/>
<a id="pl.217.15"></a><var>217.15</var>flights in or out of Minnesota during a calendar year.<br/>
<a id="pl.217.16"></a><var>217.16</var>(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
         <br/>
<a id="pl.217.17"></a><var>217.17</var>owned and used for private air flight purposes if the person furnishing the transportation
         <br/>
<a id="pl.217.18"></a><var>217.18</var>does not hold out to be engaged regularly in transportation for hire.<br/>
<a id="pl.217.19"></a><var>217.19</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.217.20"></a><var>217.20</var>    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:<br/>
<a id="pl.217.21"></a><var>217.21</var>    Subd. 7. <b>Flight property.</b> "Flight property" means all aircraft and flight equipment used <br/>
<a id="pl.217.22"></a><var>217.22</var>in connection therewith, including spare flight equipment. Flight property also includes
         <br/>
<a id="pl.217.23"></a><var>217.23</var>computers and computer software used in operating, controlling, or regulating aircraft
         and <br/>
<a id="pl.217.24"></a><var>217.24</var>flight equipment. Flight property does not include aircraft with a maximum takeoff weight <br/>
<a id="pl.217.25"></a><var>217.25</var>of less than 30,000 pounds.<br/>
<a id="pl.217.26"></a><var>217.26</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.217.27"></a><var>217.27</var>    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:<br/>
<a id="pl.217.28"></a><var>217.28</var>    Subd. 8. <b>Person.</b> "Person" means any an individual, corporation, firm, copartnership, <br/>
<a id="pl.217.29"></a><var>217.29</var>company, or association, and includes any guardian, trustee, executor, administrator,
         receiver, <br/>
<a id="pl.217.30"></a><var>217.30</var>conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary, <br/>
<a id="pl.218.1"></a><var>218.1</var>partnership, company, corporation, limited liability company, association, governmental
         <br/>
<a id="pl.218.2"></a><var>218.2</var>unit or agency, public or private organization of any kind, or other legal entity.<br/>
<a id="pl.218.3"></a><var>218.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.218.4"></a><var>218.4</var>    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to <br/>
<a id="pl.218.5"></a><var>218.5</var>read:<br/>
<a id="pl.218.6"></a><var>218.6</var>    Subd. 10. <b>Intermittent or irregularly timed flights.</b> "Intermittently or irregularly timed <br/>
<a id="pl.218.7"></a><var>218.7</var>flights" means any flight in which the departure time, departure location, and arrival
         location <br/>
<a id="pl.218.8"></a><var>218.8</var>are specifically negotiated with the customer or the customer's representative, including
         but <br/>
<a id="pl.218.9"></a><var>218.9</var>not limited to charter flights.<br/>
<a id="pl.218.10"></a><var>218.10</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.218.11"></a><var>218.11</var>    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:<br/>
<a id="pl.218.12"></a><var>218.12</var>    Subd. 2. <b>Assessment of flight property.</b>  Flight property that is owned by, or is leased, <br/>
<a id="pl.218.13"></a><var>218.13</var>loaned, or otherwise made available to an airline company operating in Minnesota shall
         be <br/>
<a id="pl.218.14"></a><var>218.14</var>assessed and appraised annually by the commissioner with reference to its value on
         January <br/>
<a id="pl.218.15"></a><var>218.15</var>2 of the assessment year in the manner prescribed by sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref>. Aircraft <br/>
<a id="pl.218.16"></a><var>218.16</var>with a gross weight of less than 30,000 pounds and used on intermittent or irregularly
         timed <br/>
<a id="pl.218.17"></a><var>218.17</var>flights shall be excluded from the provisions of sections 
<statute_ref>270.071</statute_ref> to 
<statute_ref>270.079</statute_ref>.<br/>
<a id="pl.218.18"></a><var>218.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.218.19"></a><var>218.19</var>    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:<br/>
<a id="pl.218.20"></a><var>218.20</var>    Subd. 3. <b>Report by airline company.</b> (a) Each year, on or before July 1, every airline <br/>
<a id="pl.218.21"></a><var>218.21</var>company engaged in air commerce in this state shall file with the commissioner a report
         <br/>
<a id="pl.218.22"></a><var>218.22</var>under oath setting forth specifically the information prescribed by the commissioner
         to <br/>
<a id="pl.218.23"></a><var>218.23</var>enable the commissioner to make the assessment required in sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref>, <br/>
<a id="pl.218.24"></a><var>218.24</var>unless the commissioner determines that the airline company or person should be excluded <br/>
<a id="pl.218.25"></a><var>218.25</var>from is exempt from filing because its activities do not constitute air commerce as defined <br/>
<a id="pl.218.26"></a><var>218.26</var>herein.<br/>
<a id="pl.218.27"></a><var>218.27</var>    (b) The commissioner shall prescribe the content, format, and manner of the report
         <br/>
<a id="pl.218.28"></a><var>218.28</var>pursuant to section 270C.30, except that a "law administered by the commissioner"
         includes <br/>
<a id="pl.218.29"></a><var>218.29</var>the property tax laws. If a report is made by electronic means, the taxpayer's signature
         is <br/>
<a id="pl.218.30"></a><var>218.30</var>defined pursuant to section 270C.304, except that a "law administered by the commissioner"
         <br/>
<a id="pl.218.31"></a><var>218.31</var>includes the property tax laws.<br/>
<a id="pl.219.1"></a><var>219.1</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a) is effective for reports filed in <br/>
<a id="pl.219.2"></a><var>219.2</var>2018 and thereafter. The amendment adding paragraph (b) is effective the day following
         <br/>
<a id="pl.219.3"></a><var>219.3</var>final enactment.<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.219.4"></a><var>219.4</var>    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to <br/>
<a id="pl.219.5"></a><var>219.5</var>read:<br/>
<a id="pl.219.6"></a><var>219.6</var>    Subd. 3a. <b>Commissioner filed reports.</b> If an airline company fails to file a report required <br/>
<a id="pl.219.7"></a><var>219.7</var>by subdivision 3, the commissioner may, from information in the commissioner's possession
         <br/>
<a id="pl.219.8"></a><var>219.8</var>or obtainable by the commissioner, make and file a report for the airline company,
         or may <br/>
<a id="pl.219.9"></a><var>219.9</var>issue a notice of net tax capacity and tax under section 270.075, subdivision 2.<br/>
<a id="pl.219.10"></a><var>219.10</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.9.0"></a><a id="pl.219.11"></a><var>219.11</var>    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to <br/>
<a id="pl.219.12"></a><var>219.12</var>read:<br/>
<a id="pl.219.13"></a><var>219.13</var>    Subd. 6. <b>Reassessment orders.</b> If the State Board of Equalization determines that a <br/>
<a id="pl.219.14"></a><var>219.14</var>considerable amount of property has been undervalued or overvalued compared to like
         <br/>
<a id="pl.219.15"></a><var>219.15</var>property such that the assessment is grossly unfair or inequitable, the State Board
         of <br/>
<a id="pl.219.16"></a><var>219.16</var>Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue
         orders <br/>
<a id="pl.219.17"></a><var>219.17</var>to the county assessor to reassess all parcels or an identified set of parcels in
         a county.<br/>
<a id="pl.219.18"></a><var>219.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.10.0"></a><a id="pl.219.19"></a><var>219.19</var>    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:<br/>
<a id="pl.219.20"></a><var>219.20</var>    Subdivision 1. <b>Initial report.</b> Each county assessor shall file by April 1 with the <br/>
<a id="pl.219.21"></a><var>219.21</var>commissioner a copy of the abstract that will be acted upon by the local and county
         boards <br/>
<a id="pl.219.22"></a><var>219.22</var>of review. The abstract must list the real and personal property in the county itemized
         by <br/>
<a id="pl.219.23"></a><var>219.23</var>assessment districts. The assessor of each county in the state shall file with the
         commissioner, <br/>
<a id="pl.219.24"></a><var>219.24</var>within ten working days following final action of the local board of review or equalization
         <br/>
<a id="pl.219.25"></a><var>219.25</var>and within five days following final action of the county board of equalization, any
         changes <br/>
<a id="pl.219.26"></a><var>219.26</var>made by the local or county board. The information must be filed in the manner prescribed
         <br/>
<a id="pl.219.27"></a><var>219.27</var>by the commissioner. It must be accompanied by a printed or typewritten copy of the <br/>
<a id="pl.219.28"></a><var>219.28</var>proceedings of the appropriate board.<br/>
<a id="pl.219.29"></a><var>219.29</var><b>EFFECTIVE DATE.</b>This section is effective for local and county boards of appeal <br/>
<a id="pl.219.30"></a><var>219.30</var>and equalization meetings held in 2017 and thereafter.<br/>
<br/>
<a id="bill.12.11.0"></a><a id="pl.220.1"></a><var>220.1</var>    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:<br/>
<a id="pl.220.2"></a><var>220.2</var>    Subd. 9. <b>Personal property; exceptions.</b> Except for the taxable personal property <br/>
<a id="pl.220.3"></a><var>220.3</var>enumerated below, all personal property and the property described in section 
         <statute_ref>272.03, <br/>
<a id="pl.220.4"></a><var>220.4</var>subdivision 1
         </statute_ref>, paragraphs (c) and (d), shall be exempt.<br/>
<a id="pl.220.5"></a><var>220.5</var>The following personal property shall be taxable:<br/>
<a id="pl.220.6"></a><var>220.6</var>(a) personal property which is part of (1) an electric generating, transmission, or <br/>
<a id="pl.220.7"></a><var>220.7</var>distribution system or; (2) a pipeline system transporting or distributing water, gas, crude <br/>
<a id="pl.220.8"></a><var>220.8</var>oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot <br/>
<a id="pl.220.9"></a><var>220.9</var>or chilled water for heating or cooling buildings and structures;<br/>
<a id="pl.220.10"></a><var>220.10</var>(b) railroad docks and wharves which are part of the operating property of a railroad
         <br/>
<a id="pl.220.11"></a><var>220.11</var>company as defined in section 
         <statute_ref>270.80</statute_ref>;<br/>
<a id="pl.220.12"></a><var>220.12</var>(c) personal property defined in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clause (3);<br/>
<a id="pl.220.13"></a><var>220.13</var>(d) leasehold or other personal property interests which are taxed pursuant to section
         <br/>
<statute_ref><a id="pl.220.14"></a><var>220.14</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>273.124, subdivision 7</statute_ref>; or 
         <statute_ref>273.19, subdivision 1</statute_ref>; or any other law <br/>
<a id="pl.220.15"></a><var>220.15</var>providing the property is taxable as if the lessee or user were the fee owner;<br/>
<a id="pl.220.16"></a><var>220.16</var>(e) manufactured homes and sectional structures, including storage sheds, decks, and
         <br/>
<a id="pl.220.17"></a><var>220.17</var>similar removable improvements constructed on the site of a manufactured home, sectional
         <br/>
<a id="pl.220.18"></a><var>220.18</var>structure, park trailer or travel trailer as provided in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, paragraph <br/>
<a id="pl.220.19"></a><var>220.19</var>(f); and<br/>
<a id="pl.220.20"></a><var>220.20</var>(f) flight property as defined in section 
         <statute_ref>270.071</statute_ref>.<br/>
<a id="pl.220.21"></a><var>220.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.12.0"></a><a id="pl.220.22"></a><var>220.22</var>    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:<br/>
<a id="pl.220.23"></a><var>220.23</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term:<br/>
<a id="pl.220.24"></a><var>220.24</var>(1) "wind energy conversion system" has the meaning given in section 216C.06, <br/>
<a id="pl.220.25"></a><var>220.25</var>subdivision 19, and also includes a substation that is used and owned by one or more
         wind <br/>
<a id="pl.220.26"></a><var>220.26</var>energy conversion facilities;<br/>
<a id="pl.220.27"></a><var>220.27</var>(2) "large scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.220.28"></a><var>220.28</var>of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.220.29"></a><var>220.29</var>combined with other systems as provided in paragraph (b);<br/>
<a id="pl.221.1"></a><var>221.1</var>(3) "medium scale wind energy conversion system" means a wind energy conversion <br/>
<a id="pl.221.2"></a><var>221.2</var>system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         <br/>
<a id="pl.221.3"></a><var>221.3</var>of the system or as combined with other systems as provided in paragraph (b); and<br/>
<a id="pl.221.4"></a><var>221.4</var>(4) "small scale wind energy conversion system" means a wind energy conversion system
         <br/>
<a id="pl.221.5"></a><var>221.5</var>of two megawatts and under, as measured by the nameplate capacity of the system or
         as <br/>
<a id="pl.221.6"></a><var>221.6</var>combined with other systems as provided in paragraph (b).<br/>
<a id="pl.221.7"></a><var>221.7</var>(b) For systems installed and contracted for after January 1, 2002, the total size
         of a <br/>
<a id="pl.221.8"></a><var>221.8</var>wind energy conversion system under this subdivision shall be determined according
         to this <br/>
<a id="pl.221.9"></a><var>221.9</var>paragraph. Unless the systems are interconnected with different distribution systems,
         the <br/>
<a id="pl.221.10"></a><var>221.10</var>nameplate capacity of one wind energy conversion system shall be combined with the
         <br/>
<a id="pl.221.11"></a><var>221.11</var>nameplate capacity of any other wind energy conversion system that is:<br/>
<a id="pl.221.12"></a><var>221.12</var>(1) located within five miles of the wind energy conversion system;<br/>
<a id="pl.221.13"></a><var>221.13</var>(2) constructed within the same calendar year 12-month period as the wind energy <br/>
<a id="pl.221.14"></a><var>221.14</var>conversion system; and<br/>
<a id="pl.221.15"></a><var>221.15</var>(3) under common ownership.<br/>
<a id="pl.221.16"></a><var>221.16</var>In the case of a dispute, the commissioner of commerce shall determine the total size
         of <br/>
<a id="pl.221.17"></a><var>221.17</var>the system, and shall draw all reasonable inferences in favor of combining the systems.<br/>
<a id="pl.221.18"></a><var>221.18</var>(c) In making a determination under paragraph (b), the commissioner of commerce may
         <br/>
<a id="pl.221.19"></a><var>221.19</var>determine that two wind energy conversion systems are under common ownership when
         <br/>
<a id="pl.221.20"></a><var>221.20</var>the underlying ownership structure contains similar persons or entities, even if the
         ownership <br/>
<a id="pl.221.21"></a><var>221.21</var>shares differ between the two systems. Wind energy conversion systems are not under
         <br/>
<a id="pl.221.22"></a><var>221.22</var>common ownership solely because the same person or entity provided equity financing
         for <br/>
<a id="pl.221.23"></a><var>221.23</var>the systems.<br/>
<a id="pl.221.24"></a><var>221.24</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.13.0"></a><a id="pl.221.25"></a><var>221.25</var>    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision <br/>
<a id="pl.221.26"></a><var>221.26</var>to read:<br/>
<a id="pl.221.27"></a><var>221.27</var>    Subd. 8. <b>Extension.</b> The commissioner may, for good cause, extend the time for filing <br/>
<a id="pl.221.28"></a><var>221.28</var>the report required by subdivision 4. The extension must not exceed 15 days.<br/>
<a id="pl.221.29"></a><var>221.29</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.14.0"></a><a id="pl.222.1"></a><var>222.1</var>    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:<br/>
<a id="pl.222.2"></a><var>222.2</var>    Subd. 7. <b>Division of duties between local and county assessor.</b> The duty of the duly <br/>
<a id="pl.222.3"></a><var>222.3</var>appointed local assessor shall be to view and appraise the value of all property as
         provided <br/>
<a id="pl.222.4"></a><var>222.4</var>by law, but all the book work shall be done by the county assessor, or the assessor's
         assistants, <br/>
<a id="pl.222.5"></a><var>222.5</var>and the value of all property subject to assessment and taxation shall be determined
         by the <br/>
<a id="pl.222.6"></a><var>222.6</var>county assessor, except as otherwise hereinafter provided. If directed by the county
         assessor, <br/>
<a id="pl.222.7"></a><var>222.7</var>the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), <br/>
<a id="pl.222.8"></a><var>222.8</var>and must enter construction and valuation data into the records in the manner prescribed
         <br/>
<a id="pl.222.9"></a><var>222.9</var>by the county assessor.<br/>
<a id="pl.222.10"></a><var>222.10</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.15.0"></a><a id="pl.222.11"></a><var>222.11</var>    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:<br/>
<a id="pl.222.12"></a><var>222.12</var><b>273.08 ASSESSOR'S DUTIES.</b><br/>
<a id="pl.222.13"></a><var>222.13</var>The assessor shall actually view, and determine the market value of each tract or
         lot of <br/>
<a id="pl.222.14"></a><var>222.14</var>real property listed for taxation, including the value of all improvements and structures
         <br/>
<a id="pl.222.15"></a><var>222.15</var>thereon, at maximum intervals of five years and shall enter the value opposite each
         <br/>
<a id="pl.222.16"></a><var>222.16</var>description. When directed by the county assessor, local assessors must enter construction <br/>
<a id="pl.222.17"></a><var>222.17</var>and valuation data into the records in the manner prescribed by the county assessor.<br/>
<a id="pl.222.18"></a><var>222.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.16.0"></a><a id="pl.222.19"></a><var>222.19</var>    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision <br/>
<a id="pl.222.20"></a><var>222.20</var>to read:<br/>
<a id="pl.222.21"></a><var>222.21</var>    Subd. 3. <b>Compliance.</b> A county assessor, or a city assessor having the powers of a <br/>
<a id="pl.222.22"></a><var>222.22</var>county assessor, who does not comply with the timely notice requirement under subdivision
         <br/>
<a id="pl.222.23"></a><var>222.23</var>1 must:<br/>
<a id="pl.222.24"></a><var>222.24</var>(1) mail an additional valuation notice to each person who was not provided timely
         <br/>
<a id="pl.222.25"></a><var>222.25</var>notice; and<br/>
<a id="pl.222.26"></a><var>222.26</var>(2) convene a supplemental local board of appeal and equalization or local review
         session <br/>
<a id="pl.222.27"></a><var>222.27</var>no sooner than ten days after sending the additional notices required by clause (1).<br/>
<a id="pl.222.28"></a><var>222.28</var><b>EFFECTIVE DATE.</b>This section is effective for valuation notices sent in 2018 and <br/>
<a id="pl.222.29"></a><var>222.29</var>thereafter.<br/>
<br/>
<a id="bill.12.17.0"></a><a id="pl.223.1"></a><var>223.1</var>    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:<br/>
<a id="pl.223.2"></a><var>223.2</var>    Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) and <br/>
<a id="pl.223.3"></a><var>223.3</var>(c), real estate which is residential and used for homestead purposes is class 1a.
         In the case <br/>
<a id="pl.223.4"></a><var>223.4</var>of a duplex or triplex in which one of the units is used for homestead purposes, the
         entire <br/>
<a id="pl.223.5"></a><var>223.5</var>property is deemed to be used for homestead purposes. The market value of class 1a
         property <br/>
<a id="pl.223.6"></a><var>223.6</var>must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.223.7"></a><var>223.7</var>    The first $500,000 of market value of class 1a property has a net classification rate
         of <br/>
<a id="pl.223.8"></a><var>223.8</var>one percent of its market value; and the market value of class 1a property that exceeds
         <br/>
<a id="pl.223.9"></a><var>223.9</var>$500,000 has a classification rate of 1.25 percent of its market value.<br/>
<a id="pl.223.10"></a><var>223.10</var>    (b) Class 1b property includes homestead real estate or homestead manufactured homes
         <br/>
<a id="pl.223.11"></a><var>223.11</var>used for the purposes of a homestead by:<br/>
<a id="pl.223.12"></a><var>223.12</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and the <br/>
<a id="pl.223.13"></a><var>223.13</var>blind person's spouse;<br/>
<a id="pl.223.14"></a><var>223.14</var>    (2) any person who is permanently and totally disabled or by the disabled person and
         <br/>
<a id="pl.223.15"></a><var>223.15</var>the disabled person's spouse; or<br/>
<a id="pl.223.16"></a><var>223.16</var>    (3) the surviving spouse of a permanently and totally disabled veteran homesteading
         a <br/>
<a id="pl.223.17"></a><var>223.17</var>property classified under this paragraph for taxes payable in 2008.<br/>
<a id="pl.223.18"></a><var>223.18</var>    Property is classified and assessed under clause (2) only if the government agency
         or <br/>
<a id="pl.223.19"></a><var>223.19</var>income-providing source certifies, upon the request of the homestead occupant, that
         the <br/>
<a id="pl.223.20"></a><var>223.20</var>homestead occupant satisfies the disability requirements of this paragraph, and that
         the <br/>
<a id="pl.223.21"></a><var>223.21</var>property is not eligible for the valuation exclusion under subdivision 34.<br/>
<a id="pl.223.22"></a><var>223.22</var>    Property is classified and assessed under paragraph (b) only if the commissioner of
         <br/>
<a id="pl.223.23"></a><var>223.23</var>revenue or the county assessor certifies that the homestead occupant satisfies the
         requirements <br/>
<a id="pl.223.24"></a><var>223.24</var>of this paragraph.<br/>
<a id="pl.223.25"></a><var>223.25</var>    Permanently and totally disabled for the purpose of this subdivision means a condition
         <br/>
<a id="pl.223.26"></a><var>223.26</var>which is permanent in nature and totally incapacitates the person from working at
         an <br/>
<a id="pl.223.27"></a><var>223.27</var>occupation which brings the person an income. The first $50,000 market value of class
         1b <br/>
<a id="pl.223.28"></a><var>223.28</var>property has a net classification rate of .45 percent of its market value. The remaining
         market <br/>
<a id="pl.223.29"></a><var>223.29</var>value of class 1b property has a classification rate using the rates for is classified as class <br/>
<a id="pl.223.30"></a><var>223.30</var>1a or class 2a property, whichever is appropriate, of similar market value.<br/>
<a id="pl.223.31"></a><var>223.31</var>    (c) Class 1c property is commercial use real and personal property that abuts public
         <br/>
<a id="pl.223.32"></a><var>223.32</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, and is devoted to temporary and <br/>
<a id="pl.223.33"></a><var>223.33</var>seasonal residential occupancy for recreational purposes but not devoted to commercial
         <br/>
<a id="pl.224.1"></a><var>224.1</var>purposes for more than 250 days in the year preceding the year of assessment, and
         that <br/>
<a id="pl.224.2"></a><var>224.2</var>includes a portion used as a homestead by the owner, which includes a dwelling occupied
         <br/>
<a id="pl.224.3"></a><var>224.3</var>as a homestead by a shareholder of a corporation that owns the resort, a partner in
         a <br/>
<a id="pl.224.4"></a><var>224.4</var>partnership that owns the resort, or a member of a limited liability company that
         owns the <br/>
<a id="pl.224.5"></a><var>224.5</var>resort even if the title to the homestead is held by the corporation, partnership,
         or limited <br/>
<a id="pl.224.6"></a><var>224.6</var>liability company. For purposes of this paragraph, property is devoted to a commercial
         <br/>
<a id="pl.224.7"></a><var>224.7</var>purpose on a specific day if any portion of the property, excluding the portion used
         <br/>
<a id="pl.224.8"></a><var>224.8</var>exclusively as a homestead, is used for residential occupancy and a fee is charged
         for <br/>
<a id="pl.224.9"></a><var>224.9</var>residential occupancy. Class 1c property must contain three or more rental units.
         A "rental <br/>
<a id="pl.224.10"></a><var>224.10</var>unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
         camping <br/>
<a id="pl.224.11"></a><var>224.11</var>site equipped with water and electrical hookups for recreational vehicles. Class 1c
         property <br/>
<a id="pl.224.12"></a><var>224.12</var>must provide recreational activities such as the rental of ice fishing houses, boats
         and motors, <br/>
<a id="pl.224.13"></a><var>224.13</var>snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
         <br/>
<a id="pl.224.14"></a><var>224.14</var>services, or guide services; or sell bait and fishing tackle. Any unit in which the
         right to use <br/>
<a id="pl.224.15"></a><var>224.15</var>the property is transferred to an individual or entity by deeded interest, or the
         sale of shares <br/>
<a id="pl.224.16"></a><var>224.16</var>or stock, no longer qualifies for class 1c even though it may remain available for
         rent. A <br/>
<a id="pl.224.17"></a><var>224.17</var>camping pad offered for rent by a property that otherwise qualifies for class 1c is
         also class <br/>
<a id="pl.224.18"></a><var>224.18</var>1c, regardless of the term of the rental agreement, as long as the use of the camping
         pad <br/>
<a id="pl.224.19"></a><var>224.19</var>does not exceed 250 days. If the same owner owns two separate parcels that are located
         in <br/>
<a id="pl.224.20"></a><var>224.20</var>the same township, and one of those properties is classified as a class 1c property
         and the <br/>
<a id="pl.224.21"></a><var>224.21</var>other would be eligible to be classified as a class 1c property if it was used as
         the homestead <br/>
<a id="pl.224.22"></a><var>224.22</var>of the owner, both properties will be assessed as a single class 1c property; for
         purposes of <br/>
<a id="pl.224.23"></a><var>224.23</var>this sentence, properties are deemed to be owned by the same owner if each of them
         is <br/>
<a id="pl.224.24"></a><var>224.24</var>owned by a limited liability company, and both limited liability companies have the
         same <br/>
<a id="pl.224.25"></a><var>224.25</var>membership. The portion of the property used as a homestead is class 1a property under
         <br/>
<a id="pl.224.26"></a><var>224.26</var>paragraph (a). The remainder of the property is classified as follows: the first $600,000
         of <br/>
<a id="pl.224.27"></a><var>224.27</var>market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
         <br/>
<a id="pl.224.28"></a><var>224.28</var>market value is tier III. The classification rates for class 1c are: tier I, 0.50
         percent; tier II, <br/>
<a id="pl.224.29"></a><var>224.29</var>1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted
         to <br/>
<a id="pl.224.30"></a><var>224.30</var>temporary and seasonal residential occupancy for recreation purposes in which all
         or a <br/>
<a id="pl.224.31"></a><var>224.31</var>portion of the property was devoted to commercial purposes for not more than 250 days
         in <br/>
<a id="pl.224.32"></a><var>224.32</var>the year preceding the year of assessment desiring classification as class 1c, must
         submit a <br/>
<a id="pl.224.33"></a><var>224.33</var>declaration to the assessor designating the cabins or units occupied for 250 days
         or less in <br/>
<a id="pl.224.34"></a><var>224.34</var>the year preceding the year of assessment by January 15 of the assessment year. Those
         <br/>
<a id="pl.224.35"></a><var>224.35</var>cabins or units and a proportionate share of the land on which they are located must
         be <br/>
<a id="pl.224.36"></a><var>224.36</var>designated as class 1c as otherwise provided. The remainder of the cabins or units
         and a <br/>
<a id="pl.225.1"></a><var>225.1</var>proportionate share of the land on which they are located must be designated as class
         3a <br/>
<a id="pl.225.2"></a><var>225.2</var>commercial. The owner of property desiring designation as class 1c property must provide
         <br/>
<a id="pl.225.3"></a><var>225.3</var>guest registers or other records demonstrating that the units for which class 1c designation
         <br/>
<a id="pl.225.4"></a><var>225.4</var>is sought were not occupied for more than 250 days in the year preceding the assessment
         <br/>
<a id="pl.225.5"></a><var>225.5</var>if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
         (3) gift shop, <br/>
<a id="pl.225.6"></a><var>225.6</var>(4) conference center or meeting room, and (5) other nonresidential facility operated
         on a <br/>
<a id="pl.225.7"></a><var>225.7</var>commercial basis not directly related to temporary and seasonal residential occupancy
         for <br/>
<a id="pl.225.8"></a><var>225.8</var>recreation purposes does not qualify for class 1c.<br/>
<a id="pl.225.9"></a><var>225.9</var>    (d) Class 1d property includes structures that meet all of the following criteria:<br/>
<a id="pl.225.10"></a><var>225.10</var>    (1) the structure is located on property that is classified as agricultural property
         under <br/>
<a id="pl.225.11"></a><var>225.11</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br/>
<a id="pl.225.12"></a><var>225.12</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time
         when <br/>
<a id="pl.225.13"></a><var>225.13</var>they work on that farm, and the occupants are not charged rent for the privilege of
         occupying <br/>
<a id="pl.225.14"></a><var>225.14</var>the property, provided that use of the structure for storage of farm equipment and
         produce <br/>
<a id="pl.225.15"></a><var>225.15</var>does not disqualify the property from classification under this paragraph;<br/>
<a id="pl.225.16"></a><var>225.16</var>    (3) the structure meets all applicable health and safety requirements for the appropriate
         <br/>
<a id="pl.225.17"></a><var>225.17</var>season; and<br/>
<a id="pl.225.18"></a><var>225.18</var>    (4) the structure is not salable as residential property because it does not comply
         with <br/>
<a id="pl.225.19"></a><var>225.19</var>local ordinances relating to location in relation to streets or roads.<br/>
<a id="pl.225.20"></a><var>225.20</var>    The market value of class 1d property has the same classification rates as class 1a
         property <br/>
<a id="pl.225.21"></a><var>225.21</var>under paragraph (a).<br/>
<a id="pl.225.22"></a><var>225.22</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.18.0"></a><a id="pl.225.23"></a><var>225.23</var>    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:<br/>
<a id="pl.225.24"></a><var>225.24</var>    Subdivision 1. <b>Listing and assessment in county.</b> The personal property of express, <br/>
<a id="pl.225.25"></a><var>225.25</var>stage and transportation companies, and of pipeline companies engaged in the business
         of <br/>
<a id="pl.225.26"></a><var>225.26</var>transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise <br/>
<a id="pl.225.27"></a><var>225.27</var>provided by law, shall be listed and assessed in the county, town or district where
         the same <br/>
<a id="pl.225.28"></a><var>225.28</var>is usually kept.<br/>
<a id="pl.225.29"></a><var>225.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.19.0"></a><a id="pl.226.1"></a><var>226.1</var>    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:<br/>
<a id="pl.226.2"></a><var>226.2</var>    Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, consisting <br/>
<a id="pl.226.3"></a><var>226.3</var>of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline
         companies <br/>
<a id="pl.226.4"></a><var>226.4</var>and others engaged in the operations or business of transporting natural gas, gasoline, crude <br/>
<a id="pl.226.5"></a><var>226.5</var>oil, or other petroleum products by pipelines, shall be listed with and assessed by the <br/>
<a id="pl.226.6"></a><var>226.6</var>commissioner of revenue and the values provided to the city or county assessor by
         order. <br/>
<a id="pl.226.7"></a><var>226.7</var>This subdivision shall not apply to the assessment of the products transported through
         the <br/>
<a id="pl.226.8"></a><var>226.8</var>pipelines nor to the lines of local commercial gas companies engaged primarily in
         the <br/>
<a id="pl.226.9"></a><var>226.9</var>business of distributing gas products to consumers at retail nor to pipelines used by the <br/>
<a id="pl.226.10"></a><var>226.10</var>owner thereof to supply natural gas or other petroleum products exclusively for such owner's <br/>
<a id="pl.226.11"></a><var>226.11</var>own consumption and not for resale to others. If more than 85 percent of the natural gas or <br/>
<a id="pl.226.12"></a><var>226.12</var>other petroleum products actually transported over the pipeline is used for the owner's own <br/>
<a id="pl.226.13"></a><var>226.13</var>consumption and not for resale to others, then this subdivision shall not apply; provided,
         <br/>
<a id="pl.226.14"></a><var>226.14</var>however, that in that event, the pipeline shall be assessed in proportion to the percentage
         <br/>
<a id="pl.226.15"></a><var>226.15</var>of gas products actually transported over such pipeline that is not used for the owner's own <br/>
<a id="pl.226.16"></a><var>226.16</var>consumption. On or before August 1, the commissioner shall certify to the auditor
         of each <br/>
<a id="pl.226.17"></a><var>226.17</var>county, the amount of such personal property assessment against each company in each
         <br/>
<a id="pl.226.18"></a><var>226.18</var>district in which such property is located. If the commissioner determines that the
         amount <br/>
<a id="pl.226.19"></a><var>226.19</var>of personal property assessment certified on or before August 1 is in error, the commissioner
         <br/>
<a id="pl.226.20"></a><var>226.20</var>may issue a corrected certification on or before October 1. The commissioner may correct
         <br/>
<a id="pl.226.21"></a><var>226.21</var>errors that are merely clerical in nature until December 31.<br/>
<a id="pl.226.22"></a><var>226.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.20.0"></a><a id="pl.226.23"></a><var>226.23</var>    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:<br/>
<a id="pl.226.24"></a><var>226.24</var>    Subdivision 1. <b>Scope.</b> (a) As provided in this section, an appeal by a utility or railroad <br/>
<a id="pl.226.25"></a><var>226.25</var>company concerning property for which the commissioner of revenue has provided the
         city <br/>
<a id="pl.226.26"></a><var>226.26</var>or county assessor with valuations by order, or for which the commissioner has recommended
         <br/>
<a id="pl.226.27"></a><var>226.27</var>values to the city or county assessor, must be brought against the commissioner, and not <br/>
<a id="pl.226.28"></a><var>226.28</var>against the county or taxing district where the property is located. Service must be made <br/>
<a id="pl.226.29"></a><var>226.29</var>on the commissioner only, and not on the county or taxing district.<br/>
<a id="pl.226.30"></a><var>226.30</var>(b) This section governs administrative appeals and appeals to court of a claim that
         utility <br/>
<a id="pl.226.31"></a><var>226.31</var>or railroad operating property has been partially, unfairly, or unequally assessed,
         or assessed <br/>
<a id="pl.226.32"></a><var>226.32</var>at a valuation greater than its real or actual value, misclassified, or that the property
         is <br/>
<a id="pl.226.33"></a><var>226.33</var>exempt. This section applies only to property described in sections 
         <statute_ref>270.81, subdivision 1</statute_ref>, <br/>
<statute_ref><a id="pl.226.34"></a><var>226.34</var>273.33
         </statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, and 
         <statute_ref>273.37</statute_ref>, and only with regard to taxable net tax capacities that <br/>
<a id="pl.227.1"></a><var>227.1</var>have been provided to the city or county by the commissioner and which have not been
         <br/>
<a id="pl.227.2"></a><var>227.2</var>changed by city or county. If the taxable net tax capacity being appealed is not the
         taxable <br/>
<a id="pl.227.3"></a><var>227.3</var>net tax capacity established by the commissioner, or if the appeal claims that the
         tax rate <br/>
<a id="pl.227.4"></a><var>227.4</var>applied against the parcel is incorrect, or that the tax has been paid, this section
         does not <br/>
<a id="pl.227.5"></a><var>227.5</var>apply.<br/>
<a id="pl.227.6"></a><var>227.6</var><b>EFFECTIVE DATE.</b>This section is effective for appeals of valuations made in <br/>
<a id="pl.227.7"></a><var>227.7</var>assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.21.0"></a><a id="pl.227.8"></a><var>227.8</var>    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:<br/>
<a id="pl.227.9"></a><var>227.9</var>    Subd. 2. <b>Contents and filing of petition.</b> (a) In all appeals to court that are required to <br/>
<a id="pl.227.10"></a><var>227.10</var>be brought against the commissioner under this section, the petition initiating the
         appeal <br/>
<a id="pl.227.11"></a><var>227.11</var>must be served on the commissioner and must be filed with the Tax Court in Ramsey
         County, <br/>
<a id="pl.227.12"></a><var>227.12</var>as provided in paragraph (b) or (c).<br/>
<a id="pl.227.13"></a><var>227.13</var>(b) If the appeal to court is from an order of the commissioner, it must be brought
         under <br/>
<a id="pl.227.14"></a><var>227.14</var>chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, <br/>
<a id="pl.227.15"></a><var>227.15</var>except that when the provisions of this section conflict with chapter 271 or 278, this section <br/>
<a id="pl.227.16"></a><var>227.16</var>prevails. In addition, the petition must include all the parcels encompassed by that
         order <br/>
<a id="pl.227.17"></a><var>227.17</var>which the petitioner claims have been partially, unfairly, or unequally assessed,
         assessed <br/>
<a id="pl.227.18"></a><var>227.18</var>at a valuation greater than their real or actual value, misclassified, or are exempt.
         For this <br/>
<a id="pl.227.19"></a><var>227.19</var>purpose, an order of the commissioner is either (1) a certification or notice of value
         by the <br/>
<a id="pl.227.20"></a><var>227.20</var>commissioner for property described in subdivision 1, or (2) the final determination
         by the <br/>
<a id="pl.227.21"></a><var>227.21</var>commissioner of either an administrative appeal conference or informal administrative
         <br/>
<a id="pl.227.22"></a><var>227.22</var>appeal described in subdivision 4.<br/>
<a id="pl.227.23"></a><var>227.23</var>(c) If the appeal is from the tax that results from implementation of the commissioner's
         <br/>
<a id="pl.227.24"></a><var>227.24</var>order, certification, or recommendation, it must be brought under chapter 278, and
         the <br/>
<a id="pl.227.25"></a><var>227.25</var>provisions in that chapter apply, except that service shall be on the commissioner
         only and <br/>
<a id="pl.227.26"></a><var>227.26</var>not on the local officials specified in section 
         <statute_ref>278.01, subdivision 1</statute_ref>, and if any other provision <br/>
<a id="pl.227.27"></a><var>227.27</var>of this section conflicts with chapter 278, this section prevails. In addition, the
         petition must <br/>
<a id="pl.227.28"></a><var>227.28</var>include either all the utility parcels or all the railroad parcels in the state in
         which the <br/>
<a id="pl.227.29"></a><var>227.29</var>petitioner claims an interest and which the petitioner claims have been partially,
         unfairly, <br/>
<a id="pl.227.30"></a><var>227.30</var>or unequally assessed, assessed at a valuation greater than their real or actual value,
         <br/>
<a id="pl.227.31"></a><var>227.31</var>misclassified, or are exempt.<br/>
<a id="pl.227.32"></a><var>227.32</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.22.0"></a><a id="pl.228.1"></a><var>228.1</var>    Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:<br/>
<a id="pl.228.2"></a><var>228.2</var>    Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under section <br/>
<statute_ref><a id="pl.228.3"></a><var>228.3</var>270.82
         </statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified by the <br/>
<a id="pl.228.4"></a><var>228.4</var>commissioner in an extension, may appeal administratively to the commissioner prior
         to <br/>
<a id="pl.228.5"></a><var>228.5</var>bringing an action in court.<br/>
<a id="pl.228.6"></a><var>228.6</var>    (b) Companies that must submit reports under section 
<statute_ref>270.82</statute_ref> must submit file a written <br/>
<a id="pl.228.7"></a><var>228.7</var>request to for an appeal with the commissioner for a conference within ten 30 days after <br/>
<a id="pl.228.8"></a><var>228.8</var>the notice date of the commissioner's valuation certification or other notice to the company, <br/>
<a id="pl.228.9"></a><var>228.9</var>or by June 15, whichever is earlier. For purposes of this section, "notice date" means the <br/>
<a id="pl.228.10"></a><var>228.10</var>notice date of the valuation certification, commissioner's order, recommendation,
         or other <br/>
<a id="pl.228.11"></a><var>228.11</var>notice.<br/>
<a id="pl.228.12"></a><var>228.12</var>    (c) Companies that submit reports under section 
<statute_ref>273.371</statute_ref> must submit a written request <br/>
<a id="pl.228.13"></a><var>228.13</var>to the commissioner for a conference within ten days after the date of the commissioner's
         <br/>
<a id="pl.228.14"></a><var>228.14</var>valuation certification or notice to the company, or by July 1, whichever is earlier The appeal <br/>
<a id="pl.228.15"></a><var>228.15</var>need not be in any particular form but must contain the following information:<br/>
<a id="pl.228.16"></a><var>228.16</var>    (1) name and address of the company;<br/>
<a id="pl.228.17"></a><var>228.17</var>    (2) the date;<br/>
<a id="pl.228.18"></a><var>228.18</var>    (3) its Minnesota identification number;<br/>
<a id="pl.228.19"></a><var>228.19</var>    (4) the assessment year or period involved;<br/>
<a id="pl.228.20"></a><var>228.20</var>    (5) the findings in the valuation that the company disputes;<br/>
<a id="pl.228.21"></a><var>228.21</var>    (6) a summary statement specifying its reasons for disputing each item; and<br/>
<a id="pl.228.22"></a><var>228.22</var>    (7) the signature of the company's duly authorized agent or representative.<br/>
<a id="pl.228.23"></a><var>228.23</var>    (d) When requested in writing and within the time allowed for filing an administrative
         <br/>
<a id="pl.228.24"></a><var>228.24</var>appeal, the commissioner may extend the time for filing an appeal for a period of
         not more <br/>
<a id="pl.228.25"></a><var>228.25</var>than 15 days from the expiration of the time for filing the appeal.<br/>
<a id="pl.228.26"></a><var>228.26</var>    (d) (e) The commissioner shall conduct the conference either in person or by telephone <br/>
<a id="pl.228.27"></a><var>228.27</var>upon the commissioner's entire files and records and such further information as may
         be <br/>
<a id="pl.228.28"></a><var>228.28</var>offered. The conference must be held no later than 20 days after the date of the <br/>
<a id="pl.228.29"></a><var>228.29</var>commissioner's valuation certification or notice to the company, or by the date specified
         by <br/>
<a id="pl.228.30"></a><var>228.30</var>the commissioner in an extension request for an appeal. Within 60 30 days after the <br/>
<a id="pl.228.31"></a><var>228.31</var>conference the commissioner shall make a final determination of the matter and shall
         notify <br/>
<a id="pl.229.1"></a><var>229.1</var>the company promptly of the determination. The conference is not a contested case
         hearing <br/>
<a id="pl.229.2"></a><var>229.2</var>subject to chapter 14.<br/>
<a id="pl.229.3"></a><var>229.3</var>    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
         <br/>
<a id="pl.229.4"></a><var>229.4</var>shall also provide the railroad and utility companies the opportunity to discuss any
         questions <br/>
<a id="pl.229.5"></a><var>229.5</var>or concerns relating to the values established by the commissioner through certification
         or <br/>
<a id="pl.229.6"></a><var>229.6</var>notice in a less formal manner. This does not change or modify the deadline for requesting
         <br/>
<a id="pl.229.7"></a><var>229.7</var>a conference under paragraph (a), the deadline in section 
<statute_ref>271.06</statute_ref> for appealing an order of <br/>
<a id="pl.229.8"></a><var>229.8</var>the commissioner, or the deadline in section 
<statute_ref>278.01</statute_ref> for appealing property taxes in court.<br/>
<a id="pl.229.9"></a><var>229.9</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.23.0"></a><a id="pl.229.10"></a><var>229.10</var>    Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision <br/>
<a id="pl.229.11"></a><var>229.11</var>to read:<br/>
<a id="pl.229.12"></a><var>229.12</var>    Subd. 5. <b>Agreement determining valuation.</b> When it appears to be in the best interest <br/>
<a id="pl.229.13"></a><var>229.13</var>of the state, the commissioner may settle any matter under consideration regarding
         an appeal <br/>
<a id="pl.229.14"></a><var>229.14</var>filed under this section. The agreement must be in writing and signed by the commissioner
         <br/>
<a id="pl.229.15"></a><var>229.15</var>and the company or the company's authorized representative. The agreement is final
         and <br/>
<a id="pl.229.16"></a><var>229.16</var>conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation
         of a <br/>
<a id="pl.229.17"></a><var>229.17</var>material fact, the case may not be reopened as to the matters agreed upon.<br/>
<a id="pl.229.18"></a><var>229.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.12.24.0"></a><a id="pl.229.19"></a><var>229.19</var>    Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision <br/>
<a id="pl.229.20"></a><var>229.20</var>to read:<br/>
<a id="pl.229.21"></a><var>229.21</var>    Subd. 6. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative appeal <br/>
<a id="pl.229.22"></a><var>229.22</var>from an order of the commissioner and also files an appeal to the Tax Court for that
         same <br/>
<a id="pl.229.23"></a><var>229.23</var>order of the commissioner, the administrative appeal is dismissed and the commissioner
         is <br/>
<a id="pl.229.24"></a><var>229.24</var>no longer required to make the determination of appeal under subdivision 4.<br/>
<a id="pl.229.25"></a><var>229.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2017.<br/>
<br/>
<a id="bill.12.25.0"></a><a id="pl.229.26"></a><var>229.26</var>    Sec. 25. <b>[273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.</b><br/>
<a id="pl.229.27"></a><var>229.27</var>After making the apportionment provided in Minnesota Rules, part 8100.0600, the <br/>
<a id="pl.229.28"></a><var>229.28</var>commissioner must equalize the values of the operating structures to the level accepted
         by <br/>
<a id="pl.229.29"></a><var>229.29</var>the State Board of Equalization if the appropriate sales ratio for each county, as
         conducted <br/>
<a id="pl.229.30"></a><var>229.30</var>by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6),
         is <br/>
<a id="pl.229.31"></a><var>229.31</var>outside the range accepted by the State Board of Equalization. The commissioner must
         not <br/>
<a id="pl.230.1"></a><var>230.1</var>equalize the value of the operating structures if the sales ratio determined pursuant
         to this <br/>
<a id="pl.230.2"></a><var>230.2</var>subdivision is within the range accepted by the State Board of Equalization.<br/>
<a id="pl.230.3"></a><var>230.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2017.<br/>
<br/>
<a id="bill.12.26.0"></a><a id="pl.230.4"></a><var>230.4</var>    Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.230.5"></a><var>230.5</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town board <br/>
<a id="pl.230.6"></a><var>230.6</var>of a town, or the council or other governing body of a city, is the local board of appeal and <br/>
<a id="pl.230.7"></a><var>230.7</var>equalization except (1) in cities whose charters provide for a board of equalization
         or (2) <br/>
<a id="pl.230.8"></a><var>230.8</var>in any city or town that has transferred its local board of review power and duties
         to the <br/>
<a id="pl.230.9"></a><var>230.9</var>county board as provided in subdivision 3. The county assessor shall fix a day and
         time <br/>
<a id="pl.230.10"></a><var>230.10</var>when the board or the local board of equalization shall meet in the assessment districts of <br/>
<a id="pl.230.11"></a><var>230.11</var>the county. Notwithstanding any law or city charter to the contrary, a city board
         of <br/>
<a id="pl.230.12"></a><var>230.12</var>equalization shall be referred to as a local board of appeal and equalization. On or before <br/>
<a id="pl.230.13"></a><var>230.13</var>February 15 of each year the assessor shall give written notice of the time to the
         city or <br/>
<a id="pl.230.14"></a><var>230.14</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
         must <br/>
<a id="pl.230.15"></a><var>230.15</var>be held between April 1 and May 31 each year. The clerk shall give published and posted
         <br/>
<a id="pl.230.16"></a><var>230.16</var>notice of the meeting at least ten days before the date of the meeting.<br/>
<a id="pl.230.17"></a><var>230.17</var>    The board shall meet either at a central location within the county or at the office
         of the <br/>
<a id="pl.230.18"></a><var>230.18</var>clerk to review the assessment and classification of property in the town or city.
         No changes <br/>
<a id="pl.230.19"></a><var>230.19</var>in valuation or classification which are intended to correct errors in judgment by
         the county <br/>
<a id="pl.230.20"></a><var>230.20</var>assessor may be made by the county assessor after the board has adjourned in those
         cities <br/>
<a id="pl.230.21"></a><var>230.21</var>or towns that hold a local board of review; however, corrections of errors that are
         merely <br/>
<a id="pl.230.22"></a><var>230.22</var>clerical in nature or changes that extend homestead treatment to property are permitted
         after <br/>
<a id="pl.230.23"></a><var>230.23</var>adjournment until the tax extension date for that assessment year. The changes must
         be fully <br/>
<a id="pl.230.24"></a><var>230.24</var>documented and maintained in the assessor's office and must be available for review
         by any <br/>
<a id="pl.230.25"></a><var>230.25</var>person. A copy of the changes made during this period in those cities or towns that
         hold a <br/>
<a id="pl.230.26"></a><var>230.26</var>local board of review must be sent to the county board no later than December 31 of
         the <br/>
<a id="pl.230.27"></a><var>230.27</var>assessment year.<br/>
<a id="pl.230.28"></a><var>230.28</var>    (b) The board shall determine whether the taxable property in the town or city has
         been <br/>
<a id="pl.230.29"></a><var>230.29</var>properly placed on the list and properly valued by the assessor. If real or personal
         property <br/>
<a id="pl.230.30"></a><var>230.30</var>has been omitted, the board shall place it on the list with its market value, and
         correct the <br/>
<a id="pl.230.31"></a><var>230.31</var>assessment so that each tract or lot of real property, and each article, parcel, or
         class of <br/>
<a id="pl.230.32"></a><var>230.32</var>personal property, is entered on the assessment list at its market value. No assessment
         of <br/>
<a id="pl.230.33"></a><var>230.33</var>the property of any person may be raised unless the person has been duly notified
         of the <br/>
<a id="pl.230.34"></a><var>230.34</var>intent of the board to do so. On application of any person feeling aggrieved, the
         board shall <br/>
<a id="pl.231.1"></a><var>231.1</var>review the assessment or classification, or both, and correct it as appears just.
         The board <br/>
<a id="pl.231.2"></a><var>231.2</var>may not make an individual market value adjustment or classification change that would
         <br/>
<a id="pl.231.3"></a><var>231.3</var>benefit the property if the owner or other person having control over the property
         has refused <br/>
<a id="pl.231.4"></a><var>231.4</var>the assessor access to inspect the property and the interior of any buildings or structures
         as <br/>
<a id="pl.231.5"></a><var>231.5</var>provided in section 
         <statute_ref>273.20</statute_ref>. A board member shall not participate in any actions of the board <br/>
<a id="pl.231.6"></a><var>231.6</var>which result in market value adjustments or classification changes to property owned
         by <br/>
<a id="pl.231.7"></a><var>231.7</var>the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
         <br/>
<a id="pl.231.8"></a><var>231.8</var>brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which
         a <br/>
<a id="pl.231.9"></a><var>231.9</var>board member has a financial interest. The relationship may be by blood or marriage.<br/>
<a id="pl.231.10"></a><var>231.10</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total
         <br/>
<a id="pl.231.11"></a><var>231.11</var>reductions must not reduce the aggregate assessment made by the county assessor by
         more <br/>
<a id="pl.231.12"></a><var>231.12</var>than one percent. If the total reductions would lower the aggregate assessments made
         by <br/>
<a id="pl.231.13"></a><var>231.13</var>the county assessor by more than one percent, none of the adjustments may be made.
