1.1A bill for an act1.2relating to financing and operating of state and local government; making changes
         1.3to individual income, corporate franchise, estate, property, sales and use, excise,
         1.4mineral, special, local, and other miscellaneous taxes and tax-related provisions;
         1.5modifying local government aids, credits, tax increment financing, and public 1.6finance; providing for new income tax subtractions, additions, and credits; 1.7establishing a first-time home buyer savings account program; modifying the 1.8education credit; providing a credit for donations to fund K-12 scholarships; 1.9modifying residency definitions; providing estate tax conformity; modifying debt 1.10service equalization revenue; providing for and modifying property tax exemptions
         1.11and classifications; modifying the Sustainable Forest Incentive Act; changing levy
         1.12certification dates; establishing a school building bond agricultural tax credit;
         1.13modifying state general levy; modifying certain local government aids; authorizing
         1.14assessor accreditation waivers; modifying sales tax definitions and exemptions; 1.15providing sales tax exemptions; authorizing certain tax increment financing 1.16authority; authorizing certain local taxes; authorizing provisions related to taconite
         1.17production tax; clarifying Iron Range Resources and Rehabilitation Board approval
         1.18authority; making minor policy, technical, and conforming changes; requiring 1.19reports; appropriating money;amending Minnesota Statutes 2016, sections 13.51, 1.20subdivision 2; 15.38, subdivision 7; 40A.18, subdivision 2; 69.021, subdivision 1.215; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; 1.22115A.1314, subdivision 1; 116J.423, subdivision 2; 116J.424; 123B.53, 1.23subdivisions 4, 5; 126C.17, subdivision 6; 127A.45, subdivisions 10, 13; 128C.24;
         1.24136A.129, subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 1.252, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
         1.26270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding a subdivision; 1.27270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1, by adding 1.28a subdivision; 270C.171, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 1.29270C.34, subdivision 2; 270C.35, subdivision 3, by adding a subdivision; 270C.38,
         1.30subdivision 1; 270C.445, subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a 1.31subdivision; 270C.446, subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by
         1.32adding a subdivision; 270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901; 1.33271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10, 86, by adding a subdivision;
         1.34272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by 1.35adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115, 1.36subdivisions 1, 2, 3; 273.061, subdivision 7; 273.0755; 273.08; 273.121, by adding
         1.37a subdivision; 273.124, subdivisions 13, 13d; 273.125, subdivision 8; 273.13, 1.38subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 273.1392; 273.1393; 273.33, 1.39subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by adding subdivisions;
         2.1274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 1; 274.135, 2.2subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.07,
         2.3subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, subdivision
         2.42; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 279.01, subdivision 2; 2.5282.01, subdivisions 1a, 1d; 282.38, subdivision 1; 287.08; 287.2205; 289A.08, 2.6subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10,
         2.7subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, 2.8subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, 2.9subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, 2.10subdivisions 2a, 7; 289A.60, subdivisions 13, 28, by adding a subdivision; 289A.63,
         2.11by adding a subdivision; 290.01, subdivision 7; 290.0131, subdivision 10, as 2.12amended, by adding subdivisions; 290.0132, subdivision 21, by adding 2.13subdivisions; 290.0133, subdivision 12, as amended, by adding a subdivision; 2.14290.06, subdivisions 2c, 2d, by adding subdivisions; 290.0671, subdivision 1, as 2.15amended; 290.0672, subdivision 1; 290.0674, by adding a subdivision; 290.068, 2.16subdivision 2, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.0922,
         2.17subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivision
         2.183; 290A.10; 290A.19; 290C.02, subdivision 6; 290C.03; 290C.07; 290C.10; 2.19291.005, subdivision 1, as amended; 291.016, subdivisions 2, 3; 291.03, 2.20subdivisions 1, 9, 11; 291.075; 295.53, subdivision 1; 295.54, subdivision 2; 2.21295.55, subdivision 6; 296A.01, subdivisions 7, 12, 33, 42, by adding subdivisions;
         2.22296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, subdivision
         2.232; 296A.15, subdivisions 1, 4; 296A.16, subdivision 2; 296A.17, subdivision 3; 2.24296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 2.253, 4, 34; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67, 2.26subdivisions 2, 4, 5, 6, by adding a subdivision; 297A.68, subdivision 19; 297A.70,
         2.27subdivision 14, by adding a subdivision; 297A.71, subdivision 44, by adding 2.28subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivisions 4, 4a; 297D.02;
         2.29297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 2.30297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.03, by adding a 2.31subdivision; 297G.09, subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, 2.32subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, subdivision 7, by adding a 2.33subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivisions
         2.343, 4, 4c; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11; 298.221; 298.2211, subdivision
         2.353; 298.223, subdivisions 1, 2; 298.227; 298.24, subdivision 1; 298.28, subdivisions
         2.362, 5, 7a, 9d; 298.292, subdivision 2; 298.296, subdivisions 1, 2, 4; 298.2961, 2.37subdivisions 2, 4; 298.46, subdivision 2; 366.095, subdivision 1; 383B.117, 2.38subdivision 2; 410.32; 412.301; 414.09, subdivision 2; 469.034, subdivision 2; 2.39469.101, subdivision 1; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 2.40469.190, subdivisions 1, 7; 469.319, subdivision 5; 473H.09; 473H.17, subdivision
         2.411a; 475.58, subdivision 3b; 475.60, subdivision 2; 477A.011, subdivision 34; 2.42477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision;
         2.43477A.03, subdivisions 2a, 2b; 477A.11, by adding a subdivision; 477A.12, 2.44subdivisions 1, 2; 477A.14, subdivision 3; 477A.17; 477A.19, by adding 2.45subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter
         2.46511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter 2.47291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; Laws 2.481996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as amended;
         2.49article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, subdivisions
         2.503, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 2005, First 2.51Special Session chapter 3, article 5, sections 38, subdivisions 2, as amended, 4,
         as 2.52amended; 44, subdivisions 3, as amended, 4, 5, as amended; Laws 2008, chapter 2.53154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section
         2.5420; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2010, chapter 2.55216, section 58, as amended; Laws 2014, chapter 308, article 6, sections 8, 2.56subdivision 1; 9; article 9, section 94; Laws 2016, chapter 187, section 5; proposing
         2.57coding for new law in Minnesota Statutes, chapters 116J; 273; 289A; 290; 290B; 2.58290C; 293; 297A; 477A; proposing coding for new law as Minnesota Statutes, 3.1chapter 462D; repealing Minnesota Statutes 2016, sections 270.074, subdivision 3.22; 270C.445, subdivision 1; 270C.447, subdivision 4; 281.22; 289A.10, subdivision
         3.31a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; 3.4290.9743; 290.9744; 290C.02, subdivisions 5, 9; 290C.06; 291.03, subdivisions 3.58, 9, 10, 11; 298.22, subdivision 8; 298.2213, subdivisions 4, 5, 6; 298.298; 3.6Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3.3.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:3.8ARTICLE 13.9INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES3.10    Section 1. [116J.5491] WORKFORCE HOUSING TAX CREDIT.3.11    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have 3.12the meanings given.3.13(b) "City" means a statutory or home rule charter city.3.14(c) "Developer" means the individual or entity that is responsible for arranging financing
         3.15for and construction of a qualified workforce housing project.3.16(d) "Eligible project site" means the site for the proposed qualified workforce housing
         3.17project that must be located in:3.18(1) an area that does not require extension of public infrastructure, other than connections
         3.19to or access for the site, and that is located outside of the metropolitan area, as
         defined in 3.20section 473.121, subdivision 2;3.21(2) a city with at least 500 jobs, as measured in the QCEW, or within the jurisdiction
         of 3.22an economic development authority, formed under Laws 1988, chapter 516, section 1,
         as a 3.23joint partnership between a city and county and excluding those established by the
         county 3.24only; and3.25(3) an area, consisting of the city in which the site is located and any other city
         or town 3.26located within 15 miles or less of the site, with an average vacancy rate for market
         rate 3.27residential rental properties of four percent or less for any two of the last five
         years, based 3.28on a market housing analysis that supports demand for the proposed qualified workforce
         3.29housing project.3.30(e) "Market rate residential rental properties" means properties that are rented at
         market 3.31value and excludes properties constructed with:3.32(1) financial assistance requiring the property to be occupied by residents that meet
         3.33income limits under federal or state law of initial occupancy; and4.1(2) federal, state, or local flood recovery assistance, regardless of whether that
         assistance 4.2imposed income limits as a condition of receiving assistance.4.3(f) "QCEW" means the Quarterly Census of Employment and Wages with the most 4.4recent annual data published by the commissioner.4.5(g) "Qualified investment" means a cash investment or the fair market value equivalent
         4.6for common stock, land, a partnership or membership interest, preferred stock, debt
         with 4.7mandatory conversion to equity, or an equivalent ownership interest as determined
         by the 4.8commissioner that is made in a qualified workforce housing project.4.9(h) "Qualified project investor" means an investor who makes a qualified investment
         4.10and receives a tax credit certificate from the developer of the project.4.11(i) "Qualified workforce housing project" means a project:4.12(1) for market rate residential rental properties with a minimum of three dwelling
         units;4.13(2) with an average construction cost per unit, excluding site preparation costs,
         of no 4.14more than $250,000 and no less than $75,000;4.15(3) located on an eligible project site;4.16(4) that has more than 50 percent nonstate funding proposed to fund the project; and4.17(5) that has been designated by the commissioner as a qualified workforce housing
         4.18project.4.19(j) "Workforce Housing Undersupply Ratio" means the total number of full-time jobs
         4.20in the area, as defined in paragraph (d), clause (3), in which the proposed project
         is located, 4.21as reported in the QCEW, divided by the total number of persons over the age of 16
         who 4.22are employed and living in that area, as reported by the United States Census 4.23"EMPLOYMENT STATUS" data set or similar United States Census data set.4.24    Subd. 2.Qualified project investor tax credits.(a) A qualified project investor is 4.25allowed a credit against the tax imposed under chapter 290 equal to 40 percent of
         the qualified 4.26investment up to a maximum of $1,000,000.4.27(b) The credit under this subdivision is allowed in the first taxable year in which
         the 4.28qualified workforce housing project has housing units that are certified for occupancy
         by 4.29the Department of Labor and Industry or a city inspector.4.30(c) The commissioner may issue tax credit allocations to qualified workforce housing
         4.31projects for a taxable year, up to $2,500,000, based on applications made by developers
         and 4.32as provided under paragraph (d). No more than $1,000,000 in tax credit allocations
         may be 5.1issued for a qualified workforce housing project. Any portion of the permitted allocation
         5.2for a taxable year that is not issued by the commissioner does not cancel and carries
         forward 5.3to the following taxable year.5.4(d) A developer of a qualified workforce housing project may apply to the commissioner
         5.5for an allocation of tax credits under this section. The application must provide
         information 5.6sufficient for the commissioner to determine:5.7(1) that the project meets the requirements for a qualified workforce housing project
         5.8under this section;5.9(2) that the developer has sufficient financing to acquire and construct the project;5.10(3) the financial viability of the project;5.11(4) the total amount of credits applied for;5.12(5) each of the project's investors, the amounts each has or will invest in the project,
         and 5.13the amount of tax credits the developer proposes to provide to each; and5.14(6) any other information that the commissioner deems appropriate.5.15The application must be made in the form and manner specified by the commissioner.
         5.16Applications for tax credits for a taxable year must be made available by the commissioner
         5.17by November 1 of the prior calendar year. The commissioner must make every effort
         to 5.18provide applications and relevant data to applicants in a simple, concise manner using
         plain 5.19language, and distribute relevant eligibility information on the Department of Employment
         5.20and Economic Development Web site. In allocating the credits, the commissioner must
         give 5.21preference to projects with the highest Workforce Housing Undersupply Ratio, except
         where 5.22the commissioner determines the investment is circumventing the spirit of the law
         or where 5.23little or no local economic growth would occur as a result of the investment. The
         5.24commissioner must approve or reject a tax credit request application within 15 days
         of 5.25receiving the application. The commissioner shall provide tax credit certificates
         to the 5.26applicant developer of an approved qualified workforce housing project in the amount
         of 5.27the credits allocated to the project. The developer shall provide the credit certificates
         to its 5.28qualified project investors in return for their investments in the projects and notify
         the 5.29commissioner of the amount provided to each investor within 15 days. If the project
         does 5.30not have units certified for occupancy as provided in paragraph (b) within a two-year
         period 5.31following issuance of the credit certificates to the developer, the tax credit allocation
         for 5.32the project is canceled. The developer must notify the commissioner immediately of
         the 5.33failure to obtain a certificate of occupancy no later than five business days after
         the expiration 6.1of the two-year period. The commissioner must notify the commissioner of revenue of
         the 6.2credit certificates issued under this section and any cancellations of those certificates.6.3(e) The commissioner shall charge an application fee. Application fees are deposited
         in 6.4the workforce housing tax credit administration account in the special revenue fund.
         Amounts 6.5in the account are appropriated to the commissioner for the cost of administering
         the tax 6.6credit under this section.6.7(f) The commissioner of revenue shall prescribe the manner in which the credits are
         6.8issued and claimed.6.9    Subd. 3.Transfer and revocation of credits.(a) A qualified project investor who 6.10receives a certificate may assign the certificate to another taxpayer, who is then
         allowed the 6.11credit under this section and section 290.06, subdivision 37. An assignment is not
         valid 6.12unless the assignee notifies the commissioner of revenue within 30 days of the date
         that the 6.13assignment is made. The commissioner of revenue shall prescribe the forms necessary
         to 6.14provide notification of the assignment and to claim a credit by assignment. Credits
         passed 6.15through to partners, members, shareholders, or owners under section 290.06, subdivision
         6.1637, paragraph (b), are not an assignment of a credit certificate under this subdivision.6.17(b) If the commissioner discovers that a qualified project investor did not meet the
         6.18eligibility requirements for the tax credits under this section after the credits
         have been 6.19allocated and certificates issued, the commissioner may determine that credit certificate
         is 6.20revoked and must be repaid by the investor. The commissioner must notify the commissioner
         6.21of revenue of every credit revoked and subject to repayment under this section.6.22    Subd. 4.Reporting.Beginning in 2019, the commissioner must annually report by 6.23March 15 to the chairs and ranking minority members of the committees in the senate
         and 6.24house of representatives with jurisdiction over taxes and economic development, in
         6.25compliance with sections 3.195 and 3.197, on tax credits issued under this section.
         The 6.26report must include:6.27(1) information about the availability of workforce housing in greater Minnesota;6.28(2) information from employers and communities in greater Minnesota about whether
         6.29or not workforce housing needs are being met;6.30(3) which projects have been funded by the workforce housing tax credit and whether
         6.31previously funded projects have created economic growth;6.32(4) any suggested legislation to accelerate construction of workforce housing;6.33(5) the number and amount of tax credits issued;7.1(6) the number and amount of tax credits revoked under subdivision 3;7.2(7) the location, total cost of, and expected rent to be received as a result of qualified
         7.3workforce housing projects funded under this section; and7.4(8) any other relevant information needed to evaluate the effect of the workforce
         housing 7.5tax credits.7.6EFFECTIVE DATE.This section is effective for taxable years beginning after December 7.731, 2017, and before January 1, 2019.7.8    Sec. 2. Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read:7.9    Subd. 3. Program components. (a) An intern must be an eligible student who has been 7.10admitted to a major program that is related to the intern experience as determined
         by the 7.11eligible institution.7.12(b) To participate in the program, an eligible institution must:7.13(1) enter into written agreements with eligible employers to provide internships that
         are 7.14at least eight weeks long and located in greater Minnesota; and7.15(2) provide academic credit for the successful completion of the internship or ensure
         7.16that it fulfills requirements necessary to complete a vocational technical education
         program.7.17(c) To participate in the program, an eligible employer must enter into a written
         agreement 7.18with an eligible institution specifying that the intern:7.19(1) would not have been hired without the tax credit described in subdivision 4;7.20(2) did not work for the employer in the same or a similar job prior to entering the
         7.21agreement;7.22(3) (2) does not replace an existing employee;7.23(4) (3) has not previously participated in the program;7.24(5) (4) will be employed at a location in greater Minnesota;7.25(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week for a 7.26period of at least eight weeks; and7.27(7) (6) will be supervised and evaluated by the employer.7.28(d) The written agreement between the eligible institution and the eligible employer
         7.29must certify a credit amount to the employer, not to exceed $2,000 per intern. The
         total 8.1dollar amount of credits that an eligible institution certifies to eligible employers
         in a calendar 8.2year may not exceed the amount of its allocation under subdivision 4.8.3(e) Participating eligible institutions and eligible employers must report annually
         to the 8.4office. The report must include at least the following:8.5(1) the number of interns hired;8.6(2) the number of hours and weeks worked by interns; and8.7(3) the compensation paid to interns.8.8(f) An internship required to complete an academic program does not qualify for the
         8.9greater Minnesota internship program under this section.8.10EFFECTIVE DATE.This section is effective for taxable years beginning after December 8.1131, 2016.8.12    Sec. 3. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:8.13    Subdivision 1. Return required.(a) In the case of a decedent who has an interest in 8.14property with a situs in Minnesota, the personal representative must submit a Minnesota
         8.15estate tax return to the commissioner, on a form prescribed by the commissioner, if:8.16(1) a federal estate tax return is required to be filed; or8.17(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined
         in 8.18section 2001(b) of the Internal Revenue Code, made within three years of the date
         of the 8.19decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000
         for 8.20estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
         8.21$1,800,000 for estates of decedents dying in 2017; and $2,000,000 $2,900,000 for estates 8.22of decedents dying in 2018 and thereafter; $3,300,000 for estates of decedents dying in 8.232019; $3,700,000 for estates of decedents dying in 2020; $4,100,000 for estates of
         decedents 8.24dying in 2021; and $5,000,000 for estates of decedents dying in 2022.8.25The return must contain a computation of the Minnesota estate tax due. The return
         must 8.26be signed by the personal representative(b) For estates of decedents dying in 2023 and 8.27thereafter, in the case of a decedent who has an interest in property with a situs
         in Minnesota, 8.28the personal representative must submit a Minnesota estate tax return to the commissioner,
         8.29on a form prescribed by the commissioner, if a federal estate tax return is required
         to be 8.30filed.8.31(c) The return must contain a computation of the Minnesota estate tax due. The return
         8.32must be signed by the personal representative.9.1EFFECTIVE DATE.This section is effective for estates of decedents dying after 9.2December 31, 2017.9.3    Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:9.4    Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, 9.5except that an individual is not a "resident" for the period of time that the individual
         is a 9.6"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code,
         if the 9.7qualified individual notifies the county within three months of moving out of the
         country 9.8that homestead status be revoked for the Minnesota residence of the qualified individual,
         9.9and the property is not classified as a homestead while the individual remains a qualified
         9.10individual.9.11(b) "Resident" also means any individual domiciled outside the state who maintains
         a 9.12place of abode in the state and spends in the aggregate more than one-half of the
         tax year 9.13in Minnesota, unless:9.14(1) the individual or the spouse of the individual is in the armed forces of the United
         9.15States; or9.16(2) the individual is covered under the reciprocity provisions in section 
         290.081.9.17For purposes of this subdivision, presence within the state for any part of a calendar
         day 9.18constitutes a day spent in the state. Individuals shall keep adequate records to substantiate
         9.19the days spent outside the state.9.20The term "abode" means a dwelling maintained by an individual, whether or not owned
         9.21by the individual and whether or not occupied by the individual, and includes a dwelling
         9.22place owned or leased by the individual's spouse.9.23(c) In determining where an individual is domiciled, neither the commissioner nor any 9.24court shall consider:9.25(1) charitable contributions made by an the individual within or without the state in 9.26determining if the individual is domiciled in Minnesota;9.27(2) the location of the individual's attorney, certified public accountant, or financial
         9.28adviser; or9.29(3) the place of business of a financial institution at which the individual applies
         for any 9.30new type of credit or at which the individual opens or maintains any type of account.9.31(d) For purposes of this subdivision, the following terms have the meanings given
         them:10.1(1) "financial adviser" means:10.2(i) an individual or business entity engaged in business as a certified financial
         planner, 10.3registered investment adviser, licensed insurance producer or agent, or registered
         securities 10.4broker-dealer representative; or10.5(ii) a financial institution providing services related to trust or estate administration,
         10.6investment management, or financial planning; and10.7(2) "financial institution" means a financial institution as defined in section 47.015,
         10.8subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
         10.9under the Securities and Exchange Act of 1934.10.10EFFECTIVE DATE.This section is effective for taxable years beginning after December 10.1131, 2016.10.12    Sec. 5. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws 10.132017, chapter 1, section 4, is amended to read:10.14    Subd. 10. Section 179 expensing.For taxable years beginning before January 1, 2018, 10.1580 percent of the amount by which the deduction allowed under the dollar limits of
         section 10.16179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of
         the 10.17Internal Revenue Code, as amended through December 31, 2003, is an addition.10.18EFFECTIVE DATE.This section is effective for taxable years beginning after December 10.1931, 2017.10.20    Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 10.21to read:10.22    Subd. 14.Equity and opportunity donations to qualified foundations.The amount 10.23of the deduction under section 170 of the Internal Revenue Code that represents contributions
         10.24to a qualified foundation under section 290.0693 is an addition.10.25EFFECTIVE DATE.This section is effective for taxable years beginning after December 10.2631, 2017.10.27    Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 10.28to read:10.29    Subd. 15.First-time home buyer savings account.The amount for a first-time home 10.30buyer savings account required by section 462D.06, subdivision 2, is an addition.11.1EFFECTIVE DATE.This section is effective for taxable years beginning after December 11.231, 2016.11.3    Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 11.4to read:11.5    Subd. 23.Social Security benefits.(a) A portion of Social Security benefits, as defined 11.6under section 86(d)(1) of the Internal Revenue Code, is allowed as a subtraction,
         subject to 11.7the limits under paragraphs (b), (c), and (d).11.8(b) For married taxpayers filing a joint return, the subtraction equals the lesser
         of Social 11.9Security benefits or $2,500. The subtraction is reduced by two and one-half percent
         for 11.10every $960 of provisional income over $76,900. In no case is the subtraction less
         than zero.11.11(c) For single or head-of-household taxpayers, the subtraction equals the lesser of
         Social 11.12Security benefits or $1,955. The subtraction is reduced by two and one-half percent
         for 11.13every $750 of provisional income over $60,200. In no case is the subtraction less
         than zero.11.14(d) For married taxpayers filing separate returns, the subtraction equals the lesser
         of 11.15Social Security benefits or $1,250. The subtraction is reduced by two and one-half
         percent 11.16for every $480 of provisional income over $38,500. In no case is the subtraction less
         than 11.17zero.11.18(e) For purposes of this subdivision, "provisional income" has the meaning given in
         11.19section 86 of the Internal Revenue Code.11.20(f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the
         11.21percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
         11.22Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016"
         shall 11.23be substituted for the word "1992." For 2018, the commissioner shall then determine
         the 11.24percent change from the 12 months ending on August 31, 2016, to the 12 months ending
         11.25on August 31, 2017, and in each subsequent year, from the 12 months ending on August
         11.2631, 2016, to the 12 months ending on August 31 of the year preceding the taxable year.