         The <br/>
<a id="pl.231.14"></a><var>231.14</var>assessor shall correct any clerical errors or double assessments discovered by the
         board <br/>
<a id="pl.231.15"></a><var>231.15</var>without regard to the one percent limitation.<br/>
<a id="pl.231.16"></a><var>231.16</var>    (d) A local board does not have authority to grant an exemption or to order property
         <br/>
<a id="pl.231.17"></a><var>231.17</var>removed from the tax rolls.<br/>
<a id="pl.231.18"></a><var>231.18</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day
         until <br/>
<a id="pl.231.19"></a><var>231.19</var>they finish hearing the cases presented. The assessor shall attend and take part in
         the <br/>
<a id="pl.231.20"></a><var>231.20</var>proceedings, but must not vote. The county assessor, or an assistant delegated by
         the county <br/>
<a id="pl.231.21"></a><var>231.21</var>assessor shall attend the meetings. The board shall list separately all omitted property
         added <br/>
<a id="pl.231.22"></a><var>231.22</var>to the list by the board and all items of property increased or decreased, with the
         market <br/>
<a id="pl.231.23"></a><var>231.23</var>value of each item of property, added or changed by the board. The county assessor
         shall <br/>
<a id="pl.231.24"></a><var>231.24</var>enter all changes made by the board.<br/>
<a id="pl.231.25"></a><var>231.25</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
         counsel, <br/>
<a id="pl.231.26"></a><var>231.26</var>or by written communication before the board after being duly notified of the board's
         intent <br/>
<a id="pl.231.27"></a><var>231.27</var>to raise the assessment of the property, or if a person feeling aggrieved by an assessment
         <br/>
<a id="pl.231.28"></a><var>231.28</var>or classification fails to apply for a review of the assessment or classification,
         the person <br/>
<a id="pl.231.29"></a><var>231.29</var>may not appear before the county board of appeal and equalization for a review. This
         <br/>
<a id="pl.231.30"></a><var>231.30</var>paragraph does not apply if an assessment was made after the local board meeting,
         as <br/>
<a id="pl.231.31"></a><var>231.31</var>provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can establish not having received notice of <br/>
<a id="pl.231.32"></a><var>231.32</var>market value at least five days before the local board meeting.<br/>
<a id="pl.231.33"></a><var>231.33</var>    (g) The local board must complete its work and adjourn within 20 days from the time
         <br/>
<a id="pl.231.34"></a><var>231.34</var>of convening stated in the notice of the clerk, unless a longer period is approved
         by the <br/>
<a id="pl.232.1"></a><var>232.1</var>commissioner of revenue. No action taken after that date is valid. All complaints
         about an <br/>
<a id="pl.232.2"></a><var>232.2</var>assessment or classification made after the meeting of the board must be heard and
         <br/>
<a id="pl.232.3"></a><var>232.3</var>determined by the county board of equalization. A nonresident may, at any time, before
         the <br/>
<a id="pl.232.4"></a><var>232.4</var>meeting of the board file written objections to an assessment or classification with
         the county <br/>
<a id="pl.232.5"></a><var>232.5</var>assessor. The objections must be presented to the board at its meeting by the county
         assessor <br/>
<a id="pl.232.6"></a><var>232.6</var>for its consideration.<br/>
<a id="pl.232.7"></a><var>232.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.27.0"></a><a id="pl.232.8"></a><var>232.8</var>    Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:<br/>
<a id="pl.232.9"></a><var>232.9</var>    Subdivision 1. <b>Members; meetings; rules for equalizing assessments.</b> The county <br/>
<a id="pl.232.10"></a><var>232.10</var>commissioners, or a majority of them, with the county auditor, or, if the auditor
         cannot be <br/>
<a id="pl.232.11"></a><var>232.11</var>present, the deputy county auditor, or, if there is no deputy, the court administrator
         of the <br/>
<a id="pl.232.12"></a><var>232.12</var>district court, shall form a board for the equalization of the assessment of the property
         of <br/>
<a id="pl.232.13"></a><var>232.13</var>the county, including the property of all cities whose charters provide for a board
         of <br/>
<a id="pl.232.14"></a><var>232.14</var>equalization. This board shall be referred to as the county board of appeal and equalization.
         <br/>
<a id="pl.232.15"></a><var>232.15</var>The board shall meet annually, on the date specified in section 
         <statute_ref>274.14</statute_ref>, at the office of the <br/>
<a id="pl.232.16"></a><var>232.16</var>auditor. Each member shall take an oath to fairly and impartially perform duties as
         a member. <br/>
<a id="pl.232.17"></a><var>232.17</var>Members shall not participate in any actions of the board which result in market value
         <br/>
<a id="pl.232.18"></a><var>232.18</var>adjustments or classification changes to property owned by the board member, the spouse,
         <br/>
<a id="pl.232.19"></a><var>232.19</var>parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
         aunt, <br/>
<a id="pl.232.20"></a><var>232.20</var>nephew, or niece of a board member, or property in which a board member has a financial
         <br/>
<a id="pl.232.21"></a><var>232.21</var>interest. The relationship may be by blood or marriage. The board shall examine and
         compare <br/>
<a id="pl.232.22"></a><var>232.22</var>the returns of the assessment of property of the towns or districts, and equalize
         them so that <br/>
<a id="pl.232.23"></a><var>232.23</var>each tract or lot of real property and each article or class of personal property
         is entered on <br/>
<a id="pl.232.24"></a><var>232.24</var>the assessment list at its market value, subject to the following rules:<br/>
<a id="pl.232.25"></a><var>232.25</var>    (1) The board shall raise the valuation of each tract or lot of real property which
         in its <br/>
<a id="pl.232.26"></a><var>232.26</var>opinion is returned below its market value to the sum believed to be its market value.
         The <br/>
<a id="pl.232.27"></a><var>232.27</var>board must first give notice of intention to raise the valuation to the person in
         whose name <br/>
<a id="pl.232.28"></a><var>232.28</var>it is assessed, if the person is a resident of the county. The notice must fix a time
         and place <br/>
<a id="pl.232.29"></a><var>232.29</var>for a hearing.<br/>
<a id="pl.232.30"></a><var>232.30</var>    (2) The board shall reduce the valuation of each tract or lot which in its opinion
         is returned <br/>
<a id="pl.232.31"></a><var>232.31</var>above its market value to the sum believed to be its market value.<br/>
<a id="pl.232.32"></a><var>232.32</var>    (3) The board shall raise the valuation of each class of personal property which in
         its <br/>
<a id="pl.232.33"></a><var>232.33</var>opinion is returned below its market value to the sum believed to be its market value.
         It <br/>
<a id="pl.232.34"></a><var>232.34</var>shall raise the aggregate value of the personal property of individuals, firms, or
         corporations, <br/>
<a id="pl.233.1"></a><var>233.1</var>when it believes that the aggregate valuation, as returned, is less than the market
         value of <br/>
<a id="pl.233.2"></a><var>233.2</var>the taxable personal property possessed by the individuals, firms, or corporations,
         to the <br/>
<a id="pl.233.3"></a><var>233.3</var>sum it believes to be the market value. The board must first give notice to the persons
         of <br/>
<a id="pl.233.4"></a><var>233.4</var>intention to do so. The notice must set a time and place for a hearing.<br/>
<a id="pl.233.5"></a><var>233.5</var>    (4) The board shall reduce the valuation of each class of personal property that is
         returned <br/>
<a id="pl.233.6"></a><var>233.6</var>above its market value to the sum it believes to be its market value. Upon complaint
         of a <br/>
<a id="pl.233.7"></a><var>233.7</var>party aggrieved, the board shall reduce the aggregate valuation of the individual's
         personal <br/>
<a id="pl.233.8"></a><var>233.8</var>property, or of any class of personal property for which the individual is assessed,
         which <br/>
<a id="pl.233.9"></a><var>233.9</var>in its opinion has been assessed at too large a sum, to the sum it believes was the
         market <br/>
<a id="pl.233.10"></a><var>233.10</var>value of the individual's personal property of that class.<br/>
<a id="pl.233.11"></a><var>233.11</var>    (5) The board must not reduce the aggregate value of all the property of its county,
         as <br/>
<a id="pl.233.12"></a><var>233.12</var>submitted to the county board of equalization, with the additions made by the auditor
         under <br/>
<a id="pl.233.13"></a><var>233.13</var>this chapter, by more than one percent of its whole valuation. The board may raise
         the <br/>
<a id="pl.233.14"></a><var>233.14</var>aggregate valuation of real property, and of each class of personal property, of the
         county, <br/>
<a id="pl.233.15"></a><var>233.15</var>or of any town or district of the county, when it believes it is below the market
         value of the <br/>
<a id="pl.233.16"></a><var>233.16</var>property, or class of property, to the aggregate amount it believes to be its market
         value.<br/>
<a id="pl.233.17"></a><var>233.17</var>    (6) The board shall change the classification of any property which in its opinion
         is not <br/>
<a id="pl.233.18"></a><var>233.18</var>properly classified.<br/>
<a id="pl.233.19"></a><var>233.19</var>    (7) The board does not have the authority to grant an exemption or to order property
         <br/>
<a id="pl.233.20"></a><var>233.20</var>removed from the tax rolls.<br/>
<a id="pl.233.21"></a><var>233.21</var>    (8) The board may not make an individual market value adjustment or classification
         <br/>
<a id="pl.233.22"></a><var>233.22</var>change that would benefit property if the owner or other person having control over
         the <br/>
<a id="pl.233.23"></a><var>233.23</var>property has refused the assessor access to inspect the property and the interior
         of any <br/>
<a id="pl.233.24"></a><var>233.24</var>buildings or structures as provided in section 273.20.<br/>
<a id="pl.233.25"></a><var>233.25</var><b>EFFECTIVE DATE.</b>This section is effective for county board of appeal and <br/>
<a id="pl.233.26"></a><var>233.26</var>equalization meetings in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.28.0"></a><a id="pl.233.27"></a><var>233.27</var>    Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:<br/>
<a id="pl.233.28"></a><var>233.28</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any county that conducts county <br/>
<a id="pl.233.29"></a><var>233.29</var>boards of appeal and equalization meetings must provide proof to the commissioner
         by <br/>
<a id="pl.233.30"></a><var>233.30</var>December 1, 2009, and each year thereafter, February 1  that it is in compliance with the <br/>
<a id="pl.233.31"></a><var>233.31</var>requirements of subdivision 2. Beginning in 2009, This notice must also verify that there <br/>
<a id="pl.233.32"></a><var>233.32</var>was a quorum of voting members at each meeting of the board of appeal and equalization
         <br/>
<a id="pl.233.33"></a><var>233.33</var>in the current previous year. A county that does not comply with these requirements is <br/>
<a id="pl.234.1"></a><var>234.1</var>deemed to have transferred its board of appeal and equalization powers to the special
         board <br/>
<a id="pl.234.2"></a><var>234.2</var>of equalization appointed pursuant to section 
         <statute_ref>274.13, subdivision 2</statute_ref>, beginning with the <br/>
<a id="pl.234.3"></a><var>234.3</var>following year's assessment and continuing unless the powers are reinstated under
         paragraph <br/>
<a id="pl.234.4"></a><var>234.4</var>(c). A county that does not comply with the requirements of subdivision 2 and has
         not <br/>
<a id="pl.234.5"></a><var>234.5</var>appointed a special board of equalization shall appoint a special board of equalization
         before <br/>
<a id="pl.234.6"></a><var>234.6</var>the following year's assessment.<br/>
<a id="pl.234.7"></a><var>234.7</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for <br/>
<a id="pl.234.8"></a><var>234.8</var>a county has been transferred to the special board of equalization under this subdivision
         <br/>
<a id="pl.234.9"></a><var>234.9</var>and, prior to the meeting time of the special board of equalization, the county shall
         make <br/>
<a id="pl.234.10"></a><var>234.10</var>available to those taxpayers a procedure for a review of the assessments, including,
         but not <br/>
<a id="pl.234.11"></a><var>234.11</var>limited to, open book meetings. This alternate review process must take place in April
         and <br/>
<a id="pl.234.12"></a><var>234.12</var>May.<br/>
<a id="pl.234.13"></a><var>234.13</var>    (c) A county board whose powers are transferred to the special board of equalization
         <br/>
<a id="pl.234.14"></a><var>234.14</var>under this subdivision may be reinstated by resolution of the county board and upon
         proof <br/>
<a id="pl.234.15"></a><var>234.15</var>of compliance with the requirements of subdivision 2. The resolution and proofs must
         be <br/>
<a id="pl.234.16"></a><var>234.16</var>provided to the commissioner by December February 1 in order to be effective for the <br/>
<a id="pl.234.17"></a><var>234.17</var>following current year's assessment.<br/>
<a id="pl.234.18"></a><var>234.18</var>(d) If a person who was entitled to appeal to the county board of appeal and equalization
         <br/>
<a id="pl.234.19"></a><var>234.19</var>or to the county special board of equalization is not able to do so in a particular
         year because <br/>
<a id="pl.234.20"></a><var>234.20</var>the county board or special board did not meet the quorum and training requirements
         in this <br/>
<a id="pl.234.21"></a><var>234.21</var>section and section 
         <statute_ref>274.13</statute_ref>, or because the special board was not appointed, that person may <br/>
<a id="pl.234.22"></a><var>234.22</var>instead appeal to the commissioner of revenue, provided that the appeal is received
         by the <br/>
<a id="pl.234.23"></a><var>234.23</var>commissioner prior to August 1. The appeal is not subject to either chapter 14 or
         section <br/>
<statute_ref><a id="pl.234.24"></a><var>234.24</var>270C.92
         </statute_ref>. The commissioner must issue an appropriate order to the county assessor in <br/>
<a id="pl.234.25"></a><var>234.25</var>response to each timely appeal, either upholding or changing the valuation or classification
         <br/>
<a id="pl.234.26"></a><var>234.26</var>of the property. Prior to October 1 of each year, the commissioner must charge and
         bill the <br/>
<a id="pl.234.27"></a><var>234.27</var>county where the property is located $500 for each tax parcel covered by an order
         issued <br/>
<a id="pl.234.28"></a><var>234.28</var>under this paragraph in that year. Amounts received by the commissioner under this
         paragraph <br/>
<a id="pl.234.29"></a><var>234.29</var>must be deposited in the state's general fund. If payment of a billed amount is not
         received <br/>
<a id="pl.234.30"></a><var>234.30</var>by the commissioner before December 1 of the year when billed, the commissioner must
         <br/>
<a id="pl.234.31"></a><var>234.31</var>deduct that unpaid amount from any state aid the commissioner would otherwise pay
         to the <br/>
<a id="pl.234.32"></a><var>234.32</var>county under chapter 477A in the next year. Late payments may either be returned to
         the <br/>
<a id="pl.234.33"></a><var>234.33</var>county uncashed and undeposited or may be accepted. If a late payment is accepted,
         the <br/>
<a id="pl.234.34"></a><var>234.34</var>state aid paid to the county under chapter 477A must be adjusted within 12 months
         to <br/>
<a id="pl.234.35"></a><var>234.35</var>eliminate any reduction that occurred because the payment was late. Amounts needed
         to <br/>
<a id="pl.235.1"></a><var>235.1</var>make these adjustments are included in the appropriation under section 
         <statute_ref>477A.03, subdivision <br/>
<a id="pl.235.2"></a><var>235.2</var>2
         </statute_ref>.<br/>
<a id="pl.235.3"></a><var>235.3</var><b>EFFECTIVE DATE.</b>This section is effective for county board of appeal and <br/>
<a id="pl.235.4"></a><var>235.4</var>equalization meetings held in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.29.0"></a><a id="pl.235.5"></a><var>235.5</var>    Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.235.6"></a><var>235.6</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the contrary, <br/>
<a id="pl.235.7"></a><var>235.7</var>on or before September 30, each county and each home rule charter or statutory city
         shall <br/>
<a id="pl.235.8"></a><var>235.8</var>certify to the county auditor the proposed property tax levy for taxes payable in
         the following <br/>
<a id="pl.235.9"></a><var>235.9</var>year.<br/>
<a id="pl.235.10"></a><var>235.10</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         each <br/>
<a id="pl.235.11"></a><var>235.11</var>town and each special taxing district shall adopt and certify to the county auditor
         a proposed <br/>
<a id="pl.235.12"></a><var>235.12</var>property tax levy for taxes payable in the following year. For towns, the final certified
         levy <br/>
<a id="pl.235.13"></a><var>235.13</var>shall also be considered the proposed levy.<br/>
<a id="pl.235.14"></a><var>235.14</var>    (c) On or before September 30, each school district that has not mutually agreed with
         <br/>
<a id="pl.235.15"></a><var>235.15</var>its home county to extend this date shall certify to the county auditor the proposed
         property <br/>
<a id="pl.235.16"></a><var>235.16</var>tax levy for taxes payable in the following year. Each school district that has agreed
         with <br/>
<a id="pl.235.17"></a><var>235.17</var>its home county to delay the certification of its proposed property tax levy must
         certify its <br/>
<a id="pl.235.18"></a><var>235.18</var>proposed property tax levy for the following year no later than October 7. The school
         district <br/>
<a id="pl.235.19"></a><var>235.19</var>shall certify the proposed levy as:<br/>
<a id="pl.235.20"></a><var>235.20</var>    (1) a specific dollar amount by school district fund, broken down between voter-approved
         <br/>
<a id="pl.235.21"></a><var>235.21</var>and non-voter-approved levies and between referendum market value and tax capacity
         <br/>
<a id="pl.235.22"></a><var>235.22</var>levies; or<br/>
<a id="pl.235.23"></a><var>235.23</var>    (2) the maximum levy limitation certified by the commissioner of education according
         <br/>
<a id="pl.235.24"></a><var>235.24</var>to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.235.25"></a><var>235.25</var>    (d) If the board of estimate and taxation or any similar board that establishes maximum
         <br/>
<a id="pl.235.26"></a><var>235.26</var>tax levies for taxing jurisdictions within a first class city certifies the maximum
         property <br/>
<a id="pl.235.27"></a><var>235.27</var>tax levies for funds under its jurisdiction by charter to the county auditor by the
         date specified <br/>
<a id="pl.235.28"></a><var>235.28</var>in paragraph (a), the city shall be deemed to have certified its levies for those
         taxing <br/>
<a id="pl.235.29"></a><var>235.29</var>jurisdictions.<br/>
<a id="pl.235.30"></a><var>235.30</var>    (e) For purposes of this section, "special taxing district" means a special taxing
         district <br/>
<a id="pl.235.31"></a><var>235.31</var>as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter <br/>
<a id="pl.235.32"></a><var>235.32</var>124 or 136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and <br/>
<a id="pl.236.1"></a><var>236.1</var>Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
         <br/>
<a id="pl.236.2"></a><var>236.2</var>taxing districts for purposes of this section.<br/>
<a id="pl.236.3"></a><var>236.3</var>(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         <br/>
<a id="pl.236.4"></a><var>236.4</var>tax levy under this subdivision, the taxing authority shall announce the time and
         place of <br/>
<a id="pl.236.5"></a><var>236.5</var>its any subsequent regularly scheduled meetings at which the budget and levy will be <br/>
<a id="pl.236.6"></a><var>236.6</var>discussed and at which the public will be allowed to speak. The time and place of
         those <br/>
<a id="pl.236.7"></a><var>236.7</var>meetings must be included in the proceedings or summary of proceedings published in
         the <br/>
<a id="pl.236.8"></a><var>236.8</var>official newspaper of the taxing authority under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.236.9"></a><var>236.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.30.0"></a><a id="pl.236.10"></a><var>236.10</var>    Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:<br/>
<a id="pl.236.11"></a><var>236.11</var>    Subd. 2. <b>Local governments required to report.</b> For purposes of this section, "local <br/>
<a id="pl.236.12"></a><var>236.12</var>governmental unit" means a county, home rule charter or statutory city with a population
         <br/>
<a id="pl.236.13"></a><var>236.13</var>greater than 2,500, a town with a population greater than 5,000, or a home rule charter or <br/>
<a id="pl.236.14"></a><var>236.14</var>statutory city or town that receives a distribution from the taconite municipal aid
         account <br/>
<a id="pl.236.15"></a><var>236.15</var>in the levy year.<br/>
<a id="pl.236.16"></a><var>236.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.31.0"></a><a id="pl.236.17"></a><var>236.17</var>    Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:<br/>
<a id="pl.236.18"></a><var>236.18</var>    Subdivision 1. <b>Determination of validity.</b> (a) Any person having personal property, or <br/>
<a id="pl.236.19"></a><var>236.19</var>any estate, right, title, or interest in or lien upon any parcel of land, who claims
         that such <br/>
<a id="pl.236.20"></a><var>236.20</var>property has been partially, unfairly, or unequally assessed in comparison with other
         property <br/>
<a id="pl.236.21"></a><var>236.21</var>in the (1) city, or (2) county, or (3) in the case of a county containing a city of
         the first class, <br/>
<a id="pl.236.22"></a><var>236.22</var>the portion of the county excluding the first class city, or that the parcel has been
         assessed <br/>
<a id="pl.236.23"></a><var>236.23</var>at a valuation greater than its real or actual value, or that the tax levied against
         the same is <br/>
<a id="pl.236.24"></a><var>236.24</var>illegal, in whole or in part, or has been paid, or that the property is exempt from
         the tax so <br/>
<a id="pl.236.25"></a><var>236.25</var>levied, may have the validity of the claim, defense, or objection determined by the
         district <br/>
<a id="pl.236.26"></a><var>236.26</var>court of the county in which the tax is levied or by the Tax Court by serving one
         copy of a <br/>
<a id="pl.236.27"></a><var>236.27</var>petition for such determination upon the county auditor, one copy on the county attorney,
         <br/>
<a id="pl.236.28"></a><var>236.28</var>one copy on the county treasurer, and three copies on the county assessor. The county
         <br/>
<a id="pl.236.29"></a><var>236.29</var>assessor shall immediately forward one copy of the petition to the appropriate governmental
         <br/>
<a id="pl.236.30"></a><var>236.30</var>authority in a home rule charter or statutory city or town in which the property is
         located if <br/>
<a id="pl.236.31"></a><var>236.31</var>that city or town employs its own certified assessor. A copy of the petition shall
         also be <br/>
<a id="pl.236.32"></a><var>236.32</var>forwarded by the assessor to the school board of the school district in which the
         property <br/>
<a id="pl.236.33"></a><var>236.33</var>is located.<br/>
<a id="pl.237.1"></a><var>237.1</var>(b) In counties where the office of county treasurer has been combined with the office
         <br/>
<a id="pl.237.2"></a><var>237.2</var>of county auditor, the county may elect to require the petitioner to serve the number
         of <br/>
<a id="pl.237.3"></a><var>237.3</var>copies as determined by the county. The county assessor shall immediately forward
         one <br/>
<a id="pl.237.4"></a><var>237.4</var>copy of the petition to the appropriate governmental authority in a home rule charter
         or <br/>
<a id="pl.237.5"></a><var>237.5</var>statutory city or town in which the property is located if that city or town employs
         its own <br/>
<a id="pl.237.6"></a><var>237.6</var>certified assessor. A list of petitioned properties, including the name of the petitioner,
         the <br/>
<a id="pl.237.7"></a><var>237.7</var>identification number of the property, and the estimated market value, shall be sent
         on or <br/>
<a id="pl.237.8"></a><var>237.8</var>before the first day of July by the county auditor/treasurer to the school board of
         the school <br/>
<a id="pl.237.9"></a><var>237.9</var>district in which the property is located.<br/>
<a id="pl.237.10"></a><var>237.10</var>(c) For all counties, the petitioner must file the copies with proof of service, in
         the office <br/>
<a id="pl.237.11"></a><var>237.11</var>of the court administrator of the district court on or before April 30 of the year
         in which the <br/>
<a id="pl.237.12"></a><var>237.12</var>tax becomes payable. A petition for determination under this section may be transferred
         by <br/>
<a id="pl.237.13"></a><var>237.13</var>the district court to the Tax Court. An appeal may also be taken to the Tax Court
         under <br/>
<a id="pl.237.14"></a><var>237.14</var>chapter 271 at any time following receipt of the valuation notice that county assessors or <br/>
<a id="pl.237.15"></a><var>237.15</var>city assessors having the powers of a county assessor are required by section 
         <statute_ref>273.121</statute_ref> to <br/>
<a id="pl.237.16"></a><var>237.16</var>send to persons whose property is to be included on the assessment roll that year, but prior <br/>
<a id="pl.237.17"></a><var>237.17</var>to May 1 of the year in which the taxes are payable.<br/>
<a id="pl.237.18"></a><var>237.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.32.0"></a><a id="pl.237.19"></a><var>237.19</var>    Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:<br/>
<a id="pl.237.20"></a><var>237.20</var>    Subd. 1a. <b>Conveyance to public entities.</b> (a) Upon written request from a state agency <br/>
<a id="pl.237.21"></a><var>237.21</var>or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
         must be <br/>
<a id="pl.237.22"></a><var>237.22</var>withheld from sale or lease to others for a maximum of six months. The request must
         be <br/>
<a id="pl.237.23"></a><var>237.23</var>submitted to the county auditor. Upon receipt, the county auditor must withhold the
         parcel <br/>
<a id="pl.237.24"></a><var>237.24</var>from sale or lease to any other party for six months, and must confirm the starting
         date of <br/>
<a id="pl.237.25"></a><var>237.25</var>the six-month withholding period to the requesting agency or subdivision. If the request
         is <br/>
<a id="pl.237.26"></a><var>237.26</var>from a governmental subdivision of the state, the governmental subdivision must pay
         the <br/>
<a id="pl.237.27"></a><var>237.27</var>maintenance costs incurred by the county during the period the parcel is withheld.
         The <br/>
<a id="pl.237.28"></a><var>237.28</var>county board may approve a sale or conveyance to the requesting party during the <br/>
<a id="pl.237.29"></a><var>237.29</var>withholding period. A conveyance of the property to the requesting party terminates
         the <br/>
<a id="pl.237.30"></a><var>237.30</var>withholding period.<br/>
<a id="pl.237.31"></a><var>237.31</var>A governmental subdivision of the state must not make, and a county auditor must not
         <br/>
<a id="pl.237.32"></a><var>237.32</var>act upon, a second request to withhold a parcel from sale or lease within 18 months
         of a <br/>
<a id="pl.237.33"></a><var>237.33</var>previous request for that parcel. A county may reject a request made under this paragraph
         <br/>
<a id="pl.237.34"></a><var>237.34</var>if the request is made more than 30 days after the county has given notice to the
         requesting <br/>
<a id="pl.238.1"></a><var>238.1</var>state agency or governmental subdivision of the state that the county intends to sell
         or <br/>
<a id="pl.238.2"></a><var>238.2</var>otherwise dispose of the property.<br/>
<a id="pl.238.3"></a><var>238.3</var>(b) Nonconservation tax-forfeited lands may be sold by the county board, for their
         market <br/>
<a id="pl.238.4"></a><var>238.4</var>value as determined by the county board, to an organized or incorporated governmental
         <br/>
<a id="pl.238.5"></a><var>238.5</var>subdivision of the state for any public purpose for which the subdivision is authorized
         to <br/>
<a id="pl.238.6"></a><var>238.6</var>acquire property. When the term "market value" is used in this section, it means an
         estimate <br/>
<a id="pl.238.7"></a><var>238.7</var>of the full and actual market value of the parcel as determined by the county board,
         but in <br/>
<a id="pl.238.8"></a><var>238.8</var>making this determination, the board and the persons employed by or under contract
         with <br/>
<a id="pl.238.9"></a><var>238.9</var>the board in order to perform, conduct, or assist in the determination, are exempt
         from the <br/>
<a id="pl.238.10"></a><var>238.10</var>licensure requirements of chapter 82B.<br/>
<a id="pl.238.11"></a><var>238.11</var>(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the <br/>
<a id="pl.238.12"></a><var>238.12</var>taxing districts on application to  sold by the county board by, for their market value as <br/>
<a id="pl.238.13"></a><var>238.13</var>determined by the county board, to a state agency for an authorized use at not less than their <br/>
<a id="pl.238.14"></a><var>238.14</var>market value as determined by the county board any public purpose for which the agency <br/>
<a id="pl.238.15"></a><var>238.15</var>is authorized to acquire property.<br/>
<a id="pl.238.16"></a><var>238.16</var>(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
         <br/>
<a id="pl.238.17"></a><var>238.17</var>or incorporated governmental subdivision of the state or state agency for less than
         their <br/>
<a id="pl.238.18"></a><var>238.18</var>market value if:<br/>
<a id="pl.238.19"></a><var>238.19</var>(1) the county board determines that a sale at a reduced price is in the public interest
         <br/>
<a id="pl.238.20"></a><var>238.20</var>because a reduced price is necessary to provide an incentive to correct the blighted
         conditions <br/>
<a id="pl.238.21"></a><var>238.21</var>that make the lands undesirable in the open market, or the reduced price will lead
         to the <br/>
<a id="pl.238.22"></a><var>238.22</var>development of affordable housing; and<br/>
<a id="pl.238.23"></a><var>238.23</var>(2) the governmental subdivision or state agency has documented its specific plans
         for <br/>
<a id="pl.238.24"></a><var>238.24</var>correcting the blighted conditions or developing affordable housing, and the specific
         law <br/>
<a id="pl.238.25"></a><var>238.25</var>or laws that empower it to acquire real property in furtherance of the plans.<br/>
<a id="pl.238.26"></a><var>238.26</var>If the sale under this paragraph is to a governmental subdivision of the state, the
         <br/>
<a id="pl.238.27"></a><var>238.27</var>commissioner of revenue must convey the property on behalf of the state by quitclaim
         deed. <br/>
<a id="pl.238.28"></a><var>238.28</var>If the sale under this paragraph is to a state agency, the property is released from the trust <br/>
<a id="pl.238.29"></a><var>238.29</var>in favor of the taxing districts and the commissioner of revenue must issue a conveyance <br/>
<a id="pl.238.30"></a><var>238.30</var>document that releases the property from the trust in favor of the taxing districts convey the <br/>
<a id="pl.238.31"></a><var>238.31</var>property on behalf of the state by quitclaim deed to the agency.<br/>
<a id="pl.238.32"></a><var>238.32</var>(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
         may <br/>
<a id="pl.238.33"></a><var>238.33</var>be conveyed by the commissioner of revenue in the name of the state to a governmental
         <br/>
<a id="pl.238.34"></a><var>238.34</var>subdivision for an authorized public use, if an application is submitted to the commissioner
         <br/>
<a id="pl.239.1"></a><var>239.1</var>which includes a statement of facts as to the use to be made of the tract and the
         favorable <br/>
<a id="pl.239.2"></a><var>239.2</var>recommendation of the county board. For the purposes of this paragraph, "authorized
         public <br/>
<a id="pl.239.3"></a><var>239.3</var>use" means a use that allows an indefinite segment of the public to physically use
         and enjoy <br/>
<a id="pl.239.4"></a><var>239.4</var>the property in numbers appropriate to its size and use, or is for a public service
         facility. <br/>
<a id="pl.239.5"></a><var>239.5</var>Authorized public uses as defined in this paragraph are limited to:<br/>
<a id="pl.239.6"></a><var>239.6</var>(1) a road, or right-of-way for a road;<br/>
<a id="pl.239.7"></a><var>239.7</var>(2) a park that is both available to, and accessible by, the public that contains
         <br/>
<a id="pl.239.8"></a><var>239.8</var>improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;<br/>
<a id="pl.239.9"></a><var>239.9</var>(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
         <br/>
<a id="pl.239.10"></a><var>239.10</var>with a reasonable amount of surrounding land maintained in its natural state;<br/>
<a id="pl.239.11"></a><var>239.11</var>(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
         including <br/>
<a id="pl.239.12"></a><var>239.12</var>transit ways, park-and-ride lots, transit stations, maintenance and garage facilities,
         and other <br/>
<a id="pl.239.13"></a><var>239.13</var>facilities related to a public transit system;<br/>
<a id="pl.239.14"></a><var>239.14</var>(5) public beaches or boat launches;<br/>
<a id="pl.239.15"></a><var>239.15</var>(6) public parking;<br/>
<a id="pl.239.16"></a><var>239.16</var>(7) civic recreation or conference facilities; and<br/>
<a id="pl.239.17"></a><var>239.17</var>(8) public service facilities such as fire halls, police stations, lift stations,
         water towers, <br/>
<a id="pl.239.18"></a><var>239.18</var>sanitation facilities, water treatment facilities, and administrative offices.<br/>
<a id="pl.239.19"></a><var>239.19</var>No monetary compensation or consideration is required for the conveyance, except as
         <br/>
<a id="pl.239.20"></a><var>239.20</var>provided in subdivision 1g, but the conveyance is subject to the conditions provided
         in law, <br/>
<a id="pl.239.21"></a><var>239.21</var>including, but not limited to, the reversion provisions of subdivisions 1c and 1d.<br/>
<a id="pl.239.22"></a><var>239.22</var>(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         <br/>
<a id="pl.239.23"></a><var>239.23</var>land to a local governmental subdivision of the state by quitclaim deed on behalf
         of the state <br/>
<a id="pl.239.24"></a><var>239.24</var>upon the favorable recommendation of the county board if the governmental subdivision
         <br/>
<a id="pl.239.25"></a><var>239.25</var>has certified to the board that prior to forfeiture the subdivision was entitled to
         the parcel <br/>
<a id="pl.239.26"></a><var>239.26</var>under a written development agreement or instrument, but the conveyance failed to
         occur <br/>
<a id="pl.239.27"></a><var>239.27</var>prior to forfeiture. No compensation or consideration is required for, and no conditions
         <br/>
<a id="pl.239.28"></a><var>239.28</var>attach to, the conveyance.<br/>
<a id="pl.239.29"></a><var>239.29</var>(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         <br/>
<a id="pl.239.30"></a><var>239.30</var>land to the association of a common interest community by quitclaim deed upon the
         favorable <br/>
<a id="pl.239.31"></a><var>239.31</var>recommendation of the county board if the association certifies to the board that
         prior to <br/>
<a id="pl.239.32"></a><var>239.32</var>forfeiture the association was entitled to the parcel under a written agreement, but
         the <br/>
<a id="pl.240.1"></a><var>240.1</var>conveyance failed to occur prior to forfeiture. No compensation or consideration is
         required <br/>
<a id="pl.240.2"></a><var>240.2</var>for, and no conditions attach to, the conveyance.<br/>
<a id="pl.240.3"></a><var>240.3</var>(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
         <br/>
<a id="pl.240.4"></a><var>240.4</var>state for less than its market value for either: (1) creation or preservation of wetlands;
         (2) <br/>
<a id="pl.240.5"></a><var>240.5</var>drainage or storage of storm water under a storm water management plan; or (3) preservation,
         <br/>
<a id="pl.240.6"></a><var>240.6</var>or restoration and preservation, of the land in its natural state. The deed must contain
         a <br/>
<a id="pl.240.7"></a><var>240.7</var>restrictive covenant limiting the use of the land to one of these purposes for 30
         years or <br/>
<a id="pl.240.8"></a><var>240.8</var>until the property is reconveyed back to the state in trust. At any time, the governmental
         <br/>
<a id="pl.240.9"></a><var>240.9</var>subdivision may reconvey the property to the state in trust for the taxing districts.
         The deed <br/>
<a id="pl.240.10"></a><var>240.10</var>of reconveyance is subject to approval by the commissioner of revenue. No part of
         a purchase <br/>
<a id="pl.240.11"></a><var>240.11</var>price determined under this paragraph shall be refunded upon a reconveyance, but the
         <br/>
<a id="pl.240.12"></a><var>240.12</var>amount paid for a conveyance under this paragraph may be taken into account by the
         county <br/>
<a id="pl.240.13"></a><var>240.13</var>board when setting the terms of a future sale of the same property to the same governmental
         <br/>
<a id="pl.240.14"></a><var>240.14</var>subdivision under paragraph (b) or (d). If the lands are unplatted and located outside
         of an <br/>
<a id="pl.240.15"></a><var>240.15</var>incorporated municipality and the commissioner of natural resources determines there
         is a <br/>
<a id="pl.240.16"></a><var>240.16</var>mineral use potential, the sale is subject to the approval of the commissioner of
         natural <br/>
<a id="pl.240.17"></a><var>240.17</var>resources.<br/>
<a id="pl.240.18"></a><var>240.18</var>(i) A park and recreation board in a city of the first class is a governmental subdivision
         <br/>
<a id="pl.240.19"></a><var>240.19</var>for the purposes of this section.<br/>
<a id="pl.240.20"></a><var>240.20</var>(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
         by <br/>
<a id="pl.240.21"></a><var>240.21</var>the commissioner of revenue in the name of the state to a governmental subdivision
         for a <br/>
<a id="pl.240.22"></a><var>240.22</var>school forest under section 
         <statute_ref>89.41</statute_ref>. An application that includes a statement of facts as to the <br/>
<a id="pl.240.23"></a><var>240.23</var>use to be made of the tract and the favorable recommendation of the county board and
         the <br/>
<a id="pl.240.24"></a><var>240.24</var>commissioner of natural resources must be submitted to the commissioner of revenue.
         No <br/>
<a id="pl.240.25"></a><var>240.25</var>monetary compensation or consideration is required for the conveyance, but the conveyance
         <br/>
<a id="pl.240.26"></a><var>240.26</var>is subject to the conditional use and reversion provisions of subdivisions 1c and
         1d, paragraph <br/>
<a id="pl.240.27"></a><var>240.27</var>(e). At any time, the governmental subdivision may reconvey the property back to the
         state <br/>
<a id="pl.240.28"></a><var>240.28</var>in trust for the taxing districts. The deed of reconveyance is subject to approval
         by the <br/>
<a id="pl.240.29"></a><var>240.29</var>commissioner of revenue.<br/>
<a id="pl.240.30"></a><var>240.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.33.0"></a><a id="pl.240.31"></a><var>240.31</var>    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:<br/>
<a id="pl.240.32"></a><var>240.32</var>    Subd. 1d. <b>Reverter for failure to use; conveyance to state.</b> (a) After three years from <br/>
<a id="pl.240.33"></a><var>240.33</var>the date of any conveyance of tax-forfeited land to a governmental subdivision for
         an <br/>
<a id="pl.240.34"></a><var>240.34</var>authorized public use as provided in this section, regardless of when the deed for
         the <br/>
<a id="pl.241.1"></a><var>241.1</var>authorized public use was executed, if the governmental subdivision has failed to
         put the <br/>
<a id="pl.241.2"></a><var>241.2</var>land to that use, or abandons that use, the governing body of the subdivision must:
         (1) with <br/>
<a id="pl.241.3"></a><var>241.3</var>the approval of the county board, purchase the property for an authorized public purpose
         <br/>
<a id="pl.241.4"></a><var>241.4</var>at the present market value as determined by the county board, or (2) authorize the
         proper <br/>
<a id="pl.241.5"></a><var>241.5</var>officers to convey the land, or the part of the land not required for an authorized
         public use, <br/>
<a id="pl.241.6"></a><var>241.6</var>to the state of Minnesota in trust for the taxing districts. If the governing body
         purchases <br/>
<a id="pl.241.7"></a><var>241.7</var>the property under clause (1), the commissioner of revenue shall, upon proper application
         <br/>
<a id="pl.241.8"></a><var>241.8</var>submitted by the county auditor and upon the reconveyance of the land subject to the <br/>
<a id="pl.241.9"></a><var>241.9</var>conditional use deed to the state, convey the property on behalf of the state by quitclaim <br/>
<a id="pl.241.10"></a><var>241.10</var>deed to the subdivision free of a use restriction and the possibility of reversion
         or <br/>
<a id="pl.241.11"></a><var>241.11</var>defeasement. If the governing body decides to reconvey the property to the state under
         this <br/>
<a id="pl.241.12"></a><var>241.12</var>clause, the officers shall execute a deed of conveyance immediately. The conveyance
         is <br/>
<a id="pl.241.13"></a><var>241.13</var>subject to the approval of the commissioner and its form must be approved by the attorney
         <br/>
<a id="pl.241.14"></a><var>241.14</var>general. For 15 years from the date of the conveyance, there is no failure to put
         the land to <br/>
<a id="pl.241.15"></a><var>241.15</var>the authorized public use and no abandonment of that use if a formal plan of the governmental
         <br/>
<a id="pl.241.16"></a><var>241.16</var>subdivision, including, but not limited to, a comprehensive plan or land use plan,
         shows an <br/>
<a id="pl.241.17"></a><var>241.17</var>intended future use of the land for the authorized public use.<br/>
<a id="pl.241.18"></a><var>241.18</var>(b) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.241.19"></a><var>241.19</var>deed executed under this section by the commissioner of revenue on or after January
         1, <br/>
<a id="pl.241.20"></a><var>241.20</var>2007, may be acquired by that governmental subdivision after 15 years from the date
         of the <br/>
<a id="pl.241.21"></a><var>241.21</var>conveyance if the commissioner determines upon written application from the subdivision
         <br/>
<a id="pl.241.22"></a><var>241.22</var>that the subdivision has in fact put the property to the authorized public use for
         which it <br/>
<a id="pl.241.23"></a><var>241.23</var>was conveyed, and the subdivision has made a finding that it has no current plans
         to change <br/>
<a id="pl.241.24"></a><var>241.24</var>the use of the lands. Prior to conveying the property, the commissioner shall inquire
         whether <br/>
<a id="pl.241.25"></a><var>241.25</var>the county board where the land is located objects to a conveyance of the property
         to the <br/>
<a id="pl.241.26"></a><var>241.26</var>subdivision without conditions and without further act by or obligation of the subdivision.