         The 11.27determination of the commissioner pursuant to this subdivision must not be considered
         a 11.28rule and is not subject to the Administrative Procedure Act contained in chapter 14.
         The 11.29threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount
         11.30ends in $5, the amount is rounded up to the nearest $10 amount.11.31EFFECTIVE DATE.Paragraphs (a) to (e) are effective for taxable years beginning 11.32after December 31, 2016. Paragraph (f) is effective for taxable years beginning after
         11.33December 31, 2017.12.1    Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 12.2to read:12.3    Subd. 24.First-time home buyer savings account.(a) The amount for contributions 12.4to and earnings on a first-time home buyer savings account allowed by section 462D.06,
         12.5subdivision 1, is a subtraction.12.6(b) The subtraction allowed under this subdivision for a taxable year is limited to
         $7,500, 12.7or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as
         defined 12.8in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000,
         or 12.9$250,000 for married joint filers, the maximum subtraction is reduced $1 for each
         $4 of 12.10adjusted gross income in excess of that threshold.12.11(c) The adjusted gross income thresholds under paragraph (b) are annually adjusted
         for 12.12inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar
         amount 12.13of the income thresholds at which the subtraction begins to be reduced under paragraph
         (b) 12.14by the percentage determined under section 1(f) of the Internal Revenue Code, except
         that 12.15in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018,
         the 12.16commissioner shall then determine the percent change from the 12 months ending on
         August 12.1731, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year,
         from 12.18the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
         12.19year preceding the taxable year. The determination of the commissioner under this
         12.20subdivision is not a "rule" and is not subject to the Administrative Procedure Act
         in chapter 12.2114. The threshold amount as adjusted must be rounded to the nearest $100 amount. If
         the 12.22amount ends in $50, the amount is rounded up to the nearest $100 amount.12.23EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.2431, 2016.12.25    Sec. 10. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws 12.262017, chapter 1, section 5, is amended to read:12.27    Subd. 12. Section 179 expensing.For taxable years beginning before January 1, 2018, 12.2880 percent of the amount by which the deduction allowed under the dollar limits of
         section 12.29179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of
         the 12.30Internal Revenue Code, as amended through December 31, 2003, is an addition.12.31EFFECTIVE DATE.This section is effective for taxable years beginning after December 12.3231, 2017.13.1    Sec. 11. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision 13.2to read:13.3    Subd. 15.Equity and opportunity donations to qualified foundations.The amount 13.4of the deduction under section 170 of the Internal Revenue Code that represents contributions
         13.5to a qualified foundation under section 290.0693 is an addition.13.6EFFECTIVE DATE.This section is effective for taxable years beginning after December 13.731, 2017.13.8    Sec. 12. Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:13.9    Subd. 2c. Schedules of rates for individuals, estates, and trusts.For taxable years 13.10beginning after December 21, 2017:13.11    (a) The income taxes imposed by this chapter upon married individuals filing joint
         returns 13.12and surviving spouses as defined in section 2(a) of the Internal Revenue Code must
         be 13.13computed by applying to their taxable net income the following schedule of rates:13.14    (1) On the first $35,480 $37,970, 5.35 5.0 percent;13.15    (2) On all over $35,480 $37,970, but not over $140,960 $134,250, 7.05 percent;13.16    (3) On all over $140,960 $134,250, but not over $250,000 $267,550, 7.85 percent;13.17(4) On all over $250,000 $267,550, 9.85 percent.13.18    Married individuals filing separate returns, estates, and trusts must compute their
         income 13.19tax by applying the above rates to their taxable income, except that the income brackets
         13.20will be one-half of the above amounts.13.21    (b) The income taxes imposed by this chapter upon unmarried individuals must be 13.22computed by applying to taxable net income the following schedule of rates:13.23    (1) On the first $24,270 $25,970, 5.35 5.0 percent;13.24    (2) On all over $24,270 $25,970, but not over $79,730 $73,970, 7.05 percent;13.25    (3) On all over $79,730 $73,970, but not over $150,000 $160,530, 7.85 percent;13.26(4) On all over $150,000 $160,530, 9.85 percent.13.27    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
         as 13.28a head of household as defined in section 2(b) of the Internal Revenue Code must be
         13.29computed by applying to taxable net income the following schedule of rates:13.30    (1) On the first $29,880 $31,980, 5.35 5.0 percent;14.1    (2) On all over $29,880 $31,980, but not over $120,070 $114,510, 7.05 percent;14.2    (3) On all over $120,070 $114,510, but not over $200,000 $214,040, 7.85 percent;14.3(4) On all over $200,000 $214,040, 9.85 percent.14.4    (d) In lieu of a tax computed according to the rates set forth in this subdivision,
         the tax 14.5of any individual taxpayer whose taxable net income for the taxable year is less than
         an 14.6amount determined by the commissioner must be computed in accordance with tables 14.7prepared and issued by the commissioner of revenue based on income brackets of not
         more 14.8than $100. The amount of tax for each bracket shall be computed at the rates set forth
         in 14.9this subdivision, provided that the commissioner may disregard a fractional part of
         a dollar 14.10unless it amounts to 50 cents or more, in which case it may be increased to $1.14.11    (e) An individual who is not a Minnesota resident for the entire year must compute
         the 14.12individual's Minnesota income tax as provided in this subdivision. After the application
         of 14.13the nonrefundable credits provided in this chapter, the tax liability must then be
         multiplied 14.14by a fraction in which:14.15    (1) the numerator is the individual's Minnesota source federal adjusted gross income
         as 14.16defined in section 62 of the Internal Revenue Code and increased by the additions
         required 14.17under section 
         290.0131, subdivisions 2 and 6 to 11, and reduced by the Minnesota assignable 14.18portion of the subtraction for United States government interest under section 
         290.0132, 14.19subdivision 2
         , and the subtractions under section 
         290.0132, subdivisions 9, 10, 14, 15, 17, 14.20and 18, after applying the allocation and assignability provisions of section 
         290.081, clause 14.21(a), or 
         290.17; and14.22    (2) the denominator is the individual's federal adjusted gross income as defined in
         section 14.2362 of the Internal Revenue Code, increased by the amounts specified in section 
         290.0131, 14.24subdivisions 2
          and 6 to 11, and reduced by the amounts specified in section 
         290.0132, 14.25subdivisions 2, 9, 10, 14, 15, 17, and 18.14.26EFFECTIVE DATE.This section is effective for taxable years beginning after December 14.2731, 2017.14.28    Sec. 13. Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:14.29    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after 14.30December 31, 2013 2018, the minimum and maximum dollar amounts for each rate bracket 14.31for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
         percentage 14.32determined under paragraph (b). For the purpose of making the adjustment as provided
         in 14.33this subdivision all of the rate brackets provided in subdivision 2c shall be the
         rate brackets 15.1as they existed for taxable years beginning after December 31, 2012 2017, and before 15.2January 1, 2014 2019. The rate applicable to any rate bracket must not be changed. The 15.3dollar amounts setting forth the tax shall be adjusted to reflect the changes in the
         rate brackets. 15.4The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate
         bracket 15.5ends in $5, it must be rounded up to the nearest $10 amount.15.6(b) The commissioner shall adjust the rate brackets and by the percentage determined
         15.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that
         in section 15.81(f)(3)(B) the word "2012" "2017" shall be substituted for the word "1992." For 2014 2019, 15.9the commissioner shall then determine the percent change from the 12 months ending
         on 15.10August 31, 2012 2017, to the 12 months ending on August 31, 2013 2018, and in each 15.11subsequent year, from the 12 months ending on August 31, 2012 2017, to the 12 months 15.12ending on August 31 of the year preceding the taxable year. The determination of the
         15.13commissioner pursuant to this subdivision shall not be considered a "rule" and shall
         not be 15.14subject to the Administrative Procedure Act contained in chapter 14.15.15No later than December 15 of each year, the commissioner shall announce the specific
         15.16percentage that will be used to adjust the tax rate brackets.15.17EFFECTIVE DATE.This section is effective for taxable years beginning after December 15.1831, 2018.15.19    Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 15.20read:15.21    Subd. 2g.First-time home buyer savings account.In addition to the tax computed 15.22under subdivision 2c, an additional amount of tax applies equal to the additional
         tax computed 15.23for the taxable year for the account holder of a first-time home buyer account under
         section 15.24462D.06, subdivision 3.15.25EFFECTIVE DATE.This section is effective for taxable years beginning after December 15.2631, 2016.15.27    Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 15.28read:15.29    Subd. 2h.Temporary schedule of rates for individuals, estates, and trusts.For taxable 15.30years beginning after December 31, 2016, and before January 1, 2018:16.1(a) The income taxes imposed by this chapter upon married individuals filing joint
         returns 16.2and surviving spouses as defined in section 2(a) of the Internal Revenue Code must
         be 16.3computed by applying to their taxable net income the following schedule of rates:16.4(1) On the first $37,110, 5.15 percent;16.5(2) On all over $37,110, but not over $138,180, 7.05 percent;16.6(3) On all over $138,180, but not over $261,510, 7.85 percent;16.7(4) On all over $261,510, 9.85 percent.16.8    Married individuals filing separate returns, estates, and trusts must compute their
         income 16.9tax by applying the above rates to their taxable income, except that the income brackets
         16.10will be one-half of the above amounts.16.11(b) The income taxes imposed by this chapter upon unmarried individuals must be 16.12computed by applying to taxable net income the following schedule of rates:16.13(1) On the first $25,390, 5.15 percent;16.14(2) On all over $25,390, but not over $77,060, 7.05 percent;16.15(3) On all over $77,060, but not over $156,910, 7.85 percent;16.16(4) On all over $156,910, 9.85 percent.16.17(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
         as 16.18a head of household as defined in section 2(b) of the Internal Revenue Code must be
         16.19computed by applying to taxable net income the following schedule of rates:16.20(1) On the first $31,260, 5.15 percent;16.21(2) On all over $31,260, but not over $117,790, 7.05 percent;16.22(3) On all over $117,790, but not over $209,210, 7.85 percent;16.23(4) On all over $209,210, 9.85 percent.16.24(d) The provisions of subdivision 2c, paragraphs (d) and (e), apply to this section.16.25EFFECTIVE DATE.This section is effective for taxable years beginning after December 16.2631, 2016, and before January 1, 2018.17.1    Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 17.2read:17.3    Subd. 37.Workforce housing credit.(a) A qualified project investor is allowed a credit 17.4against the tax under this chapter equal to the amount certified by the commissioner
         of 17.5employment and economic development under section 116J.5491 to the taxpayer as a 17.6qualified project investor for the taxable year.17.7(b) The definitions under section 116J.5491 apply to this subdivision.17.8(c) Credits allowed to a partnership, a limited liability company taxed as a partnership,
         17.9S corporation, or multiple owners of property are passed through to the partners,
         members, 17.10shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
         17.11shareholder's, or owner's share of the entity's assets or as specially allocated in
         the 17.12organizational documents or any other executed agreement, as of the last day of the
         taxable 17.13year.17.14(d) Notwithstanding the a tax credit certificate issued by the commissioner of employment
         17.15and economic development under section 116J.5491, the commissioner may utilize any
         17.16audit and examination powers under chapter 270C or 289A to the extent necessary to
         verify 17.17that the taxpayer is eligible for the credit and to assess for the amount of any improperly
         17.18claimed credit.17.19EFFECTIVE DATE.This section is effective for taxable years beginning after December 17.2031, 2017, and before January 1, 2019.17.21    Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws 17.222017, chapter 1, section 6, is amended to read:17.23    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 17.24allowed a credit against the tax imposed by this chapter equal to a percentage of
         earned 17.25income. To receive a credit, a taxpayer must be eligible for a credit under section
         32 of the 17.26Internal Revenue Code.17.27(b) For individuals with no qualifying children, the credit equals 2.10 percent of
         the first 17.28$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or
         adjusted 17.29gross income, whichever is greater, in excess of $8,130, but in no case is the credit
         less than 17.30zero.17.31(c) For individuals with one qualifying child, the credit equals 9.35 percent of the
         first 17.32$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or
         adjusted 18.1gross income, whichever is greater, in excess of $21,190, but in no case is the credit
         less 18.2than zero.18.3(d) For individuals with two or more qualifying children, the credit equals 11 percent
         18.4of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
         18.5income or adjusted gross income, whichever is greater, in excess of $25,130, but in
         no case 18.6is the credit less than zero.18.7(e) For a part-year resident, the credit must be allocated based on the percentage
         calculated 18.8under section 
         290.06, subdivision 2c, paragraph (e).18.9(f) For a person who was a resident for the entire tax year and has earned income
         not 18.10subject to tax under this chapter, including income excluded under section 
         290.0132, 18.11subdivision 10
         , the credit must be allocated based on the ratio of federal adjusted gross 18.12income reduced by the earned income not subject to tax under this chapter over federal
         18.13adjusted gross income. For purposes of this paragraph, the following clauses are not 18.14considered "earned income not subject to tax under this chapter":18.15(1) the subtractions for military pay under section 
         290.0132, subdivisions 11 and 12, 18.16are not considered "earned income not subject to tax under this chapter."For the purposes
         18.17of this paragraph,;18.18(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not 18.19considered "earned income not subject to tax under this chapter."; and18.20(3) income derived from an Indian reservation by an enrolled member of the reservation
         18.21while living on the reservation.18.22(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b),
         the 18.23$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
         inflation 18.24under subdivision 7, are each increased by $5,000 for married taxpayers filing joint
         returns. 18.25For tax years beginning after December 31, 2013, the commissioner shall annually adjust
         18.26the $5,000 by the percentage determined pursuant to the provisions of section 1(f)
         of the 18.27Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be
         substituted 18.28for the word "1992." For 2014, the commissioner shall then determine the percent change
         18.29from the 12 months ending on August 31, 2008, to the 12 months ending on August 31,
         18.302013, and in each subsequent year, from the 12 months ending on August 31, 2008, to
         the 18.3112 months ending on August 31 of the year preceding the taxable year. The earned income
         18.32thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount
         ends 18.33in $5, the amount is rounded up to the nearest $10. The determination of the commissioner
         18.34under this subdivision is not a rule under the Administrative Procedure Act.19.1(h) The commissioner shall construct tables showing the amount of the credit at various
         19.2income levels and make them available to taxpayers. The tables shall follow the schedule
         19.3contained in this subdivision, except that the commissioner may graduate the transition
         19.4between income brackets.19.5EFFECTIVE DATE.This section is effective for taxable years beginning after December 19.631, 2016.19.7    Sec. 18. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 19.8to read:19.9    Subd. 6.Inflation adjustment.The credit amount and the income threshold at which 19.10the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation.
         19.11The commissioner shall adjust the credit amount and income threshold by the percentage
         19.12determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except 19.13that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992."
         For 19.142019, the commissioner shall then determine the percent change from the 12 months
         ending 19.15on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent
         19.16year, from the 12 months ending August 31, 2017, to the 12 months ending on August
         31 19.17of the year preceding the taxable year. The credit amount and income threshold as
         adjusted 19.18for inflation must be rounded to the nearest $10 amount. If the amount ends in $5,
         the amount 19.19is rounded up to the nearest $10 amount. The determination of the commissioner under
         this 19.20subdivision is not a rule subject to the Administrative Procedure Act in chapter 14,
         including 19.21section 14.386.19.22EFFECTIVE DATE.This section is effective for taxable years beginning after December 19.2331, 2018.19.24    Sec. 19. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:19.25    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 19.26given.19.27    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         research 19.28payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
         it does 19.29not include expenses incurred for qualified research or basic research conducted outside
         19.30the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code;
         and 19.31(ii) contributions to a nonprofit corporation established and operated pursuant to
         the 19.32provisions of chapter 317A for the purpose of promoting the establishment and expansion
         19.33of business in this state, provided the contributions are invested by the nonprofit
         corporation 20.1for the purpose of providing funds for small, technologically innovative enterprises
         in 20.2Minnesota during the early stages of their development.20.3    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         20.4Internal Revenue Code, except that the term does not include qualified research conducted
         20.5outside the state of Minnesota.20.6    (c) "Base amount" means:20.7    (1) for taxpayers not subject to clause (2), the base amount as defined in section 41(c) 20.8of the Internal Revenue Code, except that the average annual gross receipts must be
         calculated 20.9using Minnesota sales or receipts under section 
         290.191 and the definitions contained in 20.10clauses paragraphs (a) and (b) shall apply; or20.11    (2) for a taxpayer with an alternative simplified credit election in place under subdivision
         20.122a for the taxable year, 50 percent of the average qualified research expenses for
         the three 20.13taxable years preceding the taxable year for which the credit is being determined.20.14EFFECTIVE DATE.This section is effective for taxable years beginning after December 20.1531, 2017.20.16    Sec. 20. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision 20.17to read:20.18    Subd. 2a.Alternative simplified credit election.(a) A corporation, partnership, or other 20.19taxpayer qualifying for a credit under this section may elect on an original return,
         including 20.20all extensions, to calculate its base amount under subdivision 2, paragraph (c), clause
         (2), 20.21for the taxable year. A taxpayer may revoke the election without approval of the 20.22commissioner.20.23(b) For a partnership, the election must be made by the partnership on the partnership
         20.24return or other form, as required by the commissioner, and applies to all of its partners.20.25EFFECTIVE DATE.This section is effective for taxable years beginning after December 20.2631, 2017.20.27    Sec. 21. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN 20.28TEACHER'S LICENSURE FIELD.20.29    Subdivision 1.Definitions.(a) For purposes of this section, the following terms have 20.30the meanings given them.21.1(b) "Master's degree program" means a graduate-level program at an accredited university
         21.2leading to a master of arts or science degree in a core content area directly related
         to a 21.3qualified teacher's licensure field. The master's degree program may not include pedagogy
         21.4or a pedagogy component. To be eligible under this credit, a licensed elementary school
         21.5teacher must pursue and complete a master's degree program in a core content area
         in which 21.6the teacher provides direct classroom instruction.21.7(c) "Qualified teacher" means a person who:21.8(1) holds a teaching license issued by the licensing division in the Department of
         21.9Education on behalf of the Minnesota Board of Teaching both when the teacher begins
         the 21.10master's degree program and when the teacher completes the master's degree program;21.11(2) began a master's degree program after June 30, 2017; and21.12(3) completes the master's degree program during the taxable year.21.13(d) "Core content area" means the academic subject of reading, English or language
         arts, 21.14mathematics, science, foreign languages, civics and government, economics, arts, history,
         21.15or geography.21.16    Subd. 2.Credit allowed.(a) An individual who is a qualified teacher is allowed a credit 21.17against the tax imposed under this chapter. The credit equals $2,500.21.18(b) For a nonresident or a part-year resident, the credit under this subdivision must
         be 21.19allocated based on the percentage calculated under section 290.06, subdivision 2c,
         paragraph 21.20(e).21.21(c) A qualified teacher may claim the credit in this section only one time for each
         master's 21.22degree program completed in a core content area.21.23EFFECTIVE DATE.This section is effective for taxable years beginning after December 21.2431, 2016.21.25    Sec. 22. [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.21.26    Subdivision 1.Definitions.(a) For purposes of this section, the following terms have 21.27the meanings given.21.28(b) "Eligible student" means a student who:21.29(1) resides in Minnesota;21.30(2) is a member of a household that has total annual income during the year prior
         to 21.31initial receipt of a qualified scholarship or qualified transportation scholarship,
         without 22.1consideration of the benefits under this program, that does not exceed an amount equal
         to 22.2two times the income standard used to qualify for a reduced-price meal under the National
         22.3School Lunch Program; and22.4(3) meets one of the following criteria:22.5(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
         22.6preceding initial receipt of a qualified scholarship or qualified transportation scholarship;22.7(ii) is younger than age seven and not enrolled in kindergarten or first grade in
         the 22.8semester preceding initial receipt of a qualified scholarship;22.9(iii) previously received a qualified scholarship or qualified transportation scholarship
         22.10under this section; or22.11(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified
         22.12scholarship.22.13(c) "Equity and opportunity in education donation" means a donation to a qualified
         22.14foundation that awards qualified scholarships or qualified transportation scholarships.22.15(d) "Household" means household as used to determine eligibility under the National
         22.16School Lunch Program.22.17(e) "National School Lunch Program" means the program in United States Code, title
         22.1842, section 1758.22.19(f) "Qualified school" means a school operated in Minnesota that is a nonpublic 22.20elementary or secondary school in Minnesota wherein a resident may legally fulfill
         the 22.21state's compulsory attendance laws that is not operated for profit, and that adheres
         to the 22.22provisions of United States Code, title 42, section 1981, chapter 121A, sections 121A.03
         22.23to 121A.0311, and chapter 363A.22.24(g) "Qualified foundation" means a nonprofit organization granted an exemption from
         22.25the federal income tax under section 501(c)(3) of the Internal Revenue Code that has
         been 22.26approved as a qualified foundation by the commissioner of revenue under subdivision
         5.22.27(h) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
         22.28of the parent or guardian of an eligible student for payment of tuition for enrollment
         in 22.29grades kindergarten through 12 at a qualified school. A qualified scholarship must
         not 22.30exceed an amount greater than 70 percent of the state average general education revenue
         22.31under section 126C.10, subdivision 1, per pupil unit.23.1(i) "Total annual income" means the income measure used to determine eligibility under
         23.2the National School Lunch Program in United States Code, title 42, section 1758.23.3(j) "Qualified transportation scholarship" means a payment from a qualified foundation
         23.4to or on behalf of a parent or guardian of an eligible student for payment of transportation
         23.5to a school, as defined in section 120A.22, subdivision 4. A qualified transportation
         23.6scholarship must not exceed an amount greater than 70 percent of the state average
         general 23.7education revenue under section 126C.10, subdivision 1, per pupil unit.23.8    Subd. 2.Credit allowed.(a) An individual or corporate taxpayer who has been issued 23.9a credit certificate under subdivision 3 is allowed a credit against the tax due under
         this 23.10chapter equal to 70 percent of the amount donated during the taxable year to the qualified
         23.11foundation designated on the taxpayer's credit certificate. No credit is allowed if
         the taxpayer 23.12designates a specific child as the beneficiary of the contribution. No credit is allowed
         to a 23.13taxpayer for an equity and opportunity in education donation made before the taxpayer
         was 23.14issued a credit certificate as provided in subdivision 3.23.15(b) The maximum annual credit allowed is:23.16(1) $21,000 for married joint filers for a one-year donation of $30,000;23.17(2) $10,500 for other individual filers for a one-year donation of $15,000; and23.18(3) $105,000 for corporate filers for a one-year donation of $150,000.23.19(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
         23.20when claiming the credit for the donation if requested by the commissioner.23.21(d) The credit is limited to the liability for tax under this chapter, including the
         tax 23.22imposed by sections 290.0921 and 290.0922.23.23(e) If the amount of the credit under this subdivision for any taxable year exceeds
         the 23.24limitations under paragraph (d), the excess is a credit carryover to each of the five
         succeeding 23.25taxable years. The entire amount of the excess unused credit for the taxable year
         must be 23.26carried first to the earliest of the taxable years to which the credit may be carried.