         <br/>
<a id="pl.241.27"></a><var>241.27</var>If the county does not object within 60 days, and the commissioner makes a favorable
         <br/>
<a id="pl.241.28"></a><var>241.28</var>determination, the commissioner shall issue a quitclaim deed on behalf of the state
         <br/>
<a id="pl.241.29"></a><var>241.29</var>unconditionally conveying the property to the governmental subdivision. For purposes
         of <br/>
<a id="pl.241.30"></a><var>241.30</var>this paragraph, demonstration of an intended future use for the authorized public
         use in a <br/>
<a id="pl.241.31"></a><var>241.31</var>formal plan of the governmental subdivision does not constitute use for that authorized
         <br/>
<a id="pl.241.32"></a><var>241.32</var>public use.<br/>
<a id="pl.241.33"></a><var>241.33</var>(c) Property held by a governmental subdivision of the state under a conditional use
         <br/>
<a id="pl.241.34"></a><var>241.34</var>deed executed under this section by the commissioner of revenue before January 1,
         2007, <br/>
<a id="pl.241.35"></a><var>241.35</var>is released from the use restriction and possibility of reversion on January 1, 2022,
         if the <br/>
<a id="pl.242.1"></a><var>242.1</var>county board records a resolution describing the land and citing this paragraph. The
         county <br/>
<a id="pl.242.2"></a><var>242.2</var>board may authorize the county treasurer to deduct the amount of the recording fees
         from <br/>
<a id="pl.242.3"></a><var>242.3</var>future settlements of property taxes to the subdivision.<br/>
<a id="pl.242.4"></a><var>242.4</var>(d) Except for tax-forfeited land conveyed to establish a school forest under section
         <br/>
<statute_ref><a id="pl.242.5"></a><var>242.5</var>89.41
         </statute_ref>, property conveyed under a conditional use deed executed under this section by the
         <br/>
<a id="pl.242.6"></a><var>242.6</var>commissioner of revenue, regardless of when the deed for the authorized public use
         was <br/>
<a id="pl.242.7"></a><var>242.7</var>executed, is released from the use restriction and reverter, and any use restriction
         or reverter <br/>
<a id="pl.242.8"></a><var>242.8</var>for which no declaration of reversion has been recorded with the county recorder or
         registrar <br/>
<a id="pl.242.9"></a><var>242.9</var>of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2)
         30 years from <br/>
<a id="pl.242.10"></a><var>242.10</var>the date the deed was acknowledged; or (3) final resolution of an appeal to district
         court <br/>
<a id="pl.242.11"></a><var>242.11</var>under subdivision 1e, if a lis pendens related to the appeal is recorded in the office
         of the <br/>
<a id="pl.242.12"></a><var>242.12</var>county recorder or registrar of titles, as appropriate, prior to January 1, 2015.<br/>
<a id="pl.242.13"></a><var>242.13</var>(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish
         a <br/>
<a id="pl.242.14"></a><var>242.14</var>school forest under section 
         <statute_ref>89.41</statute_ref> is subject to a perpetual conditional use deed and reverter. <br/>
<a id="pl.242.15"></a><var>242.15</var>The property reverts to the state in trust for the taxing districts by operation of
         law if the <br/>
<a id="pl.242.16"></a><var>242.16</var>commissioner of natural resources determines and reports to the commissioner of revenue
         <br/>
<a id="pl.242.17"></a><var>242.17</var>under section 
         <statute_ref>89.41, subdivision 3</statute_ref>, that the governmental subdivision has failed to use the <br/>
<a id="pl.242.18"></a><var>242.18</var>land for school forest purposes for three consecutive years. The commissioner of revenue
         <br/>
<a id="pl.242.19"></a><var>242.19</var>shall record a declaration of reversion for land that has reverted under this paragraph.<br/>
<a id="pl.242.20"></a><var>242.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.34.0"></a><a id="pl.242.21"></a><var>242.21</var>    Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision <br/>
<a id="pl.242.22"></a><var>242.22</var>to read:<br/>
<a id="pl.242.23"></a><var>242.23</var>    Subd. 14. <b>Communication by electronic mail.</b> Prior to receiving aid pursuant to this <br/>
<a id="pl.242.24"></a><var>242.24</var>section, a city must register an official electronic mail address with the commissioner,
         which <br/>
<a id="pl.242.25"></a><var>242.25</var>the commissioner may use as an exclusive means to communicate with the city.<br/>
 <a id="pl.242.26"></a><var>242.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.35.0"></a><a id="pl.242.27"></a><var>242.27</var>    Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision <br/>
<a id="pl.242.28"></a><var>242.28</var>to read:<br/>
<a id="pl.242.29"></a><var>242.29</var>    Subd. 3a. <b>Certification.</b> On or before June 1 of each year, the commissioner of natural <br/>
<a id="pl.242.30"></a><var>242.30</var>resources shall certify to the commissioner of revenue the number of watercraft launches
         <br/>
<a id="pl.242.31"></a><var>242.31</var>and the number of watercraft trailer parking spaces in each county.<br/>
<a id="pl.242.32"></a><var>242.32</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.36.0"></a><a id="pl.243.1"></a><var>243.1</var>    Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision <br/>
<a id="pl.243.2"></a><var>243.2</var>to read:<br/>
<a id="pl.243.3"></a><var>243.3</var>    Subd. 3b. <b>Certification.</b> On or before June 1 of each year, the commissioner of natural <br/>
<a id="pl.243.4"></a><var>243.4</var>resources shall certify to the commissioner of revenue the counties that complied
         with the <br/>
<a id="pl.243.5"></a><var>243.5</var>requirements of subdivision 3 the prior year and are eligible to receive aid under
         this section.<br/>
<a id="pl.243.6"></a><var>243.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2018 and thereafter.<br/>
<br/>
<a id="bill.12.37.0"></a><a id="pl.243.7"></a><var>243.7</var>    Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:<br/>
<a id="pl.243.8"></a><var>243.8</var>    Subd. 2. <b>Exception.</b> This section does not apply to sales made under chapter 282 or if <br/>
<a id="pl.243.9"></a><var>243.9</var>the purchaser is represented throughout the transaction by either:<br/>
<a id="pl.243.10"></a><var>243.10</var>(1) a person licensed to practice law in this state; or<br/>
<a id="pl.243.11"></a><var>243.11</var>(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
         <br/>
<a id="pl.243.12"></a><var>243.12</var>that the representation does not create a dual agency, as that term is defined in
         section 
         <statute_ref>82.55, <br/>
<a id="pl.243.13"></a><var>243.13</var>subdivision 6
         </statute_ref>.<br/>
<a id="pl.243.14"></a><var>243.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales of tax-forfeited land occurring <br/>
<a id="pl.243.15"></a><var>243.15</var>the day following final enactment and thereafter.<br/>
<br/>
<a id="bill.12.38.0"></a><a id="pl.243.16"></a><var>243.16</var>    Sec. 38. Laws 2014, chapter 308, article 9, section 94, is amended to read:<br/>
<a id="pl.243.17"></a><var>243.17</var>    Sec. 94. <b>REPEALER.</b><br/>
<a id="pl.243.18"></a><var>243.18</var>(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision <br/>
<a id="pl.243.19"></a><var>243.19</var>19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, <br/>
<a id="pl.243.20"></a><var>243.20</var>part 8007.0200, are repealed.<br/>
<a id="pl.243.21"></a><var>243.21</var>(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
         <br/>
<a id="pl.243.22"></a><var>243.22</var>2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67,
         72, and <br/>
<a id="pl.243.23"></a><var>243.23</var>82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; <br/>
<a id="pl.243.24"></a><var>243.24</var>273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
         <br/>
<a id="pl.243.25"></a><var>243.25</var>8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
         <br/>
<a id="pl.243.26"></a><var>243.26</var>subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
         <br/>
<a id="pl.243.27"></a><var>243.27</var>subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
         <br/>
<a id="pl.243.28"></a><var>243.28</var>subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision
         1i; <br/>
<a id="pl.243.29"></a><var>243.29</var>469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes <br/>
<a id="pl.243.30"></a><var>243.30</var>2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and <br/>
<a id="pl.244.1"></a><var>244.1</var>Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7,
         are <br/>
<a id="pl.244.2"></a><var>244.2</var>repealed.<br/>
<a id="pl.244.3"></a><var>244.3</var>(c) Minnesota Statutes 2012, section 469.1764, is repealed.<br/>
<a id="pl.244.4"></a><var>244.4</var>(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
         <br/>
<a id="pl.244.5"></a><var>244.5</var>469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
         <br/>
<a id="pl.244.6"></a><var>244.6</var>469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, <br/>
<a id="pl.244.7"></a><var>244.7</var>section 469.340, subdivision 4, are repealed.<br/>
<a id="pl.244.8"></a><var>244.8</var>(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.<br/>
<a id="pl.244.9"></a><var>244.9</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from May 20, 2014, and <br/>
<a id="pl.244.10"></a><var>244.10</var>pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
         <br/>
<a id="pl.244.11"></a><var>244.11</var>subdivision 2, is revived and reenacted as of that date.<br/>
<br/>
<a id="bill.12.39.0"></a><a id="pl.244.12"></a><var>244.12</var>    Sec. 39. <b> REPEALER.</b><br/>
<b> </b><a id="pl.244.13"></a><var>244.13</var>(a) Minnesota Statutes 2016, section 281.22, is repealed.<br/>
<a id="pl.244.14"></a><var>244.14</var>(b) Minnesota Rules, part 8100.0700, is repealed.<br/>
<a id="pl.244.15"></a><var>244.15</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.244.16"></a><var>244.16</var>Paragraph (b) is effective for assessment year 2017 and thereafter.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="pl.244.19"></a><var>244.19</var><b>PROVISIONS; MISCELLANEOUS</b><br/>

<a id="bill.13.1.0"></a><a id="pl.244.20"></a><var>244.20</var>    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:<br/>
<a id="pl.244.21"></a><var>244.21</var>    Subdivision 1. <b>Annual report required.</b> Every railroad company doing business in <br/>
<a id="pl.244.22"></a><var>244.22</var>Minnesota shall annually file with the commissioner on or before March 31 a report
         under <br/>
<a id="pl.244.23"></a><var>244.23</var>oath setting forth the information prescribed by the commissioner to enable the commissioner
         <br/>
<a id="pl.244.24"></a><var>244.24</var>to make the valuation and equalization required by sections 
         <statute_ref>270.80</statute_ref> to 
         <statute_ref>270.87</statute_ref>. The <br/>
<a id="pl.244.25"></a><var>244.25</var>commissioner shall prescribe the content, format, and manner of the report pursuant
         to <br/>
<a id="pl.244.26"></a><var>244.26</var>section 270C.30, except that a "law administered by the commissioner" includes the
         property <br/>
<a id="pl.244.27"></a><var>244.27</var>tax laws. If a report is made by electronic means, the taxpayer's signature is defined
         pursuant <br/>
<a id="pl.244.28"></a><var>244.28</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.244.29"></a><var>244.29</var>property tax laws.<br/>
<a id="pl.244.30"></a><var>244.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.245.1"></a><var>245.1</var>    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:<br/>
<a id="pl.245.2"></a><var>245.2</var>    Subd. 5. <b>Debt.</b> (a) "Debt" means a legal obligation of a natural person to pay a fixed and <br/>
<a id="pl.245.3"></a><var>245.3</var>certain amount of money, which equals or exceeds $25 and which is due and payable
         to a <br/>
<a id="pl.245.4"></a><var>245.4</var>claimant agency. The term includes criminal fines imposed under section 
         <statute_ref>609.10</statute_ref> or 
         <statute_ref>609.125</statute_ref>, <br/>
<a id="pl.245.5"></a><var>245.5</var>fines imposed for petty misdemeanors as defined in section 
         <statute_ref>609.02, subdivision 4a</statute_ref>, and <br/>
<a id="pl.245.6"></a><var>245.6</var>restitution. A debt may arise under a contractual or statutory obligation, a court
         order, or <br/>
<a id="pl.245.7"></a><var>245.7</var>other legal obligation, but need not have been reduced to judgment.<br/>
<a id="pl.245.8"></a><var>245.8</var>    A debt includes any legal obligation of a current recipient of assistance which is
         based <br/>
<a id="pl.245.9"></a><var>245.9</var>on overpayment of an assistance grant where that payment is based on a client waiver
         or <br/>
<a id="pl.245.10"></a><var>245.10</var>an administrative or judicial finding of an intentional program violation; or where
         the debt <br/>
<a id="pl.245.11"></a><var>245.11</var>is owed to a program wherein the debtor is not a client at the time notification is
         provided <br/>
<a id="pl.245.12"></a><var>245.12</var>to initiate recovery under this chapter and the debtor is not a current recipient
         of food support, <br/>
<a id="pl.245.13"></a><var>245.13</var>transitional child care, or transitional medical assistance.<br/>
<a id="pl.245.14"></a><var>245.14</var>    (b) A debt does not include any legal obligation to pay a claimant agency for medical
         <br/>
<a id="pl.245.15"></a><var>245.15</var>care, including hospitalization if the income of the debtor at the time when the medical
         care <br/>
<a id="pl.245.16"></a><var>245.16</var>was rendered does not exceed the following amount:<br/>
<a id="pl.245.17"></a><var>245.17</var>    (1) for an unmarried debtor, an income of $8,800 $12,560 or less;<br/>
<a id="pl.245.18"></a><var>245.18</var>    (2) for a debtor with one dependent, an income of $11,270 $16,080 or less;<br/>
<a id="pl.245.19"></a><var>245.19</var>    (3) for a debtor with two dependents, an income of $13,330 $19,020 or less;<br/>
<a id="pl.245.20"></a><var>245.20</var>    (4) for a debtor with three dependents, an income of $15,120 $21,580 or less;<br/>
<a id="pl.245.21"></a><var>245.21</var>    (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and<br/>
<a id="pl.245.22"></a><var>245.22</var>    (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.<br/>
<a id="pl.245.23"></a><var>245.23</var>For purposes of this paragraph, "debtor" means the individual whose income, together
         <br/>
<a id="pl.245.24"></a><var>245.24</var>with the income of the individual's spouse, other than a separated spouse, brings
         the <br/>
<a id="pl.245.25"></a><var>245.25</var>individual within the income provisions of this paragraph. For purposes of this paragraph,
         <br/>
<a id="pl.245.26"></a><var>245.26</var>a spouse, other than a separated spouse, shall be considered a dependent.<br/>
<a id="pl.245.27"></a><var>245.27</var>    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
         <br/>
<a id="pl.245.28"></a><var>245.28</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except <br/>
<a id="pl.245.29"></a><var>245.29</var>that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." <br/>
<a id="pl.245.30"></a><var>245.30</var>For 2001 2016, the commissioner shall then determine the percent change from the 12 <br/>
<a id="pl.245.31"></a><var>245.31</var>months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, <br/>
<a id="pl.245.32"></a><var>245.32</var>and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the <br/>
<a id="pl.246.1"></a><var>246.1</var>12 months ending on August 31 of the year preceding the taxable year. The determination
         <br/>
<a id="pl.246.2"></a><var>246.2</var>of the commissioner pursuant to this subdivision shall not be considered a "rule"
         and shall <br/>
<a id="pl.246.3"></a><var>246.3</var>not be subject to the Administrative Procedure Act contained in chapter 14. The income
         <br/>
<a id="pl.246.4"></a><var>246.4</var>amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
         $5, <br/>
<a id="pl.246.5"></a><var>246.5</var>the amount is rounded up to the nearest $10 amount.<br/>
<a id="pl.246.6"></a><var>246.6</var>    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
         the <br/>
<a id="pl.246.7"></a><var>246.7</var>dollar amount of the premium authorized under section 
         <statute_ref>256L.15, subdivision 1a</statute_ref>.<br/>
<a id="pl.246.8"></a><var>246.8</var><b>EFFECTIVE DATE.</b>The section is effective retroactively for debts incurred after <br/>
<a id="pl.246.9"></a><var>246.9</var>December 31, 2014.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.246.10"></a><var>246.10</var>    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:<br/>
<a id="pl.246.11"></a><var>246.11</var>    Subdivision 1. <b>Disclosure to commissioner of human services.</b> (a) On the request of <br/>
<a id="pl.246.12"></a><var>246.12</var>the commissioner of human services, the commissioner shall disclose return information
         <br/>
<a id="pl.246.13"></a><var>246.13</var>regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A,
         to the <br/>
<a id="pl.246.14"></a><var>246.14</var>extent provided in paragraph (b) and for the purposes set forth in paragraph (c).<br/>
<a id="pl.246.15"></a><var>246.15</var>    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
         <br/>
<a id="pl.246.16"></a><var>246.16</var>employment, income, and property of a person owing or alleged to be owing an obligation
         <br/>
<a id="pl.246.17"></a><var>246.17</var>of child support.<br/>
<a id="pl.246.18"></a><var>246.18</var>    (c) The commissioner of human services may request data only for the purposes of <br/>
<a id="pl.246.19"></a><var>246.19</var>carrying out the child support enforcement program and to assist in the location of
         parents <br/>
<a id="pl.246.20"></a><var>246.20</var>who have, or appear to have, deserted their children. Data received may be used only
         as set <br/>
<a id="pl.246.21"></a><var>246.21</var>forth in section 
         <statute_ref>256.978</statute_ref>.<br/>
<a id="pl.246.22"></a><var>246.22</var>    (d) The commissioner shall provide the records and information necessary to administer
         <br/>
<a id="pl.246.23"></a><var>246.23</var>the supplemental housing allowance to the commissioner of human services.<br/>
<a id="pl.246.24"></a><var>246.24</var>    (e) At the request of the commissioner of human services, the commissioner of revenue
         <br/>
<a id="pl.246.25"></a><var>246.25</var>shall electronically match the Social Security numbers and names of participants in
         the <br/>
<a id="pl.246.26"></a><var>246.26</var>telephone assistance plan operated under sections 
         <statute_ref>237.69</statute_ref> to 
         <statute_ref>237.71</statute_ref>, with those of property <br/>
<a id="pl.246.27"></a><var>246.27</var>tax refund filers, and determine whether each participant's household income is within
         the <br/>
<a id="pl.246.28"></a><var>246.28</var>eligibility standards for the telephone assistance plan.<br/>
<a id="pl.246.29"></a><var>246.29</var>    (f) The commissioner may provide records and information collected under sections
         <br/>
<statute_ref><a id="pl.246.30"></a><var>246.30</var>295.50
         </statute_ref> to 
         <statute_ref>295.59</statute_ref> to the commissioner of human services for purposes of the Medicaid <br/>
<a id="pl.246.31"></a><var>246.31</var>Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law <br/>
<a id="pl.246.32"></a><var>246.32</var>102-234. Upon the written agreement by the United States Department of Health and
         Human <br/>
<a id="pl.246.33"></a><var>246.33</var>Services to maintain the confidentiality of the data, the commissioner may provide
         records <br/>
<a id="pl.247.1"></a><var>247.1</var>and information collected under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref> to the Centers for Medicare and <br/>
<a id="pl.247.2"></a><var>247.2</var>Medicaid Services section of the United States Department of Health and Human Services
         <br/>
<a id="pl.247.3"></a><var>247.3</var>for purposes of meeting federal reporting requirements.<br/>
<a id="pl.247.4"></a><var>247.4</var>    (g) The commissioner may provide records and information to the commissioner of <br/>
<a id="pl.247.5"></a><var>247.5</var>human services as necessary to administer the early refund of refundable tax credits.<br/>
<a id="pl.247.6"></a><var>247.6</var>    (h) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.247.7"></a><var>247.7</var>as necessary to verify income for income verification for eligibility and premium payment <br/>
<a id="pl.247.8"></a><var>247.8</var>under the MinnesotaCare program, under section 
         <statute_ref>256L.05, subdivision 2</statute_ref>, as well as the <br/>
<a id="pl.247.9"></a><var>247.9</var>medical assistance program under chapter 256B.<br/>
<a id="pl.247.10"></a><var>247.10</var>    (i) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.247.11"></a><var>247.11</var>necessary to verify whether applicants or recipients for the Minnesota family investment
         <br/>
<a id="pl.247.12"></a><var>247.12</var>program, general assistance, food support, Minnesota supplemental aid program, and
         child <br/>
<a id="pl.247.13"></a><var>247.13</var>care assistance have claimed refundable tax credits under chapter 290 and the property
         tax <br/>
<a id="pl.247.14"></a><var>247.14</var>refund under chapter 290A, and the amounts of the credits.<br/>
<a id="pl.247.15"></a><var>247.15</var>    (j) The commissioner may disclose information to the commissioner of human services
         <br/>
<a id="pl.247.16"></a><var>247.16</var>necessary to verify income for purposes of calculating parental contribution amounts
         under <br/>
<a id="pl.247.17"></a><var>247.17</var>section 
         <statute_ref>252.27, subdivision 2a</statute_ref>.<br/>
<a id="pl.247.18"></a><var>247.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.247.19"></a><var>247.19</var>    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:<br/>
<a id="pl.247.20"></a><var>247.20</var><b>270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.</b><br/>
<a id="pl.247.21"></a><var>247.21</var>Except as otherwise provided by law, the commissioner shall prescribe the content and, <br/>
<a id="pl.247.22"></a><var>247.22</var>format, and manner of all returns and other forms required to be filed under a law <br/>
<a id="pl.247.23"></a><var>247.23</var>administered by the commissioner, and may furnish them subject to charge on application.<br/>
<a id="pl.247.24"></a><var>247.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.247.25"></a><var>247.25</var>    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:<br/>
<a id="pl.247.26"></a><var>247.26</var>    Subd. 5. <b>Prohibition against collection during appeal period of an order.</b> No collection <br/>
<a id="pl.247.27"></a><var>247.27</var>action can be taken on an order of assessment, or any other order imposing a liability,
         <br/>
<a id="pl.247.28"></a><var>247.28</var>including the filing of liens under section 
         <statute_ref>270C.63</statute_ref>, and no late payment penalties may be <br/>
<a id="pl.247.29"></a><var>247.29</var>imposed when a return has been filed for the tax type and period upon which the order
         is <br/>
<a id="pl.247.30"></a><var>247.30</var>based, during the appeal period of an order. The appeal period of an order ends: (1)
         60 days <br/>
<a id="pl.247.31"></a><var>247.31</var>after the order has been mailed to the taxpayer notice date designated by the commissioner <br/>
<a id="pl.248.1"></a><var>248.1</var>on the order; (2) if an administrative appeal is filed under section 
         <statute_ref>270C.35</statute_ref>, 60 days after <br/>
<a id="pl.248.2"></a><var>248.2</var>the notice date designated by the commissioner on the written determination of the <br/>
<a id="pl.248.3"></a><var>248.3</var>administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
         the <br/>
<a id="pl.248.4"></a><var>248.4</var>decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
         appeal <br/>
<a id="pl.248.5"></a><var>248.5</var>is based upon a constitutional challenge to the tax, 60 days after final determination
         of the <br/>
<a id="pl.248.6"></a><var>248.6</var>appeal. This subdivision does not apply to a jeopardy assessment under section 
         <statute_ref>270C.36</statute_ref>, <br/>
<a id="pl.248.7"></a><var>248.7</var>or a jeopardy collection under section 
         <statute_ref>270C.36</statute_ref>.<br/>
<a id="pl.248.8"></a><var>248.8</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.248.9"></a><var>248.9</var>2017.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.248.10"></a><var>248.10</var>    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:<br/>
<a id="pl.248.11"></a><var>248.11</var>    Subd. 8. <b>Sufficiency of notice.</b> An assessment of tax made by the commissioner, sent <br/>
<a id="pl.248.12"></a><var>248.12</var>postage prepaid by United States mail to the taxpayer at the taxpayer's last known
         address, <br/>
<a id="pl.248.13"></a><var>248.13</var>or sent by electronic mail to the taxpayer's last known electronic mailing address
         as provided <br/>
<a id="pl.248.14"></a><var>248.14</var>for in section 
         <statute_ref>325L.08</statute_ref>, is sufficient even if the taxpayer is deceased or is under a legal <br/>
<a id="pl.248.15"></a><var>248.15</var>disability, or, in the case of a corporation, has terminated its existence, unless
         the <br/>
<a id="pl.248.16"></a><var>248.16</var>commissioner has been provided with a new address by a party authorized to receive
         notices <br/>
<a id="pl.248.17"></a><var>248.17</var>of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date
         <br/>
<a id="pl.248.18"></a><var>248.18</var>designated by the commissioner on the assessment.<br/>
<a id="pl.248.19"></a><var>248.19</var><b>EFFECTIVE DATE.</b>This section is effective for assessments dated after December <br/>
<a id="pl.248.20"></a><var>248.20</var>31, 2017.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.248.21"></a><var>248.21</var>    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:<br/>
<a id="pl.248.22"></a><var>248.22</var>    Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br/>
<a id="pl.248.23"></a><var>248.23</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br/>
<a id="pl.248.24"></a><var>248.24</var>charge, must be filed with the commissioner within 60 days of the notice date of the notice <br/>
<a id="pl.248.25"></a><var>248.25</var>was mailed to the taxpayer's last known address, stating that a penalty has been imposed or <br/>
<a id="pl.248.26"></a><var>248.26</var>additional tax charge. For purposes of this section, "notice date" means the notice
         date <br/>
<a id="pl.248.27"></a><var>248.27</var>designated by the commissioner on the order or other notice that a penalty or additional
         tax <br/>
<a id="pl.248.28"></a><var>248.28</var>charge has been imposed.<br/>
<a id="pl.248.29"></a><var>248.29</var>(b) If the commissioner issues an order denying a request for abatement of penalty,
         <br/>
<a id="pl.248.30"></a><var>248.30</var>interest, or additional tax charge, the taxpayer may file an administrative appeal
         as provided <br/>
<a id="pl.248.31"></a><var>248.31</var>in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.249.1"></a><var>249.1</var>(c) If the commissioner does not issue an order on the abatement request within 60
         days <br/>
<a id="pl.249.2"></a><var>249.2</var>from the date the request is received, the taxpayer may appeal to Tax Court as provided
         in <br/>
<a id="pl.249.3"></a><var>249.3</var>section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.249.4"></a><var>249.4</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.249.5"></a><var>249.5</var>December 31, 2017.<br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.249.6"></a><var>249.6</var>    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:<br/>
<a id="pl.249.7"></a><var>249.7</var>    Subd. 3. <b>Notice date.</b> For purposes of this section, the term "notice date" means the <br/>
<a id="pl.249.8"></a><var>249.8</var>notice date of designated by the commissioner on the order adjusting the tax or order denying <br/>
<a id="pl.249.9"></a><var>249.9</var>a request for abatement, or, in the case of a denied refund, the notice date of designated by <br/>
<a id="pl.249.10"></a><var>249.10</var>the commissioner on the notice of denial.<br/>
<a id="pl.249.11"></a><var>249.11</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.249.12"></a><var>249.12</var>December 31, 2017.<br/>
<br/>
<a id="bill.13.9.0"></a><a id="pl.249.13"></a><var>249.13</var>    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to <br/>
<a id="pl.249.14"></a><var>249.14</var>read:<br/>
<a id="pl.249.15"></a><var>249.15</var>    Subd. 11. <b>Dismissal of administrative appeal.</b> If a taxpayer files an administrative <br/>
<a id="pl.249.16"></a><var>249.16</var>appeal for an order of the commissioner and also files an appeal to the Tax Court
         for that <br/>
<a id="pl.249.17"></a><var>249.17</var>same order of the commissioner, the administrative appeal is dismissed and the commissioner
         <br/>
<a id="pl.249.18"></a><var>249.18</var>is no longer required to make a determination of appeal under subdivision 6.<br/>
<a id="pl.249.19"></a><var>249.19</var><b>EFFECTIVE DATE.</b>This section is effective for all administrative appeals filed after <br/>
<a id="pl.249.20"></a><var>249.20</var>June 30, 2017.<br/>
<br/>
<a id="bill.13.10.0"></a><a id="pl.249.21"></a><var>249.21</var>    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:<br/>
<a id="pl.249.22"></a><var>249.22</var>    Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br/>
<a id="pl.249.23"></a><var>249.23</var>determination or action of the commissioner is otherwise specifically provided for
         by law, <br/>
<a id="pl.249.24"></a><var>249.24</var>notice of the determination or action sent postage prepaid by United States mail to
         the <br/>
<a id="pl.249.25"></a><var>249.25</var>taxpayer or other person affected by the determination or action at the taxpayer's
         or person's <br/>
<a id="pl.249.26"></a><var>249.26</var>last known address, is sufficient. If the taxpayer or person being notified is deceased
         or is <br/>
<a id="pl.249.27"></a><var>249.27</var>under a legal disability, or, in the case of a corporation being notified that has
         terminated <br/>
<a id="pl.249.28"></a><var>249.28</var>its existence, notice to the last known address of the taxpayer, person, or corporation
         is <br/>
<a id="pl.249.29"></a><var>249.29</var>sufficient, unless the department has been provided with a new address by a party
         authorized <br/>
<a id="pl.249.30"></a><var>249.30</var>to receive notices from the commissioner.<br/>
<a id="pl.250.1"></a><var>250.1</var>(b) If a taxpayer or other person agrees to accept notification by electronic means,
         notice <br/>
<a id="pl.250.2"></a><var>250.2</var>of a determination or action of the commissioner sent by electronic mail to the taxpayer's
         <br/>
<a id="pl.250.3"></a><var>250.3</var>or person's last known electronic mailing address as provided for in section 
         <statute_ref>325L.08</statute_ref> is <br/>
<a id="pl.250.4"></a><var>250.4</var>sufficient.<br/>
<a id="pl.250.5"></a><var>250.5</var>(c) Notice of a determination or action of the commissioner is sufficient if it is
         sent on <br/>
<a id="pl.250.6"></a><var>250.6</var>or before the notice date designated by the commissioner on the notice.<br/>
<a id="pl.250.7"></a><var>250.7</var><b>EFFECTIVE DATE.</b>This section is effective for notices dated after December 31, <br/>
<a id="pl.250.8"></a><var>250.8</var>2017.<br/>
<br/>
<a id="bill.13.11.0"></a><a id="pl.250.9"></a><var>250.9</var>    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision <br/>
<a id="pl.250.10"></a><var>250.10</var>to read:<br/>
<a id="pl.250.11"></a><var>250.11</var>    Subd. 9. <b>Enforcement; limitations.</b> (a) Notwithstanding any other law, the imposition <br/>
<a id="pl.250.12"></a><var>250.12</var>of a penalty or any other action against a tax preparer authorized by subdivision
         6 with <br/>
<a id="pl.250.13"></a><var>250.13</var>respect to a return may be taken by the commissioner within the period provided by
         section <br/>
<a id="pl.250.14"></a><var>250.14</var>289A.38 to assess tax on that return.<br/>
<a id="pl.250.15"></a><var>250.15</var>(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision
         <br/>
<a id="pl.250.16"></a><var>250.16</var>6 other than with respect to a return must be taken by the commissioner within five
         years <br/>
<a id="pl.250.17"></a><var>250.17</var>of the violation of statute.<br/>
<a id="pl.250.18"></a><var>250.18</var><b>EFFECTIVE DATE.</b>This section is effective for tax preparation services provided <br/>
<a id="pl.250.19"></a><var>250.19</var>after the day following final enactment.<br/>
<br/>
<a id="bill.13.12.0"></a><a id="pl.250.20"></a><var>250.20</var>    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:<br/>
<a id="pl.250.21"></a><var>250.21</var>    Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax preparer <br/>
<a id="pl.250.22"></a><var>250.22</var>from the list of tax preparers published under this section:<br/>
<a id="pl.250.23"></a><var>250.23</var>(1) when the commissioner determines that the name was included on the list in error;<br/>
<a id="pl.250.24"></a><var>250.24</var>(2) within 90 days three years after the preparer has demonstrated to the commissioner <br/>
<a id="pl.250.25"></a><var>250.25</var>that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied <br/>
<a id="pl.250.26"></a><var>250.26</var>any sentence imposed, successfully completed any probationary period imposed, and <br/>
<a id="pl.250.27"></a><var>250.27</var>successfully completed any remedial actions required by the commissioner, the State
         Board <br/>
<a id="pl.250.28"></a><var>250.28</var>of Accountancy, or the Lawyers Board of Professional Responsibility; or<br/>
<a id="pl.250.29"></a><var>250.29</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br/>
<a id="pl.250.30"></a><var>250.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.13.0"></a><a id="pl.251.1"></a><var>251.1</var>    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:<br/>
<a id="pl.251.2"></a><var>251.2</var>    Subd. 4. <b>Licensing authority; duties.</b> All licensing authorities must require the applicant <br/>
<a id="pl.251.3"></a><var>251.3</var>to provide the applicant's Social Security number or individual taxpayer identification <br/>
<a id="pl.251.4"></a><var>251.4</var>number and Minnesota business identification number, as applicable, on all license <br/>
<a id="pl.251.5"></a><var>251.5</var>applications. Upon request of the commissioner, the licensing authority must provide
         the <br/>
<a id="pl.251.6"></a><var>251.6</var>commissioner with a list of all applicants, including the name, address, business
         name and <br/>
<a id="pl.251.7"></a><var>251.7</var>address, and Social Security number, or individual taxpayer identification number and <br/>
<a id="pl.251.8"></a><var>251.8</var>business identification number, as applicable, of each applicant. The commissioner may <br/>
<a id="pl.251.9"></a><var>251.9</var>request from a licensing authority a list of the applicants no more than once each
         calendar <br/>
<a id="pl.251.10"></a><var>251.10</var>year.<br/>
<a id="pl.251.11"></a><var>251.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.14.0"></a><a id="pl.251.12"></a><var>251.12</var>    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:<br/>
<a id="pl.251.13"></a><var>251.13</var>    Subd. 2. <b>Time; notice; intervention.</b> Except as otherwise provided by law, within 60 <br/>
<a id="pl.251.14"></a><var>251.14</var>days after the notice of the making and filing date of an order of the commissioner of revenue, <br/>
<a id="pl.251.15"></a><var>251.15</var>the appellant, or the appellant's attorney, shall serve a notice of appeal upon the
         commissioner <br/>
<a id="pl.251.16"></a><var>251.16</var>and file the original, with proof of such service, with the Tax Court administrator
         or with <br/>
<a id="pl.251.17"></a><var>251.17</var>the court administrator of district court acting as court administrator of the Tax
         Court; <br/>
<a id="pl.251.18"></a><var>251.18</var>provided, that the Tax Court, for cause shown, may by written order extend the time
         for <br/>
<a id="pl.251.19"></a><var>251.19</var>appealing for an additional period not exceeding 30 days. For purposes of this section, <br/>
<a id="pl.251.20"></a><var>251.20</var>"notice date" means the notice date designated by the commissioner on the order. The notice <br/>
<a id="pl.251.21"></a><var>251.21</var>of appeal shall be in the form prescribed by the Tax Court. Within five days after
         receipt, <br/>
<a id="pl.251.22"></a><var>251.22</var>the commissioner shall transmit a copy of the notice of appeal to the attorney general.
         The <br/>
<a id="pl.251.23"></a><var>251.23</var>attorney general shall represent the commissioner, if requested, upon all such appeals
         except <br/>
<a id="pl.251.24"></a><var>251.24</var>in cases where the attorney general has appealed in behalf of the state, or in other
         cases <br/>
<a id="pl.251.25"></a><var>251.25</var>where the attorney general deems it against the interests of the state to represent
         the <br/>
<a id="pl.251.26"></a><var>251.26</var>commissioner, in which event the attorney general may intervene or be substituted
         as an <br/>
<a id="pl.251.27"></a><var>251.27</var>appellant in behalf of the state at any stage of the proceedings.<br/>
<a id="pl.251.28"></a><var>251.28</var>Upon a final determination of any other matter over which the court is granted jurisdiction
         <br/>
<a id="pl.251.29"></a><var>251.29</var>under section 
         <statute_ref>271.01, subdivision 5</statute_ref>, the taxpayer or the taxpayer's attorney shall file a <br/>
<a id="pl.251.30"></a><var>251.30</var>petition or notice of appeal as provided by law with the court administrator of district
         court, <br/>
<a id="pl.251.31"></a><var>251.31</var>acting in the capacity of court administrator of the Tax Court, with proof of service
         of the <br/>
<a id="pl.251.32"></a><var>251.32</var>petition or notice of appeal as required by law and within the time required by law.
         As used <br/>
<a id="pl.251.33"></a><var>251.33</var>in this subdivision, "final determination" includes a notice of assessment and equalization
         <br/>
<a id="pl.252.1"></a><var>252.1</var>for the year in question received from the local assessor, an order of the local board
         of <br/>
<a id="pl.252.2"></a><var>252.2</var>equalization, or an order of a county board of equalization.<br/>
<a id="pl.252.3"></a><var>252.3</var>The Tax Court shall prescribe a filing system so that the notice of appeal or petition
         filed <br/>
<a id="pl.252.4"></a><var>252.4</var>with the district court administrator acting as court administrator of the Tax Court
         is <br/>
<a id="pl.252.5"></a><var>252.5</var>forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
         <br/>
<a id="pl.252.6"></a><var>252.6</var>property valuation for which the assessor, a local board of equalization, a county
         board of <br/>
<a id="pl.252.7"></a><var>252.7</var>equalization or the commissioner of revenue has issued an order, the officer issuing
         the <br/>
<a id="pl.252.8"></a><var>252.8</var>order shall be notified of the filing of the appeal. The notice of appeal or petition
         shall be <br/>
<a id="pl.252.9"></a><var>252.9</var>in the form prescribed by the Tax Court.<br/>
<a id="pl.252.10"></a><var>252.10</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.252.11"></a><var>252.11</var>2017.<br/>
<br/>
<a id="bill.13.15.0"></a><a id="pl.252.12"></a><var>252.12</var>    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:<br/>
<a id="pl.252.13"></a><var>252.13</var>    Subd. 7. <b>Rules.</b> Except as provided in section 
         <statute_ref>278.05, subdivision 6</statute_ref>, the Rules of <br/>
<a id="pl.252.14"></a><var>252.14</var>Evidence and Civil Procedure for the district court of Minnesota shall govern the
         procedures <br/>
<a id="pl.252.15"></a><var>252.15</var>in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the <br/>
<a id="pl.252.16"></a><var>252.16</var>60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court <br/>
<a id="pl.252.17"></a><var>252.17</var>may adopt rules under chapter 14.<br/>
<a id="pl.252.18"></a><var>252.18</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.252.19"></a><var>252.19</var>2017.<br/>
<br/>
<a id="bill.13.16.0"></a><a id="pl.252.20"></a><var>252.20</var>    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.252.21"></a><var>252.21</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.252.22"></a><var>252.22</var>primarily for the abatement and control of air, water, or land pollution is exempt
         to the <br/>
<a id="pl.252.23"></a><var>252.23</var>extent that it is so used, and real property is exempt if it is used primarily for
         abatement and <br/>
<a id="pl.252.24"></a><var>252.24</var>control of air, water, or land pollution as part of an agricultural operation, as
         a part of a <br/>
<a id="pl.252.25"></a><var>252.25</var>centralized treatment and recovery facility operating under a permit issued by the
         Minnesota <br/>
<a id="pl.252.26"></a><var>252.26</var>Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
         <br/>
<a id="pl.252.27"></a><var>252.27</var>7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility <br/>
<a id="pl.252.28"></a><var>252.28</var>and for the treatment, recovery, and stabilization of metals, oils, chemicals, water,
         sludges, <br/>
<a id="pl.252.29"></a><var>252.29</var>or inorganic materials from hazardous industrial wastes, or as part of an electric
         generation <br/>
<a id="pl.252.30"></a><var>252.30</var>system. For purposes of this subdivision, personal property includes ponderous machinery
         <br/>
<a id="pl.252.31"></a><var>252.31</var>and equipment used in a business or production activity that at common law is considered
         <br/>
<a id="pl.252.32"></a><var>252.32</var>real property.<br/>
<a id="pl.253.1"></a><var>253.1</var>Any taxpayer requesting exemption of all or a portion of any real property or any
         <br/>
<a id="pl.253.2"></a><var>253.2</var>equipment or device, or part thereof, operated primarily for the control or abatement
         of air, <br/>
<a id="pl.253.3"></a><var>253.3</var>water, or land pollution shall file an application with the commissioner of revenue.
         The <br/>
<a id="pl.253.4"></a><var>253.4</var>commissioner shall develop an electronic means to notify interested parties when electric
         <br/>
<a id="pl.253.5"></a><var>253.5</var>power generation facilities have filed an application. The commissioner shall prescribe the <br/>
<a id="pl.253.6"></a><var>253.6</var>content, format, and manner of the application pursuant to section 270C.30, except
         that a <br/>
<a id="pl.253.7"></a><var>253.7</var>"law administered by the commissioner" includes the property tax laws, and if an application
         <br/>
<a id="pl.253.8"></a><var>253.8</var>is made by electronic means, the taxpayer's signature is defined pursuant to section
         270C.304, <br/>
<a id="pl.253.9"></a><var>253.9</var>except that a "law administered by the commissioner" includes the property tax laws. The <br/>
<a id="pl.253.10"></a><var>253.10</var>Minnesota Pollution Control Agency shall upon request of the commissioner furnish
         <br/>
<a id="pl.253.11"></a><var>253.11</var>information and advice to the commissioner.<br/>
<a id="pl.253.12"></a><var>253.12</var>The information and advice furnished by the Minnesota Pollution Control Agency must
         <br/>
<a id="pl.253.13"></a><var>253.13</var>include statements as to whether the equipment, device, or real property meets a standard,
         <br/>
<a id="pl.253.14"></a><var>253.14</var>rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency,
         and <br/>
<a id="pl.253.15"></a><var>253.15</var>whether the equipment, device, or real property is installed or operated in accordance
         with <br/>
<a id="pl.253.16"></a><var>253.16</var>it. On determining that property qualifies for exemption, the commissioner shall issue
         an <br/>
<a id="pl.253.17"></a><var>253.17</var>order exempting the property from taxation. The commissioner shall develop an electronic
         <br/>
<a id="pl.253.18"></a><var>253.18</var>means to notify interested parties when the commissioner has issued an order exempting
         <br/>
<a id="pl.253.19"></a><var>253.19</var>property from taxation under this subdivision. The equipment, device, or real property
         shall <br/>
<a id="pl.253.20"></a><var>253.20</var>continue to be exempt from taxation as long as the order issued by the commissioner
         remains <br/>
<a id="pl.253.21"></a><var>253.21</var>in effect.<br/>
<a id="pl.253.22"></a><var>253.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.17.0"></a><a id="pl.253.23"></a><var>253.23</var>    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:<br/>
<a id="pl.253.24"></a><var>253.24</var>    Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator of a <br/>
<a id="pl.253.25"></a><var>253.25</var>new or existing electric power generation facility, excluding wind energy conversion
         systems, <br/>
<a id="pl.253.26"></a><var>253.26</var>may apply to the commissioner of revenue for a market value exclusion on the property
         as <br/>
<a id="pl.253.27"></a><var>253.27</var>provided for in this section. This exclusion shall apply only to the market value
         of the <br/>
<a id="pl.253.28"></a><var>253.28</var>equipment of the facility, and shall not apply to the structures and the land upon
         which the <br/>
<a id="pl.253.29"></a><var>253.29</var>facility is located. The commissioner of revenue shall prescribe the forms content, format, <br/>
<a id="pl.253.30"></a><var>253.30</var>manner, and procedures for this application pursuant to section 270C.30, except that a "law <br/>
<a id="pl.253.31"></a><var>253.31</var>administered by the commissioner" includes the property tax laws. If an application
         is made <br/>
<a id="pl.253.32"></a><var>253.32</var>by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
         except <br/>
<a id="pl.253.33"></a><var>253.33</var>that a "law administered by the commissioner" includes the property tax laws. Upon receiving <br/>
<a id="pl.253.34"></a><var>253.34</var>the application, the commissioner of revenue shall: (1) request the commissioner of
         commerce <br/>
<a id="pl.254.1"></a><var>254.1</var>to make a determination of the efficiency of the applicant's electric power generation
         facility; <br/>
<a id="pl.254.2"></a><var>254.2</var>and (2) shall develop an electronic means to notify interested parties when electric
         power <br/>
<a id="pl.254.3"></a><var>254.3</var>generation facilities have filed an application. The commissioner of commerce shall
         calculate <br/>
<a id="pl.254.4"></a><var>254.4</var>efficiency as the ratio of useful energy outputs to energy inputs, expressed as a
         percentage, <br/>
<a id="pl.254.5"></a><var>254.5</var>based on the performance of the facility's equipment during normal full load operation.
         The <br/>
<a id="pl.254.6"></a><var>254.6</var>commissioner must include in this formula the energy used in any on-site preparation
         of <br/>
<a id="pl.254.7"></a><var>254.7</var>materials necessary to convert the materials into the fuel used to generate electricity,
         such <br/>
<a id="pl.254.8"></a><var>254.8</var>as a process to gasify petroleum coke. The commissioner shall use the Higher Heating
         Value <br/>
<a id="pl.254.9"></a><var>254.9</var>(HHV) for all substances in the commissioner's efficiency calculations, except for
         wood <br/>
<a id="pl.254.10"></a><var>254.10</var>for fuel in a biomass-eligible project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the <br/>
<a id="pl.254.11"></a><var>254.11</var>commissioner shall adjust the heating value to allow for energy consumed for evaporation
         <br/>
<a id="pl.254.12"></a><var>254.12</var>of the moisture in the wood. The applicant shall provide the commissioner of commerce
         <br/>
<a id="pl.254.13"></a><var>254.13</var>with whatever information the commissioner deems necessary to make the determination.
         <br/>
<a id="pl.254.14"></a><var>254.14</var>Within 30 days of the receipt of the necessary information, the commissioner of commerce
         <br/>
<a id="pl.254.15"></a><var>254.15</var>shall certify the findings of the efficiency determination to the commissioner of
         revenue <br/>
<a id="pl.254.16"></a><var>254.16</var>and to the applicant. The commissioner of commerce shall determine the efficiency
         of the <br/>
<a id="pl.254.17"></a><var>254.17</var>facility and certify the findings of that determination to the commissioner of revenue
         every <br/>
<a id="pl.254.18"></a><var>254.18</var>two years thereafter from the date of the original certification.<br/>
<a id="pl.254.19"></a><var>254.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.18.0"></a><a id="pl.254.20"></a><var>254.20</var>    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.254.21"></a><var>254.21</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned by <br/>
<a id="pl.254.22"></a><var>254.22</var>the state of Minnesota or any political subdivision thereof, and property exempt from
         taxation <br/>
<a id="pl.254.23"></a><var>254.23</var>under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at the times <br/>
<a id="pl.254.24"></a><var>254.24</var>provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
         <br/>
<a id="pl.254.25"></a><var>254.25</var>described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 2 to 33, must file a statement of exemption with <br/>
<a id="pl.254.26"></a><var>254.26</var>the assessor of the assessment district in which the property is located.<br/>
<a id="pl.254.27"></a><var>254.27</var>(b) A taxpayer claiming an exemption from taxation on property described in section
         <br/>
<statute_ref><a id="pl.254.28"></a><var>254.28</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of revenue, <br/>
<a id="pl.254.29"></a><var>254.29</var>on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.254.30"></a><var>254.30</var>(c) In case of sickness, absence or other disability or for good cause, the assessor
         or the <br/>
<a id="pl.254.31"></a><var>254.31</var>commissioner may extend the time for filing the statement of exemption for a period
         not to <br/>
<a id="pl.254.32"></a><var>254.32</var>exceed 60 days.<br/>
<a id="pl.255.1"></a><var>255.1</var>(d) The commissioner of revenue shall prescribe the form and contents content, format, <br/>
<a id="pl.255.2"></a><var>255.2</var>and manner of the statement of exemption pursuant to section 270C.30, except that a "law <br/>
<a id="pl.255.3"></a><var>255.3</var>administered by the commissioner" includes the property tax laws.<br/>
<a id="pl.255.4"></a><var>255.4</var>(e) If a statement is made by electronic means, the taxpayer's signature is defined
         pursuant <br/>
<a id="pl.255.5"></a><var>255.5</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.255.6"></a><var>255.6</var>property tax laws.<br/>
<a id="pl.255.7"></a><var>255.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.19.0"></a><a id="pl.255.8"></a><var>255.8</var>    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:<br/>
<a id="pl.255.9"></a><var>255.9</var>    Subd. 4. <b>Reports.</b> (a) An owner of a wind energy conversion system subject to tax under <br/>
<a id="pl.255.10"></a><var>255.10</var>subdivision 3 shall file a report with the commissioner of revenue annually on or
         before <br/>
<a id="pl.255.11"></a><var>255.11</var>February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced <br/>
<a id="pl.255.12"></a><var>255.12</var>by the wind energy conversion system for the previous calendar year. The commissioner
         <br/>
<a id="pl.255.13"></a><var>255.13</var>shall prescribe the form content, format, and manner of the report pursuant to section <br/>
<a id="pl.255.14"></a><var>255.14</var>270C.30, except that a "law administered by the commissioner" includes the property
         tax <br/>
<a id="pl.255.15"></a><var>255.15</var>laws. The report must contain the information required by the commissioner to determine
         <br/>
<a id="pl.255.16"></a><var>255.16</var>the tax due to each county under this section for the current year. If an owner of
         a wind <br/>
<a id="pl.255.17"></a><var>255.17</var>energy conversion system subject to taxation under this section fails to file the
         report by <br/>
<a id="pl.255.18"></a><var>255.18</var>the due date, the commissioner of revenue shall determine the tax based upon the nameplate
         <br/>
<a id="pl.255.19"></a><var>255.19</var>capacity of the system multiplied by a capacity factor of 60 percent.<br/>
<a id="pl.255.20"></a><var>255.20</var>(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
         <br/>
<a id="pl.255.21"></a><var>255.21</var>to section 270C.304, except that a "law administered by the commissioner" includes
         the <br/>
<a id="pl.255.22"></a><var>255.22</var>property tax laws.<br/>
<a id="pl.255.23"></a><var>255.23</var>(b) (c) On or before February 28, the commissioner of revenue shall notify the owner <br/>
<a id="pl.255.24"></a><var>255.24</var>of the wind energy conversion systems of the tax due to each county for the current
         year <br/>
<a id="pl.255.25"></a><var>255.25</var>and shall certify to the county auditor of each county in which the systems are located
         the <br/>
<a id="pl.255.26"></a><var>255.26</var>tax due from each owner for the current year.<br/>
<a id="pl.255.27"></a><var>255.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, except <br/>
<a id="pl.255.28"></a><var>255.28</var>that the amendment in paragraph (a) moving the date to file the report is effective
         for reports <br/>
<a id="pl.255.29"></a><var>255.29</var>filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.13.20.0"></a><a id="pl.255.30"></a><var>255.30</var>    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:<br/>
<a id="pl.255.31"></a><var>255.31</var>    Subd. 4. <b>Reports.</b> An owner of a solar energy generating system subject to tax under <br/>
<a id="pl.255.32"></a><var>255.32</var>this section shall file a report with the commissioner of revenue annually on or before
         <br/>
<a id="pl.256.1"></a><var>256.1</var>January 15 detailing the amount of electricity in megawatt-hours that was produced
         by the <br/>
<a id="pl.256.2"></a><var>256.2</var>system in the previous calendar year. The commissioner shall prescribe the form content, <br/>
<a id="pl.256.3"></a><var>256.3</var>format, and manner of the report pursuant to section 270C.30. The report must contain the <br/>
<a id="pl.256.4"></a><var>256.4</var>information required by the commissioner to determine the tax due to each county under
         <br/>
<a id="pl.256.5"></a><var>256.5</var>this section for the current year. If an owner of a solar energy generating system
         subject to <br/>
<a id="pl.256.6"></a><var>256.6</var>taxation under this section fails to file the report by the due date, the commissioner
         of <br/>
<a id="pl.256.7"></a><var>256.7</var>revenue shall determine the tax based upon the nameplate capacity of the system multiplied
         <br/>
<a id="pl.256.8"></a><var>256.8</var>by a capacity factor of 30 percent.<br/>
<a id="pl.256.9"></a><var>256.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.21.0"></a><a id="pl.256.10"></a><var>256.10</var>    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:<br/>
<a id="pl.256.11"></a><var>256.11</var>    Subd. 2. <b>Form; information required.</b> The certificate of value shall require such facts <br/>
<a id="pl.256.12"></a><var>256.12</var>and information as may be determined by the commissioner to be reasonably necessary
         in <br/>
<a id="pl.256.13"></a><var>256.13</var>the administration of the state education aid formulas. The form commissioner shall prescribe <br/>
<a id="pl.256.14"></a><var>256.14</var>the content, format, and manner of the certificate of value shall be prescribed by the <br/>
<a id="pl.256.15"></a><var>256.15</var>Department of Revenue which shall provide an adequate supply of forms to each county
         <br/>
<a id="pl.256.16"></a><var>256.16</var>auditor pursuant to section 270C.30, except that a "law administered by the commissioner"
         <br/>
<a id="pl.256.17"></a><var>256.17</var>includes the property tax laws.<br/>
<a id="pl.256.18"></a><var>256.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.22.0"></a><a id="pl.256.19"></a><var>256.19</var>    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.256.20"></a><var>256.20</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead requirements <br/>
<a id="pl.256.21"></a><var>256.21</var>under subdivision 1 must file a homestead application with the county assessor to
         initially <br/>
<a id="pl.256.22"></a><var>256.22</var>obtain homestead classification.<br/>
<a id="pl.256.23"></a><var>256.23</var>    (b) The format and contents of a uniform homestead application shall be prescribed by
         <br/>
<a id="pl.256.24"></a><var>256.24</var>the commissioner of revenue.  The commissioner shall prescribe the content, format, and <br/>
<a id="pl.256.25"></a><var>256.25</var>manner of the homestead application required to be filed under this chapter pursuant
         to <br/>
<a id="pl.256.26"></a><var>256.26</var>section 270C.30. The application must clearly inform the taxpayer that this application must <br/>
<a id="pl.256.27"></a><var>256.27</var>be signed by all owners who occupy the property or by the qualifying relative and
         returned <br/>
<a id="pl.256.28"></a><var>256.28</var>to the county assessor in order for the property to receive homestead treatment.<br/>
<a id="pl.256.29"></a><var>256.29</var>    (c) Every property owner applying for homestead classification must furnish to the
         <br/>
<a id="pl.256.30"></a><var>256.30</var>county assessor the Social Security number of each occupant who is listed as an owner
         of <br/>
<a id="pl.256.31"></a><var>256.31</var>the property on the deed of record, the name and address of each owner who does not
         occupy <br/>
<a id="pl.256.32"></a><var>256.32</var>the property, and the name and Social Security number of each owner's spouse who occupies
         <br/>
<a id="pl.257.1"></a><var>257.1</var>the property. The application must be signed by each owner who occupies the property
         and <br/>
<a id="pl.257.2"></a><var>257.2</var>by each owner's spouse who occupies the property, or, in the case of property that
         qualifies <br/>
<a id="pl.257.3"></a><var>257.3</var>as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.257.4"></a><var>257.4</var>    If a property owner occupies a homestead, the property owner's spouse may not claim
         <br/>
<a id="pl.257.5"></a><var>257.5</var>another property as a homestead unless the property owner and the property owner's
         spouse <br/>
<a id="pl.257.6"></a><var>257.6</var>file with the assessor an affidavit or other proof required by the assessor stating
         that the <br/>
<a id="pl.257.7"></a><var>257.7</var>property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.257.8"></a><var>257.8</var>    Owners or spouses occupying residences owned by their spouses and previously occupied
         <br/>
<a id="pl.257.9"></a><var>257.9</var>with the other spouse, either of whom fail to include the other spouse's name and
         Social <br/>
<a id="pl.257.10"></a><var>257.10</var>Security number on the homestead application or provide the affidavits or other proof
         <br/>
<a id="pl.257.11"></a><var>257.11</var>requested, will be deemed to have elected to receive only partial homestead treatment
         of <br/>
<a id="pl.257.12"></a><var>257.12</var>their residence. The remainder of the residence will be classified as nonhomestead
         residential. <br/>
<a id="pl.257.13"></a><var>257.13</var>When an owner or spouse's name and Social Security number appear on homestead <br/>
<a id="pl.257.14"></a><var>257.14</var>applications for two separate residences and only one application is signed, the owner
         or <br/>
<a id="pl.257.15"></a><var>257.15</var>spouse will be deemed to have elected to homestead the residence for which the application
         <br/>
<a id="pl.257.16"></a><var>257.16</var>was signed.<br/>
<a id="pl.257.17"></a><var>257.17</var>    (d) If residential real estate is occupied and used for purposes of a homestead by
         a relative <br/>
<a id="pl.257.18"></a><var>257.18</var>of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
         order for <br/>
<a id="pl.257.19"></a><var>257.19</var>the property to receive homestead status, a homestead application must be filed with
         the <br/>
<a id="pl.257.20"></a><var>257.20</var>assessor. The Social Security number of each relative and spouse of a relative occupying
         <br/>
<a id="pl.257.21"></a><var>257.21</var>the property shall be required on the homestead application filed under this subdivision.