         The 23.27amount of the unused credit that may be added under this paragraph may not exceed
         the 23.28taxpayer's liability for tax, less the credit for the taxable year. No credit may
         be carried to 23.29a taxable year more than five years after the taxable year in which the credit was
         earned.23.30    Subd. 3.Application for credit certificate.(a) The commissioner must make applications 23.31for tax credits for 2018 available on the department's Web site by January 1, 2018.
         23.32Applications for subsequent years must be made available by January 1 of the taxable
         year.24.1(b) A taxpayer must apply to the commissioner for an equity and opportunity in education
         24.2tax credit certificate. The application must be in the form and manner specified by
         the 24.3commissioner and must designate the qualified foundation to which the taxpayer intends
         24.4to make a donation. The commissioner must begin accepting applications for a taxable
         year 24.5on January 1. The commissioner must issue tax credit certificates under this section
         on a 24.6first-come, first-served basis until the maximum statewide credit amount has been
         reached. 24.7The certificates must list the qualified foundation the taxpayer designated on the
         application. 24.8The maximum statewide credit amount is $35,000,000 per taxable year for taxable years
         24.9beginning after December 31, 2017.24.10(c) The commissioner must not issue a tax credit certificate for an amount greater
         than 24.11the limits in subdivision 2.24.12(d) The commissioner must not issue a credit certificate for an application that designates
         24.13a qualified foundation that the commissioner has barred from participation as provided
         in 24.14subdivision 5.24.15    Subd. 4.Responsibilities of qualified foundations.(a) A qualified foundation must:24.16(1) award qualified scholarships and qualified transportation scholarships to eligible
         24.17students;24.18(2) not restrict the availability of scholarships to students of one qualified school;24.19(3) not charge a fee of any kind for a child to be considered for a scholarship; and24.20(4) require a qualified school receiving payment of tuition through a scholarship
         funded 24.21by contributions qualifying for the tax credit under this section to sign an agreement
         that it 24.22will not use different admissions standards for a student with a qualified scholarship
         or 24.23qualified transportation scholarship.24.24(b) An entity that is eligible to be a qualified foundation must apply to the commissioner
         24.25by September 15 of the year preceding the year in which it will first receive equity
         and 24.26opportunity in education donations. The application must be in the form and manner
         24.27prescribed by the commissioner. The application must:24.28(1) demonstrate to the commissioner that the entity, if it is a nonprofit organization,
         has 24.29been granted an exemption from the federal income tax as an organization described
         in 24.30section 501(c)(3) of the Internal Revenue Code; and24.31(2) demonstrate the entity's financial accountability by submitting its most recent
         audited 24.32financial statement prepared by a certified public accountant firm licensed under
         chapter 25.1326A using the Statements on Auditing Standards issued by the Audit Standards Board
         of 25.2the American Institute of Certified Public Accountants.25.3(c) A qualified foundation must provide to taxpayers who make donations or 25.4commitments to donate a receipt or verification on a form approved by the commissioner.25.5(d) A qualified foundation in each year it awards qualified scholarships or qualified
         25.6transportation scholarships to eligible students to enroll in a qualified school must
         obtain 25.7from the qualified school documentation that the school:25.8(i) complies with all health and safety laws or codes that apply to nonpublic schools;25.9(ii) holds a valid occupancy permit if required by its municipality;25.10(iii) certifies that it adheres to the provisions of chapter 363A and United States
         Code, 25.11title 42, section 1981; and25.12(iv) provides academic accountability to parents of students in the program by regularly
         25.13reporting to the parents on the student's progress.25.14A qualified foundation must make the documentation available to the commissioner on
         25.15request.25.16(e) A qualified foundation must, by June 1 of each year following a year in which
         it 25.17receives donations and awards scholarships, provide the following information to the
         25.18commissioner:25.19(1) financial information that demonstrates the financial viability of the qualified
         25.20foundation, if it is to receive donations of $150,000 or more during the year;25.21(2) documentation that it has conducted criminal background checks on all of its 25.22employees and board members and has excluded from employment or governance any 25.23individuals who might reasonably pose a risk to the appropriate use of contributed
         funds;25.24(3) consistent with paragraph (f), document that it has used amounts received as donations
         25.25to provide qualified scholarships within one calendar year of the calendar year in
         which it 25.26received the donation;25.27(4) a listing of qualified schools that enrolled eligible students to whom the qualified
         25.28foundation awarded qualified scholarships; and25.29(5) the following information prepared by a certified public accountant regarding
         25.30donations received and scholarships awarded in the previous calendar year:25.31(i) the total number and total dollar amount of donations received from taxpayers;26.1(ii) the total number and total dollar amount of qualified scholarships and qualified
         26.2transportation scholarships awarded; and26.3(iii) the dollar amount of donations used for administrative expenses, as allowed
         by 26.4paragraph (f).26.5(f) The foundation may use up to five percent of the amounts received as donations
         for 26.6reasonable administrative expenses, including but not limited to fund-raising, scholarship
         26.7tracking, and reporting requirements.26.8    Subd. 5.Responsibilities of commissioner.(a) The commissioner must make 26.9applications for an entity to be approved as a qualified foundation for a taxable
         year available 26.10on the department's Web site by August 1 of the year preceding the taxable year. The
         26.11commissioner must approve an application that provides the documentation required
         in 26.12subdivision 4, paragraph (b), clauses (1) and (2), within 60 days of receiving the
         application. 26.13The commissioner must notify a foundation that provides incomplete documentation and
         26.14the foundation may resubmit its application within 30 days.26.15(b) By November 15 of each year, the commissioner must post on the department's Web
         26.16site the names and addresses of qualified foundations for the next taxable year. The
         26.17commissioner must regularly update the names and addresses of any qualified foundations
         26.18that have been barred from participating in the program.26.19(c) The commissioner must prescribe a standardized format for a receipt to be issued
         by 26.20a qualified foundation to a taxpayer to indicate the value of a donation received
         and of a 26.21commitment to make a donation.26.22(d) The commissioner must prescribe a standardized format for qualified foundations
         26.23to report the information required under subdivision 4, paragraph (e).26.24(e) The commissioner may conduct either a financial review or audit of a qualified
         26.25foundation upon finding evidence of fraud or intentional misreporting. If the commissioner
         26.26determines that the qualified foundation committed fraud or intentionally misreported
         26.27information, the qualified foundation is barred from further program participation.26.28(f) If a qualified foundation fails to submit the documentation required under subdivision
         26.294, paragraph (e), by June 1, the commissioner must notify the qualified foundation
         by July 26.301. A qualified foundation that fails to submit the required information by August
         1 is barred 26.31from participation for the next taxable year.26.32(g) If a qualified foundation fails to comply with the requirements of subdivision
         4, 26.33paragraph (e), the commissioner must by September 1 notify the qualified foundation
         that 27.1it has until November 1 to document that it has remedied its noncompliance. A qualified
         27.2foundation that fails to document that it has remedied its noncompliance by November
         1 is 27.3barred from participation for the next taxable year.27.4(h) A qualified foundation barred under paragraph (f) or (g) may become eligible to
         27.5participate by submitting the required information in future years.27.6    Subd. 6.Mandatory inclusion for people with disabilities.No otherwise qualified 27.7individual with a disability, as defined in Minnesota Statutes, shall, solely by reason
         of the 27.8individual's disability, be excluded from the participation in, be denied the benefits
         of, or 27.9be subjected to discrimination under any program or activity receiving funding from
         tax 27.10credits defined within this section.27.11EFFECTIVE DATE.This section is effective the day following final enactment for 27.12donations made and credits allowed in taxable years beginning after December 31, 2017.27.13    Sec. 23. Minnesota Statutes 2016, section 290.081, is amended to read:27.14290.081 INCOME OF NONRESIDENTS, RECIPROCITY.27.15(a) The compensation received for the performance of personal or professional services
         27.16within this state by an individual whose residence, place of abode, and place customarily
         27.17returned to at least once a month is in another state, shall be excluded from gross
         income 27.18to the extent such compensation is subject to an income tax imposed by the state of
         residence; 27.19provided that such state allows a similar exclusion of compensation received by residents
         27.20of Minnesota for services performed therein.27.21(b) When it is deemed to be in the best interests of the people of this state, the
         27.22commissioner may determine that the provisions of paragraph (a) shall not apply. As
         long 27.23as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
         27.24of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.27.25(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents
         27.26which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax
         27.27on Wisconsin residents which would have been paid Minnesota without paragraph (a),
         or 27.28vice versa, then the state with the net revenue loss resulting from calculated under paragraph 27.29(a) (e) shall receive from the other state the amount of such loss. This provision shall be 27.30effective for all years beginning after December 31, 1972. The data used for computing
         the 27.31loss to either state shall be determined on or before September 30 of the year following
         the 27.32close of the previous calendar year.28.1(d) (1) Interest is payable on all amounts calculated under paragraph (c) relating to
         28.2taxable years beginning after December 31, 2000. Interest accrues from July 1 of the
         taxable 28.3year Payments for amounts calculated under paragraph (c) must equal one-quarter of the
         28.4estimated annual amount and must be paid at the midpoint of each quarter, on February
         15, 28.5May 15, August 15, and November 15.28.6(2)(e)(1)The commissioner of revenue is authorized to enter into agreements with the 28.7state of Wisconsin specifying the reciprocity payment due dates, conditions constituting
         28.8delinquency, interest rates, and a method for computing interest due.28.9(3) (2) For agreements entered into before October 1, 2014 2017, the annual compensation 28.10required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 up 28.11to $3,000,000 per fiscal year.28.12(4) For agreements entered into after September 30, 2014, the annual compensation
         28.13required under paragraph (c) must equal the net revenue loss per fiscal year.28.14(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the 28.15difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing
         28.16Wisconsin residents on income subject to reciprocity and the credit Minnesota would
         have 28.17been required to give under section 
         290.06, subdivision 22, to Minnesota residents working 28.18in Wisconsin had there not been reciprocity.28.19(4) All agreements must include provisions:28.20(i) providing for a suspension of the agreement if one party to the agreement does
         not 28.21pay in full by a time proscribed in the agreement;28.22(ii) setting the interest rate that will be applied, and that interest shall run from
         the date 28.23the payment is due until the day the payment is made, except that interest from the
         28.24reconciliation payments runs from July 1 of the tax year until paid;28.25(iii) stating a time for annual reconciliation must be completed by October 31 of
         the 28.26year following the tax year, and the time for payment of any amounts to be completed
         by 28.27no later than December 1 of the year following the tax year;28.28(iv) requiring the parties to jointly conduct updated benchmark studies every five
         years 28.29beginning tax year 2018;28.30(v) requiring each party to the agreement to require taxpayers who request exemption
         28.31from withholding in the state where they work to make an annual application and that
         a list 28.32of participants will be exchanged annually; and29.1(vi) the sum of the amount of the quarterly payments must be a reasonable estimate
         of 29.2the revenue loss as defined in item (iii).29.3(e)(f) If an agreement cannot be reached as to the amount of the loss, the commissioner 29.4of revenue and the taxing official of the state of Wisconsin shall each appoint a
         member of 29.5a board of arbitration and these members shall appoint the third member of the board.
         The 29.6board shall select one of its members as chair. Such board may administer oaths, take
         29.7testimony, subpoena witnesses, and require their attendance, require the production
         of books, 29.8papers and documents, and hold hearings at such places as are deemed necessary. The
         board 29.9shall then make a determination as to the amount to be paid the other state which
         29.10determination shall be final and conclusive.29.11(f) (g) The commissioner may furnish copies of returns, reports, or other information to
         29.12the taxing official of the state of Wisconsin, a member of the board of arbitration,
         or a 29.13consultant under joint contract with the states of Minnesota and Wisconsin for the
         purpose 29.14of making a determination as to the amount to be paid the other state under the provisions
         29.15of this section. Prior to the release of any information under the provisions of this
         section, 29.16the person to whom the information is to be released shall sign an agreement which
         provides 29.17that the person will protect the confidentiality of the returns and information revealed
         thereby 29.18to the extent that it is protected under the laws of the state of Minnesota.29.19EFFECTIVE DATE.This section is effective for taxable years beginning after December 29.2031, 2017.29.21    Sec. 24. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:29.22    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 29.23terms have the meanings given:29.24    (a) "Alternative minimum taxable income" means the sum of the following for the taxable
         29.25year:29.26    (1) the taxpayer's federal alternative minimum taxable income as defined in section
         29.2755(b)(2) of the Internal Revenue Code;29.28    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
         29.29taxable income, but excluding:29.30    (i) the charitable contribution deduction under section 170 of the Internal Revenue
         Code;29.31    (ii) the medical expense deduction;29.32    (iii) the casualty, theft, and disaster loss deduction; and30.1    (iv) the impairment-related work expenses of a disabled person;30.2    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
         30.3Code, with respect to each property (as defined in section 614 of the Internal Revenue
         Code), 30.4to the extent not included in federal alternative minimum taxable income, the excess
         of the 30.5deduction for depletion allowable under section 611 of the Internal Revenue Code for
         the 30.6taxable year over the adjusted basis of the property at the end of the taxable year
         (determined 30.7without regard to the depletion deduction for the taxable year);30.8    (4) to the extent not included in federal alternative minimum taxable income, the
         amount 30.9of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal
         Revenue 30.10Code determined without regard to subparagraph (E);30.11    (5) to the extent not included in federal alternative minimum taxable income, the
         amount 30.12of interest income as provided by section 
         290.0131, subdivision 2; and30.13    (6) the amount of addition required by section 
         290.0131, subdivisions 9 to 11;30.14    less the sum of the amounts determined under the following:30.15    (1) interest income as defined in section 
         290.0132, subdivision 2;30.16    (2) an overpayment of state income tax as provided by section 
         290.0132, subdivision 3, 30.17to the extent included in federal alternative minimum taxable income;30.18    (3) the amount of investment interest paid or accrued within the taxable year on 30.19indebtedness to the extent that the amount does not exceed net investment income,
         as defined 30.20in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts
         deducted 30.21in computing federal adjusted gross income;30.22    (4) amounts subtracted from federal taxable income as provided by section 
         290.0132, 30.23subdivisions 7
         , 9 to 15, 17, and 21, 23, and 24; and30.24(5) the amount of the net operating loss allowed under section 
         290.095, subdivision 11, 30.25paragraph (c).30.26    In the case of an estate or trust, alternative minimum taxable income must be computed
         30.27as provided in section 59(c) of the Internal Revenue Code.30.28    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
         of 30.29the Internal Revenue Code.30.30    (c) "Net minimum tax" means the minimum tax imposed by this section.31.1    (d) "Regular tax" means the tax that would be imposed under this chapter (without
         regard 31.2to this section and section 290.032), reduced by the sum of the nonrefundable credits
         allowed 31.3under this chapter.31.4    (e) "Tentative minimum tax" equals 
         6.75 percent of alternative minimum taxable income 31.5after subtracting the exemption amount determined under subdivision 3.31.6EFFECTIVE DATE.This section is effective for taxable years beginning after December 31.731, 2016.31.8    Sec. 25. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws 31.92017, chapter 1, section 8, is amended to read:31.10    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms 31.11used in this chapter shall have the following meanings:31.12    (1) "Commissioner" means the commissioner of revenue or any person to whom the 31.13commissioner has delegated functions under this chapter.31.14    (2) "Federal gross estate" means the gross estate of a decedent as required to be
         valued 31.15and otherwise determined for federal estate tax purposes under the Internal Revenue
         Code, 31.16increased by the value of any property in which the decedent had a qualifying income
         interest 31.17for life and for which an election was made under section 
         291.03, subdivision 1d, for 31.18Minnesota estate tax purposes, but was not made for federal estate tax purposes.31.19    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
         31.20as amended through December 16, 2016.31.21    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
         31.22excluding therefrom any property included in the estate which has its situs outside
         Minnesota, 31.23and (b) including any property omitted from the federal gross estate which is includable
         in 31.24the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.31.25    (5) "Nonresident decedent" means an individual whose domicile at the time of death
         31.26was not in Minnesota.31.27    (6) "Personal representative" means the executor, administrator or other person appointed
         31.28by the court to administer and dispose of the property of the decedent. If there is
         no executor, 31.29administrator or other person appointed, qualified, and acting within this state,
         then any 31.30person in actual or constructive possession of any property having a situs in this
         state which 31.31is included in the federal gross estate of the decedent shall be deemed to be a personal
         32.1representative to the extent of the property and the Minnesota estate tax due with
         respect 32.2to the property.32.3    (7) "Resident decedent" means an individual whose domicile at the time of death was
         32.4in Minnesota. The provisions of section 290.01, subdivision 7, paragraph (c), apply to 32.5determinations of domicile under this chapter.32.6    (8) "Situs of property" means, with respect to:32.7    (i) real property, the state or country in which it is located;32.8    (ii) tangible personal property, the state or country in which it was normally kept
         or 32.9located at the time of the decedent's death or for a gift of tangible personal property
         within 32.10three years of death, the state or country in which it was normally kept or located
         when the 32.11gift was executed;32.12    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
         32.13Code, owned by a nonresident decedent and that is normally kept or located in this
         state 32.14because it is on loan to an organization, qualifying as exempt from taxation under
         section 32.15501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of
         the art is 32.16deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and32.17    (iv) intangible personal property, the state or country in which the decedent was
         domiciled 32.18at death or for a gift of intangible personal property within three years of death,
         the state or 32.19country in which the decedent was domiciled when the gift was executed.32.20    For a nonresident decedent with an ownership interest in a pass-through entity with
         32.21assets that include real or tangible personal property, situs of the real or tangible
         personal 32.22property, including qualified works of art, is determined as if the pass-through entity
         does 32.23not exist and the real or tangible personal property is personally owned by the decedent.