         If <br/>
<a id="pl.257.22"></a><var>257.22</var>a different relative of the owner subsequently occupies the property, the owner of
         the property <br/>
<a id="pl.257.23"></a><var>257.23</var>must notify the assessor within 30 days of the change in occupancy. The Social Security
         <br/>
<a id="pl.257.24"></a><var>257.24</var>number of a relative or relative's spouse occupying the property is private data on
         individuals <br/>
<a id="pl.257.25"></a><var>257.25</var>as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be disclosed to the commissioner of <br/>
<a id="pl.257.26"></a><var>257.26</var>revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
         <br/>
<a id="pl.257.27"></a><var>257.27</var>personal property taxes owing, to the county treasurer.<br/>
<a id="pl.257.28"></a><var>257.28</var>    (e) The homestead application shall also notify the property owners that if the property
         <br/>
<a id="pl.257.29"></a><var>257.29</var>is granted homestead status for any assessment year, that same property shall remain
         <br/>
<a id="pl.257.30"></a><var>257.30</var>classified as homestead until the property is sold or transferred to another person,
         or the <br/>
<a id="pl.257.31"></a><var>257.31</var>owners, the spouse of the owner, or the relatives no longer use the property as their
         <br/>
<a id="pl.257.32"></a><var>257.32</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must <br/>
<a id="pl.257.33"></a><var>257.33</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to notify <br/>
<a id="pl.257.34"></a><var>257.34</var>the assessor within 30 days that the property has been sold, transferred, or that
         the owner, <br/>
<a id="pl.257.35"></a><var>257.35</var>the spouse of the owner, or the relative is no longer occupying the property as a
         homestead, <br/>
<a id="pl.258.1"></a><var>258.1</var>shall result in the penalty provided under this subdivision and the property will
         lose its <br/>
<a id="pl.258.2"></a><var>258.2</var>current homestead status.<br/>
<a id="pl.258.3"></a><var>258.3</var>    (f) If a homestead application has not been filed with the county by December 15,
         the <br/>
<a id="pl.258.4"></a><var>258.4</var>assessor shall classify the property as nonhomestead for the current assessment year
         for <br/>
<a id="pl.258.5"></a><var>258.5</var>taxes payable in the following year, provided that the owner may be entitled to receive
         the <br/>
<a id="pl.258.6"></a><var>258.6</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.258.7"></a><var>258.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.23.0"></a><a id="pl.258.8"></a><var>258.8</var>    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:<br/>
<a id="pl.258.9"></a><var>258.9</var><b>273.371 REPORTS OF UTILITY COMPANIES.</b><br/>
<a id="pl.258.10"></a><var>258.10</var>    Subdivision 1. <b>Report required.</b> Every electric light, power, gas, water, express, stage, <br/>
<a id="pl.258.11"></a><var>258.11</var>and transportation company, and pipeline company doing business in Minnesota shall <br/>
<a id="pl.258.12"></a><var>258.12</var>annually file with the commissioner on or before March 31 a report under oath setting
         forth <br/>
<a id="pl.258.13"></a><var>258.13</var>the information prescribed by the commissioner to enable the commissioner to make
         <br/>
<a id="pl.258.14"></a><var>258.14</var>valuations, recommended valuations, and equalization required under sections 
         <statute_ref>273.33</statute_ref>, <br/>
<statute_ref><a id="pl.258.15"></a><var>258.15</var>273.35
         </statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, and 
         <statute_ref>273.3711</statute_ref>. The commissioner shall prescribe the content, format, <br/>
<a id="pl.258.16"></a><var>258.16</var>and manner of the report pursuant to section 270C.30, except that a "law administered
         by <br/>
<a id="pl.258.17"></a><var>258.17</var>the commissioner" includes the property tax laws. If all the required information is not <br/>
<a id="pl.258.18"></a><var>258.18</var>available on March 31, the company or pipeline shall file the information that is
         available <br/>
<a id="pl.258.19"></a><var>258.19</var>on or before March 31, and the balance of the information as soon as it becomes available. <br/>
<a id="pl.258.20"></a><var>258.20</var>If a report is made by electronic means, the taxpayer's signature is defined pursuant
         to section <br/>
<a id="pl.258.21"></a><var>258.21</var>270C.304, except that a "law administered by the commissioner" includes the property
         tax <br/>
<a id="pl.258.22"></a><var>258.22</var>laws.<br/>
<a id="pl.258.23"></a><var>258.23</var>    Subd. 2. <b>Extension.</b> The commissioner for good cause may extend the time for filing <br/>
<a id="pl.258.24"></a><var>258.24</var>the report required by subdivision 1. The extension may must not exceed 15 days.<br/>
<a id="pl.258.25"></a><var>258.25</var>    Subd. 3. <b>Reports filed by the commissioner.</b> If a company fails to file a report required <br/>
<a id="pl.258.26"></a><var>258.26</var>by subdivision 1, the commissioner may, from information in the commissioner's possession
         <br/>
<a id="pl.258.27"></a><var>258.27</var>or obtainable by the commissioner, make and file a report for the company or make
         the <br/>
<a id="pl.258.28"></a><var>258.28</var>valuations, recommended valuations, and equalizations required under sections 273.33,
         <br/>
<a id="pl.258.29"></a><var>258.29</var>273.35 to 273.37, and 273.3711.<br/>
<a id="pl.258.30"></a><var>258.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.24.0"></a><a id="pl.258.31"></a><var>258.31</var>    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:<br/>
<a id="pl.258.32"></a><var>258.32</var><b>287.2205 TAX-FORFEITED LAND.</b><br/>
<a id="pl.259.1"></a><var>259.1</var>    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
         by <br/>
<a id="pl.259.2"></a><var>259.2</var>the purchaser of tax-forfeited land whether the purchase is the result of a public
         auction or <br/>
<a id="pl.259.3"></a><var>259.3</var>private sale or a repurchase of tax-forfeited land. State agencies and local units
         of government <br/>
<a id="pl.259.4"></a><var>259.4</var>that acquire tax-forfeited land by purchase or any other means are subject to this
         section. <br/>
<a id="pl.259.5"></a><var>259.5</var>The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
         <br/>
<a id="pl.259.6"></a><var>259.6</var>for an authorized public use under section 
         <statute_ref>282.01, subdivision 1a</statute_ref>, for a school forest under <br/>
<a id="pl.259.7"></a><var>259.7</var>section 282.01, subdivision 1a, or for redevelopment purposes under section 
         <statute_ref>282.01, <br/>
<a id="pl.259.8"></a><var>259.8</var>subdivision 1b
         </statute_ref>.<br/>
<a id="pl.259.9"></a><var>259.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.25.0"></a><a id="pl.259.10"></a><var>259.10</var>    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision <br/>
<a id="pl.259.11"></a><var>259.11</var>to read:<br/>
<a id="pl.259.12"></a><var>259.12</var>    Subd. 17. <b>Format.</b> The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.259.13"></a><var>259.13</var>of the returns and other documents pursuant to section 270C.30. This does not authorize
         <br/>
<a id="pl.259.14"></a><var>259.14</var>the commissioner to require individual income taxpayers to file individual income
         tax returns <br/>
<a id="pl.259.15"></a><var>259.15</var>electronically.<br/>
<a id="pl.259.16"></a><var>259.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.26.0"></a><a id="pl.259.17"></a><var>259.17</var>    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:<br/>
<a id="pl.259.18"></a><var>259.18</var>    Subdivision 1. <b>Returns.</b> (a) An employer who is required to deduct and withhold tax <br/>
<a id="pl.259.19"></a><var>259.19</var>under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, and a person required to deduct and withhold tax <br/>
<a id="pl.259.20"></a><var>259.20</var>under section 
         <statute_ref>290.923, subdivision 2</statute_ref>, must file a return with the commissioner for each <br/>
<a id="pl.259.21"></a><var>259.21</var>quarterly period unless otherwise prescribed by the commissioner.<br/>
<a id="pl.259.22"></a><var>259.22</var>(b) A person or corporation required to make deposits under section 
         <statute_ref>290.9201, subdivision <br/>
<a id="pl.259.23"></a><var>259.23</var>8
         </statute_ref>, must file an entertainer withholding tax return with the commissioner.<br/>
<a id="pl.259.24"></a><var>259.24</var>(c) A person required to withhold an amount under section 
         <statute_ref>290.9705, subdivision 1</statute_ref>, <br/>
<a id="pl.259.25"></a><var>259.25</var>must file a return.<br/>
<a id="pl.259.26"></a><var>259.26</var>(d) A partnership required to deduct and withhold tax under section 
         <statute_ref>290.92, subdivision <br/>
<a id="pl.259.27"></a><var>259.27</var>4b
         </statute_ref>, must file a return.<br/>
<a id="pl.259.28"></a><var>259.28</var>(e) An S corporation required to deduct and withhold tax under section 
         <statute_ref>290.92, <br/>
<a id="pl.259.29"></a><var>259.29</var>subdivision 4c
         </statute_ref>, must also file a return.<br/>
<a id="pl.259.30"></a><var>259.30</var>(f) Returns must be filed in the form and manner, and contain the information prescribed
         <br/>
<a id="pl.259.31"></a><var>259.31</var>by the commissioner.  The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.260.1"></a><var>260.1</var>of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed <br/>
<a id="pl.260.2"></a><var>260.2</var>by the employer, entertainment entity, contract payor, partnership, or S corporation,
         or a <br/>
<a id="pl.260.3"></a><var>260.3</var>designee.<br/>
<a id="pl.260.4"></a><var>260.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.27.0"></a><a id="pl.260.5"></a><var>260.5</var>    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:<br/>
<a id="pl.260.6"></a><var>260.6</var>    Subdivision 1. <b>Return required.</b> (a) Except as provided in section 
         <statute_ref>289A.18, subdivision <br/>
<a id="pl.260.7"></a><var>260.7</var>4
         </statute_ref>, for the month in which taxes imposed by chapter 297A are payable, or for which a
         return <br/>
<a id="pl.260.8"></a><var>260.8</var>is due, a return for the preceding reporting period must be filed with the commissioner
         in <br/>
<a id="pl.260.9"></a><var>260.9</var>the form and manner the commissioner prescribes. The commissioner shall prescribe the <br/>
<a id="pl.260.10"></a><var>260.10</var>content, format, and manner of the returns pursuant to section 270C.30. A person making <br/>
<a id="pl.260.11"></a><var>260.11</var>sales at retail at two or more places of business may file a consolidated return subject
         to <br/>
<a id="pl.260.12"></a><var>260.12</var>rules prescribed by the commissioner. In computing the dollar amount of items on the
         return, <br/>
<a id="pl.260.13"></a><var>260.13</var>the amounts are rounded off to the nearest whole dollar, disregarding amounts less
         than 50 <br/>
<a id="pl.260.14"></a><var>260.14</var>cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.<br/>
<a id="pl.260.15"></a><var>260.15</var>(b) Notwithstanding this subdivision, a person who is not required to hold a sales
         tax <br/>
<a id="pl.260.16"></a><var>260.16</var>permit under chapter 297A and who makes annual purchases, for use in a trade or business,
         <br/>
<a id="pl.260.17"></a><var>260.17</var>of less than $18,500, or a person who is not required to hold a sales tax permit and
         who <br/>
<a id="pl.260.18"></a><var>260.18</var>makes purchases for personal use, that are subject to the use tax imposed by section
         
         <statute_ref>297A.63</statute_ref>, <br/>
<a id="pl.260.19"></a><var>260.19</var>may file an annual use tax return on a form prescribed by the commissioner. The <br/>
<a id="pl.260.20"></a><var>260.20</var>commissioner shall prescribe the content, format, and manner of the return pursuant
         to <br/>
<a id="pl.260.21"></a><var>260.21</var>section 270C.30. If a person who qualifies for an annual use tax reporting period is required <br/>
<a id="pl.260.22"></a><var>260.22</var>to obtain a sales tax permit or makes use tax purchases, for use in a trade or business,
         in <br/>
<a id="pl.260.23"></a><var>260.23</var>excess of $18,500 during the calendar year, the reporting period must be considered
         ended <br/>
<a id="pl.260.24"></a><var>260.24</var>at the end of the month in which the permit is applied for or the purchase in excess
         of <br/>
<a id="pl.260.25"></a><var>260.25</var>$18,500 is made and a return must be filed for the preceding reporting period.<br/>
<a id="pl.260.26"></a><var>260.26</var>(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's <br/>
<a id="pl.260.27"></a><var>260.27</var>religious beliefs from using electronics shall be allowed to file by mail, without
         any additional <br/>
<a id="pl.260.28"></a><var>260.28</var>fees. The filer must notify the commissioner of revenue of the intent to file by mail
         on a <br/>
<a id="pl.260.29"></a><var>260.29</var>form prescribed by the commissioner. A return filed under this paragraph must be postmarked
         <br/>
<a id="pl.260.30"></a><var>260.30</var>no later than the day the return is due in order to be considered filed on a timely
         basis.<br/>
<a id="pl.260.31"></a><var>260.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.28.0"></a><a id="pl.261.1"></a><var>261.1</var>    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:<br/>
<a id="pl.261.2"></a><var>261.2</var>    Subdivision 1. <b>Individual income, fiduciary income, corporate franchise, and </b><br/>
<a id="pl.261.3"></a><var>261.3</var><b>entertainment taxes; partnership and S corporation returns; information returns; </b><br/>
<a id="pl.261.4"></a><var>261.4</var><b>mining company returns.</b> The returns required to be made under sections 
         <statute_ref>289A.08</statute_ref> and <br/>
<statute_ref><a id="pl.261.5"></a><var>261.5</var>289A.12
         </statute_ref> must be filed at the following times:<br/>
<a id="pl.261.6"></a><var>261.6</var>    (1) returns made on the basis of the calendar year must be filed on April 15 following
         <br/>
<a id="pl.261.7"></a><var>261.7</var>the close of the calendar year, except that returns of corporations and partnerships must be <br/>
<a id="pl.261.8"></a><var>261.8</var>filed on the due date for filing the federal income tax return;<br/>
<a id="pl.261.9"></a><var>261.9</var>    (2) returns made on the basis of the fiscal year must be filed on the 15th day of
         the fourth <br/>
<a id="pl.261.10"></a><var>261.10</var>month following the close of the fiscal year, except that returns of corporations and <br/>
<a id="pl.261.11"></a><var>261.11</var>partnerships must be filed on the due date for filing the federal income tax return;<br/>
<a id="pl.261.12"></a><var>261.12</var>    (3) returns for a fractional part of a year must be filed on the due date for filing
         the <br/>
<a id="pl.261.13"></a><var>261.13</var>federal income tax return;<br/>
<a id="pl.261.14"></a><var>261.14</var>    (4) in the case of a final return of a decedent for a fractional part of a year, the
         return <br/>
<a id="pl.261.15"></a><var>261.15</var>must be filed on the 15th day of the fourth month following the close of the 12-month
         period <br/>
<a id="pl.261.16"></a><var>261.16</var>that began with the first day of that fractional part of a year;<br/>
<a id="pl.261.17"></a><var>261.17</var>    (5) in the case of the return of a cooperative association, returns must be filed
         on or <br/>
<a id="pl.261.18"></a><var>261.18</var>before the 15th day of the ninth month following the close of the taxable year;<br/>
<a id="pl.261.19"></a><var>261.19</var>    (6) if a corporation has been divested from a unitary group and files a return for
         a <br/>
<a id="pl.261.20"></a><var>261.20</var>fractional part of a year in which it was a member of a unitary business that files
         a combined <br/>
<a id="pl.261.21"></a><var>261.21</var>report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, the divested corporation's return must be filed <br/>
<a id="pl.261.22"></a><var>261.22</var>on the 15th day of the third month following the close of the common accounting period
         <br/>
<a id="pl.261.23"></a><var>261.23</var>that includes the fractional year;<br/>
<a id="pl.261.24"></a><var>261.24</var>    (7) returns of entertainment entities must be filed on April 15 following the close
         of the <br/>
<a id="pl.261.25"></a><var>261.25</var>calendar year;<br/>
<a id="pl.261.26"></a><var>261.26</var>    (8) returns required to be filed under section 
         <statute_ref>289A.08, subdivision 4</statute_ref>, must be filed on <br/>
<a id="pl.261.27"></a><var>261.27</var>the 15th day of the fifth month following the close of the taxable year;<br/>
<a id="pl.261.28"></a><var>261.28</var>    (9) returns of mining companies must be filed on May 1 following the close of the
         <br/>
<a id="pl.261.29"></a><var>261.29</var>calendar year; and<br/>
<a id="pl.261.30"></a><var>261.30</var>    (10) returns required to be filed with the commissioner under section 
         <statute_ref>289A.12, <br/>
<a id="pl.261.31"></a><var>261.31</var>subdivision 2
         </statute_ref>, 4 to 10, or 16 must be filed within 30 days after being demanded by the <br/>
<a id="pl.261.32"></a><var>261.32</var>commissioner.<br/>
<a id="pl.262.1"></a><var>262.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.29.0"></a><a id="pl.262.2"></a><var>262.2</var>    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:<br/>
<a id="pl.262.3"></a><var>262.3</var>    Subd. 2. <b>Erroneous refunds.</b> An erroneous refund is considered an underpayment of <br/>
<a id="pl.262.4"></a><var>262.4</var>tax on the date made. An assessment of a deficiency arising out of an erroneous refund
         may <br/>
<a id="pl.262.5"></a><var>262.5</var>be made at any time within two years from the making of the refund. If part of the
         refund <br/>
<a id="pl.262.6"></a><var>262.6</var>was induced by fraud or misrepresentation of a material fact, the assessment may be
         made <br/>
<a id="pl.262.7"></a><var>262.7</var>at any time (a) Except as provided in paragraph (b), an erroneous refund occurs when the <br/>
<a id="pl.262.8"></a><var>262.8</var>commissioner issues a payment to a person that exceeds the amount the person is entitled
         <br/>
<a id="pl.262.9"></a><var>262.9</var>to receive under law. An erroneous refund is considered an underpayment of tax on
         the date <br/>
<a id="pl.262.10"></a><var>262.10</var>issued.<br/>
<a id="pl.262.11"></a><var>262.11</var>(b) To the extent that the amount paid does not exceed the amount claimed by the <br/>
<a id="pl.262.12"></a><var>262.12</var>taxpayer, an erroneous refund does not include the following:<br/>
<a id="pl.262.13"></a><var>262.13</var>(1) any amount of a refund or credit paid pursuant to a claim for refund filed by
         a <br/>
<a id="pl.262.14"></a><var>262.14</var>taxpayer, including but not limited to refunds of claims made under section 290.06,
         <br/>
<a id="pl.262.15"></a><var>262.15</var>subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
         <br/>
<a id="pl.262.16"></a><var>262.16</var>290.0681; or 290.0692; or chapter 290A; or<br/>
<a id="pl.262.17"></a><var>262.17</var>(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed
         by a <br/>
<a id="pl.262.18"></a><var>262.18</var>taxpayer.<br/>
<a id="pl.262.19"></a><var>262.19</var>(c) The commissioner may make an assessment to recover an erroneous refund at any
         <br/>
<a id="pl.262.20"></a><var>262.20</var>time within two years from the issuance of the erroneous refund. If all or part of
         the erroneous <br/>
<a id="pl.262.21"></a><var>262.21</var>refund was induced by fraud or misrepresentation of a material fact, the assessment
         may <br/>
<a id="pl.262.22"></a><var>262.22</var>be made at any time.<br/>
<a id="pl.262.23"></a><var>262.23</var>(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must
         be <br/>
<a id="pl.262.24"></a><var>262.24</var>conducted under section 289A.38.<br/>
<a id="pl.262.25"></a><var>262.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2017.<br/>
<br/>
<a id="bill.13.30.0"></a><a id="pl.262.26"></a><var>262.26</var>    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:<br/>
<a id="pl.262.27"></a><var>262.27</var>    Subd. 7. <b>Remedies.</b> (a) If the taxpayer is notified by the commissioner that the refund <br/>
<a id="pl.262.28"></a><var>262.28</var>claim is denied in whole or in part, the taxpayer may:<br/>
<a id="pl.262.29"></a><var>262.29</var>(1) file an administrative appeal as provided in section 
         <statute_ref>270C.35</statute_ref>, or an appeal with the <br/>
<a id="pl.262.30"></a><var>262.30</var>Tax Court, within 60 days after issuance the notice date of the commissioner's notice of <br/>
<a id="pl.262.31"></a><var>262.31</var>denial; or<br/>
<a id="pl.263.1"></a><var>263.1</var>(2) file an action in the district court to recover the refund.<br/>
<a id="pl.263.2"></a><var>263.2</var>(b) An action in the district court on a denied claim for refund must be brought within
         <br/>
<a id="pl.263.3"></a><var>263.3</var>18 months of the notice date of the denial of the claim by the commissioner. For the purposes <br/>
<a id="pl.263.4"></a><var>263.4</var>of this section, "notice date" has the meaning given in section 270C.35, subdivision
         3.<br/>
<a id="pl.263.5"></a><var>263.5</var>(c) No action in the district court or the Tax Court shall be brought within six months
         <br/>
<a id="pl.263.6"></a><var>263.6</var>of the filing of the refund claim unless the commissioner denies the claim within
         that period.<br/>
<a id="pl.263.7"></a><var>263.7</var>(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
         <br/>
<a id="pl.263.8"></a><var>263.8</var>of the claim, the taxpayer may bring an action in the district court or the Tax Court
         at any <br/>
<a id="pl.263.9"></a><var>263.9</var>time after the expiration of six months from the time the claim was filed.<br/>
<a id="pl.263.10"></a><var>263.10</var>(e) The commissioner and the taxpayer may agree to extend the period for bringing
         an <br/>
<a id="pl.263.11"></a><var>263.11</var>action in the district court.<br/>
<a id="pl.263.12"></a><var>263.12</var>(f) An action for refund of tax by the taxpayer must be brought in the district court
         of <br/>
<a id="pl.263.13"></a><var>263.13</var>the district in which lies the county of the taxpayer's residence or principal place
         of business. <br/>
<a id="pl.263.14"></a><var>263.14</var>In the case of an estate or trust, the action must be brought at the principal place
         of its <br/>
<a id="pl.263.15"></a><var>263.15</var>administration. Any action may be brought in the district court for Ramsey County.<br/>
<a id="pl.263.16"></a><var>263.16</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.263.17"></a><var>263.17</var>December 31, 2017.<br/>
<br/>
<a id="bill.13.31.0"></a><a id="pl.263.18"></a><var>263.18</var>    Sec. 31. <b>[290B.11] FORMS.</b><br/>
<b> </b><a id="pl.263.19"></a><var>263.19</var>The commissioner shall prescribe the content, format, and manner of all forms and
         other <br/>
<a id="pl.263.20"></a><var>263.20</var>documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.263.21"></a><var>263.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.32.0"></a><a id="pl.263.22"></a><var>263.22</var>    Sec. 32. <b>[293.15] FORMS.</b><br/>
<b> </b><a id="pl.263.23"></a><var>263.23</var>The commissioner shall prescribe the content, format, and manner of all forms and
         other <br/>
<a id="pl.263.24"></a><var>263.24</var>documents required to be filed under this chapter pursuant to section 270C.30.<br/>
<a id="pl.263.25"></a><var>263.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.33.0"></a><a id="pl.263.26"></a><var>263.26</var>    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:<br/>
<a id="pl.263.27"></a><var>263.27</var>    Subd. 6. <b>Form of returns.</b> The estimated payments and annual return must contain the <br/>
<a id="pl.263.28"></a><var>263.28</var>information and be in the form prescribed by the commissioner The commissioner shall <br/>
<a id="pl.263.29"></a><var>263.29</var>prescribe the content, format, and manner of the estimated payment forms and annual
         return <br/>
<a id="pl.263.30"></a><var>263.30</var>pursuant to section 270C.30.<br/>
<a id="pl.264.1"></a><var>264.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.34.0"></a><a id="pl.264.2"></a><var>264.2</var>    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision <br/>
<a id="pl.264.3"></a><var>264.3</var>to read:<br/>
<a id="pl.264.4"></a><var>264.4</var>    Subd. 5. <b>Forms.</b>  The commissioner shall prescribe the content, format, and manner of <br/>
<a id="pl.264.5"></a><var>264.5</var>all forms and other documents required to be filed under this chapter pursuant to
         section <br/>
<a id="pl.264.6"></a><var>264.6</var>270C.30.<br/>
<a id="pl.264.7"></a><var>264.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.35.0"></a><a id="pl.264.8"></a><var>264.8</var>    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:<br/>
<a id="pl.264.9"></a><var>264.9</var>    Subd. 9. <b>Abatement of penalty.</b> (a) The commissioner may by written order abate any <br/>
<a id="pl.264.10"></a><var>264.10</var>penalty imposed under this section, if in the commissioner's opinion there is reasonable
         <br/>
<a id="pl.264.11"></a><var>264.11</var>cause to do so.<br/>
<a id="pl.264.12"></a><var>264.12</var>(b) A request for abatement of penalty must be filed with the commissioner within
         60 <br/>
<a id="pl.264.13"></a><var>264.13</var>days of the notice date of the notice stating that a penalty has been imposed was mailed to <br/>
<a id="pl.264.14"></a><var>264.14</var>the taxpayer's last known address. For purposes of this section, "notice date" means the <br/>
<a id="pl.264.15"></a><var>264.15</var>notice date designated by the commissioner on the order or other notice that a penalty
         has <br/>
<a id="pl.264.16"></a><var>264.16</var>been imposed.<br/>
<a id="pl.264.17"></a><var>264.17</var>(c) If the commissioner issues an order denying a request for abatement of penalty,
         the <br/>
<a id="pl.264.18"></a><var>264.18</var>taxpayer may file an administrative appeal as provided in section 270C.35 or appeal
         to Tax <br/>
<a id="pl.264.19"></a><var>264.19</var>Court as provided in section 
         <statute_ref>271.06</statute_ref>. If the commissioner does not issue an order on the <br/>
<a id="pl.264.20"></a><var>264.20</var>abatement request within 60 days from the date the request is received, the taxpayer
         may <br/>
<a id="pl.264.21"></a><var>264.21</var>appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.264.22"></a><var>264.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.264.23"></a><var>264.23</var>December 31, 2017.<br/>
<br/>
<a id="bill.13.36.0"></a><a id="pl.264.24"></a><var>264.24</var>    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:<br/>
<a id="pl.264.25"></a><var>264.25</var><b>296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.</b><br/>
<a id="pl.264.26"></a><var>264.26</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, any person aggrieved by an <br/>
<a id="pl.264.27"></a><var>264.27</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within <br/>
<a id="pl.264.28"></a><var>264.28</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.264.29"></a><var>264.29</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice <br/>
<a id="pl.264.30"></a><var>264.30</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.265.1"></a><var>265.1</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.265.2"></a><var>265.2</var>2017.<br/>
<br/>
<a id="bill.13.37.0"></a><a id="pl.265.3"></a><var>265.3</var>    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:<br/>
<a id="pl.265.4"></a><var>265.4</var><b>297D.02 ADMINISTRATION.</b><br/>
<a id="pl.265.5"></a><var>265.5</var>The commissioner of revenue shall administer this chapter. The commissioner shall <br/>
<a id="pl.265.6"></a><var>265.6</var>prescribe the content, format, and manner of all forms and other documents required
         to be <br/>
<a id="pl.265.7"></a><var>265.7</var>filed under this chapter pursuant to section 270C.30. Payments required by this chapter <br/>
<a id="pl.265.8"></a><var>265.8</var>must be made to the commissioner on the form provided by the commissioner. Tax obligors
         <br/>
<a id="pl.265.9"></a><var>265.9</var>are not required to give their name, address, Social Security number, or other identifying
         <br/>
<a id="pl.265.10"></a><var>265.10</var>information on the form. The commissioner shall collect all taxes under this chapter.<br/>
<a id="pl.265.11"></a><var>265.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.38.0"></a><a id="pl.265.12"></a><var>265.12</var>    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:<br/>
<a id="pl.265.13"></a><var>265.13</var>    Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section are due and payable <br/>
<a id="pl.265.14"></a><var>265.14</var>to the commissioner when the gambling tax return is required to be filed. Distributors
         must <br/>
<a id="pl.265.15"></a><var>265.15</var>file their monthly sales figures with the commissioner on a form prescribed by the
         <br/>
<a id="pl.265.16"></a><var>265.16</var>commissioner. Returns covering the taxes imposed under this section must be filed
         with <br/>
<a id="pl.265.17"></a><var>265.17</var>the commissioner on or before the 20th day of the month following the close of the
         previous <br/>
<a id="pl.265.18"></a><var>265.18</var>calendar month. The commissioner may require that the returns be filed via magnetic media <br/>
<a id="pl.265.19"></a><var>265.19</var>or electronic data transfer. The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.265.20"></a><var>265.20</var>of returns or other documents pursuant to section 270C.30. The proceeds, along with the <br/>
<a id="pl.265.21"></a><var>265.21</var>revenue received from all license fees and other fees under sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, <br/>
<statute_ref><a id="pl.265.22"></a><var>265.22</var>349.211
         </statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of management and budget for <br/>
<a id="pl.265.23"></a><var>265.23</var>deposit in the general fund.<br/>
<a id="pl.265.24"></a><var>265.24</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
         the <br/>
<a id="pl.265.25"></a><var>265.25</var>distributor is imposed on the retail sales price. The retail sale of pull-tabs or
         tipboards by <br/>
<a id="pl.265.26"></a><var>265.26</var>the organization is exempt from taxes imposed by chapter 297A and is exempt from all
         <br/>
<a id="pl.265.27"></a><var>265.27</var>local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, subdivision 8</statute_ref>.<br/>
<a id="pl.265.28"></a><var>265.28</var>(c) One-half of one percent of the revenue deposited in the general fund under paragraph
         <br/>
<a id="pl.265.29"></a><var>265.29</var>(a), is appropriated to the commissioner of human services for the compulsive gambling
         <br/>
<a id="pl.265.30"></a><var>265.30</var>treatment program established under section 
         <statute_ref>245.98</statute_ref>. One-half of one percent of the revenue <br/>
<a id="pl.265.31"></a><var>265.31</var>deposited in the general fund under paragraph (a), is appropriated to the commissioner
         of <br/>
<a id="pl.265.32"></a><var>265.32</var>human services for a grant to the state affiliate recognized by the National Council
         on <br/>
<a id="pl.266.1"></a><var>266.1</var>Problem Gambling to increase public awareness of problem gambling, education and training
         <br/>
<a id="pl.266.2"></a><var>266.2</var>for individuals and organizations providing effective treatment services to problem
         gamblers <br/>
<a id="pl.266.3"></a><var>266.3</var>and their families, and research relating to problem gambling. Money appropriated
         by this <br/>
<a id="pl.266.4"></a><var>266.4</var>paragraph must supplement and must not replace existing state funding for these programs.<br/>
<a id="pl.266.5"></a><var>266.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.39.0"></a><a id="pl.266.6"></a><var>266.6</var>    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:<br/>
<a id="pl.266.7"></a><var>266.7</var>    Subdivision 1. <b>Reports of sales.</b> A manufacturer who sells gambling product for use or <br/>
<a id="pl.266.8"></a><var>266.8</var>resale in this state, or for receipt by a person or entity in this state, shall file
         with the <br/>
<a id="pl.266.9"></a><var>266.9</var>commissioner, on a form prescribed by the commissioner, a report of gambling product
         <br/>
<a id="pl.266.10"></a><var>266.10</var>sold to any person in the state, including the established governing body of an Indian
         tribe <br/>
<a id="pl.266.11"></a><var>266.11</var>recognized by the United States Department of the Interior. The report must be filed
         monthly <br/>
<a id="pl.266.12"></a><var>266.12</var>on or before the 20th day of the month succeeding the month in which the sale was
         made. <br/>
<a id="pl.266.13"></a><var>266.13</var>The commissioner may require that the report be submitted via magnetic media or electronic
         <br/>
<a id="pl.266.14"></a><var>266.14</var>data transfer. The commissioner shall prescribe the content, format, and manner of returns <br/>
<a id="pl.266.15"></a><var>266.15</var>or other documents pursuant to section 270C.30. The commissioner may inspect the premises, <br/>
<a id="pl.266.16"></a><var>266.16</var>books, records, and inventory of a manufacturer without notice during the normal business
         <br/>
<a id="pl.266.17"></a><var>266.17</var>hours of the manufacturer. A person violating this section is guilty of a misdemeanor.<br/>
<a id="pl.266.18"></a><var>266.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.40.0"></a><a id="pl.266.19"></a><var>266.19</var>    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:<br/>
<a id="pl.266.20"></a><var>266.20</var>    Subd. 4. <b>Reports.</b> A distributor shall report monthly to the commissioner, on a form the <br/>
<a id="pl.266.21"></a><var>266.21</var>commissioner prescribes, its sales of each type of gambling product. This report must
         be <br/>
<a id="pl.266.22"></a><var>266.22</var>filed monthly on or before the 20th day of the month succeeding the month in which
         the <br/>
<a id="pl.266.23"></a><var>266.23</var>sale was made. The commissioner may require that a distributor submit the monthly report <br/>
<a id="pl.266.24"></a><var>266.24</var>and invoices required in this subdivision via magnetic media or electronic data transfer. <br/>
<a id="pl.266.25"></a><var>266.25</var>The commissioner shall prescribe the content, format, and manner of returns or other
         <br/>
<a id="pl.266.26"></a><var>266.26</var>documents pursuant to section 270C.30.<br/>
<a id="pl.266.27"></a><var>266.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.41.0"></a><a id="pl.266.28"></a><var>266.28</var>    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:<br/>
<a id="pl.266.29"></a><var>266.29</var>    Subdivision 1. <b>Reports.</b> An organization must file with the commissioner, on a form <br/>
<a id="pl.266.30"></a><var>266.30</var>prescribed by the commissioner, a report showing all gambling activity conducted by
         that <br/>
<a id="pl.266.31"></a><var>266.31</var>organization for each month. Gambling activity includes all gross receipts, prizes,
         all <br/>
<a id="pl.266.32"></a><var>266.32</var>gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
         <br/>
<a id="pl.267.1"></a><var>267.1</var>purpose and board-approved expenditures. The report must be filed with the commissioner
         <br/>
<a id="pl.267.2"></a><var>267.2</var>on or before the 20th day of the month following the month in which the gambling activity
         <br/>
<a id="pl.267.3"></a><var>267.3</var>takes place. The commissioner may require that the reports be filed via magnetic media or <br/>
<a id="pl.267.4"></a><var>267.4</var>electronic data transfer. The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.267.5"></a><var>267.5</var>of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.267.6"></a><var>267.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.42.0"></a><a id="pl.267.7"></a><var>267.7</var>    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:<br/>
<a id="pl.267.8"></a><var>267.8</var>    Subdivision 1. <b>Monthly return; cigarette distributor.</b> On or before the 18th day of <br/>
<a id="pl.267.9"></a><var>267.9</var>each calendar month, a distributor with a place of business in this state shall file
         a return <br/>
<a id="pl.267.10"></a><var>267.10</var>with the commissioner showing the quantity of cigarettes manufactured or brought in
         from <br/>
<a id="pl.267.11"></a><var>267.11</var>outside the state or purchased during the preceding calendar month and the quantity
         of <br/>
<a id="pl.267.12"></a><var>267.12</var>cigarettes sold or otherwise disposed of in this state and outside this state during
         that month. <br/>
<a id="pl.267.13"></a><var>267.13</var>A licensed distributor outside this state shall in like manner file a return showing
         the quantity <br/>
<a id="pl.267.14"></a><var>267.14</var>of cigarettes shipped or transported into this state during the preceding calendar
         month. <br/>
<a id="pl.267.15"></a><var>267.15</var>Returns must be made in the form and manner prescribed by The commissioner shall <br/>
<a id="pl.267.16"></a><var>267.16</var>prescribe the content, format, and manner of returns pursuant to section 270C.30,
         and the <br/>
<a id="pl.267.17"></a><var>267.17</var>returns must contain any other information required by the commissioner. The return must <br/>
<a id="pl.267.18"></a><var>267.18</var>be accompanied by a remittance for the full unpaid tax liability shown by it. For
         distributors <br/>
<a id="pl.267.19"></a><var>267.19</var>subject to the accelerated tax payment requirements in subdivision 10, the return
         for the <br/>
<a id="pl.267.20"></a><var>267.20</var>May liability is due two business days before June 30th of the year and the return
         for the <br/>
<a id="pl.267.21"></a><var>267.21</var>June liability is due on or before August 18th of the year.<br/>
<a id="pl.267.22"></a><var>267.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.43.0"></a><a id="pl.267.23"></a><var>267.23</var>    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:<br/>
<a id="pl.267.24"></a><var>267.24</var><b>297F.23 JUDICIAL REVIEW.</b><br/>
<a id="pl.267.25"></a><var>267.25</var>In lieu of an administrative appeal under section 
         <statute_ref>270C.35</statute_ref>, a person aggrieved by an <br/>
<a id="pl.267.26"></a><var>267.26</var>order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within <br/>
<a id="pl.267.27"></a><var>267.27</var>60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner <br/>
<a id="pl.267.28"></a><var>267.28</var>provided under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice <br/>
<a id="pl.267.29"></a><var>267.29</var>date designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.267.30"></a><var>267.30</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.267.31"></a><var>267.31</var>2017.<br/>
<br/>
<a id="bill.13.44.0"></a><a id="pl.268.1"></a><var>268.1</var>    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:<br/>
<a id="pl.268.2"></a><var>268.2</var>    Subdivision 1. <b>Monthly returns; manufacturers, wholesalers, brewers, or importers.</b><br/>
<a id="pl.268.3"></a><var>268.3</var>On or before the 18th day of each calendar month following the month in which a licensed
         <br/>
<a id="pl.268.4"></a><var>268.4</var>manufacturer or wholesaler first sells wine and distilled spirits within the state,
         or a brewer <br/>
<a id="pl.268.5"></a><var>268.5</var>or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
         <br/>
<a id="pl.268.6"></a><var>268.6</var>acquires title to or possession of untaxed fermented malt beverages, the licensed
         <br/>
<a id="pl.268.7"></a><var>268.7</var>manufacturer, wholesaler, brewer, or importer liable for the excise tax must file
         a return <br/>
<a id="pl.268.8"></a><var>268.8</var>with the commissioner, and in addition must keep records and render reports as required
         <br/>
<a id="pl.268.9"></a><var>268.9</var>by the commissioner. Returns must be made in a form and manner prescribed by the <br/>
<a id="pl.268.10"></a><var>268.10</var>commissioner, and  The commissioner shall prescribe the content, format, and manner of <br/>
<a id="pl.268.11"></a><var>268.11</var>returns pursuant to section 270C.30. The returns must contain any other information required <br/>
<a id="pl.268.12"></a><var>268.12</var>by the commissioner. Returns must be accompanied by a remittance for the full unpaid
         tax <br/>
<a id="pl.268.13"></a><var>268.13</var>liability. Returns must be filed regardless of whether a tax is due.<br/>
<a id="pl.268.14"></a><var>268.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.45.0"></a><a id="pl.268.15"></a><var>268.15</var>    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:<br/>
<a id="pl.268.16"></a><var>268.16</var><b>297G.22 JUDICIAL REVIEW.</b><br/>
<a id="pl.268.17"></a><var>268.17</var>In lieu of an administrative appeal under this chapter, a person aggrieved by an order
         of <br/>
<a id="pl.268.18"></a><var>268.18</var>the commissioner fixing a tax, penalty, or interest under this chapter may, within
         60 days <br/>
<a id="pl.268.19"></a><var>268.19</var>from the date of the notice date of the order, appeal to the Tax Court in the manner provided <br/>
<a id="pl.268.20"></a><var>268.20</var>under section 
         <statute_ref>271.06</statute_ref>. For purposes of this section, "notice date" means the notice date <br/>
<a id="pl.268.21"></a><var>268.21</var>designated by the commissioner on the order fixing a tax, penalty, or interest.<br/>
<a id="pl.268.22"></a><var>268.22</var><b>EFFECTIVE DATE.</b>This section is effective for orders dated after December 31, <br/>
<a id="pl.268.23"></a><var>268.23</var>2017.<br/>
<br/>
<a id="bill.13.46.0"></a><a id="pl.268.24"></a><var>268.24</var>    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision <br/>
<a id="pl.268.25"></a><var>268.25</var>to read:<br/>
<a id="pl.268.26"></a><var>268.26</var>    Subd. 11. <b>Format.</b>  The commissioner shall prescribe the content, format, and manner <br/>
<a id="pl.268.27"></a><var>268.27</var>of returns or other documents pursuant to section 270C.30.<br/>
<a id="pl.268.28"></a><var>268.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.47.0"></a><a id="pl.268.29"></a><var>268.29</var>    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:<br/>
<a id="pl.268.30"></a><var>268.30</var>    Subd. 2. <b>Remedies.</b> (a) If the taxpayer is notified that the refund claim is denied in whole <br/>
<a id="pl.268.31"></a><var>268.31</var>or in part, the taxpayer may contest the denial by:<br/>
<a id="pl.269.1"></a><var>269.1</var>(1) filing an administrative appeal with the commissioner under section 
         <statute_ref>270C.35</statute_ref>;<br/>
<a id="pl.269.2"></a><var>269.2</var>(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; <br/>
<a id="pl.269.3"></a><var>269.3</var>or<br/>
<a id="pl.269.4"></a><var>269.4</var>(3) filing an action in the district court to recover the refund.<br/>
<a id="pl.269.5"></a><var>269.5</var>(b) An action in the district court must be brought within 18 months following of the <br/>
<a id="pl.269.6"></a><var>269.6</var>notice date of the notice of denial. For purposes of this section, "notice date" has the meaning <br/>
<a id="pl.269.7"></a><var>269.7</var>given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be <br/>
<a id="pl.269.8"></a><var>269.8</var>brought in the district court of the district in which lies the taxpayer's principal
         place of <br/>
<a id="pl.269.9"></a><var>269.9</var>business or in the District Court for Ramsey County. If a taxpayer files a claim for
         refund <br/>
<a id="pl.269.10"></a><var>269.10</var>and the commissioner has not issued a denial of the claim, the taxpayer may bring
         an action <br/>
<a id="pl.269.11"></a><var>269.11</var>in the district court or the Tax Court at any time after the expiration of six months
         from the <br/>
<a id="pl.269.12"></a><var>269.12</var>time the claim was filed.<br/>
<a id="pl.269.13"></a><var>269.13</var><b>EFFECTIVE DATE.</b>This section is effective for claims for refund denied after <br/>
<a id="pl.269.14"></a><var>269.14</var>December 31, 2017.<br/>
<br/>
<a id="bill.13.48.0"></a><a id="pl.269.15"></a><var>269.15</var>    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:<br/>
<a id="pl.269.16"></a><var>269.16</var>    Subd. 5. <b>Waiver authority.</b> (a) The commissioner may waive all or part of a repayment <br/>
<a id="pl.269.17"></a><var>269.17</var>required under subdivision 1, if the commissioner, in consultation with the commissioner
         <br/>
<a id="pl.269.18"></a><var>269.18</var>of employment and economic development and appropriate officials from the local <br/>
<a id="pl.269.19"></a><var>269.19</var>government units in which the qualified business is located, determines that requiring
         <br/>
<a id="pl.269.20"></a><var>269.20</var>repayment of the tax is not in the best interest of the state or the local government
         units and <br/>
<a id="pl.269.21"></a><var>269.21</var>the business ceased operating as a result of circumstances beyond its control including,
         but <br/>
<a id="pl.269.22"></a><var>269.22</var>not limited to:<br/>
<a id="pl.269.23"></a><var>269.23</var>    (1) a natural disaster;<br/>
<a id="pl.269.24"></a><var>269.24</var>    (2) unforeseen industry trends; or<br/>
<a id="pl.269.25"></a><var>269.25</var>    (3) loss of a major supplier or customer.<br/>
<a id="pl.269.26"></a><var>269.26</var>    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the
         <br/>
<a id="pl.269.27"></a><var>269.27</var>commissioner has waived repayment by the operating business under subdivision 1, unless
         <br/>
<a id="pl.269.28"></a><var>269.28</var>the person that received benefits without having to operate a business in the zone
         was a <br/>
<a id="pl.269.29"></a><var>269.29</var>contributing factor in the qualified business becoming subject to repayment under
         subdivision <br/>
<a id="pl.269.30"></a><var>269.30</var>1;<br/>
<a id="pl.269.31"></a><var>269.31</var>    (2) the commissioner shall waive the repayment required under subdivision 1a, even
         if <br/>
<a id="pl.269.32"></a><var>269.32</var>the repayment has not been waived for the operating business if:<br/>
<a id="pl.270.1"></a><var>270.1</var>    (i) the person that received benefits without having to operate a business in the
         zone and <br/>
<a id="pl.270.2"></a><var>270.2</var>the business that operated in the zone are not related parties as defined in section
         267(b) of <br/>
<a id="pl.270.3"></a><var>270.3</var>the Internal Revenue Code of 1986, as amended through December 31, 2007; and<br/>
<a id="pl.270.4"></a><var>270.4</var>    (ii) actions of the person were not a contributing factor in the qualified business
         becoming <br/>
<a id="pl.270.5"></a><var>270.5</var>subject to repayment under subdivision 1.<br/>
<a id="pl.270.6"></a><var>270.6</var>(c) Requests for waiver must be made no later than 60 days after the earlier of the
         notice <br/>
<a id="pl.270.7"></a><var>270.7</var>date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
         <br/>
<a id="pl.270.8"></a><var>270.8</var>issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means <br/>
<a id="pl.270.9"></a><var>270.9</var>the notice date designated by the commissioner on the order.<br/>
<a id="pl.270.10"></a><var>270.10</var><b>EFFECTIVE DATE.</b>This section is effective for orders of the commissioner of revenue <br/>
<a id="pl.270.11"></a><var>270.11</var>dated after December 31, 2017.<br/>
<br/>
<a id="bill.13.49.0"></a><a id="pl.270.12"></a><var>270.12</var>    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:<br/>
<a id="pl.270.13"></a><var>270.13</var><b>EFFECTIVE DATE.</b>This section is effective for orders and notices dated after <br/>
<a id="pl.270.14"></a><var>270.14</var>September 30, 2015 December 31, 2017.<br/>
<a id="pl.270.15"></a><var>270.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from September 30, 2015.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="pl.270.18"></a><var>270.18</var><b>ACT PROVISIONS</b><br/>

<a id="bill.14.1.0"></a><a id="pl.270.19"></a><var>270.19</var>    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:<br/>
<a id="pl.270.20"></a><var>270.20</var><b>290C.03 ELIGIBILITY REQUIREMENTS.</b><br/>
<a id="pl.270.21"></a><var>270.21</var>(a) Land may be enrolled in the sustainable forest incentive program under this chapter
         <br/>
<a id="pl.270.22"></a><var>270.22</var>if all of the following conditions are met:<br/>
<a id="pl.270.23"></a><var>270.23</var>(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
         land <br/>
<a id="pl.270.24"></a><var>270.24</var>must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>, during the enrollment;<br/>
<a id="pl.270.25"></a><var>270.25</var>(2) a forest management plan for the land must be (i) prepared by an approved plan <br/>
<a id="pl.270.26"></a><var>270.26</var>writer and implemented during the period in which the land is enrolled, and (ii) registered <br/>
<a id="pl.270.27"></a><var>270.27</var>with the Department of Natural Resources;<br/>
<a id="pl.270.28"></a><var>270.28</var>(3) timber harvesting and forest management guidelines must be used in conjunction
         <br/>
<a id="pl.270.29"></a><var>270.29</var>with any timber harvesting or forest management activities conducted on the land during
         <br/>
<a id="pl.270.30"></a><var>270.30</var>the period in which the land is enrolled;<br/>
<a id="pl.270.31"></a><var>270.31</var>(4) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.271.1"></a><var>271.1</var>(5) there are no delinquent property taxes on the land; and<br/>
<a id="pl.271.2"></a><var>271.2</var>(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
         program <br/>
<a id="pl.271.3"></a><var>271.3</var>must allow year-round, nonmotorized access to fish and wildlife resources and motorized
         <br/>
<a id="pl.271.4"></a><var>271.4</var>access on established and maintained roads and trails, unless the road or trail is
         temporarily <br/>
<a id="pl.271.5"></a><var>271.5</var>closed for safety, natural resource, or road damage reasons on enrolled land except
         within <br/>
<a id="pl.271.6"></a><var>271.6</var>one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
         <br/>
<a id="pl.271.7"></a><var>271.7</var>by the commissioner of natural resources; and<br/>
<a id="pl.271.8"></a><var>271.8</var>(7) the land is not classified as 2c managed forest land.<br/>
<a id="pl.271.9"></a><var>271.9</var>(b) Claimants required to allow access under paragraph (a), clause (6), do not by
         that <br/>
<a id="pl.271.10"></a><var>271.10</var>action:<br/>
<a id="pl.271.11"></a><var>271.11</var>(1) extend any assurance that the land is safe for any purpose;<br/>
<a id="pl.271.12"></a><var>271.12</var>(2) confer upon the person the legal status of an invitee or licensee to whom a duty
         of <br/>
<a id="pl.271.13"></a><var>271.13</var>care is owed; or<br/>
<a id="pl.271.14"></a><var>271.14</var>(3) assume responsibility for or incur liability for any injury to the person or property
         <br/>
<a id="pl.271.15"></a><var>271.15</var>caused by an act or omission of the person.<br/>
<a id="pl.271.16"></a><var>271.16</var>(c) A minimum of three acres must be excluded from enrolled land when the land is
         <br/>
<a id="pl.271.17"></a><var>271.17</var>improved with a structure that is not a minor, ancillary, or nonresidential structure.
         If land <br/>
<a id="pl.271.18"></a><var>271.18</var>does not meet the definition of forest land in section 290C.02, subdivision 6, because
         the <br/>
<a id="pl.271.19"></a><var>271.19</var>land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state
         or federal <br/>
<a id="pl.271.20"></a><var>271.20</var>conservation reserve or easement program under sections 103F.501 to 103F.531, (3)
         subject <br/>
<a id="pl.271.21"></a><var>271.21</var>to the Minnesota agricultural property tax under section 273.111, or (4) subject to
         agricultural <br/>
<a id="pl.271.22"></a><var>271.22</var>land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
         <br/>
<a id="pl.271.23"></a><var>271.23</var>Agricultural Preserves Act under chapter 473H, the entire parcel that contains the
         land is <br/>
<a id="pl.271.24"></a><var>271.24</var>not eligible to be enrolled in the program.<br/>
<a id="pl.271.25"></a><var>271.25</var><b>EFFECTIVE DATE.</b>The amendment to paragraph (a), clause (2), is effective for <br/>
<a id="pl.271.26"></a><var>271.26</var>certifications filed after July 1, 2018. The amendment adding paragraph (a), clause
         (7), is <br/>
<a id="pl.271.27"></a><var>271.27</var>effective for certifications and applications due in 2017 and thereafter. The amendment
         <br/>
<a id="pl.271.28"></a><var>271.28</var>adding paragraph (c) is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.271.29"></a><var>271.29</var>    Sec. 2. <b>[290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.</b><br/>
<a id="pl.271.30"></a><var>271.30</var>On request of the commissioner, the commissioner of natural resources must annually
         <br/>
<a id="pl.271.31"></a><var>271.31</var>provide verification that the claimant has a current forest management plan on file
         with the <br/>
<a id="pl.271.32"></a><var>271.32</var>Department of Natural Resources.<br/>
<a id="pl.272.1"></a><var>272.1</var><b>EFFECTIVE DATE.</b>This section is effective for certifications filed after July 1, 2018.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.272.2"></a><var>272.2</var>    Sec. 3. <b> REPEALER.</b><br/>
<a id="pl.272.3"></a><var>272.3</var>Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are <br/>
<a id="pl.272.4"></a><var>272.4</var>repealed.<br/>
<a id="pl.272.5"></a><var>272.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="pl.272.8"></a><var>272.8</var><b>PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES</b><br/>

<a id="bill.15.1.0"></a><a id="pl.272.9"></a><var>272.9</var>    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:<br/>
<a id="pl.272.10"></a><var>272.10</var>    Subd. 5. <b>Calculation of state aid.</b> (a) The amount of fire state aid available for <br/>
<a id="pl.272.11"></a><var>272.11</var>apportionment, before the addition of the minimum fire state aid allocation amount
         under <br/>
<a id="pl.272.12"></a><var>272.12</var>subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
         state upon <br/>
<a id="pl.272.13"></a><var>272.13</var>the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
         the <br/>
<a id="pl.272.14"></a><var>272.14</var>commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
         <br/>
<a id="pl.272.15"></a><var>272.15</var>be reduced by the amount required to pay the state auditor's costs and expenses of
         the audits <br/>
<a id="pl.272.16"></a><var>272.16</var>or exams of the firefighters relief associations.<br/>
<a id="pl.272.17"></a><var>272.17</var>The total amount for apportionment in respect to fire state aid must not be less than
         two <br/>
<a id="pl.272.18"></a><var>272.18</var>percent of the premiums reported to the commissioner by insurers on the Minnesota
         Firetown <br/>
<a id="pl.272.19"></a><var>272.19</var>Premium Report after subtracting the following amounts:<br/>
<a id="pl.272.20"></a><var>272.20</var>(1) the amount required to pay the state auditor's costs and expenses of the audits
         or <br/>
<a id="pl.272.21"></a><var>272.21</var>exams of the firefighters relief associations; and<br/>
<a id="pl.272.22"></a><var>272.22</var>(2) one percent of the premiums reported by town and farmers' township mutual insurance <br/>
<a id="pl.272.23"></a><var>272.23</var>companies and mutual property and casualty companies with total assets of $5,000,000
         or <br/>
<a id="pl.272.24"></a><var>272.24</var>less.<br/>
<a id="pl.272.25"></a><var>272.25</var>(b) The total amount for apportionment as police state aid is equal to 104 percent
         of the <br/>
<a id="pl.272.26"></a><var>272.26</var>amount of premium taxes paid to the state on the premiums reported to the commissioner
         <br/>
<a id="pl.272.27"></a><var>272.27</var>by insurers on the Minnesota Aid to Police Premium Report. The total amount for <br/>
<a id="pl.272.28"></a><var>272.28</var>apportionment in respect to the police state aid program must not be less than two
         percent <br/>
<a id="pl.272.29"></a><var>272.29</var>of the amount of premiums reported to the commissioner by insurers on the Minnesota
         Aid <br/>
<a id="pl.272.30"></a><var>272.30</var>to Police Premium Report.<br/>
<a id="pl.273.1"></a><var>273.1</var>(c) The commissioner shall calculate the percentage of increase or decrease reflected
         in <br/>
<a id="pl.273.2"></a><var>273.2</var>the apportionment over or under the previous year's available state aid using the
         same <br/>
<a id="pl.273.3"></a><var>273.3</var>premiums as a basis for comparison.<br/>
<a id="pl.273.4"></a><var>273.4</var>(d) In addition to the amount for apportionment of police state aid under paragraph
         (b), <br/>
<a id="pl.273.5"></a><var>273.5</var>each year $100,000 must be apportioned for police state aid. An amount sufficient
         to pay <br/>
<a id="pl.273.6"></a><var>273.6</var>this increase is annually appropriated from the general fund.<br/>
<a id="pl.273.7"></a><var>273.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.2.0"></a><a id="pl.273.8"></a><var>273.8</var>    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:<br/>
<a id="pl.273.9"></a><var>273.9</var>    Subd. 6. <b>Omission in excess of 25 percent.</b> Additional taxes may be assessed within <br/>
<a id="pl.273.10"></a><var>273.10</var>6-1/2 years after the due date of the return or the date the return was filed, whichever
         is <br/>
<a id="pl.273.11"></a><var>273.11</var>later, if:<br/>
<a id="pl.273.12"></a><var>273.12</var>(1) the taxpayer omits from gross income an amount properly includable in it that
         is in <br/>
<a id="pl.273.13"></a><var>273.13</var>excess of 25 percent of the amount of gross income stated in the return;<br/>
<a id="pl.273.14"></a><var>273.14</var>(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax <br/>
<a id="pl.273.15"></a><var>273.15</var>imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes <br/>
<a id="pl.273.16"></a><var>273.16</var>reported in the return; or<br/>
<a id="pl.273.17"></a><var>273.17</var>(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
         gross <br/>
<a id="pl.273.18"></a><var>273.18</var>estate reported in the return.<br/>
<a id="pl.273.19"></a><var>273.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.3.0"></a><a id="pl.273.20"></a><var>273.20</var>    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:<br/>
<a id="pl.273.21"></a><var>273.21</var>    Subd. 2. <b>Exemptions.</b> The following entities are exempt from the tax imposed by this <br/>
<a id="pl.273.22"></a><var>273.22</var>section:<br/>
<a id="pl.273.23"></a><var>273.23</var>(1) corporations exempt from tax under section 
         <statute_ref>290.05</statute_ref>;<br/>
<a id="pl.273.24"></a><var>273.24</var>(2) real estate investment trusts;<br/>
<a id="pl.273.25"></a><var>273.25</var>(3) regulated investment companies or a fund thereof; and<br/>
<a id="pl.273.26"></a><var>273.26</var>(4) entities having a valid election in effect under section 860D(b) of the Internal
         Revenue <br/>
<a id="pl.273.27"></a><var>273.27</var>Code;<br/>
<a id="pl.273.28"></a><var>273.28</var>(5) town and farmers' township mutual insurance companies;<br/>
<a id="pl.274.1"></a><var>274.1</var>(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
         <br/>
<a id="pl.274.2"></a><var>274.2</var>to persons age 55 and over and are classified as homesteads under section 
         <statute_ref>273.124, <br/>
<a id="pl.274.3"></a><var>274.3</var>subdivision 3
         </statute_ref>; and<br/>
<a id="pl.274.4"></a><var>274.4</var>(7) a qualified business as defined under section 
         <statute_ref>469.310, subdivision 11</statute_ref>, if for the <br/>
<a id="pl.274.5"></a><var>274.5</var>taxable year all of its property is located in a job opportunity building zone designated
         under <br/>
<a id="pl.274.6"></a><var>274.6</var>section 
         <statute_ref>469.314</statute_ref> and all of its payroll is a job opportunity building zone payroll under section <br/>
<statute_ref><a id="pl.274.7"></a><var>274.7</var>469.310
         </statute_ref>.<br/>
<a id="pl.274.8"></a><var>274.8</var>Entities not specifically exempted by this subdivision are subject to tax under this
         section, <br/>
<a id="pl.274.9"></a><var>274.9</var>notwithstanding section 
         <statute_ref>290.05</statute_ref>.<br/>
<a id="pl.274.10"></a><var>274.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.4.0"></a><a id="pl.274.11"></a><var>274.11</var>    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:<br/>
<a id="pl.274.12"></a><var>274.12</var>    Subd. 2. <b>Pharmacy refund.</b> A pharmacy may claim an annual refund against the total <br/>
<a id="pl.274.13"></a><var>274.13</var>amount of tax, if any, the pharmacy owes during that calendar year under section 
         <statute_ref>295.52, <br/>
<a id="pl.274.14"></a><var>274.14</var>subdivision
         </statute_ref> 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug <br/>
<a id="pl.274.15"></a><var>274.15</var>distributor subject to tax under section 
         <statute_ref>295.52, subdivision 3</statute_ref>, for legend drugs delivered by <br/>
<a id="pl.274.16"></a><var>274.16</var>the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
         <br/>
<statute_ref><a id="pl.274.17"></a><var>274.17</var>295.52
         </statute_ref>, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
         <br/>
<a id="pl.274.18"></a><var>274.18</var>under section 
         <statute_ref>295.52, subdivision</statute_ref> 4, the commissioner shall provide the pharmacy with a <br/>
<a id="pl.274.19"></a><var>274.19</var>refund equal to the excess amount. Each qualifying pharmacy must apply for the refund
         on <br/>
<a id="pl.274.20"></a><var>274.20</var>the annual return as provided under section 
<statute_ref>295.55, subdivision 5</statute_ref> prescribed by the <br/>
<a id="pl.274.21"></a><var>274.21</var>commissioner, on or before March 15 of the year following the calendar year the legend
         <br/>
<a id="pl.274.22"></a><var>274.22</var>drugs were delivered outside Minnesota. The refund must be claimed within 18 months <br/>
<a id="pl.274.23"></a><var>274.23</var>from the date the drugs were delivered outside of Minnesota shall not be allowed if the <br/>
<a id="pl.274.24"></a><var>274.24</var>initial claim for refund is filed more than one year after the original due date of
         the return. <br/>
<a id="pl.274.25"></a><var>274.25</var>Interest on refunds paid under this subdivision will begin to accrue 60 days after
         the date a <br/>
<a id="pl.274.26"></a><var>274.26</var>claim for refund is filed. For purposes of this subdivision, the date a claim is filed
         is the due <br/>
<a id="pl.274.27"></a><var>274.27</var>date of the return if a return is due or the date of the actual claim for refund,
         whichever is <br/>
<a id="pl.274.28"></a><var>274.28</var>later.<br/>
<a id="pl.274.29"></a><var>274.29</var><b>EFFECTIVE DATE.</b>This section is effective for qualifying legend drugs delivered <br/>
<a id="pl.274.30"></a><var>274.30</var>outside Minnesota after December 31, 2017.<br/>
<br/>
<a id="bill.15.5.0"></a><a id="pl.275.1"></a><var>275.1</var>    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to <br/>
<a id="pl.275.2"></a><var>275.2</var>read:<br/>
<a id="pl.275.3"></a><var>275.3</var>    Subd. 9a. <b>Bulk storage or bulk storage facility.</b> "Bulk storage" or "bulk storage facility" <br/>
<a id="pl.275.4"></a><var>275.4</var>means a single property, or contiguous or adjacent properties used for a common purpose
         <br/>
<a id="pl.275.5"></a><var>275.5</var>and owned or operated by the same person, on or in which are located one or more stationary
         <br/>
<a id="pl.275.6"></a><var>275.6</var>tanks that are used singularly or in combination for the storage or containment of
         more than <br/>
<a id="pl.275.7"></a><var>275.7</var>1,100 gallons of petroleum.<br/>
<a id="pl.275.8"></a><var>275.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.6.0"></a><a id="pl.275.9"></a><var>275.9</var>    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:<br/>
<a id="pl.275.10"></a><var>275.10</var>    Subd. 33. <b>Motor fuel.</b> "Motor fuel" means a liquid or gaseous form of fuel, regardless <br/>
<a id="pl.275.11"></a><var>275.11</var>of its composition or properties, used to propel a motor vehicle.<br/>
<a id="pl.275.12"></a><var>275.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.7.0"></a><a id="pl.275.13"></a><var>275.13</var>    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:<br/>
<a id="pl.275.14"></a><var>275.14</var>    Subd. 42. <b>Petroleum products.</b> "Petroleum products" means all of the products defined <br/>
<a id="pl.275.15"></a><var>275.15</var>in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.<br/>
<a id="pl.275.16"></a><var>275.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.8.0"></a><a id="pl.275.17"></a><var>275.17</var>    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:<br/>
<a id="pl.275.18"></a><var>275.18</var>    Subdivision 1. <b>Tax imposed.</b> There is imposed an excise tax on gasoline, gasoline <br/>
<a id="pl.275.19"></a><var>275.19</var>blended with ethanol, and agricultural alcohol gasoline used in producing and generating
         <br/>
<a id="pl.275.20"></a><var>275.20</var>power for propelling motor vehicles used on the public highways of this state. The
         tax is <br/>
<a id="pl.275.21"></a><var>275.21</var>imposed on the first licensed distributor who received the product in Minnesota. For
         purposes <br/>
<a id="pl.275.22"></a><var>275.22</var>of this section, gasoline is defined in section 
         <statute_ref>296A.01, subdivisions 8b, 10, 18, 20, 23, 24, <br/>
<a id="pl.275.23"></a><var>275.23</var>25, 32, and 34
         </statute_ref>. The tax is payable at the time and in the form and manner prescribed by the <br/>
<a id="pl.275.24"></a><var>275.24</var>commissioner. The tax is payable at the rates specified in subdivision 3, subject
         to the <br/>
<a id="pl.275.25"></a><var>275.25</var>exceptions and reductions specified in section 
         <statute_ref>296A.17</statute_ref>.<br/>
<a id="pl.275.26"></a><var>275.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.9.0"></a><a id="pl.275.27"></a><var>275.27</var>    Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:<br/>
<a id="pl.275.28"></a><var>275.28</var>    Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax imposed <br/>
<a id="pl.275.29"></a><var>275.29</var>in this chapter to the extent provided.<br/>
<a id="pl.276.1"></a><var>276.1</var>(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
         <br/>
<a id="pl.276.2"></a><var>276.2</var>or partnership is exempt if the transfer constitutes a transfer within the meaning
         of section <br/>
<a id="pl.276.3"></a><var>276.3</var>351 or 721 of the Internal Revenue Code.<br/>
<a id="pl.276.4"></a><var>276.4</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
         of <br/>
<a id="pl.276.5"></a><var>276.5</var>an aircraft for which a commercial use permit has been issued pursuant to section
         
         <statute_ref>360.654</statute_ref> <br/>
<a id="pl.276.6"></a><var>276.6</var>is exempt, if the aircraft is resold while the permit is in effect.<br/>
<a id="pl.276.7"></a><var>276.7</var>(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
         airline <br/>
<a id="pl.276.8"></a><var>276.8</var>companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes of this <br/>
<a id="pl.276.9"></a><var>276.9</var>subdivision, "air flight equipment" includes airplanes and parts necessary for the
         repair and <br/>
<a id="pl.276.10"></a><var>276.10</var>maintenance of such air flight equipment, and flight simulators, but does not include
         airplanes <br/>
<a id="pl.276.11"></a><var>276.11</var>aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on <br/>
<a id="pl.276.12"></a><var>276.12</var>intermittent or irregularly timed flights.<br/>
<a id="pl.276.13"></a><var>276.13</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
         in <br/>
<a id="pl.276.14"></a><var>276.14</var>section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the seller <br/>
<a id="pl.276.15"></a><var>276.15</var>delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped
         or <br/>
<a id="pl.276.16"></a><var>276.16</var>transported outside Minnesota by the purchaser are exempt, but only if the purchaser
         is not <br/>
<a id="pl.276.17"></a><var>276.17</var>a resident of Minnesota and provided that the aircraft is not thereafter returned
         to a point <br/>
<a id="pl.276.18"></a><var>276.18</var>within Minnesota, except in the course of interstate commerce or isolated and occasional
         <br/>
<a id="pl.276.19"></a><var>276.19</var>use, and will be registered in another state or country upon its removal from Minnesota.
         <br/>
<a id="pl.276.20"></a><var>276.20</var>This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
         <br/>
<a id="pl.276.21"></a><var>276.21</var>and uses the aircraft in the state exclusively for training purposes for a period
         not to exceed <br/>
<a id="pl.276.22"></a><var>276.22</var>ten days prior to removing the aircraft from this state.<br/>
<a id="pl.276.23"></a><var>276.23</var>(f) The sale or purchase of the following items that relate to aircraft operated under
         <br/>
<a id="pl.276.24"></a><var>276.24</var>Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
         <br/>
<a id="pl.276.25"></a><var>276.25</var>equipment and parts necessary for repair and maintenance of aircraft; and equipment
         and <br/>
<a id="pl.276.26"></a><var>276.26</var>parts to upgrade and improve aircraft.<br/>
<a id="pl.276.27"></a><var>276.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.276.28"></a><var>276.28</var>December 31, 2017.<br/>
<br/>
<a id="bill.15.10.0"></a><a id="pl.276.29"></a><var>276.29</var>    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:<br/>
<a id="pl.276.30"></a><var>276.30</var>    Subd. 4a. <b>Deposit in state airports fund.</b> Tax revenue, including interest and penalties, <br/>
<a id="pl.276.31"></a><var>276.31</var>collected from the sale or purchase of an aircraft taxable under this chapter must
         be deposited <br/>
<a id="pl.276.32"></a><var>276.32</var>in the state airports fund established in section 
         <statute_ref>360.017. For purposes of this subdivision, <br/>
<a id="pl.276.33"></a><var>276.33</var>"revenue" does not include the revenue, including interest and penalties, generated
            by the <br/>
<a id="pl.277.1"></a><var>277.1</var>sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
            <br/>
<a id="pl.277.2"></a><var>277.2</var>provided under article XI, section 15, of the Minnesota Constitution
</statute_ref>.<br/>
<a id="pl.277.3"></a><var>277.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.11.0"></a><a id="pl.277.4"></a><var>277.4</var>    Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:<br/>
<a id="pl.277.5"></a><var>277.5</var>    Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal sanctions <br/>
<a id="pl.277.6"></a><var>277.6</var>imposed by this chapter, a person, organization, or business entity possessing or
         selling a <br/>
<a id="pl.277.7"></a><var>277.7</var>pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed
         by <br/>
<a id="pl.277.8"></a><var>277.8</var>this chapter has not been paid is liable for a tax of six percent of the ideal gross
         of each <br/>
<a id="pl.277.9"></a><var>277.9</var>pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial
         deal must <br/>
<a id="pl.277.10"></a><var>277.10</var>be assessed as if it were a full deal.<br/>
<a id="pl.277.11"></a><var>277.11</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) <br/>
<a id="pl.277.12"></a><var>277.12</var>not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
         raffles, <br/>
<a id="pl.277.13"></a><var>277.13</var>or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to <br/>
<a id="pl.277.14"></a><var>277.14</var>609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six <br/>
<a id="pl.277.15"></a><var>277.15</var>percent of the gross receipts from that activity.<br/>
<a id="pl.277.16"></a><var>277.16</var>(c) The tax must may be assessed by the commissioner. An assessment must be considered <br/>
<a id="pl.277.17"></a><var>277.17</var>a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. The <br/>
<a id="pl.277.18"></a><var>277.18</var>commissioner shall assess the tax based on personal knowledge or information available
         to <br/>
<a id="pl.277.19"></a><var>277.19</var>the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last
         known <br/>
<a id="pl.277.20"></a><var>277.20</var>address, or serve in person, a written notice of the amount of tax, demand its immediate
         <br/>
<a id="pl.277.21"></a><var>277.21</var>payment, and, if payment is not immediately made, collect the tax by any method described
         <br/>
<a id="pl.277.22"></a><var>277.22</var>in chapter 270C, except that the commissioner need not await the expiration of the
         times <br/>
<a id="pl.277.23"></a><var>277.23</var>specified in chapter 270C. The tax assessed by the commissioner is presumed to be
         valid <br/>
<a id="pl.277.24"></a><var>277.24</var>and correctly determined and assessed. The burden is upon the taxpayer to show its
         <br/>
<a id="pl.277.25"></a><var>277.25</var>incorrectness or invalidity. The tax imposed under this subdivision does not apply
         to gambling <br/>
<a id="pl.277.26"></a><var>277.26</var>that is exempt from taxation under subdivision 2.<br/>
<a id="pl.277.27"></a><var>277.27</var>(d) A person, organization, or business entity conducting gambling activity under
         this <br/>
<a id="pl.277.28"></a><var>277.28</var>subdivision must file monthly tax returns with the commissioner, in the form required
         by <br/>
<a id="pl.277.29"></a><var>277.29</var>the commissioner. The returns must be filed on or before the 20th day of the month
         following <br/>
<a id="pl.277.30"></a><var>277.30</var>the month in which the gambling activity occurred. The tax imposed by this section
         is due <br/>
<a id="pl.277.31"></a><var>277.31</var>and payable at the time when the returns are required to be filed.<br/>
<a id="pl.277.32"></a><var>277.32</var>(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
         <br/>
<a id="pl.277.33"></a><var>277.33</var>employee may reveal facts contained in a tax return filed with the commissioner of
         revenue <br/>
<a id="pl.278.1"></a><var>278.1</var>as required by this subdivision, nor can any information contained in the report or
         return <br/>
<a id="pl.278.2"></a><var>278.2</var>be used against the tax obligor in any criminal proceeding, unless independently obtained,
         <br/>
<a id="pl.278.3"></a><var>278.3</var>except in connection with a proceeding involving taxes due under this section, or
         as provided <br/>
<a id="pl.278.4"></a><var>278.4</var>in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
         <br/>
<a id="pl.278.5"></a><var>278.5</var>commissioner from publishing statistics that do not disclose the identity of tax obligors
         or <br/>
<a id="pl.278.6"></a><var>278.6</var>the contents of particular returns or reports. Any person violating this paragraph
         is guilty <br/>
<a id="pl.278.7"></a><var>278.7</var>of a gross misdemeanor.<br/>
<a id="pl.278.8"></a><var>278.8</var><b>EFFECTIVE DATE.</b>This section is effective for games played or purchased after June <br/>
<a id="pl.278.9"></a><var>278.9</var>30, 2017.<br/>
<br/>
<a id="bill.15.12.0"></a><a id="pl.278.10"></a><var>278.10</var>    Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:<br/>
<a id="pl.278.11"></a><var>278.11</var>    Subd. 2. <b>Materials.</b> The tax is not imposed upon charges to generators of mixed municipal <br/>
<a id="pl.278.12"></a><var>278.12</var>solid waste or upon the volume of nonmixed municipal solid waste for waste management
         <br/>
<a id="pl.278.13"></a><var>278.13</var>services to manage the following materials:<br/>
<a id="pl.278.14"></a><var>278.14</var>(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
         <br/>
<a id="pl.278.15"></a><var>278.15</var>of Minnesota;<br/>
<a id="pl.278.16"></a><var>278.16</var>(2) recyclable materials that are separated for recycling by the generator, collected
         <br/>
<a id="pl.278.17"></a><var>278.17</var>separately from other waste, and recycled, to the extent the price of the service
         for handling <br/>
<a id="pl.278.18"></a><var>278.18</var>recyclable material is separately itemized on a bill to the generator;<br/>
<a id="pl.278.19"></a><var>278.19</var>(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
         <br/>
<a id="pl.278.20"></a><var>278.20</var>generator, collected separately from other waste, delivered to a waste facility for
         the purpose <br/>
<a id="pl.278.21"></a><var>278.21</var>of recycling, and recycled;<br/>
<a id="pl.278.22"></a><var>278.22</var>(4) industrial waste, when it is transported to a facility owned and operated by the
         same <br/>
<a id="pl.278.23"></a><var>278.23</var>person that generated it;<br/>
<a id="pl.278.24"></a><var>278.24</var>(5) mixed municipal solid waste from a recycling facility that separates or processes
         <br/>
<a id="pl.278.25"></a><var>278.25</var>recyclable materials and reduces the volume of the waste by at least 85 percent, provided
         <br/>
<a id="pl.278.26"></a><var>278.26</var>that the exempted waste is managed separately from other waste;<br/>
<a id="pl.278.27"></a><var>278.27</var>(6) recyclable materials that are separated from mixed municipal solid waste by the
         <br/>
<a id="pl.278.28"></a><var>278.28</var>generator, collected and delivered to a waste facility that recycles at least 85 percent
         of its <br/>
<a id="pl.278.29"></a><var>278.29</var>waste, and are collected with mixed municipal solid waste that is segregated in leakproof
         <br/>
<a id="pl.278.30"></a><var>278.30</var>bags, provided that the mixed municipal solid waste does not exceed five percent of
         the <br/>
<a id="pl.278.31"></a><var>278.31</var>total weight of the materials delivered to the facility and is ultimately delivered
         to a waste <br/>
<a id="pl.278.32"></a><var>278.32</var>facility identified as a preferred waste management facility in county solid waste
         plans <br/>
<a id="pl.278.33"></a><var>278.33</var>under section 
         <statute_ref>115A.46</statute_ref>;<br/>
<a id="pl.279.1"></a><var>279.1</var>(7) source-separated compostable waste materials, if the waste is materials are delivered <br/>
<a id="pl.279.2"></a><var>279.2</var>to a facility exempted as described in this clause. To initially qualify for an exemption,
         a <br/>
<a id="pl.279.3"></a><var>279.3</var>facility must apply for an exemption in its application for a new or amended solid
         waste <br/>
<a id="pl.279.4"></a><var>279.4</var>permit to the Pollution Control Agency. The first time a facility applies to the agency
         it <br/>
<a id="pl.279.5"></a><var>279.5</var>must certify in its application that it will comply with the criteria in items (i)
         to (v) and the <br/>
<a id="pl.279.6"></a><var>279.6</var>commissioner of the agency shall so certify to the commissioner of revenue who must
         grant <br/>
<a id="pl.279.7"></a><var>279.7</var>the exemption. The facility must annually apply to the agency for certification to
         renew its <br/>
<a id="pl.279.8"></a><var>279.8</var>exemption for the following year. The application must be filed according to the procedures
         <br/>
<a id="pl.279.9"></a><var>279.9</var>of, and contain the information required by, the agency. The commissioner of revenue
         shall <br/>
<a id="pl.279.10"></a><var>279.10</var>grant the exemption if the commissioner of the Pollution Control Agency finds and
         certifies <br/>
<a id="pl.279.11"></a><var>279.11</var>to the commissioner of revenue that based on an evaluation of the composition of incoming
         <br/>
<a id="pl.279.12"></a><var>279.12</var>waste and residuals and the quality and use of the product:<br/>
<a id="pl.279.13"></a><var>279.13</var>(i) generators separate materials at the source;<br/>
<a id="pl.279.14"></a><var>279.14</var>(ii) the separation is performed in a manner appropriate to the technology specific
         to the <br/>
<a id="pl.279.15"></a><var>279.15</var>facility that:<br/>
<a id="pl.279.16"></a><var>279.16</var>(A) maximizes the quality of the product;<br/>
<a id="pl.279.17"></a><var>279.17</var>(B) minimizes the toxicity and quantity of residuals rejects; and<br/>
<a id="pl.279.18"></a><var>279.18</var>(C) provides an opportunity for significant improvement in the environmental efficiency
         <br/>
<a id="pl.279.19"></a><var>279.19</var>of the operation;<br/>
<a id="pl.279.20"></a><var>279.20</var>(iii) the operator of the facility educates generators, in coordination with each
         county <br/>
<a id="pl.279.21"></a><var>279.21</var>using the facility, about separating the waste to maximize the quality of the waste
         stream <br/>
<a id="pl.279.22"></a><var>279.22</var>for technology specific to the facility;<br/>
<a id="pl.279.23"></a><var>279.23</var>(iv) process residuals rejects do not exceed 15 percent of the weight of the total material <br/>
<a id="pl.279.24"></a><var>279.24</var>delivered to the facility; and<br/>
<a id="pl.279.25"></a><var>279.25</var>(v) the final product is accepted for use;<br/>
<a id="pl.279.26"></a><var>279.26</var>(8) waste and waste by-products for which the tax has been paid; and<br/>
<a id="pl.279.27"></a><var>279.27</var>(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
         <br/>
<a id="pl.279.28"></a><var>279.28</var>Control Agency.<br/>
<a id="pl.279.29"></a><var>279.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.13.0"></a><a id="pl.280.1"></a><var>280.1</var>    Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:<br/>
<a id="pl.280.2"></a><var>280.2</var>    Subd. 2. <b>Town and farmers'</b><b> Township</b><b> mutual insurance.</b> A tax is imposed on town <br/>
<a id="pl.280.3"></a><var>280.3</var>and farmers' township mutual insurance companies. The rate of tax is equal to one percent <br/>
<a id="pl.280.4"></a><var>280.4</var>of gross premiums less return premiums on all direct business received by the insurer
         or <br/>
<a id="pl.280.5"></a><var>280.5</var>agents of the insurer in Minnesota, in cash or otherwise, during the year.<br/>
<a id="pl.280.6"></a><var>280.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.14.0"></a><a id="pl.280.7"></a><var>280.7</var>    Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:<br/>
<a id="pl.280.8"></a><var>280.8</var>    Subdivision 1. <b>Cities of the first class.</b> (a) The commissioner shall order and direct a <br/>
<a id="pl.280.9"></a><var>280.9</var>surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage
         gross <br/>
<a id="pl.280.10"></a><var>280.10</var>premiums, less return premiums, on all direct business received by any licensed foreign
         or <br/>
<a id="pl.280.11"></a><var>280.11</var>domestic fire insurance company on property in a city of the first class, or by its
         agents for <br/>
<a id="pl.280.12"></a><var>280.12</var>it, in cash or otherwise.<br/>
<a id="pl.280.13"></a><var>280.13</var>(b) By July 31 and December 31 of each year, the commissioner of management and <br/>
<a id="pl.280.14"></a><var>280.14</var>budget shall pay to each city of the first class a warrant for an amount equal to the total
         <br/>
<a id="pl.280.15"></a><var>280.15</var>amount of the surcharge on the premiums collected within that city since the previous
         <br/>
<a id="pl.280.16"></a><var>280.16</var>payment.<br/>
<a id="pl.280.17"></a><var>280.17</var>(c) The treasurer of the city shall place the money received under this subdivision
         in a <br/>
<a id="pl.280.18"></a><var>280.18</var>special account or fund to defray all or a portion of the employer contribution requirement
         <br/>
<a id="pl.280.19"></a><var>280.19</var>of public employees police and fire plan coverage for city firefighters.<br/>
<a id="pl.280.20"></a><var>280.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.15.0"></a><a id="pl.280.21"></a><var>280.21</var>    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:<br/>
<a id="pl.280.22"></a><var>280.22</var>    Subd. 3. <b>Appropriation.</b> The amount necessary to make the payments required under <br/>
<a id="pl.280.23"></a><var>280.23</var>this section is appropriated to the commissioner of management and budget from the general <br/>
<a id="pl.280.24"></a><var>280.24</var>fund.<br/>
<a id="pl.280.25"></a><var>280.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.16.0"></a><a id="pl.280.26"></a><var>280.26</var>    Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:<br/>
<a id="pl.280.27"></a><var>280.27</var>    Subd. 4c. <b>Special deductions; net operating loss.</b> (a) For purposes of determining <br/>
<a id="pl.280.28"></a><var>280.28</var>taxable income under subdivision 4, the provisions of sections 
         <statute_ref>290.0133, subdivisions 7</statute_ref> <br/>
<a id="pl.280.29"></a><var>280.29</var>and 9, and 
         <statute_ref>290.0134, subdivisions 7</statute_ref> and 9, are not used to determine taxable income.<br/>
<a id="pl.281.1"></a><var>281.1</var>(b) The amount of net operating loss incurred in a taxable year beginning before January
         <br/>
<a id="pl.281.2"></a><var>281.2</var>1, 1990, that may be carried over to a taxable year beginning after December 31, 1989,
         is <br/>
<a id="pl.281.3"></a><var>281.3</var>the amount of net operating loss carryover determined in the calculation of the hypothetical
         <br/>
<a id="pl.281.4"></a><var>281.4</var>corporate franchise tax under Minnesota Statutes 1988, sections 
<statute_ref>298.40</statute_ref> and 
<statute_ref>298.402</statute_ref>.<br/>
<a id="pl.281.5"></a><var>281.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="pl.281.8"></a><var>281.8</var><b>FRANCHISE, AND ESTATE TAXES</b><br/>

<a id="bill.16.1.0"></a><a id="pl.281.9"></a><var>281.9</var>    Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:<br/>
<a id="pl.281.10"></a><var>281.10</var>    Subd. 21. <b>Military service pension; retirement pay.</b>  To the extent included in federal <br/>
<a id="pl.281.11"></a><var>281.11</var>taxable income, compensation received from a pension or other retirement pay from
         the <br/>
<a id="pl.281.12"></a><var>281.12</var>federal government for service in the military, as computed under United States Code,
         title <br/>
<a id="pl.281.13"></a><var>281.13</var>10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction
         must <br/>
<a id="pl.281.14"></a><var>281.14</var>not include any amount used to claim the credit allowed under section 
<statute_ref>290.0677</statute_ref> is limited <br/>
<a id="pl.281.15"></a><var>281.15</var>to individuals who do not claim the credit under section 290.0677.<br/>
<a id="pl.281.16"></a><var>281.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years beginning <br/>
<a id="pl.281.17"></a><var>281.17</var>after December 31, 2015.<br/>
<br/>
<a id="bill.16.2.0"></a><a id="pl.281.18"></a><var>281.18</var>    Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:<br/>
<a id="pl.281.19"></a><var>281.19</var>    Subd. 3. <b>Income.</b> (a) "Income" means the sum of the following:<br/>
<a id="pl.281.20"></a><var>281.20</var>    (1) federal adjusted gross income as defined in the Internal Revenue Code; and<br/>
<a id="pl.281.21"></a><var>281.21</var>    (2) the sum of the following amounts to the extent not included in clause (1):<br/>
<a id="pl.281.22"></a><var>281.22</var>    (i) all nontaxable income;<br/>
<a id="pl.281.23"></a><var>281.23</var>    (ii) the amount of a passive activity loss that is not disallowed as a result of section
         469, <br/>
<a id="pl.281.24"></a><var>281.24</var>paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
         loss <br/>
<a id="pl.281.25"></a><var>281.25</var>carryover allowed under section 469(b) of the Internal Revenue Code;<br/>
<a id="pl.281.26"></a><var>281.26</var>    (iii) an amount equal to the total of any discharge of qualified farm indebtedness
         of a <br/>
<a id="pl.281.27"></a><var>281.27</var>solvent individual excluded from gross income under section 108(g) of the Internal
         Revenue <br/>
<a id="pl.281.28"></a><var>281.28</var>Code;<br/>
<a id="pl.281.29"></a><var>281.29</var>    (iv) cash public assistance and relief;<br/>
<a id="pl.281.30"></a><var>281.30</var>    (v) any pension or annuity (including railroad retirement benefits, all payments received
         <br/>
<a id="pl.281.31"></a><var>281.31</var>under the federal Social Security Act, Supplemental Security Income, and veterans
         benefits), <br/>
<a id="pl.282.1"></a><var>282.1</var>which was not exclusively funded by the claimant or spouse, or which was funded exclusively
         <br/>
<a id="pl.282.2"></a><var>282.2</var>by the claimant or spouse and which funding payments were excluded from federal adjusted
         <br/>
<a id="pl.282.3"></a><var>282.3</var>gross income in the years when the payments were made;<br/>
<a id="pl.282.4"></a><var>282.4</var>    (vi) interest received from the federal or a state government or any instrumentality
         or <br/>
<a id="pl.282.5"></a><var>282.5</var>political subdivision thereof;<br/>
<a id="pl.282.6"></a><var>282.6</var>    (vii) workers' compensation;<br/>
<a id="pl.282.7"></a><var>282.7</var>    (viii) nontaxable strike benefits;<br/>
<a id="pl.282.8"></a><var>282.8</var>    (ix) the gross amounts of payments received in the nature of disability income or
         sick <br/>
<a id="pl.282.9"></a><var>282.9</var>pay as a result of accident, sickness, or other disability, whether funded through
         insurance <br/>
<a id="pl.282.10"></a><var>282.10</var>or otherwise;<br/>
<a id="pl.282.11"></a><var>282.11</var>    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
         <br/>
<a id="pl.282.12"></a><var>282.12</var>1986, as amended through December 31, 1995;<br/>
<a id="pl.282.13"></a><var>282.13</var>    (xi) contributions made by the claimant to an individual retirement account, including
         <br/>
<a id="pl.282.14"></a><var>282.14</var>a qualified voluntary employee contribution; simplified employee pension plan; <br/>
<a id="pl.282.15"></a><var>282.15</var>self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
         of <br/>
<a id="pl.282.16"></a><var>282.16</var>the Internal Revenue Code; or deferred compensation plan under section 457 of the
         Internal <br/>
<a id="pl.282.17"></a><var>282.17</var>Revenue Code, to the extent the sum of amounts exceeds the retirement base amount
         for <br/>
<a id="pl.282.18"></a><var>282.18</var>the claimant and spouse;<br/>
<a id="pl.282.19"></a><var>282.19</var>    (xii) to the extent not included in federal adjusted gross income, distributions received
         <br/>
<a id="pl.282.20"></a><var>282.20</var>by the claimant or spouse from a traditional or Roth style retirement account or plan;<br/>
<a id="pl.282.21"></a><var>282.21</var>    (xiii) nontaxable scholarship or fellowship grants;<br/>
<a id="pl.282.22"></a><var>282.22</var>    (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;<br/>
<a id="pl.282.23"></a><var>282.23</var>    (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
         <br/>
<a id="pl.282.24"></a><var>282.24</var>Code;<br/>
<a id="pl.282.25"></a><var>282.25</var>    (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
         <br/>
<a id="pl.282.26"></a><var>282.26</var>Code; and<br/>
<a id="pl.282.27"></a><var>282.27</var>    (xvii) the amount deducted for certain expenses of elementary and secondary school
         <br/>
<a id="pl.282.28"></a><var>282.28</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code.<br/>
<a id="pl.282.29"></a><var>282.29</var>    In the case of an individual who files an income tax return on a fiscal year basis,
         the <br/>
<a id="pl.282.30"></a><var>282.30</var>term "federal adjusted gross income" shall mean federal adjusted gross income reflected
         in <br/>
<a id="pl.282.31"></a><var>282.31</var>the fiscal year ending in the calendar year. Federal adjusted gross income shall not
         be reduced <br/>
<a id="pl.283.1"></a><var>283.1</var>by the amount of a net operating loss carryback or carryforward or a capital loss
         carryback <br/>
<a id="pl.283.2"></a><var>283.2</var>or carryforward allowed for the year.<br/>
<a id="pl.283.3"></a><var>283.3</var>    (b) "Income" does not include:<br/>
<a id="pl.283.4"></a><var>283.4</var>    (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;<br/>
<a id="pl.283.5"></a><var>283.5</var>    (2) amounts of any pension or annuity which was exclusively funded by the claimant
         <br/>
<a id="pl.283.6"></a><var>283.6</var>or spouse and which funding payments were not excluded from federal adjusted gross
         <br/>
<a id="pl.283.7"></a><var>283.7</var>income in the years when the payments were made;<br/>
<a id="pl.283.8"></a><var>283.8</var>    (3) to the extent included in federal adjusted gross income, amounts contributed by
         the <br/>
<a id="pl.283.9"></a><var>283.9</var>claimant or spouse to a traditional or Roth style retirement account or plan, but
         not to exceed <br/>
<a id="pl.283.10"></a><var>283.10</var>the retirement base amount reduced by the amount of contributions excluded from federal
         <br/>
<a id="pl.283.11"></a><var>283.11</var>adjusted gross income, but not less than zero;<br/>
<a id="pl.283.12"></a><var>283.12</var>    (4) surplus food or other relief in kind supplied by a governmental agency;<br/>
<a id="pl.283.13"></a><var>283.13</var>    (5) relief granted under this chapter;<br/>
<a id="pl.283.14"></a><var>283.14</var>    (6) child support payments received under a temporary or final decree of dissolution
         or <br/>
<a id="pl.283.15"></a><var>283.15</var>legal separation; or<br/>
<a id="pl.283.16"></a><var>283.16</var>    (7) restitution payments received by eligible individuals and excludable interest
         as <br/>
<a id="pl.283.17"></a><var>283.17</var>defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
         2001, <br/>
<a id="pl.283.18"></a><var>283.18</var>Public Law 107-16.<br/>
<a id="pl.283.19"></a><var>283.19</var>    (c) The sum of the following amounts may be subtracted from income:<br/>
<a id="pl.283.20"></a><var>283.20</var>    (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;<br/>
<a id="pl.283.21"></a><var>283.21</var>    (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;<br/>
<a id="pl.283.22"></a><var>283.22</var>    (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;<br/>
<a id="pl.283.23"></a><var>283.23</var>    (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;<br/>
<a id="pl.283.24"></a><var>283.24</var>    (5) for the claimant's fifth dependent, the exemption amount; and<br/>
<a id="pl.283.25"></a><var>283.25</var>    (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on
         or <br/>
<a id="pl.283.26"></a><var>283.26</var>before December 31 of the year for which the taxes were levied or rent paid, the exemption
         <br/>
<a id="pl.283.27"></a><var>283.27</var>amount.<br/>
<a id="pl.283.28"></a><var>283.28</var>    (d) For purposes of this subdivision, the "exemption amount" means the exemption <br/>
<a id="pl.283.29"></a><var>283.29</var>amount under section 151(d) of the Internal Revenue Code for the taxable year for
         which <br/>
<a id="pl.283.30"></a><var>283.30</var>the income is reported; "retirement base amount" means the deductible amount for the
         <br/>
<a id="pl.283.31"></a><var>283.31</var>taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
         Revenue <br/>
<a id="pl.284.1"></a><var>284.1</var>Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue <br/>
<a id="pl.284.2"></a><var>284.2</var>Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
         <br/>
<a id="pl.284.3"></a><var>284.3</var>or Roth style retirement account or plan" means retirement plans under sections 401,
         403, <br/>
<a id="pl.284.4"></a><var>284.4</var>408, 408A, and 457 of the Internal Revenue Code.<br/>
<a id="pl.284.5"></a><var>284.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.3.0"></a><a id="pl.284.6"></a><var>284.6</var>    Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:<br/>
<a id="pl.284.7"></a><var>284.7</var><b>290A.10 PROOF OF TAXES PAID.</b><br/>
<a id="pl.284.8"></a><var>284.8</var>Every If requested by the commissioner of revenue, a claimant who files a claim for <br/>
<a id="pl.284.9"></a><var>284.9</var>relief for property taxes payable shall include with the claim provide a property tax statement <br/>
<a id="pl.284.10"></a><var>284.10</var>or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue
         <br/>
<a id="pl.284.11"></a><var>284.11</var>indicating that there are no delinquent property taxes on the homestead. Indication
         on the <br/>
<a id="pl.284.12"></a><var>284.12</var>property tax statement from the county treasurer that there are no delinquent taxes
         on the <br/>
<a id="pl.284.13"></a><var>284.13</var>homestead shall be sufficient proof. Taxes included in a confession of judgment under
         <br/>
<a id="pl.284.14"></a><var>284.14</var>section 
         <statute_ref>277.23</statute_ref> or 
         <statute_ref>279.37</statute_ref> shall not constitute delinquent taxes as long as the claimant is <br/>
<a id="pl.284.15"></a><var>284.15</var>current on the payments required to be made under section 
         <statute_ref>277.23</statute_ref> or 
         <statute_ref>279.37</statute_ref>.<br/>
<a id="pl.284.16"></a><var>284.16</var><b>EFFECTIVE DATE.</b>This section is effective for refunds based on rent paid after <br/>
<a id="pl.284.17"></a><var>284.17</var>December 31, 2015, and property taxes payable after December 31, 2016.<br/>
<br/>
<a id="bill.16.4.0"></a><a id="pl.284.18"></a><var>284.18</var>    Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:<br/>
<a id="pl.284.19"></a><var>284.19</var><b>291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.</b><br/>
<a id="pl.284.20"></a><var>284.20</var>If, after the final determination of the tax imposed by this chapter, the property
         valued <br/>
<a id="pl.284.21"></a><var>284.21</var>pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to
         qualify <br/>
<a id="pl.284.22"></a><var>284.22</var>and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit <br/>
<a id="pl.284.23"></a><var>284.23</var>for state death taxes federal gross or taxable estate shall be reported to the commissioner <br/>
<a id="pl.284.24"></a><var>284.24</var>within 90 days after final determination of the increased credit of the federal adjustment. <br/>
<a id="pl.284.25"></a><var>284.25</var>Upon notification the commissioner may assess an additional tax in accordance with
         section <br/>
<statute_ref><a id="pl.284.26"></a><var>284.26</var>291.03, subdivision 1
         </statute_ref>.<br/>
<a id="pl.284.27"></a><var>284.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.5.0"></a><a id="pl.284.28"></a><var>284.28</var>    Sec. 5. <b> REPEALER.</b><br/>
<a id="pl.284.29"></a><var>284.29</var>Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.<br/>
<a id="pl.284.30"></a><var>284.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.0.0"></a>

<a id="pl.285.3"></a><var>285.3</var><b>USE, AND SPECIAL TAXES</b><br/>

<a id="bill.17.1.0"></a><a id="pl.285.4"></a><var>285.4</var>    Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:<br/>
<a id="pl.285.5"></a><var>285.5</var>    Subd. 10. <b>Proof of sales tax payment</b><b>; collection and refund</b><b>.</b> (a) A person applying <br/>
<a id="pl.285.6"></a><var>285.6</var>for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, <br/>
<a id="pl.285.7"></a><var>285.7</var>showing a complete description of the snowmobile, the seller's name and address, the
         full <br/>
<a id="pl.285.8"></a><var>285.8</var>purchase price of the snowmobile, and the trade-in allowance, if any. The certificate
         must <br/>
<a id="pl.285.9"></a><var>285.9</var>include information showing either receipt, invoice, or other document to prove that:<br/>
<a id="pl.285.10"></a><var>285.10</var>(1) that the sales and use tax under chapter 297A was paid or;<br/>
<a id="pl.285.11"></a><var>285.11</var>(2) the purchase was exempt from tax under chapter 297A. The commissioner of public <br/>
<a id="pl.285.12"></a><var>285.12</var>safety, in consultation with the commissioner and the commissioner of revenue, shall
         <br/>
<a id="pl.285.13"></a><var>285.13</var>prescribe the form of the certificate.The certificate is not required if the applicant
         provides <br/>
<a id="pl.285.14"></a><var>285.14</var>a receipt, invoice, or other document that shows; or<br/>
<a id="pl.285.15"></a><var>285.15</var>(3) the snowmobile was purchased from a retailer that is maintaining a place of business <br/>
<a id="pl.285.16"></a><var>285.16</var>in this state as defined in section 
         <statute_ref>297A.66, subdivision 1</statute_ref>, and is a dealer.<br/>
<a id="pl.285.17"></a><var>285.17</var>(b) The commissioner or authorized deputy registrars, acting as agents of the <br/>
<a id="pl.285.18"></a><var>285.18</var>commissioner of revenue under an agreement between the commissioner and the <br/>
<a id="pl.285.19"></a><var>285.19</var>commissioner of revenue, as provided in section 297A.825:<br/>
<a id="pl.285.20"></a><var>285.20</var>(1) must collect use tax from the applicant if the applicant does not provide the
         proof <br/>
<a id="pl.285.21"></a><var>285.21</var>required under paragraph (a); and<br/>
<a id="pl.285.22"></a><var>285.22</var>(2) are authorized to issue refunds of use tax paid to them in error.<br/>
<a id="pl.285.23"></a><var>285.23</var>(c) Subdivision 11 does not apply to refunds under this subdivision.<br/>
<a id="pl.285.24"></a><var>285.24</var><b>EFFECTIVE DATE.</b>This section is effective for snowmobiles registered after June <br/>
<a id="pl.285.25"></a><var>285.25</var>30, 2017.<br/>
<br/>
<a id="bill.17.2.0"></a><a id="pl.285.26"></a><var>285.26</var>    Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:<br/>
<a id="pl.285.27"></a><var>285.27</var>    Subd. 11. <b>Proof of sales tax payment</b><b>; collection and refund</b><b>.</b> (a) A person applying <br/>
<a id="pl.285.28"></a><var>285.28</var>for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's <br/>
<a id="pl.285.29"></a><var>285.29</var>certificate showing a complete description of the all-terrain vehicle, the seller's
         name and <br/>
<a id="pl.285.30"></a><var>285.30</var>address, the full purchase price of the all-terrain vehicle, and the trade-in allowance,
         if any. <br/>
<a id="pl.286.1"></a><var>286.1</var>The certificate also must include information showing either receipt, invoice, or other <br/>
<a id="pl.286.2"></a><var>286.2</var>document to prove that:<br/>
<a id="pl.286.3"></a><var>286.3</var>(1) the sales and use tax under chapter 297A was paid, or;<br/>
<a id="pl.286.4"></a><var>286.4</var>(2) the purchase was exempt from tax under chapter 297A. The certificate is not required <br/>
<a id="pl.286.5"></a><var>286.5</var>if the applicant provides a receipt, invoice, or other document that shows; or<br/>
<a id="pl.286.6"></a><var>286.6</var>(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of <br/>
<a id="pl.286.7"></a><var>286.7</var>business in this state as defined in section 
         <statute_ref>297A.66, subdivision 1</statute_ref>, and is a dealer.<br/>
<a id="pl.286.8"></a><var>286.8</var>(b) The commissioner or authorized deputy registrars, acting as agents of the <br/>
<a id="pl.286.9"></a><var>286.9</var>commissioner of revenue under an agreement between the commissioner and the <br/>
<a id="pl.286.10"></a><var>286.10</var>commissioner of revenue, as provided in section 297A.825:<br/>
<a id="pl.286.11"></a><var>286.11</var>(1) must collect use tax from the applicant if the applicant does not provide the
         proof <br/>
<a id="pl.286.12"></a><var>286.12</var>required under paragraph (a); and<br/>
<a id="pl.286.13"></a><var>286.13</var>(2) are authorized to issue refunds of use tax paid to them in error.<br/>
<a id="pl.286.14"></a><var>286.14</var>(c) Subdivision 12 does not apply to refunds under this subdivision.<br/>
<a id="pl.286.15"></a><var>286.15</var><b>EFFECTIVE DATE.</b>This section is effective for all-terrain vehicles registered after <br/>
<a id="pl.286.16"></a><var>286.16</var>June 30, 2017.<br/>
<br/>
<a id="bill.17.3.0"></a><a id="pl.286.17"></a><var>286.17</var>    Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:<br/>
<a id="pl.286.18"></a><var>286.18</var>    Subd. 12. <b>Proof of sales tax payment</b><b>; collection and refund</b><b>.</b> (a) A person applying <br/>
<a id="pl.286.19"></a><var>286.19</var>for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing <br/>
<a id="pl.286.20"></a><var>286.20</var>a complete description of the watercraft, the seller's name and address, the full
         purchase <br/>
<a id="pl.286.21"></a><var>286.21</var>price of the watercraft, and the trade-in allowance, if any. The certificate must
         include <br/>
<a id="pl.286.22"></a><var>286.22</var>information showing either receipt, invoice, or other document to prove that:<br/>
<a id="pl.286.23"></a><var>286.23</var>(1) that the sales and use tax under chapter 297A was paid or;<br/>
<a id="pl.286.24"></a><var>286.24</var>(2) the purchase was exempt from tax under chapter 297A. The commissioner of public <br/>
<a id="pl.286.25"></a><var>286.25</var>safety, in consultation with the commissioner and the commissioner of revenue, shall
         <br/>
<a id="pl.286.26"></a><var>286.26</var>prescribe the form of the certificate.The certificate is not required if the applicant
         provides <br/>
<a id="pl.286.27"></a><var>286.27</var>a receipt, invoice, or other document that shows; or<br/>
<a id="pl.286.28"></a><var>286.28</var>(3) the watercraft was purchased from a retailer that is maintaining a place of business <br/>
<a id="pl.286.29"></a><var>286.29</var>in this state as defined in section 
         <statute_ref>297A.66, subdivision 1</statute_ref>, and is a dealer.<br/>
<a id="pl.287.1"></a><var>287.1</var>(b) The commissioner or authorized deputy registrars, acting as agents of the <br/>
<a id="pl.287.2"></a><var>287.2</var>commissioner of revenue under an agreement between the commissioner and the <br/>
<a id="pl.287.3"></a><var>287.3</var>commissioner of revenue, as provided in section 297A.825:<br/>
<a id="pl.287.4"></a><var>287.4</var>(1) must collect use tax from the applicant if the applicant does not provide the
         proof <br/>
<a id="pl.287.5"></a><var>287.5</var>required under paragraph (a); and<br/>
<a id="pl.287.6"></a><var>287.6</var>(2) are authorized to issue refunds of use tax paid to them in error.<br/>
<a id="pl.287.7"></a><var>287.7</var>(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.<br/>
<a id="pl.287.8"></a><var>287.8</var><b>EFFECTIVE DATE.</b>This section is effective for watercraft licensed after June 30, <br/>
<a id="pl.287.9"></a><var>287.9</var>2017.<br/>
<br/>
<a id="bill.17.4.0"></a><a id="pl.287.10"></a><var>287.10</var>    Sec. 4. Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read:<br/>
<a id="pl.287.11"></a><var>287.11</var>    Subdivision 1. <b>Registration fee.</b> (a) Each manufacturer who registers under section <br/>
<statute_ref><a id="pl.287.12"></a><var>287.12</var>115A.1312
         </statute_ref> must, by August 15 each year, pay to the commissioner of revenue an annual <br/>
<a id="pl.287.13"></a><var>287.13</var>registration fee, on a form and in a manner prescribed by the commissioner of revenue.