         If 32.24the pass-through entity is owned by a person or persons in addition to the decedent,
         ownership 32.25of the property is attributed to the decedent in proportion to the decedent's capital
         ownership 32.26share of the pass-through entity.32.27(9) "Pass-through entity" includes the following:32.28(i) an entity electing S corporation status under section 1362 of the Internal Revenue
         32.29Code;32.30(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;33.1(iii) a single-member limited liability company or similar entity, regardless of whether
         33.2it is taxed as an association or is disregarded for federal income tax purposes under
         Code 33.3of Federal Regulations, title 26, section 301.7701-3; or33.4(iv) a trust to the extent the property is includible in the decedent's federal gross
         estate; 33.5but excludes33.6    (v) an entity whose ownership interest securities are traded on an exchange regulated
         33.7by the Securities and Exchange Commission as a national securities exchange under
         section 33.86 of the Securities Exchange Act, United States Code, title 15, section 78f.33.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents 33.10dying after December 31, 2016.33.11    Sec. 26. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:33.12    Subd. 3. Subtraction.(a) For estates of decedents dying in 2017, the value of qualified 33.13small business property under section 291.03, subdivision 9, and the value of qualified farm 33.14property under section 291.03, subdivision 10, or the result of $5,000,000 minus $1,800,000, 33.15whichever is less, may be subtracted in computing the Minnesota taxable estate but
         must 33.16not reduce the Minnesota taxable estate to less than zero.33.17(b) For estates of decedents dying after December 31, 2017, and before January 1,
         2022, 33.18the subtraction equals the sum of the applicable amount for the year of death under
         paragraphs 33.19(c) and (d).33.20(c) The value of qualified small business property under section 
         291.03, subdivision 9, 33.21and the value of qualified farm property under section 
         291.03, subdivision 10, or the result 33.22of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5),
         whichever 33.23is less, up to the amounts listed in clauses (1) to (4), may be subtracted included in computing 33.24the Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than 33.25zero:33.26(1) $1,200,000 for estates of decedents dying in 2014;33.27(2) $1,400,000 $2,100,000 for estates of decedents dying in 2015 2018;33.28(3) $1,600,000 (2) $1,700,000 for estates of decedents dying in 2016 2019;33.29(4) $1,800,000 (3) $1,300,000 for estates of decedents dying in 2017; and 202033.30(5) $2,000,000 (4) $900,000 for estates of decedents dying in 2018 and thereafter 2021.34.1(d) In addition to the amounts under paragraph (b), the following amount for the year
         34.2of death listed in clauses (1) to (4) may be included in computing the Minnesota taxable
         34.3estate:34.4(1) $2,900,000 for estates of decedents dying in 2018;34.5(2) $3,300,000 for estates of decedents dying in 2019;34.6(3) $3,700,000 for estates of decedents dying in 2020; and34.7(4) $4,100,000 for estates of decedents dying in 2021.34.8(e) For estates of decedents dying in 2022, the subtraction equals $5,000,000.34.9(f) For estates of decedents dying in 2023 and thereafter, the subtraction equals
         the 34.10decedent's applicable federal exclusion amount under section 2010(c)(2) of the Internal
         34.11Revenue Code, but must not reduce the Minnesota taxable estate to less than zero.34.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents 34.13dying after December 31, 2016.34.14    Sec. 27. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:34.15    Subdivision 1. Tax amount. The tax imposed must be computed by applying to the 34.16Minnesota taxable estate the following schedule of rates and then the resulting amount
         34.17multiplied by a fraction, not greater than one, the numerator of which is the value
         of the 34.18Minnesota gross estate plus the value of gifts under section 
         291.016, subdivision 2, clause 34.19(3), with a Minnesota situs, and the denominator of which is the federal gross estate
         plus 34.20the value of gifts under section 
         291.016, subdivision 2, clause (3):34.21    (a) For estates of decedents dying in 2014:

34.22Amount of Minnesota Taxable EstateRate of Tax34.23Not over $1,200,000None34.24Over $1,200,000 but not over $1,400,000nine percent of the excess over $1,200,00034.2534.26Over $1,400,000 but not over $3,600,000$18,000 plus ten percent of the excess over $1,400,00034.2734.28Over $3,600,000 but not over $4,100,000$238,000 plus 10.4 percent of the excess over $3,600,00034.2934.30Over $4,100,000 but not over $5,100,000$290,000 plus 11.2 percent of the excess over $4,100,00034.3134.32Over $5,100,000 but not over $6,100,000$402,000 plus 12 percent of the excess over $5,100,00034.3334.34Over $6,100,000 but not over $7,100,000$522,000 plus 12.8 percent of the excess over $6,100,00034.3534.36Over $7,100,000 but not over $8,100,000$650,000 plus 13.6 percent of the excess over $7,100,00035.135.2Over $8,100,000 but not over $9,100,000$786,000 plus 14.4 percent of the excess over $8,100,00035.335.4Over $9,100,000 but not over $10,100,000$930,000 plus 15.2 percent of the excess over $9,100,00035.535.6Over $10,100,000$1,082,000 plus 16 percent of the excess over $10,100,000

35.7(b) For estates of decedents dying in 2015:

35.8Amount of Minnesota Taxable EstateRate of Tax35.9Not over $1,400,000None35.10Over $1,400,000 but not over $3,600,000ten percent of the excess over $1,400,00035.1135.12Over $3,600,000 but not over $6,100,000$220,000 plus 12 percent of the excess over $3,600,00035.1335.14Over $6,100,000 but not over $7,100,000$520,000 plus 12.8 percent of the excess over $6,100,00035.1535.16Over $7,100,000 but not over $8,100,000$648,000 plus 13.6 percent of the excess over $7,100,00035.1735.18Over $8,100,000 but not over $9,100,000$784,000 plus 14.4 percent of the excess over $8,100,00035.1935.20Over $9,100,000 but not over $10,100,000$928,000 plus 15.2 percent of the excess over $9,100,00035.2135.22Over $10,100,000$1,080,000 plus 16 percent of the excess over $10,100,000

35.23(c) For estates of decedents dying in 2016:

35.24Amount of Minnesota Taxable EstateRate of Tax35.25Not over $1,600,000None35.26Over $1,600,000 but not over $2,600,000ten percent of the excess over $1,600,00035.2735.28Over $2,600,000 but not over $6,100,000$100,000 plus 12 percent of the excess over $2,600,00035.2935.30Over $6,100,000 but not over $7,100,000$520,000 plus 12.8 percent of the excess over $6,100,00035.3135.32Over $7,100,000 but not over $8,100,000$648,000 plus 13.6 percent of the excess over $7,100,00035.3335.34Over $8,100,000 but not over $9,100,000$784,000 plus 14.4 percent of the excess over $8,100,00035.3535.36Over $9,100,000 but not over $10,100,000$928,000 plus 15.2 percent of the excess over $9,100,00035.3735.38Over $10,100,000$1,080,000 plus 16 percent of the excess over $10,100,000

35.39(d) (a) For estates of decedents dying in 2017:

35.40Amount of Minnesota Taxable EstateRate of Tax35.41Not over $1,800,000None35.42Over $1,800,000 but not over $2,100,000ten percent of the excess over $1,800,00035.4335.44Over $2,100,000 but not over $5,100,000$30,000 plus 12 percent of the excess over 
                  		$2,100,00035.4535.46Over $5,100,000 but not over $7,100,000$390,000 plus 12.8 percent of the excess over 
                  		$5,100,00036.136.2Over $7,100,000 but not over $8,100,000$646,000 plus 13.6 percent of the excess over 
                  		$7,100,00036.336.4Over $8,100,000 but not over $9,100,000$782,000 plus 14.4 percent of the excess over 
                  		$8,100,00036.536.6Over $9,100,000 but not over $10,100,000$926,000 plus 15.2 percent of the excess over 
                  		$9,100,00036.736.8Over $10,100,000$1,078,000 plus 16 percent of the excess over 
                  		$10,100,000

36.9(e)(b) For estates of decedents dying in 2018 and thereafter:

36.10Amount of Minnesota Taxable EstateRate of Tax36.11Not over $2,000,000 $7,100,000None 13 percent36.12Over $2,000,000 but not over $2,600,000ten percent of the excess over $2,000,00036.1336.14Over $2,600,000 but not over $7,100,000$60,000 plus 13 percent of the excess over $2,600,00036.1536.16Over $7,100,000 but not over $8,100,000$645,000 $923,000 plus 13.6 percent of the 
                  		excess over $7,100,00036.1736.18Over $8,100,000 but not over $9,100,000$781,000 $1,059,000 plus 14.4 percent of the 
                  		excess over $8,100,00036.1936.20Over $9,100,000 but not over $10,100,000$925,000 $1,203,000 plus 15.2 percent of the 
                  		excess over $9,100,00036.2136.22Over $10,100,000$1,077,000 $1,355,000 plus 16 percent of the 
                  		excess over $10,100,000

36.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents 36.24dying after December 31, 2016.36.25    Sec. 28. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:36.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before 36.27the death of the qualified heir, the qualified heir disposes of any interest in the
         qualified 36.28property, other than by a disposition to a family member, or a family member ceases
         to 36.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
         estate 36.30tax is imposed on the property. In the case of a sole proprietor, if the qualified
         heir replaces 36.31qualified small business property excluded under subdivision 9 with similar property,
         then 36.32the qualified heir will not be treated as having disposed of an interest in the qualified
         property.36.33(b) The amount of the additional tax equals the amount of the exclusion claimed by
         the 36.34estate under subdivision 8, paragraph (d), multiplied by 16 percent.36.35(c) The additional tax under this subdivision is due on the day which is six months
         after 36.36the date of the disposition or cessation in paragraph (a).36.37(d) The tax under this subdivision does not apply to the following: acquisition of
         title 36.38or possession of the qualified property by a federal, state, or local government unit,
         or any 37.1other entity with the power of eminent domain for a public purpose, as defined in
         section 37.2117.025, subdivision 11, within the three-year holding period.37.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents 37.4dying after June 30, 2011.37.5    Sec. 29. [462D.01] CITATION.37.6This chapter may be cited as the "First-Time Home Buyer Savings Account Act."37.7EFFECTIVE DATE.This section is effective the day following final enactment.37.8    Sec. 30. [462D.02] DEFINITIONS.37.9    Subdivision 1.Definitions.For purposes of this chapter, the following terms have the 37.10meanings given.37.11    Subd. 2.Account holder."Account holder" means an individual who establishes, 37.12individually or jointly with one or more other individuals, a first-time home buyer
         savings 37.13account.37.14    Subd. 3.Allowable closing costs."Allowable closing costs" means a disbursement listed 37.15on a settlement statement for the purchase of a single-family residence in Minnesota
         by a 37.16qualified beneficiary.37.17    Subd. 4.Commissioner."Commissioner" means the commissioner of revenue.37.18    Subd. 5.Eligible costs."Eligible costs" means the down payment and allowable closing 37.19costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
         37.20Eligible costs include paying for the cost of construction of or financing the construction
         37.21of a single-family residence.37.22    Subd. 6.Financial institution."Financial institution" means a bank, bank and trust, 37.23trust company with banking powers, savings bank, savings association, or credit union,
         37.24organized under the laws of this state, any other state, or the United States; an
         industrial 37.25loan and thrift under chapter 53 or the laws of another state and authorized to accept
         deposits; 37.26or a money market mutual fund registered under the federal Investment Company Act
         of 37.271940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
         37.28under that act.37.29    Subd. 7.First-time home buyer."First-time home buyer" means an individual, and if 37.30married, the individual's spouse, who has no present ownership interest in a principal
         37.31residence during the three-year period ending on the earlier of:38.1(1) the date of the purchase of the single-family residence funded, in part, with
         proceeds 38.2from the first-time home buyer savings account; or38.3(2) the close of the taxable year for which a subtraction is claimed under sections
         38.4290.0132 and 462D.06.38.5    Subd. 8.First-time home buyer savings account."First-time home buyer savings 38.6account" or "account" means an account with a financial institution that an account
         holder 38.7designates as a first-time home buyer savings account, as provided in section 462D.03,
         to 38.8pay or reimburse eligible costs for the purchase of a single-family residence by a
         qualified 38.9beneficiary.38.10    Subd. 9.Internal Revenue Code."Internal Revenue Code" has the meaning given in 38.11section 290.01.38.12    Subd. 10.Principal residence."Principal residence" has the meaning given in section 38.13121 of the Internal Revenue Code.38.14    Subd. 11.Qualified beneficiary."Qualified beneficiary" means a first-time home buyer 38.15who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