         The <br/>
<a id="pl.287.14"></a><var>287.14</var>commissioner of revenue must deposit the fee in the state treasury and credit the
         fee to the <br/>
<a id="pl.287.15"></a><var>287.15</var>environmental fund.<br/>
<a id="pl.287.16"></a><var>287.16</var>    (b) The registration fee for manufacturers that sell 100 or more video display devices
         <br/>
<a id="pl.287.17"></a><var>287.17</var>to households in the state during the previous calendar year is $2,500, plus a variable
         <br/>
<a id="pl.287.18"></a><var>287.18</var>recycling fee. The registration fee for manufacturers that sell fewer than 100 video display <br/>
<a id="pl.287.19"></a><var>287.19</var>devices to households in the state during the previous calendar year is a variable
         recycling <br/>
<a id="pl.287.20"></a><var>287.20</var>fee. The variable recycling fee is calculated according to the formula:<br/>
<a id="pl.287.21"></a><var>287.21</var>    [A - (B + C)] x D, where:<br/>
<a id="pl.287.22"></a><var>287.22</var>    A = the manufacturer's recycling obligation as determined under section 
         <statute_ref>115A.1320</statute_ref>;<br/>
<a id="pl.287.23"></a><var>287.23</var>    B = the number of pounds of covered electronic devices recycled by a manufacturer
         <br/>
<a id="pl.287.24"></a><var>287.24</var>from households during the immediately preceding program year, as reported under section
         <br/>
<statute_ref><a id="pl.287.25"></a><var>287.25</var>115A.1316, subdivision 1
         </statute_ref>;<br/>
<a id="pl.287.26"></a><var>287.26</var>    C = the number of phase I or phase II recycling credits a manufacturer elects to use
         to <br/>
<a id="pl.287.27"></a><var>287.27</var>calculate the variable recycling fee; and<br/>
<a id="pl.287.28"></a><var>287.28</var>    D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
         <br/>
<a id="pl.287.29"></a><var>287.29</var>manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation;
         <br/>
<a id="pl.287.30"></a><var>287.30</var>$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90
         percent <br/>
<a id="pl.287.31"></a><var>287.31</var>of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who
         recycle <br/>
<a id="pl.287.32"></a><var>287.32</var>at least 90 percent but less than 100 percent of the manufacturer's recycling obligation;
         and <br/>
<a id="pl.288.1"></a><var>288.1</var>$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's
         <br/>
<a id="pl.288.2"></a><var>288.2</var>recycling obligation.<br/>
<a id="pl.288.3"></a><var>288.3</var>    (c) A manufacturer may petition the agency to waive the per-pound cost of recycling
         <br/>
<a id="pl.288.4"></a><var>288.4</var>fee, element D in the formula in paragraph (b), required under this section. The agency
         shall <br/>
<a id="pl.288.5"></a><var>288.5</var>direct the commissioner of revenue to waive the per-pound cost of recycling fee if
         the <br/>
<a id="pl.288.6"></a><var>288.6</var>manufacturer demonstrates to the agency's satisfaction a good faith effort to meet
         its recycling <br/>
<a id="pl.288.7"></a><var>288.7</var>obligation as determined under section 
         <statute_ref>115A.1320</statute_ref>. The petition must include:<br/>
<a id="pl.288.8"></a><var>288.8</var>    (1) documentation that the manufacturer has met at least 75 percent of its recycling
         <br/>
<a id="pl.288.9"></a><var>288.9</var>obligation as determined under section 
         <statute_ref>115A.1320</statute_ref>;<br/>
<a id="pl.288.10"></a><var>288.10</var>    (2) a list of political subdivisions and public and private collectors with whom the
         <br/>
<a id="pl.288.11"></a><var>288.11</var>manufacturer had a formal contract or agreement in effect during the previous program
         year <br/>
<a id="pl.288.12"></a><var>288.12</var>to recycle or collect covered electronic devices;<br/>
<a id="pl.288.13"></a><var>288.13</var>    (3) the total amounts of covered electronic devices collected from both within and
         outside <br/>
<a id="pl.288.14"></a><var>288.14</var>of the 11-county metropolitan area, as defined in subdivision 2;<br/>
<a id="pl.288.15"></a><var>288.15</var>    (4) a description of the manufacturer's best efforts to meet its recycling obligation
         as <br/>
<a id="pl.288.16"></a><var>288.16</var>determined under section 
         <statute_ref>115A.1320</statute_ref>; and<br/>
<a id="pl.288.17"></a><var>288.17</var>    (5) any other information requested by the agency.<br/>
<a id="pl.288.18"></a><var>288.18</var>    (d) A manufacturer may retain phase I and phase II recycling credits to be added,
         in <br/>
<a id="pl.288.19"></a><var>288.19</var>whole or in part, to the actual value of C, as reported under section 
         <statute_ref>115A.1316, subdivision <br/>
<a id="pl.288.20"></a><var>288.20</var>2
         </statute_ref>, during any succeeding program year, provided that no more than 25 percent of a <br/>
<a id="pl.288.21"></a><var>288.21</var>manufacturer's recycling obligation (A x B) for any program year may be met with phase
         <br/>
<a id="pl.288.22"></a><var>288.22</var>I and phase II recycling credits, separately or in combination, generated in a prior
         program <br/>
<a id="pl.288.23"></a><var>288.23</var>year. A manufacturer may sell any portion or all of its phase I and phase II recycling
         credits <br/>
<a id="pl.288.24"></a><var>288.24</var>to another manufacturer, at a price negotiated by the parties, who may use the credits
         in the <br/>
<a id="pl.288.25"></a><var>288.25</var>same manner.<br/>
<a id="pl.288.26"></a><var>288.26</var>    (e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph
         <br/>
<a id="pl.288.27"></a><var>288.27</var>(b), starting with the program year beginning July 1, 2019, and continuing each year
         <br/>
<a id="pl.288.28"></a><var>288.28</var>thereafter, the weight of covered electronic devices collected from households located
         <br/>
<a id="pl.288.29"></a><var>288.29</var>outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b),
         is <br/>
<a id="pl.288.30"></a><var>288.30</var>calculated at 1.5 times their actual weight.<br/>
<a id="pl.288.31"></a><var>288.31</var><b>EFFECTIVE DATE.</b>This section is effective for registration fees due after June 30, <br/>
<a id="pl.288.32"></a><var>288.32</var>2017.<br/>
<br/>
<a id="bill.17.5.0"></a><a id="pl.289.1"></a><var>289.1</var>    Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to <br/>
<a id="pl.289.2"></a><var>289.2</var>read:<br/>
<a id="pl.289.3"></a><var>289.3</var>    Subd. 20. <b>Department of Natural Resources; authorized deputy registrars of motor </b><br/>
<a id="pl.289.4"></a><var>289.4</var><b>vehicles.</b> The commissioner may disclose return information related to the taxes imposed <br/>
<a id="pl.289.5"></a><var>289.5</var>by chapter 297A to the Department of Natural Resources or an authorized deputy registrar
         <br/>
<a id="pl.289.6"></a><var>289.6</var>of motor vehicles only:<br/>
<a id="pl.289.7"></a><var>289.7</var>(1) if the commissioner has an agreement with the commissioner of natural resources
         <br/>
<a id="pl.289.8"></a><var>289.8</var>under section 297A.825, subdivision 1; and<br/>
<a id="pl.289.9"></a><var>289.9</var>(2) to the extent necessary for the Department of Natural Resources or an authorized
         <br/>
<a id="pl.289.10"></a><var>289.10</var>deputy registrar of motor vehicles, as agents for the commissioner, to verify that
         the <br/>
<a id="pl.289.11"></a><var>289.11</var>applicable sales or use tax has been paid or that a sales tax exemption applies on
         the purchase <br/>
<a id="pl.289.12"></a><var>289.12</var>of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82,
         <br/>
<a id="pl.289.13"></a><var>289.13</var>subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding
         <br/>
<a id="pl.289.14"></a><var>289.14</var>either their collection of use tax or their issuance of refunds to applicants of use
         tax paid to <br/>
<a id="pl.289.15"></a><var>289.15</var>them in error.<br/>
<a id="pl.289.16"></a><var>289.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.6.0"></a><a id="pl.289.17"></a><var>289.17</var>    Sec. 6. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:<br/>
<a id="pl.289.18"></a><var>289.18</var>    Subdivision 1. <b>Definitions.</b> (a) If a special law grants a local government unit or group <br/>
<a id="pl.289.19"></a><var>289.19</var>of units the authority to impose a local tax other than sales tax, including but not
         limited to <br/>
<a id="pl.289.20"></a><var>289.20</var>taxes such as lodging, entertainment, admissions, or food and beverage taxes, and
         the <br/>
<a id="pl.289.21"></a><var>289.21</var>Department of Revenue either has agreed to or is required to administer the tax, such
         that <br/>
<a id="pl.289.22"></a><var>289.22</var>the tax is reported and paid with the chapter 297A taxes, then the local government unit or <br/>
<a id="pl.289.23"></a><var>289.23</var>group of units must adopt each definition term used in the special law is defined as follows:<br/>
<a id="pl.289.24"></a><var>289.24</var>(1) the definition must be identical to the definition found as defined in chapter 297A <br/>
<a id="pl.289.25"></a><var>289.25</var>or in Minnesota Rules, chapter 8130; or<br/>
<a id="pl.289.26"></a><var>289.26</var>(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
         <br/>
<a id="pl.289.27"></a><var>289.27</var>chapter 8130, then the definition must be defined consistent with the position of the <br/>
<a id="pl.289.28"></a><var>289.28</var>Department of Revenue as to the extent of the tax base.<br/>
<a id="pl.289.29"></a><var>289.29</var>(b) This subdivision does not apply to terms that are defined by the authorizing special
         <br/>
<a id="pl.289.30"></a><var>289.30</var>law.<br/>
<a id="pl.289.31"></a><var>289.31</var>(c) This subdivision applies notwithstanding whether a local government unit or group
         <br/>
<a id="pl.289.32"></a><var>289.32</var>of units adopts consistent definitions into local law.<br/>
<a id="pl.290.1"></a><var>290.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.7.0"></a><a id="pl.290.2"></a><var>290.2</var>    Sec. 7. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:<br/>
<a id="pl.290.3"></a><var>290.3</var>    Subd. 2a. <b>Refund of sales tax to purchasers.</b> (a) If a vendor has collected from a <br/>
<a id="pl.290.4"></a><var>290.4</var>purchaser a tax on a transaction that is not subject to the tax imposed by chapter
         297A, the <br/>
<a id="pl.290.5"></a><var>290.5</var>purchaser may apply directly to the commissioner for a refund under this section if:<br/>
<a id="pl.290.6"></a><var>290.6</var>(1) the purchaser is currently registered or was registered during the period of the
         claim, <br/>
<a id="pl.290.7"></a><var>290.7</var>to collect and remit the sales tax or to remit the use tax; and<br/>
<a id="pl.290.8"></a><var>290.8</var>(2) either<br/>
<a id="pl.290.9"></a><var>290.9</var>(i) the amount of the refund to be applied for exceeds $500, or<br/>
<a id="pl.290.10"></a><var>290.10</var>(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
         <br/>
<a id="pl.290.11"></a><var>290.11</var>also applies for a capital equipment claim at the same time, and the total of the
         two refunds <br/>
<a id="pl.290.12"></a><var>290.12</var>exceeds $500.<br/>
<a id="pl.290.13"></a><var>290.13</var>(b) The purchaser may not file more than two applications for refund under this <br/>
<a id="pl.290.14"></a><var>290.14</var>subdivision in a calendar year.<br/>
<a id="pl.290.15"></a><var>290.15</var>(c) Refunds shall not be issued for sales for resale where the vendor has a published
         no <br/>
<a id="pl.290.16"></a><var>290.16</var>resale policy.<br/>
<a id="pl.290.17"></a><var>290.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.8.0"></a><a id="pl.290.18"></a><var>290.18</var>    Sec. 8. <b>[297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; </b><br/>
<a id="pl.290.19"></a><var>290.19</var><b>PAYMENT OF TAXES; REFUNDS.</b><br/>
<a id="pl.290.20"></a><var>290.20</var>    Subdivision 1. <b>Agreement with commissioners of natural resources and public </b><br/>
<a id="pl.290.21"></a><var>290.21</var><b>safety; collection and refunds.</b> The commissioner may enter into an agreement with the <br/>
<a id="pl.290.22"></a><var>290.22</var>commissioner of natural resources, in consultation with the commissioner of public
         safety, <br/>
<a id="pl.290.23"></a><var>290.23</var>that provides that:<br/>
<a id="pl.290.24"></a><var>290.24</var>(1) the commissioner of natural resources and authorized deputy registrars of motor
         <br/>
<a id="pl.290.25"></a><var>290.25</var>vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft
         from <br/>
<a id="pl.290.26"></a><var>290.26</var>persons applying for initial registration or license of the item unless the applicant
         provides <br/>
<a id="pl.290.27"></a><var>290.27</var>a receipt, invoice, or other document to prove that:<br/>
<a id="pl.290.28"></a><var>290.28</var>(i) sales tax was paid on the purchase;<br/>
<a id="pl.290.29"></a><var>290.29</var>(ii) the purchase was exempt under this chapter;<br/>
<a id="pl.290.30"></a><var>290.30</var>(iii) use tax was paid to the commissioner in a form prescribed by the commissioner;
         or<br/>
<a id="pl.291.1"></a><var>291.1</var>(iv) the item was purchased from a retailer that is maintaining a place of business
         in this <br/>
<a id="pl.291.2"></a><var>291.2</var>state as defined in section 297A.66, subdivision 1, and is a dealer as defined in
         section <br/>
<a id="pl.291.3"></a><var>291.3</var>84.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and<br/>
<a id="pl.291.4"></a><var>291.4</var>(2) the commissioner of natural resources and authorized deputy registrars of motor
         <br/>
<a id="pl.291.5"></a><var>291.5</var>vehicles are authorized to issue refunds of use tax paid to them in error, meaning
         that either <br/>
<a id="pl.291.6"></a><var>291.6</var>the sales or use tax had already been paid or that the purchase was exempt from tax
         under <br/>
<a id="pl.291.7"></a><var>291.7</var>this chapter.<br/>
<a id="pl.291.8"></a><var>291.8</var>    Subd. 2. <b>Agents.</b> For the purposes of collecting or refunding the tax under this section, <br/>
<a id="pl.291.9"></a><var>291.9</var>the commissioner of natural resources and authorized deputy registrars of motor vehicles
         <br/>
<a id="pl.291.10"></a><var>291.10</var>are the agents of the commissioner and are subject to, and must strictly comply with,
         all <br/>
<a id="pl.291.11"></a><var>291.11</var>rules consistent with this chapter prescribed by the commissioner.<br/>
<a id="pl.291.12"></a><var>291.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.9.0"></a><a id="pl.291.13"></a><var>291.13</var>    Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:<br/>
<a id="pl.291.14"></a><var>291.14</var>    Subd. 7. <b>Surcharge.</b> (a) By April 30 of each year, every company required to pay the <br/>
<a id="pl.291.15"></a><var>291.15</var>surcharge under section 
<statute_ref>297I.10, subdivision 1</statute_ref>, shall file a return for the five-month period <br/>
<a id="pl.291.16"></a><var>291.16</var>ending March 31 in the form prescribed by the commissioner.<br/>
<a id="pl.291.17"></a><var>291.17</var>(b) (a) By June 30 of each year, every company required to pay the surcharge under <br/>
<a id="pl.291.18"></a><var>291.18</var>section 
         <statute_ref>297I.10, subdivision 1</statute_ref>, shall file a return for the two-month seven-month period <br/>
<a id="pl.291.19"></a><var>291.19</var>ending May 31 in the form prescribed by the commissioner.<br/>
<a id="pl.291.20"></a><var>291.20</var>(c) (b) By November 30 of each year, every company required to pay the surcharge <br/>
<a id="pl.291.21"></a><var>291.21</var>under section 
         <statute_ref>297I.10, subdivision 1</statute_ref>, shall file a return for the five-month period ending <br/>
<a id="pl.291.22"></a><var>291.22</var>October 31 in the form prescribed by the commissioner.<br/>
<a id="pl.291.23"></a><var>291.23</var><b>EFFECTIVE DATE.</b>This section is effective for returns due after October 31, 2017.<br/>
<br/>
<a id="bill.17.10.0"></a><a id="pl.291.24"></a><var>291.24</var>    Sec. 10. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:<br/>
<a id="pl.291.25"></a><var>291.25</var>    Subd. 3. <b>Occupation tax; other ores.</b>  Every person engaged in the business of mining, <br/>
<a id="pl.291.26"></a><var>291.26</var>refining, or producing ores, metals, or minerals in this state, except iron ore or
         taconite <br/>
<a id="pl.291.27"></a><var>291.27</var>concentrates, shall pay an occupation tax to the state of Minnesota as provided in
         this <br/>
<a id="pl.291.28"></a><var>291.28</var>subdivision. For purposes of this subdivision, mining includes the application of
         <br/>
<a id="pl.291.29"></a><var>291.29</var>hydrometallurgical processes. Hydrometallurgical processes are processes that extract
         the <br/>
<a id="pl.291.30"></a><var>291.30</var>ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
         recover <br/>
<a id="pl.291.31"></a><var>291.31</var>the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed
         by <br/>
<a id="pl.291.32"></a><var>291.32</var>section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, subdivision 1</statute_ref>, clause (a), 
         <statute_ref>290.17, subdivision <br/>
<a id="pl.292.1"></a><var>292.1</var>4
         </statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, and the occupation tax must be computed by <br/>
<a id="pl.292.2"></a><var>292.2</var>applying to taxable income the rate of 2.45 percent. A person subject to occupation tax <br/>
<a id="pl.292.3"></a><var>292.3</var>under this section shall apportion its net income on the basis of the percentage obtained
         by <br/>
<a id="pl.292.4"></a><var>292.4</var>taking the sum of:<br/>
<a id="pl.292.5"></a><var>292.5</var>    (1) 75 percent of the percentage which the sales made within this state in connection
         <br/>
<a id="pl.292.6"></a><var>292.6</var>with the trade or business during the tax period are of the total sales wherever made
         in <br/>
<a id="pl.292.7"></a><var>292.7</var>connection with the trade or business during the tax period;<br/>
<a id="pl.292.8"></a><var>292.8</var>    (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
         <br/>
<a id="pl.292.9"></a><var>292.9</var>in this state in connection with the trade or business during the tax period is of
         the total <br/>
<a id="pl.292.10"></a><var>292.10</var>tangible property, wherever located, used by the taxpayer in connection with the trade
         or <br/>
<a id="pl.292.11"></a><var>292.11</var>business during the tax period; and<br/>
<a id="pl.292.12"></a><var>292.12</var>    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
         <br/>
<a id="pl.292.13"></a><var>292.13</var>in this state or paid in respect to labor performed in this state in connection with
         the trade <br/>
<a id="pl.292.14"></a><var>292.14</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred
         in <br/>
<a id="pl.292.15"></a><var>292.15</var>connection with the trade or business during the tax period.<br/>
<a id="pl.292.16"></a><var>292.16</var>    The tax is in addition to all other taxes.<br/>
<a id="pl.292.17"></a><var>292.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.11.0"></a><a id="pl.292.18"></a><var>292.18</var>    Sec. 11. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:<br/>
<a id="pl.292.19"></a><var>292.19</var>    Subd. 4. <b>Occupation tax; iron ore; taconite concentrates.</b> A person engaged in the <br/>
<a id="pl.292.20"></a><var>292.20</var>business of mining or producing of iron ore, taconite concentrates or direct reduced
         ore in <br/>
<a id="pl.292.21"></a><var>292.21</var>this state shall pay an occupation tax to the state of Minnesota. The tax is determined
         in the <br/>
<a id="pl.292.22"></a><var>292.22</var>same manner as the tax imposed by section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, subdivision <br/>
<a id="pl.292.23"></a><var>292.23</var>1
         </statute_ref>, clause (a), 
         <statute_ref>290.17, subdivision 4</statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, and the <br/>
<a id="pl.292.24"></a><var>292.24</var>occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.
         <br/>
<a id="pl.292.25"></a><var>292.25</var>A person subject to occupation tax under this section shall apportion its net income
         on the <br/>
<a id="pl.292.26"></a><var>292.26</var>basis of the percentage obtained by taking the sum of:<br/>
<a id="pl.292.27"></a><var>292.27</var>(1) 75 percent of the percentage which the sales made within this state in connection
         <br/>
<a id="pl.292.28"></a><var>292.28</var>with the trade or business during the tax period are of the total sales wherever made
         in <br/>
<a id="pl.292.29"></a><var>292.29</var>connection with the trade or business during the tax period;<br/>
<a id="pl.292.30"></a><var>292.30</var>(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
         <br/>
<a id="pl.292.31"></a><var>292.31</var>in this state in connection with the trade or business during the tax period is of
         the total <br/>
<a id="pl.292.32"></a><var>292.32</var>tangible property, wherever located, used by the taxpayer in connection with the trade
         or <br/>
<a id="pl.292.33"></a><var>292.33</var>business during the tax period; and<br/>
<a id="pl.293.1"></a><var>293.1</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
         <br/>
<a id="pl.293.2"></a><var>293.2</var>in this state or paid in respect to labor performed in this state in connection with
         the trade <br/>
<a id="pl.293.3"></a><var>293.3</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred
         in <br/>
<a id="pl.293.4"></a><var>293.4</var>connection with the trade or business during the tax period.<br/>
<a id="pl.293.5"></a><var>293.5</var>The tax is in addition to all other taxes.<br/>
<a id="pl.293.6"></a><var>293.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.12.0"></a><a id="pl.293.7"></a><var>293.7</var>    Sec. 12. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:<br/>
<a id="pl.293.8"></a><var>293.8</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2013, there is <br/>
<a id="pl.293.9"></a><var>293.9</var>imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof,
         and <br/>
<a id="pl.293.10"></a><var>293.10</var>upon the production of iron ore concentrate therefrom, and upon the concentrate so
         produced, <br/>
<a id="pl.293.11"></a><var>293.11</var>a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom.
         The <br/>
<a id="pl.293.12"></a><var>293.12</var>tax is also imposed upon other iron-bearing material.<br/>
<a id="pl.293.13"></a><var>293.13</var>    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be
         equal <br/>
<a id="pl.293.14"></a><var>293.14</var>to the preceding year's tax rate plus an amount equal to the preceding year's tax
         rate multiplied <br/>
<a id="pl.293.15"></a><var>293.15</var>by the percentage increase in the implicit price deflator from the fourth quarter
         of the second <br/>
<a id="pl.293.16"></a><var>293.16</var>preceding year to the fourth quarter of the preceding year. "Implicit price deflator"
         means <br/>
<a id="pl.293.17"></a><var>293.17</var>the implicit price deflator for the gross domestic product prepared by the Bureau
         of Economic <br/>
<a id="pl.293.18"></a><var>293.18</var>Analysis of the United States Department of Commerce.<br/>
<a id="pl.293.19"></a><var>293.19</var>    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
         iron <br/>
<a id="pl.293.20"></a><var>293.20</var>ore concentrate for each one percent that the iron content of the product exceeds
         72 percent, <br/>
<a id="pl.293.21"></a><var>293.21</var>when dried at 212 degrees Fahrenheit.<br/>
<a id="pl.293.22"></a><var>293.22</var>    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
         <br/>
<a id="pl.293.23"></a><var>293.23</var>production for the current year and the previous two years. The rate of the tax imposed
         will <br/>
<a id="pl.293.24"></a><var>293.24</var>be the current year's tax rate. This clause shall not apply in the case of the closing
         of a <br/>
<a id="pl.293.25"></a><var>293.25</var>taconite facility if the property taxes on the facility would be higher if this clause
         and section <br/>
<statute_ref><a id="pl.293.26"></a><var>293.26</var>298.25
         </statute_ref> were not applicable. The tax on other iron-bearing material shall be imposed on the <br/>
<a id="pl.293.27"></a><var>293.27</var>current year production.<br/>
<a id="pl.293.28"></a><var>293.28</var>    (e) The tax under paragraph (a) is also imposed upon other iron-bearing material.
         The <br/>
<a id="pl.293.29"></a><var>293.29</var>tax on other iron-bearing material shall be imposed on the current year production.
         The rate <br/>
<a id="pl.293.30"></a><var>293.30</var>of the tax imposed is the current year's tax rate.<br/>
<a id="pl.293.31"></a><var>293.31</var>    (e) (f) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.293.32"></a><var>293.32</var>unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate
         produced <br/>
<a id="pl.293.33"></a><var>293.33</var>shall be imposed.<br/>
<a id="pl.294.1"></a><var>294.1</var>    (f) (g) Consistent with the intent of this subdivision to impose a tax based upon the <br/>
<a id="pl.294.2"></a><var>294.2</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
         <br/>
<a id="pl.294.3"></a><var>294.3</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets
         by <br/>
<a id="pl.294.4"></a><var>294.4</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other
         basic flux <br/>
<a id="pl.294.5"></a><var>294.5</var>additives included in the pellets from the weight of the pellets. For purposes of
         this paragraph, <br/>
<a id="pl.294.6"></a><var>294.6</var>"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine,
         or <br/>
<a id="pl.294.7"></a><var>294.7</var>other basic flux additives are combined with merchantable iron ore concentrate. No
         <br/>
<a id="pl.294.8"></a><var>294.8</var>subtraction from the weight of the pellets shall be allowed for binders, mineral and
         chemical <br/>
<a id="pl.294.9"></a><var>294.9</var>additives other than basic flux additives, or moisture.<br/>
<a id="pl.294.10"></a><var>294.10</var>    (g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years
         <br/>
<a id="pl.294.11"></a><var>294.11</var>of a plant's commercial production of direct reduced ore from ore mined in this state,
         no <br/>
<a id="pl.294.12"></a><var>294.12</var>tax is imposed under this section. As used in this paragraph, "commercial production"
         is <br/>
<a id="pl.294.13"></a><var>294.13</var>production of more than 50,000 tons of direct reduced ore in the current year or in
         any prior <br/>
<a id="pl.294.14"></a><var>294.14</var>year, "noncommercial production" is production of 50,000 tons or less of direct reduced
         <br/>
<a id="pl.294.15"></a><var>294.15</var>ore in any year, and "direct reduced ore" is ore that results in a product that has
         an iron <br/>
<a id="pl.294.16"></a><var>294.16</var>content of at least 75 percent. For the third year of a plant's commercial production
         of direct <br/>
<a id="pl.294.17"></a><var>294.17</var>reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
         otherwise <br/>
<a id="pl.294.18"></a><var>294.18</var>determined under this subdivision. For the fourth commercial production year, the
         rate is <br/>
<a id="pl.294.19"></a><var>294.19</var>50 percent of the rate otherwise determined under this subdivision; for the fifth
         commercial <br/>
<a id="pl.294.20"></a><var>294.20</var>production year, the rate is 75 percent of the rate otherwise determined under this
         subdivision; <br/>
<a id="pl.294.21"></a><var>294.21</var>and for all subsequent commercial production years, the full rate is imposed.<br/>
<a id="pl.294.22"></a><var>294.22</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject
         to the <br/>
<a id="pl.294.23"></a><var>294.23</var>tax imposed by this section, but if that production is not produced by a producer
         of taconite, <br/>
<a id="pl.294.24"></a><var>294.24</var>iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides,
         or <br/>
<a id="pl.294.25"></a><var>294.25</var>other iron-bearing material, that is consumed in the production of direct reduced
         iron ore <br/>
<a id="pl.294.26"></a><var>294.26</var>in this state is not subject to the tax imposed by this section on taconite, iron
         sulfides, or <br/>
<a id="pl.294.27"></a><var>294.27</var>other iron-bearing material.<br/>
<a id="pl.294.28"></a><var>294.28</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on
         direct <br/>
<a id="pl.294.29"></a><var>294.29</var>reduced ore under this section during the facility's noncommercial production of direct
         <br/>
<a id="pl.294.30"></a><var>294.30</var>reduced ore. The taconite or iron sulphides consumed in the noncommercial production
         of <br/>
<a id="pl.294.31"></a><var>294.31</var>direct reduced ore is subject to the tax imposed by this section on taconite and iron
         sulphides. <br/>
<a id="pl.294.32"></a><var>294.32</var>Three-year average production of direct reduced ore does not include production of
         direct <br/>
<a id="pl.294.33"></a><var>294.33</var>reduced ore in any noncommercial year. Three-year average production for a direct
         reduced <br/>
<a id="pl.294.34"></a><var>294.34</var>ore facility that has noncommercial production is the average of the commercial production
         <br/>
<a id="pl.294.35"></a><var>294.35</var>of direct reduced ore for the current year and the previous two commercial years.<br/>
<a id="pl.295.1"></a><var>295.1</var>    (4) This paragraph applies only to plants for which all environmental permits have
         been <br/>
<a id="pl.295.2"></a><var>295.2</var>obtained and construction has begun before July 1, 2008.<br/>
<a id="pl.295.3"></a><var>295.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.13.0"></a><a id="pl.295.4"></a><var>295.4</var>    Sec. 13. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:<br/>
<a id="pl.295.5"></a><var>295.5</var>    Subd. 2. <b>City or town where quarried or produced.</b> (a) 4.5 cents per gross ton of <br/>
<a id="pl.295.6"></a><var>295.6</var>merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus
         the amount <br/>
<a id="pl.295.7"></a><var>295.7</var>provided in paragraph (c), must be allocated to the city or town in the county in
         which the <br/>
<a id="pl.295.8"></a><var>295.8</var>lands from which taconite was mined or quarried were located or within which the <br/>
<a id="pl.295.9"></a><var>295.9</var>concentrate was produced. If the mining, quarrying, and concentration, or different
         steps <br/>
<a id="pl.295.10"></a><var>295.10</var>in either thereof are carried on in more than one taxing district, the commissioner
         shall <br/>
<a id="pl.295.11"></a><var>295.11</var>apportion equitably the proceeds of the part of the tax going to cities and towns
         among such <br/>
<a id="pl.295.12"></a><var>295.12</var>subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
         the operation <br/>
<a id="pl.295.13"></a><var>295.13</var>of mining or quarrying the taconite, and the remainder to the concentrating plant
         and to the <br/>
<a id="pl.295.14"></a><var>295.14</var>processes of concentration, and with respect to each thereof giving due consideration
         to the <br/>
<a id="pl.295.15"></a><var>295.15</var>relative extent of such operations performed in each such taxing district. The commissioner's
         <br/>
<a id="pl.295.16"></a><var>295.16</var>order making such apportionment shall be subject to review by the Tax Court at the
         instance <br/>
<a id="pl.295.17"></a><var>295.17</var>of any of the interested taxing districts, in the same manner as other orders of the
         <br/>
<a id="pl.295.18"></a><var>295.18</var>commissioner.<br/>
<a id="pl.295.19"></a><var>295.19</var>(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships <br/>
<a id="pl.295.20"></a><var>295.20</var>affected by mining because their boundaries are within three miles of a taconite mine
         pit <br/>
<a id="pl.295.21"></a><var>295.21</var>that:<br/>
<a id="pl.295.22"></a><var>295.22</var>(i) was actively mined by LTV Steel Mining Company in 1999; or<br/>
<a id="pl.295.23"></a><var>295.23</var>(ii) has been actively mined in at least one of the prior three years.<br/>
<a id="pl.295.24"></a><var>295.24</var>(2) If a city or town is located near more than one mine meeting these the criteria under <br/>
<a id="pl.295.25"></a><var>295.25</var>this paragraph, the city or town is eligible to receive aid calculated from only the mine <br/>
<a id="pl.295.26"></a><var>295.26</var>producing the largest taxable tonnage. When more than one municipality qualifies for
         aid <br/>
<a id="pl.295.27"></a><var>295.27</var>based on one company's production, the aid must be apportioned among the municipalities
         <br/>
<a id="pl.295.28"></a><var>295.28</var>in proportion to their populations. The amounts distributed under this paragraph to
         each <br/>
<a id="pl.295.29"></a><var>295.29</var>municipality must be used for infrastructure improvement projects.<br/>
<a id="pl.295.30"></a><var>295.30</var>(c) The amount that would have been computed for the current year under Minnesota
         <br/>
<a id="pl.295.31"></a><var>295.31</var>Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed
         to <br/>
<a id="pl.295.32"></a><var>295.32</var>the cities and townships within the school district in the proportion that their taxable
         net tax <br/>
<a id="pl.296.1"></a><var>296.1</var>capacity within the school district bears to the taxable net tax capacity of the school
         district <br/>
<a id="pl.296.2"></a><var>296.2</var>for property taxes payable in the year prior to distribution.<br/>
<a id="pl.296.3"></a><var>296.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.14.0"></a><a id="pl.296.4"></a><var>296.4</var>    Sec. 14. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:<br/>
<a id="pl.296.5"></a><var>296.5</var>    Subd. 5. <b>Counties.</b> (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, <br/>
<a id="pl.296.6"></a><var>296.6</var>and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated
         to counties <br/>
<a id="pl.296.7"></a><var>296.7</var>to be distributed, based upon certification by the commissioner of revenue, under
         paragraphs <br/>
<a id="pl.296.8"></a><var>296.8</var>(b) to (d).<br/>
<a id="pl.296.9"></a><var>296.9</var>    (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
         <br/>
<a id="pl.296.10"></a><var>296.10</var>is mined or quarried or in which the concentrate is produced, less any amount which
         is to <br/>
<a id="pl.296.11"></a><var>296.11</var>be distributed pursuant to paragraph (c). The apportionment formula prescribed in
         subdivision <br/>
<a id="pl.296.12"></a><var>296.12</var>2 is the basis for the distribution.<br/>
<a id="pl.296.13"></a><var>296.13</var>    (c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
         <br/>
<a id="pl.296.14"></a><var>296.14</var>shall be paid to a county that received a distribution under this section in 2000
         because there <br/>
<a id="pl.296.15"></a><var>296.15</var>was located in the county an electric power plant owned by and providing the primary source <br/>
<a id="pl.296.16"></a><var>296.16</var>of power for a taxpayer mining and concentrating taconite is located in a different county <br/>
<a id="pl.296.17"></a><var>296.17</var>other than the county in which the mining and the concentrating processes are conducted,
         <br/>
<a id="pl.296.18"></a><var>296.18</var>one cent per taxable ton of the tax distributed to the counties pursuant to paragraph
         (b) and <br/>
<a id="pl.296.19"></a><var>296.19</var>imposed on and collected from such taxpayer shall be paid to the county in which the
         power <br/>
<a id="pl.296.20"></a><var>296.20</var>plant is located.<br/>
<a id="pl.296.21"></a><var>296.21</var>    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525
         cents <br/>
<a id="pl.296.22"></a><var>296.22</var>per taxable ton for distributions beginning in 2024, shall be paid to the county from
         which <br/>
<a id="pl.296.23"></a><var>296.23</var>the taconite was mined, quarried or concentrated to be deposited in the county road
         and <br/>
<a id="pl.296.24"></a><var>296.24</var>bridge fund. If the mining, quarrying and concentrating, or separate steps in any
         of those <br/>
<a id="pl.296.25"></a><var>296.25</var>processes are carried on in more than one county, the commissioner shall follow the
         <br/>
<a id="pl.296.26"></a><var>296.26</var>apportionment formula prescribed in subdivision 2.<br/>
<a id="pl.296.27"></a><var>296.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.15.0"></a><a id="pl.296.28"></a><var>296.28</var>    Sec. 15. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:<br/>
<a id="pl.296.29"></a><var>296.29</var>    Subdivision 1. <b>Authorization</b><b>; tax base</b><b>.</b> (a) Notwithstanding section 
         <statute_ref>477A.016</statute_ref> or any <br/>
<a id="pl.296.30"></a><var>296.30</var>other law, a statutory or home rule charter city may by ordinance, and a town may
         by the <br/>
<a id="pl.296.31"></a><var>296.31</var>affirmative vote of the electors at the annual town meeting, or at a special town
         meeting, <br/>
<a id="pl.296.32"></a><var>296.32</var>impose a tax of up to three percent on the gross receipts from the furnishing for
         consideration <br/>
<a id="pl.297.1"></a><var>297.1</var>of lodging at a hotel, motel, rooming house, tourist court, or resort, other than
         the renting <br/>
<a id="pl.297.2"></a><var>297.2</var>or leasing of it for a continuous period of 30 days or more. A statutory or home rule
         charter <br/>
<a id="pl.297.3"></a><var>297.3</var>city may by ordinance impose the tax authorized under this subdivision on the camping
         site <br/>
<a id="pl.297.4"></a><var>297.4</var>receipts of a municipal campground.<br/>
<a id="pl.297.5"></a><var>297.5</var>(b) Regardless of whether the tax is collected locally or by the state, the tax imposed
         <br/>
<a id="pl.297.6"></a><var>297.6</var>under this subdivision or under a special law applies to the entire consideration
         paid to <br/>
<a id="pl.297.7"></a><var>297.7</var>obtain access to lodging, including ancillary or related services, such as services
         provided <br/>
<a id="pl.297.8"></a><var>297.8</var>by an accommodations intermediary as defined in section 297A.61, and similar services.<br/>
<a id="pl.297.9"></a><var>297.9</var><b>EFFECTIVE DATE; APPLICATION.</b>This section is effective the day following <br/>
<a id="pl.297.10"></a><var>297.10</var>final enactment. In enacting this section, the legislature confirms that Minnesota
         Statutes, <br/>
<a id="pl.297.11"></a><var>297.11</var>section 469.190, its predecessor provisions, and any special laws authorizing political
         <br/>
<a id="pl.297.12"></a><var>297.12</var>subdivisions to impose local lodging taxes, were and are intended to apply to the
         entire <br/>
<a id="pl.297.13"></a><var>297.13</var>consideration paid to obtain access to transient lodging, including ancillary or related
         services, <br/>
<a id="pl.297.14"></a><var>297.14</var>such as services provided by an accommodations intermediary as defined in Minnesota
         <br/>
<a id="pl.297.15"></a><var>297.15</var>Statutes, section 297A.61, and similar services. The provisions of this section must
         not be <br/>
<a id="pl.297.16"></a><var>297.16</var>interpreted to imply a narrower construction of the tax base under the lodging tax
         provisions <br/>
<a id="pl.297.17"></a><var>297.17</var>of Minnesota law prior to the enactment of this section.<br/>
<br/>
<a id="bill.17.16.0"></a><a id="pl.297.18"></a><var>297.18</var>    Sec. 16. Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read:<br/>
<a id="pl.297.19"></a><var>297.19</var>    Subd. 7. <b>Collection.</b> (a) The statutory or home rule charter city may agree with the <br/>
<a id="pl.297.20"></a><var>297.20</var>commissioner of revenue that a tax imposed pursuant to this section shall be collected
         by <br/>
<a id="pl.297.21"></a><var>297.21</var>the commissioner together with the tax imposed by chapter 297A, and subject to the
         same <br/>
<a id="pl.297.22"></a><var>297.22</var>interest, penalties, and other rules and that its proceeds, less the cost of collection,
         shall be <br/>
<a id="pl.297.23"></a><var>297.23</var>remitted to the city.<br/>
<a id="pl.297.24"></a><var>297.24</var>(b) If a tax under this section or a special law is not collected by the commissioner
         of <br/>
<a id="pl.297.25"></a><var>297.25</var>revenue, the local government imposing the tax may by ordinance limit the required
         filing <br/>
<a id="pl.297.26"></a><var>297.26</var>and remittance of the tax by an accommodations intermediary as defined in section
         297A.61, <br/>
<a id="pl.297.27"></a><var>297.27</var>subdivision 47, to once every calendar year. The local government must inform the
         <br/>
<a id="pl.297.28"></a><var>297.28</var>accommodations intermediary of the date when the return or remittance is due and the
         date <br/>
<a id="pl.297.29"></a><var>297.29</var>must coincide with one of the monthly dates for filing and remitting state sales tax
         under <br/>
<a id="pl.297.30"></a><var>297.30</var>chapter 297A. The local government must also electronically provide an accommodations
         <br/>
<a id="pl.297.31"></a><var>297.31</var>intermediary with geographic and zip code information necessary to collect the tax.<br/>
<a id="pl.297.32"></a><var>297.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.0.0"></a>

<a id="pl.298.3"></a><var>298.3</var><b>TAX AND LOCAL GOVERNMENT AID</b><br/>

<a id="bill.18.1.0"></a><a id="pl.298.4"></a><var>298.4</var>    Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:<br/>
<a id="pl.298.5"></a><var>298.5</var>    Subdivision 1. <b>Valuation.</b> The commissioner shall determine the market valuation of <br/>
<a id="pl.298.6"></a><var>298.6</var>all flight property operated or used by every airline company in air commerce in this
         state. <br/>
<a id="pl.298.7"></a><var>298.7</var>The valuation apportioned to this state of such flight property shall be the proportion
         of the <br/>
<a id="pl.298.8"></a><var>298.8</var>total valuation thereof determined on the basis of the total of the following percentages:<br/>
<a id="pl.298.9"></a><var>298.9</var>(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express
         and <br/>
<a id="pl.298.10"></a><var>298.10</var>freight first received by the airline company in this state during the preceding calendar
         year <br/>
<a id="pl.298.11"></a><var>298.11</var>plus the total tonnage of passengers, express and freight finally discharged by it
         within this <br/>
<a id="pl.298.12"></a><var>298.12</var>state during the preceding calendar year is of the total of such tonnage first received
         by the <br/>
<a id="pl.298.13"></a><var>298.13</var>airline company or finally discharged by it, within and without this state during
         the preceding <br/>
<a id="pl.298.14"></a><var>298.14</var>calendar year.<br/>
<a id="pl.298.15"></a><var>298.15</var>(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time
         of all <br/>
<a id="pl.298.16"></a><var>298.16</var>aircraft of the airline company in flight in this state during the preceding calendar
         year, is <br/>
<a id="pl.298.17"></a><var>298.17</var>of the total of such time in flight within and without this state during the preceding
         calendar <br/>
<a id="pl.298.18"></a><var>298.18</var>year.<br/>
<a id="pl.298.19"></a><var>298.19</var>(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of <br/>
<a id="pl.298.20"></a><var>298.20</var>passengers, mail, express and freight flown by the airline company within this state
         during <br/>
<a id="pl.298.21"></a><var>298.21</var>the preceding calendar year is of the total number of such miles flown by it within
         and <br/>
<a id="pl.298.22"></a><var>298.22</var>without this state during the preceding calendar year.<br/>
<a id="pl.298.23"></a><var>298.23</var>(2) 50 percent of the percentage that the total departures performed by the airline
         company <br/>
<a id="pl.298.24"></a><var>298.24</var>within this state during the preceding calendar year is of the total departures performed
         <br/>
<a id="pl.298.25"></a><var>298.25</var>within and without this state during the preceding calendar year.<br/>
<a id="pl.298.26"></a><var>298.26</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.18.2.0"></a><a id="pl.298.27"></a><var>298.27</var>    Sec. 2. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:<br/>
<a id="pl.298.28"></a><var>298.28</var>    Subdivision 1. <b>Conformance to federal law.</b> If any provision of sections 
         <statute_ref>270.071</statute_ref> to <br/>
<statute_ref><a id="pl.298.29"></a><var>298.29</var>270.079
         </statute_ref> is contrary to any provision of any law of the United States of America, hereinafter
         <br/>
<a id="pl.298.30"></a><var>298.30</var>enacted, providing for or relating to the ad valorem taxation by a state of aircraft
         or flying <br/>
<a id="pl.298.31"></a><var>298.31</var>equipment of an airline company, such provision shall be of no effect and the commissioner
         <br/>
<a id="pl.298.32"></a><var>298.32</var>is authorized and directed to prescribe by rule such provisions as may be necessary
         to make <br/>
<a id="pl.299.1"></a><var>299.1</var>sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref> conform to the federal act and to effectuate the purposes of <br/>
<a id="pl.299.2"></a><var>299.2</var>sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref>, provided such rules do not prescribe a rate of taxation higher <br/>
<a id="pl.299.3"></a><var>299.3</var>than that provided in section 
         <statute_ref>270.075</statute_ref> or a net tax capacity based on a percentage higher <br/>
<a id="pl.299.4"></a><var>299.4</var>than that provided in section 
         <statute_ref>270.074, subdivision 2 3</statute_ref>.<br/>
<a id="pl.299.5"></a><var>299.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.3.0"></a><a id="pl.299.6"></a><var>299.6</var>    Sec. 3. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.299.7"></a><var>299.7</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned by <br/>
<a id="pl.299.8"></a><var>299.8</var>the state of Minnesota or any political subdivision thereof, and property exempt from taxation <br/>
<a id="pl.299.9"></a><var>299.9</var>under section 
<statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at the times <br/>
<a id="pl.299.10"></a><var>299.10</var>provided in subdivision 3, a taxpayer claiming an exemption from taxation on property <br/>
<a id="pl.299.11"></a><var>299.11</var>described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 2 to 33, must file a statement of exemption with <br/>
<a id="pl.299.12"></a><var>299.12</var>the assessor of the assessment district in which the property is located. By February 1, 2018, <br/>
<a id="pl.299.13"></a><var>299.13</var>and by February 1 of each third year thereafter, the commissioner of revenue shall
         publish <br/>
<a id="pl.299.14"></a><var>299.14</var>on its Web site a list of the exemptions for which a taxpayer claiming an exemption
         must <br/>
<a id="pl.299.15"></a><var>299.15</var>file a statement of exemption. The commissioner's requirement that a taxpayer file
         a statement <br/>
<a id="pl.299.16"></a><var>299.16</var>of exemption pursuant to this subdivision shall not be considered a rule and is not
         subject <br/>
<a id="pl.299.17"></a><var>299.17</var>to the Administrative Procedure Act, chapter 14.<br/>
<a id="pl.299.18"></a><var>299.18</var>(b) A taxpayer claiming an exemption from taxation on property described in section
         <br/>
<statute_ref><a id="pl.299.19"></a><var>299.19</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of revenue, <br/>
<a id="pl.299.20"></a><var>299.20</var>on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.299.21"></a><var>299.21</var>(c) In case of sickness, absence or other disability or for good cause, the assessor
         or the <br/>
<a id="pl.299.22"></a><var>299.22</var>commissioner may extend the time for filing the statement of exemption for a period
         not to <br/>
<a id="pl.299.23"></a><var>299.23</var>exceed 60 days.<br/>
<a id="pl.299.24"></a><var>299.24</var>(d) The commissioner of revenue shall prescribe the form and contents of the statement
         <br/>
<a id="pl.299.25"></a><var>299.25</var>of exemption.<br/>
<a id="pl.299.26"></a><var>299.26</var><b>EFFECTIVE DATE.</b>This section is effective for applications for exemption submitted <br/>
<a id="pl.299.27"></a><var>299.27</var>in 2018 and thereafter.<br/>
<br/>
<a id="bill.18.4.0"></a><a id="pl.299.28"></a><var>299.28</var>    Sec. 4. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision <br/>
<a id="pl.299.29"></a><var>299.29</var>to read:<br/>
<a id="pl.299.30"></a><var>299.30</var>    Subd. 8. <b>Extension.</b> The commissioner may, for good cause, extend the time for filing <br/>
<a id="pl.299.31"></a><var>299.31</var>the report required by subdivision 4. The extension must not exceed 15 days.<br/>
<a id="pl.299.32"></a><var>299.32</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed in 2018 and thereafter.<br/>
<br/>
<a id="bill.18.5.0"></a><a id="pl.300.1"></a><var>300.1</var>    Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:<br/>
<a id="pl.300.2"></a><var>300.2</var>    Subdivision 1. <b>Requirement.</b> Except as otherwise provided in subdivision 5 or 6, <br/>
<a id="pl.300.3"></a><var>300.3</var>whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by <br/>
<a id="pl.300.4"></a><var>300.4</var>warranty deed, quitclaim deed, contract for deed or any other method of sale, the
         grantor, <br/>
<a id="pl.300.5"></a><var>300.5</var>grantee or the legal agent of either shall file a certificate of value with the county
         auditor <br/>
<a id="pl.300.6"></a><var>300.6</var>in the county in which the property is located when the deed or other document is
         presented <br/>
<a id="pl.300.7"></a><var>300.7</var>for recording. Contract for deeds are subject to recording under section 
         <statute_ref>507.235, subdivision <br/>
<a id="pl.300.8"></a><var>300.8</var>1
         </statute_ref>. Value shall, in the case of any deed not a gift, be the amount of the full actual
         consideration <br/>
<a id="pl.300.9"></a><var>300.9</var>thereof, paid or to be paid, including the amount of any lien or liens assumed. The
         items <br/>
<a id="pl.300.10"></a><var>300.10</var>and value of personal property transferred with the real property must be listed and
         deducted <br/>
<a id="pl.300.11"></a><var>300.11</var>from the sale price. The certificate of value shall include the classification to
         which the <br/>
<a id="pl.300.12"></a><var>300.12</var>property belongs for the purpose of determining the fair market value of the property,
         and <br/>
<a id="pl.300.13"></a><var>300.13</var>shall include any proposed change in use of the property known to the person filing
         the <br/>
<a id="pl.300.14"></a><var>300.14</var>certificate that could change the classification of the property. The certificate
         shall include <br/>
<a id="pl.300.15"></a><var>300.15</var>financing terms and conditions of the sale which are necessary to determine the actual,
         <br/>
<a id="pl.300.16"></a><var>300.16</var>present value of the sale price for purposes of the sales ratio study. If the property
         is being <br/>
<a id="pl.300.17"></a><var>300.17</var>acquired as part of a like-kind exchange under section 1031 of the Internal Revenue
         Code <br/>
<a id="pl.300.18"></a><var>300.18</var>of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
         <br/>
<a id="pl.300.19"></a><var>300.19</var>The commissioner of revenue shall promulgate administrative rules specifying the financing
         <br/>
<a id="pl.300.20"></a><var>300.20</var>terms and conditions which must be included on the certificate. The certificate of
         value <br/>
<a id="pl.300.21"></a><var>300.21</var>must include the Social Security number or the federal employer identification number
         of <br/>
<a id="pl.300.22"></a><var>300.22</var>the grantors and grantees. However, a married person who is not an owner of record
         and <br/>
<a id="pl.300.23"></a><var>300.23</var>who is signing a conveyance instrument along with the person's spouse solely to release
         <br/>
<a id="pl.300.24"></a><var>300.24</var>and convey their marital interest, if any, in the real property being conveyed is
         not a grantor <br/>
<a id="pl.300.25"></a><var>300.25</var>for the purpose of the preceding sentence. A statement in the deed that is substantially
         in <br/>
<a id="pl.300.26"></a><var>300.26</var>the following form is sufficient to allow the county auditor to accept a certificate
         for filing <br/>
<a id="pl.300.27"></a><var>300.27</var>without the Social Security number of the named spouse: "(Name) claims no ownership
         <br/>
<a id="pl.300.28"></a><var>300.28</var>interest in the real property being conveyed and is executing this instrument solely
         to release <br/>
<a id="pl.300.29"></a><var>300.29</var>and convey a marital interest, if any, in that real property." The identification
         numbers of <br/>
<a id="pl.300.30"></a><var>300.30</var>the grantors and grantees are private data on individuals or nonpublic data as defined
         in <br/>
<a id="pl.300.31"></a><var>300.31</var>section 
         <statute_ref>13.02</statute_ref>, subdivisions 9 and 12, but, notwithstanding that section, the private or <br/>
<a id="pl.300.32"></a><var>300.32</var>nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
         <br/>
<a id="pl.300.33"></a><var>300.33</var>administration. The information required to be shown on the certificate of value is
         limited <br/>
<a id="pl.300.34"></a><var>300.34</var>to the information required as of the date of the acknowledgment on the deed or other
         <br/>
<a id="pl.300.35"></a><var>300.35</var>document to be recorded. The commissioner's determination of the amount for which a <br/>
<a id="pl.301.1"></a><var>301.1</var>certificate of value is required pursuant to this subdivision shall not be considered
         a rule <br/>
<a id="pl.301.2"></a><var>301.2</var>and is not subject to the Administrative Procedure Act, chapter 14.<br/>
<a id="pl.301.3"></a><var>301.3</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of value filed after <br/>
<a id="pl.301.4"></a><var>301.4</var>December 31, 2017.<br/>
<br/>
<a id="bill.18.6.0"></a><a id="pl.301.5"></a><var>301.5</var>    Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:<br/>
<a id="pl.301.6"></a><var>301.6</var>    Subd. 2. <b>Form; information required.</b> The certificate of value shall require such facts <br/>
<a id="pl.301.7"></a><var>301.7</var>and information as may be determined by the commissioner to be reasonably necessary
         in <br/>
<a id="pl.301.8"></a><var>301.8</var>the administration of the state education aid formulas. The form of the certificate
         of value <br/>
<a id="pl.301.9"></a><var>301.9</var>shall be prescribed by the Department of Revenue which shall provide an adequate supply <br/>
<a id="pl.301.10"></a><var>301.10</var>of forms to each county auditor.<br/>
<a id="pl.301.11"></a><var>301.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.7.0"></a><a id="pl.301.12"></a><var>301.12</var>    Sec. 7. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:<br/>
<a id="pl.301.13"></a><var>301.13</var>    Subd. 3. <b>Copies transmitted; homestead status.</b> The county auditor shall transmit two <br/>
<a id="pl.301.14"></a><var>301.14</var>true copies of the certificate of value to the assessor who shall insert into the certificate of <br/>
<a id="pl.301.15"></a><var>301.15</var>value the most recent market value and when available, the year of original construction
         of <br/>
<a id="pl.301.16"></a><var>301.16</var>each parcel of property on both copies, and shall transmit one copy the certificate of value <br/>
<a id="pl.301.17"></a><var>301.17</var>to the Department of Revenue. Upon the request of a city council located within the
         county, <br/>
<a id="pl.301.18"></a><var>301.18</var>a copy of each certificate of value for property located in that city shall be made
         available <br/>
<a id="pl.301.19"></a><var>301.19</var>to the governing body of the city. The assessor shall remove the homestead classification
         <br/>
<a id="pl.301.20"></a><var>301.20</var>for the following assessment year from a property which is sold or transferred, unless
         the <br/>
<a id="pl.301.21"></a><var>301.21</var>grantee or the person to whom the property is transferred completes a homestead application
         <br/>
<a id="pl.301.22"></a><var>301.22</var>under section 
         <statute_ref>273.124, subdivision 13</statute_ref>, and qualifies for homestead status.<br/>
<a id="pl.301.23"></a><var>301.23</var><b>EFFECTIVE DATE.</b>This section is effective for certificates of value filed after <br/>
<a id="pl.301.24"></a><var>301.24</var>December 31, 2017.<br/>
<br/>
<a id="bill.18.8.0"></a><a id="pl.301.25"></a><var>301.25</var>    Sec. 8. Minnesota Statutes 2016, section 273.0755, is amended to read:<br/>
<a id="pl.301.26"></a><var>301.26</var><b>273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.</b><br/>
<a id="pl.301.27"></a><var>301.27</var>(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
         <br/>
<a id="pl.301.28"></a><var>301.28</var>by the state Board of Assessors at the Accredited Minnesota Assessor level or higher,
         shall <br/>
<a id="pl.301.29"></a><var>301.29</var>successfully complete a weeklong Minnesota laws course sponsored by the Department
         of <br/>
<a id="pl.301.30"></a><var>301.30</var>Revenue at least once in every four-year period. An assessor need not attend the course
         if <br/>
<a id="pl.301.31"></a><var>301.31</var>they successfully pass the test for the course.<br/>
<a id="pl.302.1"></a><var>302.1</var>(b) The commissioner of revenue may require that each county, and each city for which
         <br/>
<a id="pl.302.2"></a><var>302.2</var>the city assessor performs the duties of county assessor, have (i) a person on the
         assessor's <br/>
<a id="pl.302.3"></a><var>302.3</var>staff who is certified by the Department of Revenue in sales ratio calculations, (ii)
         an officer <br/>
<a id="pl.302.4"></a><var>302.4</var>or employee who is certified by the Department of Revenue in tax calculations, and
         (iii) an <br/>
<a id="pl.302.5"></a><var>302.5</var>officer or employee who is certified by the Department of Revenue in the proper preparation
         <br/>
<a id="pl.302.6"></a><var>302.6</var>of abstracts of assessment. The commissioner of revenue may require that each county
         have <br/>
<a id="pl.302.7"></a><var>302.7</var>an officer or employee who is certified by the Department of Revenue in the proper
         <br/>
<a id="pl.302.8"></a><var>302.8</var>preparation of abstracts of tax lists.  Certifications under this paragraph expire after four <br/>
<a id="pl.302.9"></a><var>302.9</var>years.<br/>
<a id="pl.302.10"></a><var>302.10</var>(c) Beginning with the four-year educational licensing period starting on July 1,
         2004, <br/>
<a id="pl.302.11"></a><var>302.11</var>every Minnesota assessor licensed by the State Board of Assessors must attend and
         participate <br/>
<a id="pl.302.12"></a><var>302.12</var>in a seminar that focuses on ethics, professional conduct and the need for standardized
         <br/>
<a id="pl.302.13"></a><var>302.13</var>assessment practices developed and presented by the commissioner of revenue. This
         <br/>
<a id="pl.302.14"></a><var>302.14</var>requirement must be met at least once in every subsequent four-year period. This requirement
         <br/>
<a id="pl.302.15"></a><var>302.15</var>applies to all assessors licensed for one year or more in the four-year period.<br/>
<a id="pl.302.16"></a><var>302.16</var>(d) The commissioner of revenue may require that at least one employee of any county
         <br/>
<a id="pl.302.17"></a><var>302.17</var>or city that performs functions related to property tax administration complete additional
         <br/>
<a id="pl.302.18"></a><var>302.18</var>training that the commissioner deems necessary to promote uniform and equitable <br/>
<a id="pl.302.19"></a><var>302.19</var>implementation of the property tax laws, as defined in section 270C.01, subdivision
         7.<br/>
<a id="pl.302.20"></a><var>302.20</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.18.9.0"></a><a id="pl.302.21"></a><var>302.21</var>    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.302.22"></a><var>302.22</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead requirements <br/>
<a id="pl.302.23"></a><var>302.23</var>under subdivision 1 must file a homestead application with the county assessor to
         initially <br/>
<a id="pl.302.24"></a><var>302.24</var>obtain homestead classification.<br/>
<a id="pl.302.25"></a><var>302.25</var>    (b) The format and contents of a uniform homestead application shall be prescribed
         by <br/>
<a id="pl.302.26"></a><var>302.26</var>the commissioner of revenue. The application must clearly inform the taxpayer that
         this <br/>
<a id="pl.302.27"></a><var>302.27</var>application must be signed by all owners who occupy the property or by the qualifying
         <br/>
<a id="pl.302.28"></a><var>302.28</var>relative and returned to the county assessor in order for the property to receive
         homestead <br/>
<a id="pl.302.29"></a><var>302.29</var>treatment.<br/>
<a id="pl.302.30"></a><var>302.30</var>    (c) Every property owner applying for homestead classification must furnish to the
         <br/>
<a id="pl.302.31"></a><var>302.31</var>county assessor the Social Security number of each occupant who is listed as an owner
         of <br/>
<a id="pl.302.32"></a><var>302.32</var>the property on the deed of record, the name and address of each owner who does not
         occupy <br/>
<a id="pl.302.33"></a><var>302.33</var>the property, and the name and Social Security number of each owner's spouse who occupies <br/>
<a id="pl.303.1"></a><var>303.1</var>the property. The application must be signed by each owner who occupies the property and <br/>
<a id="pl.303.2"></a><var>303.2</var>by each owner's spouse who occupies the property, or, in the case of property that
         qualifies <br/>
<a id="pl.303.3"></a><var>303.3</var>as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.303.4"></a><var>303.4</var>    If a property owner occupies a homestead, the property owner's spouse may not claim
         <br/>
<a id="pl.303.5"></a><var>303.5</var>another property as a homestead unless the property owner and the property owner's
         spouse <br/>
<a id="pl.303.6"></a><var>303.6</var>file with the assessor an affidavit or other proof required by the assessor stating
         that the <br/>
<a id="pl.303.7"></a><var>303.7</var>property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.303.8"></a><var>303.8</var>    Owners or spouses occupying residences owned by their spouses and previously occupied
         <br/>
<a id="pl.303.9"></a><var>303.9</var>with the other spouse, either of whom fail to include the other spouse's name and
         Social <br/>
<a id="pl.303.10"></a><var>303.10</var>Security number on the homestead application or provide the affidavits or other proof
         <br/>
<a id="pl.303.11"></a><var>303.11</var>requested, will be deemed to have elected to receive only partial homestead treatment
         of <br/>
<a id="pl.303.12"></a><var>303.12</var>their residence. The remainder of the residence will be classified as nonhomestead
         residential. <br/>
<a id="pl.303.13"></a><var>303.13</var>When an owner or spouse's name and Social Security number appear on homestead <br/>
<a id="pl.303.14"></a><var>303.14</var>applications for two separate residences and only one application is signed, the owner
         or <br/>
<a id="pl.303.15"></a><var>303.15</var>spouse will be deemed to have elected to homestead the residence for which the application
         <br/>
<a id="pl.303.16"></a><var>303.16</var>was signed.<br/>
<a id="pl.303.17"></a><var>303.17</var>    (d) If residential real estate is occupied and used for purposes of a homestead by
         a relative <br/>
<a id="pl.303.18"></a><var>303.18</var>of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
         order for <br/>
<a id="pl.303.19"></a><var>303.19</var>the property to receive homestead status, a homestead application must be filed with
         the <br/>
<a id="pl.303.20"></a><var>303.20</var>assessor. The Social Security number of each relative occupying the property and the name <br/>
<a id="pl.303.21"></a><var>303.21</var>and Social Security number of the spouse of a relative occupying the property shall be <br/>
<a id="pl.303.22"></a><var>303.22</var>required on the homestead application filed under this subdivision. If a different
         relative of <br/>
<a id="pl.303.23"></a><var>303.23</var>the owner subsequently occupies the property, the owner of the property must notify
         the <br/>
<a id="pl.303.24"></a><var>303.24</var>assessor within 30 days of the change in occupancy. The Social Security number of
         a relative <br/>
<a id="pl.303.25"></a><var>303.25</var>occupying the property or relative's the spouse of a relative occupying the property is private <br/>
<a id="pl.303.26"></a><var>303.26</var>data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be disclosed to the <br/>
<a id="pl.303.27"></a><var>303.27</var>commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
         <br/>
<a id="pl.303.28"></a><var>303.28</var>Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.303.29"></a><var>303.29</var>    (e) The homestead application shall also notify the property owners that if the property
         <br/>
<a id="pl.303.30"></a><var>303.30</var>is granted homestead status for any assessment year, that same property shall remain
         <br/>
<a id="pl.303.31"></a><var>303.31</var>classified as homestead until the property is sold or transferred to another person,
         or the <br/>
<a id="pl.303.32"></a><var>303.32</var>owners, the spouse of the owner, or the relatives no longer use the property as their
         <br/>
<a id="pl.303.33"></a><var>303.33</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must <br/>
<a id="pl.303.34"></a><var>303.34</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to notify <br/>
<a id="pl.303.35"></a><var>303.35</var>the assessor within 30 days that the property has been sold, transferred, or that
         the owner, <br/>
<a id="pl.304.1"></a><var>304.1</var>the spouse of the owner, or the relative is no longer occupying the property as a
         homestead, <br/>
<a id="pl.304.2"></a><var>304.2</var>shall result in the penalty provided under this subdivision and the property will
         lose its <br/>
<a id="pl.304.3"></a><var>304.3</var>current homestead status.<br/>
<a id="pl.304.4"></a><var>304.4</var>    (f) If a homestead application has not been filed with the county by December 15,
         the <br/>
<a id="pl.304.5"></a><var>304.5</var>assessor shall classify the property as nonhomestead for the current assessment year
         for <br/>
<a id="pl.304.6"></a><var>304.6</var>taxes payable in the following year, provided that the owner may be entitled to receive
         the <br/>
<a id="pl.304.7"></a><var>304.7</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.304.8"></a><var>304.8</var><b>EFFECTIVE DATE.</b>This section is effective for applications for homestead filed in <br/>
<a id="pl.304.9"></a><var>304.9</var>2018 and thereafter.<br/>
<br/>
<a id="bill.18.10.0"></a><a id="pl.304.10"></a><var>304.10</var>    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:<br/>
<a id="pl.304.11"></a><var>304.11</var>    Subd. 13d. <b>Homestead data.</b>  On or before April 30 each year beginning in 2007, each <br/>
<a id="pl.304.12"></a><var>304.12</var>county must provide the commissioner with the following data for each parcel of homestead
         <br/>
<a id="pl.304.13"></a><var>304.13</var>property by electronic means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br/>
<a id="pl.304.14"></a><var>304.14</var>    (1) the property identification number assigned to the parcel for purposes of taxes
         payable <br/>
<a id="pl.304.15"></a><var>304.15</var>in the current year;<br/>
<a id="pl.304.16"></a><var>304.16</var>    (2) the name and Social Security number of each occupant of homestead property who
         <br/>
<a id="pl.304.17"></a><var>304.17</var>is the property owner, property owner's spouse, or qualifying relative of a property owner, <br/>
<a id="pl.304.18"></a><var>304.18</var>and the spouse of the property owner who occupies homestead property or spouse of a <br/>
<a id="pl.304.19"></a><var>304.19</var>qualifying relative of a property owner who occupies homestead property;<br/>
<a id="pl.304.20"></a><var>304.20</var>    (3) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the current <br/>
<a id="pl.304.21"></a><var>304.21</var>year and in the prior year;<br/>
<a id="pl.304.22"></a><var>304.22</var>    (4) an indication of whether the property was classified as a homestead for taxes
         payable <br/>
<a id="pl.304.23"></a><var>304.23</var>in the current year because of occupancy by a relative of the owner or by a spouse
         of a <br/>
<a id="pl.304.24"></a><var>304.24</var>relative;<br/>
<a id="pl.304.25"></a><var>304.25</var>    (5) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br/>
<a id="pl.304.26"></a><var>304.26</var>current year and the prior year;<br/>
<a id="pl.304.27"></a><var>304.27</var>    (6) the market value of improvements to the property first assessed for tax purposes
         for <br/>
<a id="pl.304.28"></a><var>304.28</var>taxes payable in the current year;<br/>
<a id="pl.304.29"></a><var>304.29</var>    (7) the assessor's estimated market value assigned to the property for taxes payable
         in <br/>
<a id="pl.304.30"></a><var>304.30</var>the current year and the prior year;<br/>
<a id="pl.304.31"></a><var>304.31</var>    (8) the taxable market value assigned to the property for taxes payable in the current
         <br/>
<a id="pl.304.32"></a><var>304.32</var>year and the prior year;<br/>
<a id="pl.305.1"></a><var>305.1</var>    (9) whether there are delinquent property taxes owing on the homestead;<br/>
<a id="pl.305.2"></a><var>305.2</var>    (10) the unique taxing district in which the property is located; and<br/>
<a id="pl.305.3"></a><var>305.3</var>    (11) such other information as the commissioner decides is necessary.<br/>
<a id="pl.305.4"></a><var>305.4</var>    The commissioner shall use the information provided on the lists as appropriate under
         <br/>
<a id="pl.305.5"></a><var>305.5</var>the law, including for the detection of improper claims by owners, or relatives of
         owners, <br/>
<a id="pl.305.6"></a><var>305.6</var>under chapter 290A.<br/>
<a id="pl.305.7"></a><var>305.7</var><b>EFFECTIVE DATE.</b>This section is effective for applications for homestead filed in <br/>
<a id="pl.305.8"></a><var>305.8</var>2018 and thereafter.<br/>
<br/>
<a id="bill.18.11.0"></a><a id="pl.305.9"></a><var>305.9</var>    Sec. 11. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:<br/>
<a id="pl.305.10"></a><var>305.10</var>    Subdivision 1. <b>Reduction in tax; tax relief area.</b> The property tax to be paid in respect <br/>
<a id="pl.305.11"></a><var>305.11</var>to property taxable within a tax relief area as defined in section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, on <br/>
<a id="pl.305.12"></a><var>305.12</var>homestead property, as otherwise determined by law and regardless of the market value
         of <br/>
<a id="pl.305.13"></a><var>305.13</var>the property, and on nonhomestead portions of property classified as both homestead and <br/>
<a id="pl.305.14"></a><var>305.14</var>nonhomestead property as provided in section 273.124, subdivision 11, for all purposes <br/>
<a id="pl.305.15"></a><var>305.15</var>shall be reduced in the amount prescribed by subdivision 2, subject to the limitations
         <br/>
<a id="pl.305.16"></a><var>305.16</var>contained therein.<br/>
<a id="pl.305.17"></a><var>305.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.12.0"></a><a id="pl.305.18"></a><var>305.18</var>    Sec. 12. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:<br/>
<a id="pl.305.19"></a><var>305.19</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any city or town that conducts <br/>
<a id="pl.305.20"></a><var>305.20</var>local boards of appeal and equalization meetings must provide proof to the county assessor <br/>
<a id="pl.305.21"></a><var>305.21</var>by February 1 that it is in compliance comply with the training requirements of subdivision <br/>
<a id="pl.305.22"></a><var>305.22</var>2 by February 1, by having at least one member who has attended an appeals and equalization
         <br/>
<a id="pl.305.23"></a><var>305.23</var>course described in subdivision 2 within the last four years. This notice must also verify <br/>
<a id="pl.305.24"></a><var>305.24</var>that there was a quorum of voting members at each meeting of the board of appeal and
         <br/>
<a id="pl.305.25"></a><var>305.25</var>equalization in the previous year. A city or town that does not comply with these requirements <br/>
<a id="pl.305.26"></a><var>305.26</var>is deemed to have transferred its board of appeal and equalization powers to the county
         for <br/>
<a id="pl.305.27"></a><var>305.27</var>a minimum of two assessment years, beginning with the current year's assessment and <br/>
<a id="pl.305.28"></a><var>305.28</var>continuing thereafter unless the powers are reinstated under paragraph (c).<br/>
<a id="pl.305.29"></a><var>305.29</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for <br/>
<a id="pl.305.30"></a><var>305.30</var>a city or town has been transferred to the county under this subdivision and, prior
         to the <br/>
<a id="pl.305.31"></a><var>305.31</var>meeting time of the county board of equalization, the county shall make available
         to those <br/>
<a id="pl.306.1"></a><var>306.1</var>taxpayers a procedure for a review of the assessments, including, but not limited
         to, open <br/>
<a id="pl.306.2"></a><var>306.2</var>book meetings. This alternate review process shall take place in April and May.<br/>
<a id="pl.306.3"></a><var>306.3</var>    (c) A local board whose powers are transferred to the county under this subdivision
         may <br/>
<a id="pl.306.4"></a><var>306.4</var>be reinstated by resolution of the governing body of the city or town and upon proof
         of <br/>
<a id="pl.306.5"></a><var>306.5</var>compliance with the requirements of subdivision 2. The resolution and proofs must
         be <br/>
<a id="pl.306.6"></a><var>306.6</var>provided to the county assessor by February 1 in order to be effective for the following
         <br/>
<a id="pl.306.7"></a><var>306.7</var>year's assessment.<br/>
<a id="pl.306.8"></a><var>306.8</var>    (d) A local board whose powers are transferred to the county under this subdivision
         may <br/>
<a id="pl.306.9"></a><var>306.9</var>continue to employ a local assessor and is not deemed to have transferred its powers
         to <br/>
<a id="pl.306.10"></a><var>306.10</var>make assessments.<br/>
<a id="pl.306.11"></a><var>306.11</var><b>EFFECTIVE DATE.</b>This section is effective for board of appeal and equalization <br/>
<a id="pl.306.12"></a><var>306.12</var>meetings held in 2018 and thereafter.<br/>
<br/>
<a id="bill.18.13.0"></a><a id="pl.306.13"></a><var>306.13</var>    Sec. 13. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:<br/>
<a id="pl.306.14"></a><var>306.14</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any county that conducts county <br/>
<a id="pl.306.15"></a><var>306.15</var>boards of appeal and equalization meetings must provide proof to the commissioner by <br/>
<a id="pl.306.16"></a><var>306.16</var>December 1, 2009, and each year thereafter, that it is in compliance comply with the training <br/>
<a id="pl.306.17"></a><var>306.17</var>requirements of subdivision 2 by February 1, by having at least one member who has attended <br/>
<a id="pl.306.18"></a><var>306.18</var>an appeals and equalization course described in subdivision 2 within the last four
         years. <br/>
<a id="pl.306.19"></a><var>306.19</var>Beginning in 2009, this notice must also verify that there was a quorum of voting
         members <br/>
<a id="pl.306.20"></a><var>306.20</var>at each meeting of the board of appeal and equalization in the current year. A county that <br/>
<a id="pl.306.21"></a><var>306.21</var>does not comply with these requirements is deemed to have transferred its board of
         appeal <br/>
<a id="pl.306.22"></a><var>306.22</var>and equalization powers to the special board of equalization appointed pursuant to
         section <br/>
<statute_ref><a id="pl.306.23"></a><var>306.23</var>274.13, subdivision 2
         </statute_ref>, for a minimum of two assessment years, beginning with the following <br/>
<a id="pl.306.24"></a><var>306.24</var>year's assessment and continuing thereafter unless the powers are reinstated under paragraph <br/>
<a id="pl.306.25"></a><var>306.25</var>(c). A county that does not comply with the requirements of subdivision 2 and has
         not <br/>
<a id="pl.306.26"></a><var>306.26</var>appointed a special board of equalization shall appoint a special board of equalization
         before <br/>
<a id="pl.306.27"></a><var>306.27</var>the following year's assessment.<br/>
<a id="pl.306.28"></a><var>306.28</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for <br/>
<a id="pl.306.29"></a><var>306.29</var>a county has been transferred to the special board of equalization under this subdivision
         <br/>
<a id="pl.306.30"></a><var>306.30</var>and, prior to the meeting time of the special board of equalization, the county shall
         make <br/>
<a id="pl.306.31"></a><var>306.31</var>available to those taxpayers a procedure for a review of the assessments, including,
         but not <br/>
<a id="pl.306.32"></a><var>306.32</var>limited to, open book meetings. This alternate review process must take place in April
         and <br/>
<a id="pl.306.33"></a><var>306.33</var>May.<br/>
<a id="pl.307.1"></a><var>307.1</var>    (c) A county board whose powers are transferred to the special board of equalization
         <br/>
<a id="pl.307.2"></a><var>307.2</var>under this subdivision may be reinstated by resolution of the county board and upon
         proof <br/>
<a id="pl.307.3"></a><var>307.3</var>of compliance with the requirements of subdivision 2. The resolution and proofs must
         be <br/>
<a id="pl.307.4"></a><var>307.4</var>provided to the commissioner by December 1 in order to be effective for the following
         <br/>
<a id="pl.307.5"></a><var>307.5</var>year's assessment.<br/>
<a id="pl.307.6"></a><var>307.6</var>(d) If a person who was entitled to appeal to the county board of appeal and equalization
         <br/>
<a id="pl.307.7"></a><var>307.7</var>or to the county special board of equalization is not able to do so in a particular
         year because <br/>
<a id="pl.307.8"></a><var>307.8</var>the county board or special board did not meet the quorum and training requirements
         in this <br/>
<a id="pl.307.9"></a><var>307.9</var>section and section 
         <statute_ref>274.13</statute_ref>, or because the special board was not appointed, that person may <br/>
<a id="pl.307.10"></a><var>307.10</var>instead appeal to the commissioner of revenue, provided that the appeal is received
         by the <br/>
<a id="pl.307.11"></a><var>307.11</var>commissioner prior to August 1. The appeal is not subject to either chapter 14 or
         section <br/>
<statute_ref><a id="pl.307.12"></a><var>307.12</var>270C.92
         </statute_ref>. The commissioner must issue an appropriate order to the county assessor in <br/>
<a id="pl.307.13"></a><var>307.13</var>response to each timely appeal, either upholding or changing the valuation or classification
         <br/>
<a id="pl.307.14"></a><var>307.14</var>of the property. Prior to October 1 of each year, the commissioner must charge and
         bill the <br/>
<a id="pl.307.15"></a><var>307.15</var>county where the property is located $500 for each tax parcel covered by an order
         issued <br/>
<a id="pl.307.16"></a><var>307.16</var>under this paragraph in that year. Amounts received by the commissioner under this
         paragraph <br/>
<a id="pl.307.17"></a><var>307.17</var>must be deposited in the state's general fund. If payment of a billed amount is not
         received <br/>
<a id="pl.307.18"></a><var>307.18</var>by the commissioner before December 1 of the year when billed, the commissioner must
         <br/>
<a id="pl.307.19"></a><var>307.19</var>deduct that unpaid amount from any state aid the commissioner would otherwise pay
         to the <br/>
<a id="pl.307.20"></a><var>307.20</var>county under chapter 477A in the next year. Late payments may either be returned to
         the <br/>
<a id="pl.307.21"></a><var>307.21</var>county uncashed and undeposited or may be accepted. If a late payment is accepted,
         the <br/>
<a id="pl.307.22"></a><var>307.22</var>state aid paid to the county under chapter 477A must be adjusted within 12 months
         to <br/>
<a id="pl.307.23"></a><var>307.23</var>eliminate any reduction that occurred because the payment was late. Amounts needed
         to <br/>
<a id="pl.307.24"></a><var>307.24</var>make these adjustments are included in the appropriation under section 
         <statute_ref>477A.03, subdivision <br/>
<a id="pl.307.25"></a><var>307.25</var>2
         </statute_ref>.<br/>
<a id="pl.307.26"></a><var>307.26</var><b>EFFECTIVE DATE.</b>This section is effective for board of appeal and equalization <br/>
<a id="pl.307.27"></a><var>307.27</var>meetings held in 2018 and thereafter.<br/>
<br/>
<a id="bill.18.14.0"></a><a id="pl.307.28"></a><var>307.28</var>    Sec. 14. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:<br/>
<a id="pl.307.29"></a><var>307.29</var>    Subd. 2. <b>Transmittal of order.</b> The chief administrative law judge shall see that copies <br/>
<a id="pl.307.30"></a><var>307.30</var>of the order are mailed to all parties entitled to mailed notice of hearing under
         subdivision <br/>
<a id="pl.307.31"></a><var>307.31</var>1, the secretary of state, the Department of Revenue, the state demographer, individual <br/>
<a id="pl.307.32"></a><var>307.32</var>property owners if initiated in that manner, affected county auditor, and any other
         party of <br/>
<a id="pl.307.33"></a><var>307.33</var>record. The affected county auditor shall record the order against the affected property.<br/>
<a id="pl.307.34"></a><var>307.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.15.0"></a><a id="pl.308.1"></a><var>308.1</var>    Sec. 15. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:<br/>
<a id="pl.308.2"></a><var>308.2</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms have the <br/>
<a id="pl.308.3"></a><var>308.3</var>meanings given them.<br/>
<a id="pl.308.4"></a><var>308.4</var>    (b) "County program aid" means the sum of "county need aid," "county tax base <br/>
<a id="pl.308.5"></a><var>308.5</var>equalization aid," and "county transition aid."<br/>
<a id="pl.308.6"></a><var>308.6</var>    (c) "Age-adjusted population" means a county's population multiplied by the county
         age <br/>
<a id="pl.308.7"></a><var>308.7</var>index.<br/>
<a id="pl.308.8"></a><var>308.8</var>    (d) "County age index" means the percentage of the population over age 65 and over <br/>
<a id="pl.308.9"></a><var>308.9</var>within the county divided by the percentage of the population over age 65 and over within <br/>
<a id="pl.308.10"></a><var>308.10</var>the state, except that the age index for any county may not be greater than 1.8 nor
         less than <br/>
<a id="pl.308.11"></a><var>308.11</var>0.8.<br/>
<a id="pl.308.12"></a><var>308.12</var>    (e) "Population over age 65 and over" means the population over age 65 and over <br/>
<a id="pl.308.13"></a><var>308.13</var>established as of July 15 in an aid calculation year by the most recent federal census,
         by a <br/>
<a id="pl.308.14"></a><var>308.14</var>special census conducted under contract with the United States Bureau of the Census,
         by a <br/>
<a id="pl.308.15"></a><var>308.15</var>population estimate made by the Metropolitan Council, or by a population estimate
         of the <br/>
<a id="pl.308.16"></a><var>308.16</var>state demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the <br/>
<a id="pl.308.17"></a><var>308.17</var>stated date of the count or estimate for the preceding calendar year and which has
         been <br/>
<a id="pl.308.18"></a><var>308.18</var>certified to the commissioner of revenue on or before July 15 of the aid calculation
         year. A <br/>
<a id="pl.308.19"></a><var>308.19</var>revision to an estimate or count is effective for these purposes only if certified
         to the <br/>
<a id="pl.308.20"></a><var>308.20</var>commissioner on or before July 15 of the aid calculation year. Clerical errors in
         the <br/>
<a id="pl.308.21"></a><var>308.21</var>certification or use of estimates and counts established as of July 15 in the aid
         calculation <br/>
<a id="pl.308.22"></a><var>308.22</var>year are subject to correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br/>
<a id="pl.308.23"></a><var>308.23</var>    (f) "Part I crimes" means the three-year average annual number of Part I crimes reported
         <br/>
<a id="pl.308.24"></a><var>308.24</var>for each county by the Department of Public Safety for the most recent years available.
         By <br/>
<a id="pl.308.25"></a><var>308.25</var>July 1 of each year, the commissioner of public safety shall certify to the commissioner
         of <br/>
<a id="pl.308.26"></a><var>308.26</var>revenue the number of Part I crimes reported for each county for the three most recent
         <br/>
<a id="pl.308.27"></a><var>308.27</var>calendar years available.<br/>
<a id="pl.308.28"></a><var>308.28</var>    (g) "Households receiving food stamps" means the average monthly number of <br/>
<a id="pl.308.29"></a><var>308.29</var>households receiving food stamps for the three most recent years for which data is
         available. <br/>
<a id="pl.308.30"></a><var>308.30</var>By July 1 of each year, the commissioner of human services must certify to the commissioner
         <br/>
<a id="pl.308.31"></a><var>308.31</var>of revenue the average monthly number of households in the state and in each county
         that <br/>
<a id="pl.308.32"></a><var>308.32</var>receive food stamps, for the three most recent calendar years available.<br/>
<a id="pl.309.1"></a><var>309.1</var>    (h) "County net tax capacity" means the county's adjusted net tax capacity under section
         <br/>
<statute_ref><a id="pl.309.2"></a><var>309.2</var>273.1325
         </statute_ref>.<br/>
<a id="pl.309.3"></a><var>309.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.16.0"></a><a id="pl.309.4"></a><var>309.4</var>    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:<br/>
<a id="pl.309.5"></a><var>309.5</var>    Subdivision 1. <b>Towns.</b> (a) In 2014 and thereafter, each town is eligible for a distribution <br/>
<a id="pl.309.6"></a><var>309.6</var>under this subdivision equal to the product of (i) its agricultural property factor,
         (ii) its town <br/>
<a id="pl.309.7"></a><var>309.7</var>area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision,
         the <br/>
<a id="pl.309.8"></a><var>309.8</var>following terms have the meanings given them:<br/>
<a id="pl.309.9"></a><var>309.9</var>(1) "agricultural property factor" means the ratio of the adjusted net tax capacity
         of <br/>
<a id="pl.309.10"></a><var>309.10</var>agricultural property located in a town, divided by to the adjusted net tax capacity of all <br/>
<a id="pl.309.11"></a><var>309.11</var>other property located in the town. The agricultural property factor cannot exceed
         eight;<br/>
<a id="pl.309.12"></a><var>309.12</var>(2) "agricultural property" means property classified under section 
         <statute_ref>273.13</statute_ref>, as homestead <br/>
<a id="pl.309.13"></a><var>309.13</var>and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
         <br/>
<a id="pl.309.14"></a><var>309.14</var>recreational property;<br/>
<a id="pl.309.15"></a><var>309.15</var>(3) "town area factor" means the most recent estimate of total acreage, not to exceed
         <br/>
<a id="pl.309.16"></a><var>309.16</var>50,000 acres, located in the township available as of July 1 in the aid calculation
         year, <br/>
<a id="pl.309.17"></a><var>309.17</var>estimated or established by:<br/>
<a id="pl.309.18"></a><var>309.18</var>(i) the United States Bureau of the Census;<br/>
<a id="pl.309.19"></a><var>309.19</var>(ii) the State Land Management Information Center; or<br/>
<a id="pl.309.20"></a><var>309.20</var>(iii) the secretary of state; and<br/>
<a id="pl.309.21"></a><var>309.21</var>(4) "population factor" means the square root of the towns' population.<br/>
<a id="pl.309.22"></a><var>309.22</var>(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
         <br/>
<a id="pl.309.23"></a><var>309.23</var>under section 
         <statute_ref>477A.03, subdivision 2c</statute_ref>, the distribution to each town must be reduced <br/>
<a id="pl.309.24"></a><var>309.24</var>proportionately so that the total amount of aids distributed under this section does
         not exceed <br/>
<a id="pl.309.25"></a><var>309.25</var>the limit in section 
         <statute_ref>477A.03, subdivision 2c</statute_ref>.<br/>
<a id="pl.309.26"></a><var>309.26</var>(c) Data used in calculating aids to towns under this subdivision, other than acreage,
         <br/>
<a id="pl.309.27"></a><var>309.27</var>shall be the most recently available data as of January 1 in the year in which the
         aid is <br/>
<a id="pl.309.28"></a><var>309.28</var>calculated.<br/>
<a id="pl.309.29"></a><var>309.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.18.17.0"></a><a id="pl.310.1"></a><var>310.1</var>    Sec. 17. <b> REPEALER.</b><br/>
<a id="pl.310.2"></a><var>310.2</var>Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.<br/>
<a id="pl.310.3"></a><var>310.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2018 and thereafter.<br/>
<br/>
<a id="bill.19.0.0"></a>

<a id="bill.19.1.0"></a><a id="pl.310.6"></a><var>310.6</var>    Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:<br/>
<a id="pl.310.7"></a><var>310.7</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section and sections 270C.4451 to <br/>
<a id="pl.310.8"></a><var>310.8</var>270C.447, the following terms have the meanings given.<br/>
<a id="pl.310.9"></a><var>310.9</var>(b) "Advertise" means to solicit business through any means or medium.<br/>
<a id="pl.310.10"></a><var>310.10</var>(c) "Client" means an individual a person for whom a tax preparer performs or agrees <br/>
<a id="pl.310.11"></a><var>310.11</var>to perform tax preparation services.<br/>
<a id="pl.310.12"></a><var>310.12</var>(d) "Facilitate" means to individually or in conjunction or cooperation with another
         <br/>
<a id="pl.310.13"></a><var>310.13</var>person:<br/>
<a id="pl.310.14"></a><var>310.14</var>(1) accept an application for a refund anticipation loan;<br/>
<a id="pl.310.15"></a><var>310.15</var>(2) pay to a client the proceeds, through direct deposit, a negotiable instrument,
         or any <br/>
<a id="pl.310.16"></a><var>310.16</var>other means, of a refund anticipation loan; or<br/>
<a id="pl.310.17"></a><var>310.17</var>(3) offer, arrange, process, provide, or in any other manner act to allow the making
         of, <br/>
<a id="pl.310.18"></a><var>310.18</var>a refund anticipation loan.<br/>
<a id="pl.310.19"></a><var>310.19</var>(e) "Person" means an individual, corporation, partnership, limited liability company,
         <br/>
<a id="pl.310.20"></a><var>310.20</var>association, trustee, or other legal entity.<br/>
<a id="pl.310.21"></a><var>310.21</var>(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client <br/>
<a id="pl.310.22"></a><var>310.22</var>by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
         <br/>
<a id="pl.310.23"></a><var>310.23</var>federal or state income tax refund or both and represents the net of the refund minus
         the tax <br/>
<a id="pl.310.24"></a><var>310.24</var>preparation fee and any other fees. A refund anticipation check includes a refund
         transfer.<br/>
<a id="pl.310.25"></a><var>310.25</var>(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether
         <br/>
<a id="pl.310.26"></a><var>310.26</var>provided by the tax preparer or another entity such as a financial institution, in
         anticipation <br/>
<a id="pl.310.27"></a><var>310.27</var>of, and whose payment is secured by, a client's federal or state income tax refund
         or both.<br/>
<a id="pl.310.28"></a><var>310.28</var>(h) (g) "Tax preparation services" means services provided for a fee or other consideration <br/>
<a id="pl.310.29"></a><var>310.29</var>compensation to a client to:<br/>
<a id="pl.310.30"></a><var>310.30</var>(1) assist with preparing or filing state or federal individual income tax returns a return;<br/>
<a id="pl.311.1"></a><var>311.1</var>(2) assume final responsibility for completed work on an individual income tax a return <br/>
<a id="pl.311.2"></a><var>311.2</var>on which preliminary work has been done by another; or<br/>
<a id="pl.311.3"></a><var>311.3</var>(3) sign or include on a return the preparer tax identification number required under
         <br/>
<a id="pl.311.4"></a><var>311.4</var>section 6109(a)(4) of the Internal Revenue Code; or<br/>
<a id="pl.311.5"></a><var>311.5</var>(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund <br/>
<a id="pl.311.6"></a><var>311.6</var>anticipation checks check.<br/>
<a id="pl.311.7"></a><var>311.7</var>(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services <br/>
<a id="pl.311.8"></a><var>311.8</var>subject to this section. except:<br/>
<a id="pl.311.9"></a><var>311.9</var>(1) an employee who prepares their employer's return;<br/>
<a id="pl.311.10"></a><var>311.10</var>(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf
         of the <br/>
<a id="pl.311.11"></a><var>311.11</var>fiduciary estate, testator, trustor, grantor, or beneficiaries of them;<br/>
<a id="pl.311.12"></a><var>311.12</var>(3) nonprofit organizations providing tax preparation services under the Internal
         Revenue <br/>
<a id="pl.311.13"></a><var>311.13</var>Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
         <br/>
<a id="pl.311.14"></a><var>311.14</var>Program;<br/>
<a id="pl.311.15"></a><var>311.15</var>(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;<br/>
<a id="pl.311.16"></a><var>311.16</var>(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is
         currently <br/>
<a id="pl.311.17"></a><var>311.17</var>registered with the commissioner; and<br/>
<a id="pl.311.18"></a><var>311.18</var>(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
         <br/>
<a id="pl.311.19"></a><var>311.19</var>(c), that provides all of the sales tax functions for a retailer not maintaining a
         place of <br/>
<a id="pl.311.20"></a><var>311.20</var>business in this state as described in section 297A.66.<br/>
<a id="pl.311.21"></a><var>311.21</var>(i) Except as otherwise provided, "return" means:<br/>
<a id="pl.311.22"></a><var>311.22</var>(1) a return as defined in section 270C.01, subdivision 8;<br/>
<a id="pl.311.23"></a><var>311.23</var>(2) a claim for refund of an overpayment;<br/>
<a id="pl.311.24"></a><var>311.24</var>(3) a claim filed pursuant to chapter 290A; and<br/>
 <a id="pl.311.25"></a><var>311.25</var>(4) a claim for a credit filed under section 290.0677, subdivision 1.<br/>
<a id="pl.311.26"></a><var>311.26</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.311.27"></a><var>311.27</var>31, 2017.<br/>
<br/>
<a id="bill.19.2.0"></a><a id="pl.311.28"></a><var>311.28</var>    Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:<br/>
<a id="pl.311.29"></a><var>311.29</var>    Subd. 3. <b>Standards of conduct.</b> No tax preparer shall:<br/>
<a id="pl.312.1"></a><var>312.1</var>(1) without good cause fail to promptly, diligently, and without unreasonable delay
         <br/>
<a id="pl.312.2"></a><var>312.2</var>complete a client's tax return;<br/>
<a id="pl.312.3"></a><var>312.3</var>(2) obtain the signature of a client to a tax return or authorizing document that contains <br/>
<a id="pl.312.4"></a><var>312.4</var>blank spaces to be filled in after it has been signed;<br/>
<a id="pl.312.5"></a><var>312.5</var>(3) fail to sign a client's tax return when payment compensation for services rendered <br/>
<a id="pl.312.6"></a><var>312.6</var>has been made;<br/>
<a id="pl.312.7"></a><var>312.7</var>(4) fail to provide on a client's return the preparer tax identification number when
         required <br/>
<a id="pl.312.8"></a><var>312.8</var>under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision
         28;<br/>
<a id="pl.312.9"></a><var>312.9</var>(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature
         <br/>
<a id="pl.312.10"></a><var>312.10</var>within a reasonable time after the client signs the document;<br/>
<a id="pl.312.11"></a><var>312.11</var>(5) (6) fail to retain for at least four years a copy of individual income tax a client's <br/>
<a id="pl.312.12"></a><var>312.12</var>returns;<br/>
<a id="pl.312.13"></a><var>312.13</var>(6) (7) fail to maintain a confidential relationship with clients or former clients;<br/>
<a id="pl.312.14"></a><var>312.14</var>(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic <br/>
<a id="pl.312.15"></a><var>312.15</var>personal information;<br/>
<a id="pl.312.16"></a><var>312.16</var>(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly
         <br/>
<a id="pl.312.17"></a><var>312.17</var>or indirectly, any false, deceptive, or misleading statement or representation relating
         to or <br/>
<a id="pl.312.18"></a><var>312.18</var>in connection with the offering or provision of tax preparation services;<br/>
<a id="pl.312.19"></a><var>312.19</var>(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's <br/>
<a id="pl.312.20"></a><var>312.20</var>return;<br/>
<a id="pl.312.21"></a><var>312.21</var>(10) (11) claim credits or deductions on a client's tax return for which the tax preparer <br/>
<a id="pl.312.22"></a><var>312.22</var>knows or reasonably should know the client does not qualify;<br/>
<a id="pl.312.23"></a><var>312.23</var>(12) report a household income on a client's claim filed under chapter 290A that the
         tax <br/>
<a id="pl.312.24"></a><var>312.24</var>preparer knows or reasonably should know is not accurate;<br/>
<a id="pl.312.25"></a><var>312.25</var>(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
         <br/>
<a id="pl.312.26"></a><var>312.26</var>13, 20, 20a, 26, or 28;<br/>
<a id="pl.312.27"></a><var>312.27</var>(14) whether or not acting as a taxpayer representative, fail to conform to the standards
         <br/>
<a id="pl.312.28"></a><var>312.28</var>of conduct required by Minnesota Rules, part 8052.0300, subpart 4;<br/>
<a id="pl.312.29"></a><var>312.29</var>(15) whether or not acting as a taxpayer representative, engage in any conduct that
         is <br/>
<a id="pl.312.30"></a><var>312.30</var>incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;<br/>
<a id="pl.313.1"></a><var>313.1</var>(16) whether or not acting as a taxpayer representative, engage in any conduct that
         is <br/>
<a id="pl.313.2"></a><var>313.2</var>disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;<br/>
<a id="pl.313.3"></a><var>313.3</var>(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
         <br/>
<a id="pl.313.4"></a><var>313.4</var>refund for tax preparation services;<br/>
<a id="pl.313.5"></a><var>313.5</var>(12) (18) under any circumstances, withhold or fail to return to a client a document <br/>
<a id="pl.313.6"></a><var>313.6</var>provided by the client for use in preparing the client's tax return;<br/>
<a id="pl.313.7"></a><var>313.7</var>(13) (19) establish an account in the preparer's name to receive a client's refund through
         <br/>
<a id="pl.313.8"></a><var>313.8</var>a direct deposit or any other instrument unless the client's name is also on the account,
         <br/>
<a id="pl.313.9"></a><var>313.9</var>except that a taxpayer may assign the portion of a refund representing the Minnesota
         <br/>
<a id="pl.313.10"></a><var>313.10</var>education credit available under section 
         <statute_ref>290.0674</statute_ref> to a bank account without the client's <br/>
<a id="pl.313.11"></a><var>313.11</var>name, as provided under section 
         <statute_ref>290.0679</statute_ref>;<br/>
<a id="pl.313.12"></a><var>313.12</var>(14) (20) fail to act in the best interests of the client;<br/>
<a id="pl.313.13"></a><var>313.13</var>(15) (21) fail to safeguard and account for any money handled for the client;<br/>
<a id="pl.313.14"></a><var>313.14</var>(16) (22) fail to disclose all material facts of which the preparer has knowledge which <br/>
<a id="pl.313.15"></a><var>313.15</var>might reasonably affect the client's rights and interests;<br/>
<a id="pl.313.16"></a><var>313.16</var>(17) (23) violate any provision of section 
         <statute_ref>332.37</statute_ref>;<br/>
<a id="pl.313.17"></a><var>313.17</var>(18) (24) include any of the following in any document provided or signed in connection <br/>
<a id="pl.313.18"></a><var>313.18</var>with the provision of tax preparation services:<br/>
<a id="pl.313.19"></a><var>313.19</var>(i) a hold harmless clause;<br/>
<a id="pl.313.20"></a><var>313.20</var>(ii) a confession of judgment or a power of attorney to confess judgment against the
         <br/>
<a id="pl.313.21"></a><var>313.21</var>client or appear as the client in any judicial proceeding;<br/>
<a id="pl.313.22"></a><var>313.22</var>(iii) a waiver of the right to a jury trial, if applicable, in any action brought
         by or against <br/>
<a id="pl.313.23"></a><var>313.23</var>a debtor;<br/>
<a id="pl.313.24"></a><var>313.24</var>(iv) an assignment of or an order for payment of wages or other compensation for <br/>
<a id="pl.313.25"></a><var>313.25</var>services;<br/>
<a id="pl.313.26"></a><var>313.26</var>(v) a provision in which the client agrees not to assert any claim or defense otherwise
         <br/>
<a id="pl.313.27"></a><var>313.27</var>available;<br/>
<a id="pl.313.28"></a><var>313.28</var>(vi) a waiver of any provision of this section or a release of any obligation required
         to <br/>
<a id="pl.313.29"></a><var>313.29</var>be performed on the part of the tax preparer; or<br/>
<a id="pl.313.30"></a><var>313.30</var>(vii) a waiver of the right to injunctive, declaratory, or other equitable relief
         or relief on <br/>
<a id="pl.313.31"></a><var>313.31</var>a class basis; or<br/>
<a id="pl.314.1"></a><var>314.1</var>(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide
         <br/>
<a id="pl.314.2"></a><var>314.2</var>all disclosures required by the federal Truth in Lending Act, United States Code,
         title 15, <br/>
<a id="pl.314.3"></a><var>314.3</var>in a form that may be retained by the client.<br/>
<a id="pl.314.4"></a><var>314.4</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.314.5"></a><var>314.5</var>31, 2017.<br/>
<br/>
<a id="bill.19.3.0"></a><a id="pl.314.6"></a><var>314.6</var>    Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:<br/>
<a id="pl.314.7"></a><var>314.7</var>    Subd. 5a. <b>Nongame wildlife checkoff.</b> A tax preparer must give written notice of the <br/>
<a id="pl.314.8"></a><var>314.8</var>option to contribute to the nongame wildlife management account in section 
         <statute_ref>290.431 </statute_ref>to <br/>
<a id="pl.314.9"></a><var>314.9</var>corporate clients that file an income tax return and to individual clients who file
         an income <br/>
<a id="pl.314.10"></a><var>314.10</var>tax return or property tax refund claim form under chapter 290A. This notification must be <br/>
<a id="pl.314.11"></a><var>314.11</var>included with information sent to the client at the same time as the preliminary worksheets
         <br/>
<a id="pl.314.12"></a><var>314.12</var>or other documents used in preparing the client's return and must include a line for
         displaying <br/>
<a id="pl.314.13"></a><var>314.13</var>contributions.<br/>
<a id="pl.314.14"></a><var>314.14</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.314.15"></a><var>314.15</var>31, 2017.<br/>
<br/>
<a id="bill.19.4.0"></a><a id="pl.314.16"></a><var>314.16</var>    Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:<br/>
<a id="pl.314.17"></a><var>314.17</var>    Subd. 6. <b>Enforcement;</b><b> administrative order;</b><b> penalties</b><b>; cease and desist</b><b>.</b> (a) The <br/>
<a id="pl.314.18"></a><var>314.18</var>commissioner may impose an administrative penalty of not more than $1,000 per violation
         <br/>
<a id="pl.314.19"></a><var>314.19</var>of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not <br/>
<a id="pl.314.20"></a><var>314.20</var>be imposed for any conduct that is also subject to the for which a tax return preparer penalties <br/>
<a id="pl.314.21"></a><var>314.21</var>in penalty is imposed under section 
         <statute_ref>289A.60, subdivision 13</statute_ref>. The commissioner may <br/>
<a id="pl.314.22"></a><var>314.22</var>terminate a tax preparer's authority to transmit returns electronically to the state,
         if the <br/>
<a id="pl.314.23"></a><var>314.23</var>commissioner determines the tax preparer engaged in a pattern and practice of violating
         <br/>
<a id="pl.314.24"></a><var>314.24</var>this section. Imposition of a penalty under this subdivision paragraph is subject to the <br/>
<a id="pl.314.25"></a><var>314.25</var>contested case procedure under chapter 14. The commissioner shall collect the penalty
         in <br/>
<a id="pl.314.26"></a><var>314.26</var>the same manner as the income tax. There is no right to make a claim for refund under <br/>
<a id="pl.314.27"></a><var>314.27</var>section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this <br/>
<a id="pl.314.28"></a><var>314.28</var>subdivision paragraph are public data.<br/>
<a id="pl.314.29"></a><var>314.29</var>(b) In addition to the penalty under paragraph (a), if the commissioner determines
         that <br/>
<a id="pl.314.30"></a><var>314.30</var>a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner
         may <br/>
<a id="pl.314.31"></a><var>314.31</var>issue an administrative order to the tax preparer requiring the tax preparer to cease
         and <br/>
<a id="pl.314.32"></a><var>314.32</var>desist from committing the violation. The administrative order may include an administrative
         <br/>
<a id="pl.314.33"></a><var>314.33</var>penalty provided in paragraph (a).<br/>
<a id="pl.315.1"></a><var>315.1</var>(c) If the commissioner issues an administrative order under paragraph (b), the <br/>
<a id="pl.315.2"></a><var>315.2</var>commissioner must send the order to the tax preparer addressed to the last known address
         <br/>
<a id="pl.315.3"></a><var>315.3</var>of the tax preparer.<br/>
<a id="pl.315.4"></a><var>315.4</var>(d) A cease and desist order under paragraph (b) must:<br/>
<a id="pl.315.5"></a><var>315.5</var>(1) describe the act, conduct, or practice committed and include a reference to the
         law <br/>
<a id="pl.315.6"></a><var>315.6</var>that the act, conduct, or practice violates; and<br/>
<a id="pl.315.7"></a><var>315.7</var>(2) provide notice that the tax preparer may request a hearing as provided in this
         <br/>
<a id="pl.315.8"></a><var>315.8</var>subdivision.<br/>
<a id="pl.315.9"></a><var>315.9</var>(e) Within 30 days after the commissioner issues an administrative order under paragraph
         <br/>
<a id="pl.315.10"></a><var>315.10</var>(b), the tax preparer may request a hearing to review the commissioner's action. The
         request <br/>
<a id="pl.315.11"></a><var>315.11</var>for hearing must be made in writing and must be served on the commissioner at the
         address <br/>
<a id="pl.315.12"></a><var>315.12</var>specified in the order. The hearing request must specifically state the reasons for
         seeking <br/>
<a id="pl.315.13"></a><var>315.13</var>review of the order. The date on which a request for hearing is served by mail is
         the postmark <br/>
<a id="pl.315.14"></a><var>315.14</var>date on the envelope in which the request for hearing is mailed.<br/>
<a id="pl.315.15"></a><var>315.15</var>(f) If a tax preparer does not timely request a hearing regarding an administrative
         order <br/>
<a id="pl.315.16"></a><var>315.16</var>issued under paragraph (b), the order becomes a final order of the commissioner and
         is not <br/>
<a id="pl.315.17"></a><var>315.17</var>subject to review by any court or agency.<br/>
<a id="pl.315.18"></a><var>315.18</var>(g) If a tax preparer timely requests a hearing regarding an administrative order
         issued <br/>
<a id="pl.315.19"></a><var>315.19</var>under paragraph (b), the hearing must be commenced within ten days after the commissioner
         <br/>
<a id="pl.315.20"></a><var>315.20</var>receives the request for a hearing.<br/>
<a id="pl.315.21"></a><var>315.21</var>(h) A hearing timely requested under paragraph (e) is subject to the contested case
         <br/>
<a id="pl.315.22"></a><var>315.22</var>procedure under chapter 14, as modified by this subdivision. The administrative law
         judge <br/>
<a id="pl.315.23"></a><var>315.23</var>must issue a report containing findings of fact, conclusions of law, and a recommended
         <br/>
<a id="pl.315.24"></a><var>315.24</var>order within ten days after the completion of the hearing, the receipt of late-filed
         exhibits, <br/>
<a id="pl.315.25"></a><var>315.25</var>or the submission of written arguments, whichever is later.<br/>
<a id="pl.315.26"></a><var>315.26</var>(i) Within five days of the date of the administrative law judge's report issued under
         <br/>
<a id="pl.315.27"></a><var>315.27</var>paragraph (h), any party aggrieved by the administrative law judge's report may submit
         <br/>
<a id="pl.315.28"></a><var>315.28</var>written exceptions and arguments to the commissioner. Within 15 days after receiving
         the <br/>
<a id="pl.315.29"></a><var>315.29</var>administrative law judge's report, the commissioner must issue an order vacating,
         modifying, <br/>
<a id="pl.315.30"></a><var>315.30</var>or making final the administrative order.<br/>
<a id="pl.315.31"></a><var>315.31</var>(j) The commissioner and the tax preparer requesting a hearing may by agreement <br/>
<a id="pl.315.32"></a><var>315.32</var>lengthen any time periods prescribed in paragraphs (g) to (i).<br/>
<a id="pl.316.1"></a><var>316.1</var>(k) An administrative order issued under paragraph (b) is in effect until it is modified
         <br/>
<a id="pl.316.2"></a><var>316.2</var>or vacated by the commissioner or an appellate court. The administrative hearing provided
         <br/>
<a id="pl.316.3"></a><var>316.3</var>by paragraphs (e) to (i) and any appellate judicial review as provided in chapter
         14 constitute <br/>
<a id="pl.316.4"></a><var>316.4</var>the exclusive remedy for a tax preparer aggrieved by the order.<br/>
<a id="pl.316.5"></a><var>316.5</var>(l) The commissioner may impose an administrative penalty, in addition to the penalty
         <br/>
<a id="pl.316.6"></a><var>316.6</var>under paragraph (a), up to $5,000 per violation of a cease and desist order issued
         under <br/>
<a id="pl.316.7"></a><var>316.7</var>paragraph (b). Imposition of a penalty under this paragraph is subject to the contested
         case <br/>
<a id="pl.316.8"></a><var>316.8</var>procedure under chapter 14. Within 30 days after the commissioner imposes a penalty
         under <br/>
<a id="pl.316.9"></a><var>316.9</var>this paragraph, the tax preparer assessed the penalty may request a hearing to review
         the <br/>
<a id="pl.316.10"></a><var>316.10</var>penalty order. The request for hearing must be made in writing and must be served
         on the <br/>
<a id="pl.316.11"></a><var>316.11</var>commissioner at the address specified in the order. The hearing request must specifically
         <br/>
<a id="pl.316.12"></a><var>316.12</var>state the reasons for seeking review of the order. The cease and desist order issued
         under <br/>
<a id="pl.316.13"></a><var>316.13</var>paragraph (b) is not subject to review in a proceeding to challenge the penalty order
         under <br/>
<a id="pl.316.14"></a><var>316.14</var>this paragraph. The date on which a request for hearing is served by mail is the postmark
         <br/>
<a id="pl.316.15"></a><var>316.15</var>date on the envelope in which the request for hearing is mailed. If the tax preparer
         does not <br/>
<a id="pl.316.16"></a><var>316.16</var>timely request a hearing, the penalty order becomes a final order of the commissioner
         and <br/>
<a id="pl.316.17"></a><var>316.17</var>is not subject to review by any court or agency. A penalty imposed by the commissioner
         <br/>
<a id="pl.316.18"></a><var>316.18</var>under this paragraph may be collected and enforced by the commissioner as an income
         tax <br/>
<a id="pl.316.19"></a><var>316.19</var>liability. There is no right to make a claim for refund under section 289A.50 of the
         penalty <br/>
<a id="pl.316.20"></a><var>316.20</var>imposed under this paragraph. A penalty imposed under this paragraph is public data.<br/>
<a id="pl.316.21"></a><var>316.21</var>(m) If a tax preparer violates a cease and desist order issued under paragraph (b),
         the <br/>
<a id="pl.316.22"></a><var>316.22</var>commissioner may terminate the tax preparer's authority to transmit returns electronically
         <br/>
<a id="pl.316.23"></a><var>316.23</var>to the state. Termination under this paragraph is public data.<br/>
<a id="pl.316.24"></a><var>316.24</var>(n) A cease and desist order issued under paragraph (b) is public data when it is
         a final <br/>
<a id="pl.316.25"></a><var>316.25</var>order.<br/>
<a id="pl.316.26"></a><var>316.26</var>(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
         <br/>
<a id="pl.316.27"></a><var>316.27</var>action under this subdivision against a tax preparer, with respect to a return, within
         the <br/>
<a id="pl.316.28"></a><var>316.28</var>period to assess tax on that return as provided by section 289A.38.<br/>
<a id="pl.316.29"></a><var>316.29</var>(p) Notwithstanding any other law, the imposition of a penalty or any other action
         against <br/>
<a id="pl.316.30"></a><var>316.30</var>a tax preparer under this subdivision, other than with respect to a return, must be
         taken by <br/>
<a id="pl.316.31"></a><var>316.31</var>the commissioner within five years of the violation of statute.<br/>
<a id="pl.316.32"></a><var>316.32</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.316.33"></a><var>316.33</var>31, 2017.<br/>
<br/>
<a id="bill.19.5.0"></a><a id="pl.317.1"></a><var>317.1</var>    Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:<br/>
<a id="pl.317.2"></a><var>317.2</var>    Subd. 6a. <b>Exchange of data; State Board of Accountancy.</b> The State Board of <br/>
<a id="pl.317.3"></a><var>317.3</var>Accountancy shall refer to the commissioner complaints it receives about tax preparers
         who <br/>
<a id="pl.317.4"></a><var>317.4</var>are not subject to the jurisdiction of the State Board of Accountancy and who are
         alleged <br/>
<a id="pl.317.5"></a><var>317.5</var>to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except <br/>
<a id="pl.317.6"></a><var>317.6</var>subdivision 5a, or section 270C.4451.<br/>
<a id="pl.317.7"></a><var>317.7</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.317.8"></a><var>317.8</var>31, 2017.<br/>
<br/>
<a id="bill.19.6.0"></a><a id="pl.317.9"></a><var>317.9</var>    Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:<br/>
<a id="pl.317.10"></a><var>317.10</var>    Subd. 6b. <b>Exchange of data; Lawyers Board of Professional Responsibility.</b> The <br/>
<a id="pl.317.11"></a><var>317.11</var>Lawyers Board of Professional Responsibility may refer to the commissioner complaints
         <br/>
<a id="pl.317.12"></a><var>317.12</var>it receives about tax preparers who are not subject to its jurisdiction and who are
         alleged to <br/>
<a id="pl.317.13"></a><var>317.13</var>have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except <br/>
<a id="pl.317.14"></a><var>317.14</var>subdivision 5a, or section 270C.4451.<br/>
<a id="pl.317.15"></a><var>317.15</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.317.16"></a><var>317.16</var>31, 2017.<br/>
<br/>
<a id="bill.19.7.0"></a><a id="pl.317.17"></a><var>317.17</var>    Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:<br/>
<a id="pl.317.18"></a><var>317.18</var>    Subd. 6c. <b>Exchange of data; commissioner.</b> The commissioner shall refer information <br/>
<a id="pl.317.19"></a><var>317.19</var>and complaints about tax preparers who are alleged to have violated the provisions of
         <br/>
<a id="pl.317.20"></a><var>317.20</var>subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section <br/>
<a id="pl.317.21"></a><var>317.21</var>270C.4451, to:<br/>
<a id="pl.317.22"></a><var>317.22</var>(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction;
         and<br/>
<a id="pl.317.23"></a><var>317.23</var>(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under
         its <br/>
<a id="pl.317.24"></a><var>317.24</var>jurisdiction.<br/>
<a id="pl.317.25"></a><var>317.25</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.317.26"></a><var>317.26</var>31, 2017.<br/>
<br/>
<a id="bill.19.8.0"></a><a id="pl.317.27"></a><var>317.27</var>    Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:<br/>
<a id="pl.317.28"></a><var>317.28</var>    Subd. 7. <b>Enforcement; civil actions.</b> (a) Any violation of this section or section <br/>
<a id="pl.317.29"></a><var>317.29</var>270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section
         <br/>
<statute_ref><a id="pl.317.30"></a><var>317.30</var>8.31
         </statute_ref>. An action taken under this section is in the public interest.<br/>
<a id="pl.318.1"></a><var>318.1</var>(b) A client may bring a civil action seeking redress for a violation of this section
         in the <br/>
<a id="pl.318.2"></a><var>318.2</var>conciliation or the district court of the county in which unlawful action is alleged
         to have <br/>
<a id="pl.318.3"></a><var>318.3</var>been committed or where the respondent resides or has a principal place of business.<br/>
<a id="pl.318.4"></a><var>318.4</var>(c) A court finding for the plaintiff must award:<br/>
<a id="pl.318.5"></a><var>318.5</var>(1) actual damages;<br/>
<a id="pl.318.6"></a><var>318.6</var>(2) incidental and consequential damages;<br/>
<a id="pl.318.7"></a><var>318.7</var>(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii)
         if the <br/>
<a id="pl.318.8"></a><var>318.8</var>plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all <br/>
<a id="pl.318.9"></a><var>318.9</var>interest and fees for a refund anticipation loan;<br/>
<a id="pl.318.10"></a><var>318.10</var>(4) reasonable attorney fees;<br/>
<a id="pl.318.11"></a><var>318.11</var>(5) court costs; and<br/>
<a id="pl.318.12"></a><var>318.12</var>(6) any other equitable relief as the court considers appropriate.<br/>
<a id="pl.318.13"></a><var>318.13</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.318.14"></a><var>318.14</var>31, 2017.<br/>
<br/>
<a id="bill.19.9.0"></a><a id="pl.318.15"></a><var>318.15</var>    Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:<br/>
<a id="pl.318.16"></a><var>318.16</var>    Subd. 8. <b>Limited exemptions.</b> (a) Except as provided in paragraph (b), the provisions <br/>
<a id="pl.318.17"></a><var>318.17</var>of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs <br/>
<a id="pl.318.18"></a><var>318.18</var>(a) to (n); and 7, do not apply to:<br/>
<a id="pl.318.19"></a><var>318.19</var>(1) an attorney admitted to practice under section 
         <statute_ref>481.01</statute_ref>;<br/>
<a id="pl.318.20"></a><var>318.20</var>(2) a registered accounting practitioner, a registered accounting practitioner firm, a <br/>
<a id="pl.318.21"></a><var>318.21</var>certified public accountant, or other person who is subject to the jurisdiction of the State <br/>
<a id="pl.318.22"></a><var>318.22</var>Board of Accountancy a certified public accountant firm, licensed in accordance with chapter <br/>
<a id="pl.318.23"></a><var>318.23</var>326A;<br/>
<a id="pl.318.24"></a><var>318.24</var>(3) an enrolled agent who has passed the special enrollment examination administered
         <br/>
<a id="pl.318.25"></a><var>318.25</var>by the Internal Revenue Service; or<br/>
<a id="pl.318.26"></a><var>318.26</var>(4) anyone a person who provides, or assists in providing, tax preparation services within <br/>
<a id="pl.318.27"></a><var>318.27</var>the scope of duties as an employee or supervisor under the direction or supervision of a <br/>
<a id="pl.318.28"></a><var>318.28</var>person who is exempt under this subdivision; or<br/>
<a id="pl.318.29"></a><var>318.29</var>(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.<br/>
<a id="pl.319.1"></a><var>319.1</var>(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a
         tax <br/>
<a id="pl.319.2"></a><var>319.2</var>preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:<br/>
<a id="pl.319.3"></a><var>319.3</var>(1) had a professional license suspended or revoked for cause, not including a failure
         to <br/>
<a id="pl.319.4"></a><var>319.4</var>pay a professional licensing fee, by any authority of any state, territory, or possession
         of <br/>
<a id="pl.319.5"></a><var>319.5</var>the United States, including a commonwealth, or the District of Columbia, any federal
         court <br/>
<a id="pl.319.6"></a><var>319.6</var>of record, or any federal agency, body, or board;<br/>
<a id="pl.319.7"></a><var>319.7</var>(2) irrespective of whether an appeal has been taken, been convicted of any crime
         <br/>
<a id="pl.319.8"></a><var>319.8</var>involving dishonesty or breach of trust;<br/>
<a id="pl.319.9"></a><var>319.9</var>(3) been censured, suspended, or disbarred under United States Treasury Department
         <br/>
<a id="pl.319.10"></a><var>319.10</var>Circular 230;<br/>
<a id="pl.319.11"></a><var>319.11</var>(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal
         <br/>
<a id="pl.319.12"></a><var>319.12</var>proceeding, including suits for injunctive relief, relating to any taxpayer's tax
         liability or <br/>
<a id="pl.319.13"></a><var>319.13</var>the tax preparer's own tax liability, for:<br/>
<a id="pl.319.14"></a><var>319.14</var>(i) instituting or maintaining proceedings primarily for delay;<br/>
<a id="pl.319.15"></a><var>319.15</var>(ii) advancing frivolous or groundless arguments; or<br/>
<a id="pl.319.16"></a><var>319.16</var>(iii) failing to pursue available administrative remedies; or<br/>
<a id="pl.319.17"></a><var>319.17</var>(5) demonstrated a pattern of willful disreputable conduct by:<br/>
<a id="pl.319.18"></a><var>319.18</var>(i) failing to file a return that the tax preparer was required to file annually for
         two of <br/>
<a id="pl.319.19"></a><var>319.19</var>the three immediately preceding tax periods; or<br/>
<a id="pl.319.20"></a><var>319.20</var>(ii) failing to file a return that the tax preparer was required to file more frequently
         than <br/>
<a id="pl.319.21"></a><var>319.21</var>annually for three of the six immediately preceding tax periods.<br/>
<a id="pl.319.22"></a><var>319.22</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.319.23"></a><var>319.23</var>31, 2017.<br/>
<br/>
<a id="bill.19.10.0"></a><a id="pl.319.24"></a><var>319.24</var>    Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision <br/>
<a id="pl.319.25"></a><var>319.25</var>to read:<br/>
<a id="pl.319.26"></a><var>319.26</var>    Subd. 9. <b>Powers additional.</b> The powers and authority granted in this section are in <br/>
<a id="pl.319.27"></a><var>319.27</var>addition to all other powers of the commissioner. The use of the powers granted in
         this <br/>
<a id="pl.319.28"></a><var>319.28</var>section does not preclude the use of any other power or authority of the commissioner.<br/>
<a id="pl.319.29"></a><var>319.29</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.319.30"></a><var>319.30</var>31, 2017.<br/>
<br/>
<a id="bill.19.11.0"></a><a id="pl.320.1"></a><var>320.1</var>    Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:<br/>
<a id="pl.320.2"></a><var>320.2</var>    Subd. 2. <b>Required and excluded tax preparers.</b> (a) Subject to the limitations of <br/>
<a id="pl.320.3"></a><var>320.3</var>paragraph (b), the commissioner must publish lists of tax preparers as defined in
         section <br/>
<statute_ref><a id="pl.320.4"></a><var>320.4</var>289A.60, subdivision 13
</statute_ref>, paragraph (f) 270C.445, subdivision 2, paragraph (h), who have <br/>
<a id="pl.320.5"></a><var>320.5</var>been:<br/>
<a id="pl.320.6"></a><var>320.6</var>    (1) convicted under section 
         <statute_ref>289A.63</statute_ref> for returns or claims prepared as a tax preparer or;<br/>
<a id="pl.320.7"></a><var>320.7</var>    (2) assessed penalties in excess of $1,000 under section 
         <statute_ref>289A.60, subdivision 13</statute_ref>, <br/>
<a id="pl.320.8"></a><var>320.8</var>paragraph (a);<br/>
<a id="pl.320.9"></a><var>320.9</var>    (3) convicted for identity theft under section 609.527, or a similar statute, for
         a return <br/>
<a id="pl.320.10"></a><var>320.10</var>filed with the commissioner, the Internal Revenue Service, or another state;<br/>
<a id="pl.320.11"></a><var>320.11</var>    (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
         <br/>
<a id="pl.320.12"></a><var>320.12</var>of $1,000;<br/>
<a id="pl.320.13"></a><var>320.13</var>    (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
         <br/>
<a id="pl.320.14"></a><var>320.14</var>(b), that has become a final order; or<br/>
<a id="pl.320.15"></a><var>320.15</var>    (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
         <br/>
<a id="pl.320.16"></a><var>320.16</var>a cease and desist order.<br/>
<a id="pl.320.17"></a><var>320.17</var>    (b) For the purposes of this section, tax preparers are not subject to publication
         if:<br/>
<a id="pl.320.18"></a><var>320.18</var>    (1) an administrative or court action contesting the or appealing a penalty described in <br/>
<a id="pl.320.19"></a><var>320.19</var>paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time <br/>
<a id="pl.320.20"></a><var>320.20</var>when notice would be given under subdivision 3;<br/>
<a id="pl.320.21"></a><var>320.21</var>    (2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4), <br/>
<a id="pl.320.22"></a><var>320.22</var>or (6), has not expired; or<br/>
<a id="pl.320.23"></a><var>320.23</var>    (3) the commissioner has been notified that the tax preparer is deceased;<br/>
<a id="pl.320.24"></a><var>320.24</var>    (4) an appeal period to contest a cease and desist order issued under section 270C.445,
         <br/>
<a id="pl.320.25"></a><var>320.25</var>subdivision 6, paragraph (b), has not expired;<br/>
<a id="pl.320.26"></a><var>320.26</var>    (5) an administrative or court action contesting or appealing a cease and desist order
         <br/>
<a id="pl.320.27"></a><var>320.27</var>issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served
         and <br/>
<a id="pl.320.28"></a><var>320.28</var>is unresolved at the time when notice would be given under subdivision 3;<br/>
<a id="pl.320.29"></a><var>320.29</var>(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3),
         has been <br/>
<a id="pl.320.30"></a><var>320.30</var>filed or served and is unresolved at the time when the notice would be given under
         <br/>
<a id="pl.320.31"></a><var>320.31</var>subdivision 3; or<br/>
<a id="pl.321.1"></a><var>321.1</var>    (7) an appeal period to contest a conviction described in paragraph (a), clause (1)
         or (3), <br/>
<a id="pl.321.2"></a><var>321.2</var>has not expired.<br/>
<a id="pl.321.3"></a><var>321.3</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.321.4"></a><var>321.4</var>31, 2017.<br/>
<br/>
<a id="bill.19.12.0"></a><a id="pl.321.5"></a><var>321.5</var>    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:<br/>
<a id="pl.321.6"></a><var>321.6</var>    Subd. 3. <b>Notice to tax preparer.</b> (a) At least 30 days before publishing the name of a <br/>
<a id="pl.321.7"></a><var>321.7</var>tax preparer subject to penalty publication under this section, the commissioner shall mail <br/>
<a id="pl.321.8"></a><var>321.8</var>a written notice to the tax preparer, detailing the amount and nature of each penalty basis <br/>
<a id="pl.321.9"></a><var>321.9</var>for the publication and the intended publication of the information listed in subdivision 4 <br/>
<a id="pl.321.10"></a><var>321.10</var>related to the penalty. The notice must be mailed by first class and certified mail sent to the <br/>
<a id="pl.321.11"></a><var>321.11</var>tax preparer addressed to the last known address of the tax preparer. The notice must include
         <br/>
<a id="pl.321.12"></a><var>321.12</var>information regarding the exceptions listed in subdivision 2, paragraph (b), and must
         state <br/>
<a id="pl.321.13"></a><var>321.13</var>that the tax preparer's information will not be published if the tax preparer provides
         <br/>
<a id="pl.321.14"></a><var>321.14</var>information establishing that subdivision 2, paragraph (b), prohibits publication
         of the tax <br/>
<a id="pl.321.15"></a><var>321.15</var>preparer's name.<br/>
<a id="pl.321.16"></a><var>321.16</var>(b) Thirty days after the notice is mailed and if the tax preparer has not proved
         to the <br/>
<a id="pl.321.17"></a><var>321.17</var>commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner
         <br/>
<a id="pl.321.18"></a><var>321.18</var>may publish in a list of tax preparers subject to penalty the information about the
         tax preparer <br/>
<a id="pl.321.19"></a><var>321.19</var>that is listed in subdivision 4.<br/>
<a id="pl.321.20"></a><var>321.20</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.321.21"></a><var>321.21</var>31, 2017.<br/>
<br/>
<a id="bill.19.13.0"></a><a id="pl.321.22"></a><var>321.22</var>    Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:<br/>
<a id="pl.321.23"></a><var>321.23</var>    Subd. 4. <b>Form of list.</b> The list may be published by any medium or method. The list <br/>
<a id="pl.321.24"></a><var>321.24</var>must contain the name, associated business name or names, address or addresses, and
         <br/>
<a id="pl.321.25"></a><var>321.25</var>violation or violations for which a penalty was imposed of that make each tax preparer <br/>
<a id="pl.321.26"></a><var>321.26</var>subject to penalty publication.<br/>
<a id="pl.321.27"></a><var>321.27</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.321.28"></a><var>321.28</var>31, 2017.<br/>
<br/>
<a id="bill.19.14.0"></a><a id="pl.321.29"></a><var>321.29</var>    Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:<br/>
<a id="pl.321.30"></a><var>321.30</var>    Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax preparer <br/>
<a id="pl.321.31"></a><var>321.31</var>from the list of tax preparers published under this section:<br/>
<a id="pl.322.1"></a><var>322.1</var>(1) when the commissioner determines that the name was included on the list in error;<br/>
<a id="pl.322.2"></a><var>322.2</var>(2) within 90 days three years after the preparer has demonstrated to the commissioner <br/>
<a id="pl.322.3"></a><var>322.3</var>that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied <br/>
<a id="pl.322.4"></a><var>322.4</var>any sentence imposed, successfully completed any probationary period imposed, and <br/>
<a id="pl.322.5"></a><var>322.5</var>successfully completed any remedial actions required by the commissioner, the State
         Board <br/>
<a id="pl.322.6"></a><var>322.6</var>of Accountancy, or the Lawyers Board of Professional Responsibility; or<br/>
<a id="pl.322.7"></a><var>322.7</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br/>
<a id="pl.322.8"></a><var>322.8</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.322.9"></a><var>322.9</var>31, 2017.<br/>
<br/>
<a id="bill.19.15.0"></a><a id="pl.322.10"></a><var>322.10</var>    Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:<br/>
<a id="pl.322.11"></a><var>322.11</var>    Subdivision 1. <b>Commencement of action.</b> (a) Whenever it appears to the commissioner <br/>
<a id="pl.322.12"></a><var>322.12</var>that a tax preparer doing business in Minnesota has engaged in any conduct described
         in <br/>
<a id="pl.322.13"></a><var>322.13</var>subdivision 2, a civil action in the name of the state of Minnesota may be commenced to <br/>
<a id="pl.322.14"></a><var>322.14</var>enjoin any person who is a tax return preparer doing business in this state from further
         <br/>
<a id="pl.322.15"></a><var>322.15</var>engaging in any conduct described in subdivision 2 the conduct and enforce compliance.<br/>
<a id="pl.322.16"></a><var>322.16</var>(b) An action under this subdivision must be brought by the attorney general in:<br/>
<a id="pl.322.17"></a><var>322.17</var>(1) the district court for the judicial district of the tax return preparer's residence or <br/>
<a id="pl.322.18"></a><var>322.18</var>principal place of business, or in which the;<br/>
<a id="pl.322.19"></a><var>322.19</var>(2) the district court for the judicial district of the residence of any taxpayer with respect <br/>
<a id="pl.322.20"></a><var>322.20</var>to whose tax return the action is brought resides; or<br/>
<a id="pl.322.21"></a><var>322.21</var>(3) Ramsey County District Court.<br/>
<a id="pl.322.22"></a><var>322.22</var>(c) The court may exercise its jurisdiction over the action separate and apart from any
         <br/>
<a id="pl.322.23"></a><var>322.23</var>other action brought by the state of Minnesota against the tax return preparer or any taxpayer. <br/>
<a id="pl.322.24"></a><var>322.24</var>The court must grant a permanent injunction or other appropriate relief if the commissioner
         <br/>
<a id="pl.322.25"></a><var>322.25</var>shows that the person has engaged in conduct constituting a violation of a law administered
         <br/>
<a id="pl.322.26"></a><var>322.26</var>by the commissioner or a cease and desist order issued by the commissioner. The <br/>
<a id="pl.322.27"></a><var>322.27</var>commissioner shall not be required to show irreparable harm.<br/>
<a id="pl.322.28"></a><var>322.28</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.322.29"></a><var>322.29</var>31, 2017.<br/>
<br/>
<a id="bill.19.16.0"></a><a id="pl.323.1"></a><var>323.1</var>    Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:<br/>
<a id="pl.323.2"></a><var>323.2</var>    Subd. 2. <b>Injunction prohibiting specific conduct.</b> In an action under subdivision 1, <br/>
<a id="pl.323.3"></a><var>323.3</var>the court may enjoin the person from further engaging in that conduct if the court finds that <br/>
<a id="pl.323.4"></a><var>323.4</var>a tax return preparer has:<br/>
<a id="pl.323.5"></a><var>323.5</var>(1) engaged in any conduct subject to a civil penalty under section 
         <statute_ref>289A.60</statute_ref> or, a criminal <br/>
<a id="pl.323.6"></a><var>323.6</var>penalty under section 
         <statute_ref>289A.63</statute_ref>, or a criminal penalty under section 609.527 or a similar <br/>
<a id="pl.323.7"></a><var>323.7</var>statute for a return filed with the commissioner, the Internal Revenue Service, or
         another <br/>
<a id="pl.323.8"></a><var>323.8</var>state;<br/>
<a id="pl.323.9"></a><var>323.9</var>(2) misrepresented the preparer's eligibility to practice before the Department of
         Revenue, <br/>
<a id="pl.323.10"></a><var>323.10</var>or otherwise misrepresented the preparer's experience or education as a tax return preparer;<br/>
<a id="pl.323.11"></a><var>323.11</var>(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or<br/>
<a id="pl.323.12"></a><var>323.12</var>(4) violated a cease and desist order issued by the commissioner; or<br/>
<a id="pl.323.13"></a><var>323.13</var>(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes
         <br/>
<a id="pl.323.14"></a><var>323.14</var>with the proper administration of a law administered by the commissioner, and injunctive
         <br/>
<a id="pl.323.15"></a><var>323.15</var>relief is appropriate to prevent the recurrence of that conduct,.<br/>
<a id="pl.323.16"></a><var>323.16</var>the court may enjoin the person from further engaging in that conduct.<br/>
<a id="pl.323.17"></a><var>323.17</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.323.18"></a><var>323.18</var>31, 2017.<br/>
<br/>
<a id="bill.19.17.0"></a><a id="pl.323.19"></a><var>323.19</var>    Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:<br/>
<a id="pl.323.20"></a><var>323.20</var>    Subd. 3. <b>Injunction prohibiting all business activities.</b> If the court finds that a tax <br/>
<a id="pl.323.21"></a><var>323.21</var>return preparer has continually or repeatedly engaged in conduct described in subdivision
         <br/>
<a id="pl.323.22"></a><var>323.22</var>2, and that an injunction prohibiting that conduct would not be sufficient to prevent
         the <br/>
<a id="pl.323.23"></a><var>323.23</var>person's interference with the proper administration of a law administered by the
         <br/>
<a id="pl.323.24"></a><var>323.24</var>commissioner, the court may enjoin the person from acting as a tax return preparer. The <br/>
<a id="pl.323.25"></a><var>323.25</var>court may not enjoin the employer of a tax return preparer for conduct described in <br/>
<a id="pl.323.26"></a><var>323.26</var>subdivision 2 engaged in by one or more of the employer's employees unless the employer
         <br/>
<a id="pl.323.27"></a><var>323.27</var>was also actively involved in that conduct.<br/>
<a id="pl.323.28"></a><var>323.28</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.323.29"></a><var>323.29</var>31, 2017.<br/>
<br/>
<a id="bill.19.18.0"></a><a id="pl.324.1"></a><var>324.1</var>    Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision <br/>
<a id="pl.324.2"></a><var>324.2</var>to read:<br/>
<a id="pl.324.3"></a><var>324.3</var>    Subd. 3a. <b>Enforcement of cease and desist orders.</b> (a) Whenever the commissioner <br/>
<a id="pl.324.4"></a><var>324.4</var>under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order,
         the court <br/>
<a id="pl.324.5"></a><var>324.5</var>must consider the allegations in the cease and desist order conclusively established
         if the <br/>
<a id="pl.324.6"></a><var>324.6</var>order is a final order.<br/>
 <a id="pl.324.7"></a><var>324.7</var>(b) If the court finds the tax preparer was not in compliance with a cease and desist
         order, <br/>
<a id="pl.324.8"></a><var>324.8</var>the court may impose a further civil penalty against the tax preparer for contempt
         in an <br/>
<a id="pl.324.9"></a><var>324.9</var>amount up to $10,000 for each violation and may grant any other relief the court determines
         <br/>
<a id="pl.324.10"></a><var>324.10</var>is just and proper in the circumstances. A civil penalty imposed by a court under
         this section <br/>
<a id="pl.324.11"></a><var>324.11</var>may be collected and enforced by the commissioner as an income tax liability.<br/>
<a id="pl.324.12"></a><var>324.12</var>(c) The court may not require the commissioner to post a bond in an action or proceeding
         <br/>
<a id="pl.324.13"></a><var>324.13</var>under this section.<br/>
<a id="pl.324.14"></a><var>324.14</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.324.15"></a><var>324.15</var>31, 2017.<br/>
<br/>
<a id="bill.19.19.0"></a><a id="pl.324.16"></a><var>324.16</var>    Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:<br/>
<a id="pl.324.17"></a><var>324.17</var>    Subd. 13. <b>Penalties for tax </b><b>return</b><b> preparers.</b> (a) If an understatement of liability with <br/>
<a id="pl.324.18"></a><var>324.18</var>respect to a return or claim for refund is due to a reckless disregard of laws and
         rules or <br/>
<a id="pl.324.19"></a><var>324.19</var>willful attempt in any manner to understate the liability for a tax by a person who
         is a tax <br/>
<a id="pl.324.20"></a><var>324.20</var>return preparer with respect to the return or claim, the person shall pay to the commissioner
         <br/>
<a id="pl.324.21"></a><var>324.21</var>a penalty of $500. If a part of a property tax refund claim filed under section 290.0677, <br/>
<a id="pl.324.22"></a><var>324.22</var>subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt <br/>
<a id="pl.324.23"></a><var>324.23</var>in any manner to overstate the claim for relief allowed under chapter 290A by a person who <br/>
<a id="pl.324.24"></a><var>324.24</var>is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a <br/>
<a id="pl.324.25"></a><var>324.25</var>penalty of $500 with respect to the claim. These penalties may not be assessed against
         the <br/>
<a id="pl.324.26"></a><var>324.26</var>employer of a tax return preparer unless the employer was actively involved in the reckless <br/>
<a id="pl.324.27"></a><var>324.27</var>disregard or willful attempt to understate the liability for a tax or to overstate
         the claim for <br/>
<a id="pl.324.28"></a><var>324.28</var>refund. These penalties are income tax liabilities and may be assessed at any time
         as provided <br/>
<a id="pl.324.29"></a><var>324.29</var>in section 
         <statute_ref>289A.38, subdivision 5</statute_ref>.<br/>
<a id="pl.324.30"></a><var>324.30</var>(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
         <br/>
<a id="pl.324.31"></a><var>324.31</var>any person who is a tax return preparer doing business in this state as provided in section <br/>
<statute_ref><a id="pl.324.32"></a><var>324.32</var>270C.447
         </statute_ref>.<br/>
<a id="pl.325.1"></a><var>325.1</var>(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
         <br/>
<a id="pl.325.2"></a><var>325.2</var>returns electronically to the state, if the commissioner determines that the tax preparer
         has <br/>
<a id="pl.325.3"></a><var>325.3</var>engaged in a pattern and practice of conduct in violation of paragraph (a) of this
         subdivision <br/>
<a id="pl.325.4"></a><var>325.4</var>or has been convicted under section 
         <statute_ref>289A.63</statute_ref>.<br/>
<a id="pl.325.5"></a><var>325.5</var>(d) For purposes of this subdivision, the term "understatement of liability" means
         an <br/>
<a id="pl.325.6"></a><var>325.6</var>understatement of the net amount payable with respect to a tax imposed by state tax
         law, <br/>
<a id="pl.325.7"></a><var>325.7</var>or an overstatement of the net amount creditable or refundable with respect to a tax.
         The <br/>
<a id="pl.325.8"></a><var>325.8</var>determination of whether or not there is an understatement of liability must be made
         without <br/>
<a id="pl.325.9"></a><var>325.9</var>regard to any administrative or judicial action involving the taxpayer. For purposes
         of this <br/>
<a id="pl.325.10"></a><var>325.10</var>subdivision, the amount determined for underpayment of estimated tax under either
         section <br/>
<statute_ref><a id="pl.325.11"></a><var>325.11</var>289A.25
         </statute_ref> or 
         <statute_ref>289A.26</statute_ref> is not considered an understatement of liability.<br/>
<a id="pl.325.12"></a><var>325.12</var>(e) For purposes of this subdivision, the term "overstatement of claim" means an <br/>
<a id="pl.325.13"></a><var>325.13</var>overstatement of the net amount refundable with respect to a claim for property tax relief <br/>
<a id="pl.325.14"></a><var>325.14</var>provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination <br/>
<a id="pl.325.15"></a><var>325.15</var>of whether or not there is an overstatement of a claim must be made without regard
         to <br/>
<a id="pl.325.16"></a><var>325.16</var>administrative or judicial action involving the claimant.<br/>
<a id="pl.325.17"></a><var>325.17</var>(f) For purposes of this section, the term "tax refund or return preparer" means an <br/>
<a id="pl.325.18"></a><var>325.18</var>individual who prepares for compensation, or who employs one or more individuals to
         <br/>
<a id="pl.325.19"></a><var>325.19</var>prepare for compensation, a return of tax, or a claim for refund of tax. The preparation
         of <br/>
<a id="pl.325.20"></a><var>325.20</var>a substantial part of a return or claim for refund is treated as if it were the preparation
         of <br/>
<a id="pl.325.21"></a><var>325.21</var>the entire return or claim for refund. An individual is not considered a tax return
         preparer <br/>
<a id="pl.325.22"></a><var>325.22</var>merely because the individual:<br/>
<a id="pl.325.23"></a><var>325.23</var>(1) gives typing, reproducing, or other mechanical assistance;<br/>
<a id="pl.325.24"></a><var>325.24</var>(2) prepares a return or claim for refund of the employer, or an officer or employee
         of <br/>
<a id="pl.325.25"></a><var>325.25</var>the employer, by whom the individual is regularly and continuously employed;<br/>
<a id="pl.325.26"></a><var>325.26</var>(3) prepares a return or claim for refund of any person as a fiduciary for that person;
         or<br/>
<a id="pl.325.27"></a><var>325.27</var>(4) prepares a claim for refund for a taxpayer in response to a tax order issued to
         the <br/>
<a id="pl.325.28"></a><var>325.28</var>taxpayer "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision
         <br/>
<a id="pl.325.29"></a><var>325.29</var>2, paragraph (h).<br/>
<a id="pl.325.30"></a><var>325.30</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.325.31"></a><var>325.31</var>31, 2017.<br/>
<br/>
<a id="bill.19.20.0"></a><a id="pl.326.1"></a><var>326.1</var>    Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:<br/>
<a id="pl.326.2"></a><var>326.2</var>    Subd. 28. <b>Preparer identification number.</b> Any Minnesota individual income tax return <br/>
<a id="pl.326.3"></a><var>326.3</var>or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
         <br/>
<a id="pl.326.4"></a><var>326.4</var>13, paragraph (f), shall bear the identification number the preparer is required to
         use federally <br/>
<a id="pl.326.5"></a><var>326.5</var>under section 6109(a)(4) of the Internal Revenue Code (a) Each of the following that is <br/>
<a id="pl.326.6"></a><var>326.6</var>prepared by a tax preparer must include the tax preparer's tax identification number:<br/>
<a id="pl.326.7"></a><var>326.7</var>(1) a tax return required to be filed under this chapter;<br/>
<a id="pl.326.8"></a><var>326.8</var>(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and<br/>
<a id="pl.326.9"></a><var>326.9</var>    (3) a claim for refund of an overpayment.<br/>
<a id="pl.326.10"></a><var>326.10</var>(b) A tax preparer is not required to include their preparer tax identification number
         on <br/>
<a id="pl.326.11"></a><var>326.11</var>a filing if the number is not required in the forms or filing requirements provided
         by the <br/>
<a id="pl.326.12"></a><var>326.12</var>commissioner.<br/>
<a id="pl.326.13"></a><var>326.13</var>    (c) A tax refund or return preparer who prepares a Minnesota individual income tax <br/>
<a id="pl.326.14"></a><var>326.14</var>return or claim for refund and fails to include the required preparer tax identification number <br/>
<a id="pl.326.15"></a><var>326.15</var>on the return or claim as required by this section is subject to a penalty of $50 for each <br/>
<a id="pl.326.16"></a><var>326.16</var>failure.<br/>
<a id="pl.326.17"></a><var>326.17</var>(d) A tax preparer who fails to include the preparer tax identification number as
         required <br/>
<a id="pl.326.18"></a><var>326.18</var>by this section, and who is required to have a valid preparer tax identification number
         issued <br/>
<a id="pl.326.19"></a><var>326.19</var>under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject
         to <br/>
<a id="pl.326.20"></a><var>326.20</var>a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph
         is <br/>
<a id="pl.326.21"></a><var>326.21</var>not subject to the penalty in paragraph (c).<br/>
<a id="pl.326.22"></a><var>326.22</var>(e) For the purposes of this subdivision, "tax preparer" has the meaning given in
         section <br/>
<a id="pl.326.23"></a><var>326.23</var>270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
         <br/>
<a id="pl.326.24"></a><var>326.24</var>the number the tax preparer is required to use federally under section 6109(a)(4)
         of the <br/>
<a id="pl.326.25"></a><var>326.25</var>Internal Revenue Code.<br/>
<a id="pl.326.26"></a><var>326.26</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.326.27"></a><var>326.27</var>31, 2017.<br/>
<br/>
<a id="bill.19.21.0"></a><a id="pl.326.28"></a><var>326.28</var>    Sec. 21. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.326.29"></a><var>326.29</var>(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
         in <br/>
<a id="pl.326.30"></a><var>326.30</var>column A to the references listed in column B.<br/>
<table>
<col width="50px"/>
<col width="10"/>
<col width="27.5"/>
<col width="27.5"/>
<tr>
<td><a id="pl.326.31"></a><var>326.31</var><br/>
</td>
<td></td>
<td>Column A<br/>
</td>
<td>Column B<br/>
</td>
</tr>
<tr>
<td><a id="pl.326.32"></a><var>326.32</var><br/>
</td>
<td></td>
<td>270C.445, subdivision 3a<br/>
</td>
<td>270C.4451, subdivision 1<br/>
</td>
</tr>
<tr>
<td><a id="pl.327.1"></a><var>327.1</var><br/>
</td>
<td></td>
<td>270C.445, subdivision 4<br/>
</td>
<td>270C.4451, subdivision 2<br/>
</td>
</tr>
<tr>
<td><a id="pl.327.2"></a><var>327.2</var><br/>
</td>
<td></td>
<td>270C.445, subdivision 4a<br/>
</td>
<td>270C.4451, subdivision 3<br/>
</td>
</tr>
<tr>
<td><a id="pl.327.3"></a><var>327.3</var><br/>
</td>
<td></td>
<td>270C.445, subdivision 4b<br/>
</td>
<td>270C.4451, subdivision 4<br/>
</td>
</tr>
<tr>
<td><a id="pl.327.4"></a><var>327.4</var><br/>
</td>
<td></td>
<td>270C.445, subdivision 5b<br/>
</td>
<td>270C.4451, subdivision 5<br/>
</td>
</tr>
</table><a id="pl.327.5"></a><var>327.5</var>(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes
         and <br/>
<a id="pl.327.6"></a><var>327.6</var>Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445,
         <br/>
<a id="pl.327.7"></a><var>327.7</var>subdivisions 3a, 4, 4a, 4b, and 5b.<br/>
<a id="pl.327.8"></a><var>327.8</var>(c) The revisor shall publish the statutory derivations of the laws renumbered in
         this act <br/>
<a id="pl.327.9"></a><var>327.9</var>in Laws of Minnesota and report the derivations in Minnesota Statutes.<br/>
<a id="pl.327.10"></a><var>327.10</var>(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are
         further <br/>
<a id="pl.327.11"></a><var>327.11</var>amended in the 2017 legislative session, the revisor shall codify the amendments in
         a manner <br/>
<a id="pl.327.12"></a><var>327.12</var>consistent with this act. The revisor may make necessary changes to sentence structure
         to <br/>
<a id="pl.327.13"></a><var>327.13</var>preserve the meaning of the text.<br/>
<a id="pl.327.14"></a><var>327.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.19.22.0"></a><a id="pl.327.15"></a><var>327.15</var>    Sec. 22. <b> REPEALER.</b><br/>
<a id="pl.327.16"></a><var>327.16</var>Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision
         <br/>
<a id="pl.327.17"></a><var>327.17</var>4, are repealed.<br/>
<a id="pl.327.18"></a><var>327.18</var><b>EFFECTIVE DATE.</b>This section is effective for claims and returns filed after December <br/>
<a id="pl.327.19"></a><var>327.19</var>31, 2017.<br/>