         38.16home buyer savings account by the account holder.38.17    Subd. 12.Single-family residence."Single-family residence" means a single-family 38.18residence located in this state and owned and occupied by or to be occupied by a qualified
         38.19beneficiary as the qualified beneficiary's principal residence, which may include
         a 38.20manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.38.21EFFECTIVE DATE.This section is effective the day following final enactment.38.22    Sec. 31. [462D.03] ESTABLISHMENT OF ACCOUNTS.38.23    Subdivision 1.Accounts established.An individual may open an account with a financial 38.24institution and designate the account as a first-time home buyer savings account to
         be used 38.25to pay or reimburse the designated qualified beneficiary's eligible costs.38.26    Subd. 2.Designation of qualified beneficiary.(a) The account holder must designate  38.27a first-time home buyer as the qualified beneficiary of the account by April 15 of
         the year 38.28following the taxable year in which the account was established. The account holder
         may 38.29be the qualified beneficiary. The account holder may change the designated qualified
         38.30beneficiary at any time, but no more than one qualified beneficiary may be designated
         for 38.31an account at any one time. For purposes of the one beneficiary restriction, a married
         couple 39.1qualifies as one beneficiary. Changing the designated qualified beneficiary of an
         account 39.2does not affect computation of the ten-year period under section 462D.06, subdivision
         2.39.3(b) The commissioner shall establish a process for account holders to notify the state
         39.4that permits recording of the account, the account holder or holders, any transfers
         under 39.5section 462D.04, subdivision 2, and the designated qualified beneficiary for each
         account. 39.6This may be done upon filing the account holder's income tax return or in any other
         way 39.7the commissioner determines to be appropriate.39.8    Subd. 3.Joint account holders.An individual may jointly own a first-time home buyer 39.9account with another person if the joint account holders file a married joint income
         tax 39.10return.39.11    Subd. 4.Multiple accounts.(a) An individual may be the account holder of more than 39.12one first-time home buyer savings account, but must not hold or own multiple accounts
         that 39.13designate the same qualified beneficiary.39.14(b) An individual may be designated as the qualified beneficiary on more than one
         39.15first-time home buyer savings account.39.16    Subd. 5.Contributions.Only cash may be contributed to a first-time home buyer savings 39.17account. Individuals other than the account holder may contribute to an account. No
         limitation 39.18applies to the amount of contributions that may be made to or retained in a first-time
         home 39.19buyer savings account.39.20EFFECTIVE DATE.This section is effective the day following final enactment.39.21    Sec. 32. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.39.22    Subdivision 1.Expenses; reporting.The account holder must:39.23(1) not use funds in a first-time home buyer savings account to pay expenses of 39.24administering the account, except that a service fee may be deducted from the account
         by 39.25the financial institution in which the account is held; and39.26(2) submit to the commissioner, in the form and manner required by the commissioner:39.27(i) detailed information regarding the first-time home buyer savings account, including
         39.28a list of transactions for the account during the taxable year and the Form 1099 issued
         by 39.29the financial institution for the account for the taxable year; and39.30(ii) upon withdrawal of funds from the account, a detailed account of the eligible
         costs 39.31for which the account funds were expended and a statement of the amount of funds remaining
         39.32in the account, if any.40.1    Subd. 2.Transfers.An account holder may withdraw funds, in whole or part, from a 40.2first-time home buyer savings account and deposit the funds in another first-time
         home 40.3buyer savings account held by a different financial institution or the same financial
         institution.40.4EFFECTIVE DATE.This section is effective the day following final enactment.40.5    Sec. 33. [462D.05] FINANCIAL INSTITUTIONS.40.6(a) A financial institution is not required to take any action to ensure compliance
         with 40.7this chapter, including to:40.8(1) designate an account, designate qualified beneficiaries, or modify the financial
         40.9institution's account contracts or systems in any way;40.10(2) track the use of money withdrawn from a first-time home buyer savings account;40.11(3) allocate funds in a first-time home buyer savings account among joint account
         holders 40.12or multiple qualified beneficiaries; or40.13(4) report any information to the commissioner or any other government that is not
         40.14otherwise required by law.40.15(b) A financial institution is not responsible or liable for:40.16(1)  determining or ensuring that an account satisfies the requirements of this chapter
         or 40.17that its funds are used for eligible costs; or40.18(2) reporting or remitting taxes or penalties related to the use of a first-time home
         buyer 40.19savings account.40.20EFFECTIVE DATE.This section is effective the day following final enactment.40.21    Sec. 34. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.40.22    Subdivision 1.Subtraction.(a) An account holder is allowed a subtraction from federal 40.23taxable income equal to the sum of:40.24(1) the amount the individual contributed to a first-time home buyer savings account
         40.25during the taxable year not to exceed $5,000, or $10,000 for a married couple filing
         a joint 40.26return; and40.27(2) interest or dividends earned on the first-time home buyer savings account during
         the 40.28taxable year.40.29(b) The subtraction under paragraph (a) is allowed each year in which a contribution
         is 40.30made for the ten taxable years including and following the taxable year in which the
         account 41.1was established. The total subtraction for all taxable years and for all first-time
         home buyer 41.2accounts established by the individual for a qualified beneficiary is limited to $50,000.
         No 41.3person other than the account holder who deposits funds in a first-time home buyer
         savings 41.4account is allowed a subtraction under this section.41.5    Subd. 2.Addition.(a) An account holder must add to federal taxable income the sum 41.6of the following amounts:41.7(1) any amount withdrawn from a first-time home buyer savings account during the 41.8taxable year and used neither to pay eligible costs nor for a transfer permitted under
         section 41.9462D.04, subdivision 2; and41.10(2) any amount remaining in the first-time home buyer savings account at the close
         of 41.11the tenth taxable year after the taxable year in which the account was established.41.12(b) For an account that received a transfer under section 462D.04, subdivision 2,
         the 41.13ten-year period under paragraph (a), clause (2), ends at the close of the earliest
         taxable year 41.14that applies to either account under that clause.41.15    Subd. 3.Additional tax.The account holder is liable for an additional tax equal to ten 41.16percent of the addition under subdivision 2 for the taxable year. This amount must
         be added 41.17to the amount due under section 290.06. The tax under this subdivision does not apply
         to:41.18(1) a withdrawal because of the account holder's or designated qualified beneficiary's
         41.19death or disability; and41.20(2) a disbursement of assets of the account under federal bankruptcy law.41.21EFFECTIVE DATE.This section is effective for taxable years beginning after December 41.2231, 2016.41.23    Sec. 35. INCOME TAX RECIPROCITY BENCHMARK STUDY.41.24(a) The Department of Revenue, in conjunction with the Wisconsin Department of 41.25Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study
         to 41.26determine at least the following:41.27(1) the number of residents of each state who earn income from personal services in
         the 41.28other state;41.29(2) the total amount of income earned by residents of each state who earn income from
         41.30personal services in the other state; and42.1(3) the change in tax revenue in each state if an income tax reciprocity arrangement
         were 42.2resumed between the two states under which the taxpayers were required to pay income
         42.3taxes on the income only in their state of residence.42.4(b) The study must use information obtained from each state's income tax returns for
         42.5tax year 2017, and from any other source of information the departments determine
         is 42.6necessary to complete the study.42.7(c) No later than March 1, 2019, the Department of Revenue must submit a report 42.8containing the results of the study to the governor and to the chairs and ranking
         minority 42.9members of the legislative committees having jurisdiction over taxes, in compliance
         with 42.10Minnesota Statutes, sections 3.195 and 3.197.42.11(d) The department shall conduct the study only if the commissioner of revenue receives
         42.12notice from the secretary of revenue that the Wisconsin Department of Revenue will
         fully 42.13participate in the study.42.14EFFECTIVE DATE.This section is effective the day following final enactment.42.15    Sec. 36. PENSION INCOME REPORT.42.16By March 15, 2018, the commissioner of revenue, in conjunction with the Legislative
         42.17Commission on Pensions and Retirement, shall provide a report to the senate and house
         of 42.18representatives committees with jurisdiction over taxes and the Legislative Commission
         on 42.19Pensions and Retirement that includes the following information:42.20(1) the number of Minnesota recipients, including survivors, of a basic member pension
         42.21plan governed by Minnesota Statutes, chapter 3A, 352B, 353, 354, or 354A, that is
         based 42.22on service for which the member or survivor is not also receiving Social Security
         benefits;42.23(2) the number of Minnesota recipients, including survivors, of any retirement system
         42.24administered by the federal government for which the recipient or survivor is not
         also 42.25receiving Social Security benefits;42.26(3) the number of Minnesota recipients, including survivors, of an annuity or benefit
         42.27from a public retirement system of or created by another state or any of its political
         42.28subdivisions, where the income tax laws of the other state permit a reciprocal deduction
         or 42.29exemption of retirement or pension benefits received from a public retirement system;42.30(4) the average and median amount of pension or retirement benefit income received
         by 42.31the individuals in each of clauses (1) to (3); and43.1(5) an estimate of the amount of a subtraction for annuities or benefits received
         by the 43.2individuals in each of clauses (1) to (3) that would be proportionate to the subtraction
         for 43.3Social Security benefits under section 8.43.4    Sec. 37. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL INCOME 43.5TAX RETURNS.43.6(a) By March 16, 2018, the commissioner of revenue must provide a written report to
         43.7the chairs and ranking minority members of the legislative committees with jurisdiction
         43.8over taxes regarding free electronic filing options for individual income tax filing,
         including 43.9a vendor-based solution. The report must include responses from a commissioner's request
         43.10for information to consumer-based tax filing software vendors. The request for information
         43.11may include, but is not limited to, seeking information on the following aspects of
         a free 43.12electronic filing solution:43.13(1) costs, on a per return basis, that would be charged to the state of Minnesota
         to provide 43.14an electronic individual income tax return preparation, submission, and payment remittance
         43.15process;43.16(2) vendor capability to provide customer service and issue resolution to taxpayers
         using 43.17the software;43.18(3) vendor capability to provide and maintain an appropriate link between the Department
         43.19of Revenue and the Internal Revenue Service Modernized Electronic Filing Program;43.20(4) vendor security capabilities to ensure that taxpayer return information is maintained
         43.21and protected as required by Minnesota Statutes, chapters 13 and 270B, Internal Revenue
         43.22Service Publication 1075, and any other applicable requirements;43.23(5) products for the free filing and submitting of both Minnesota and federal returns
         43.24offered to customers and the thresholds for using those products; and43.25(6) add-on products offered to customers and their costs.43.26(b) The report required under paragraph (a) must comply with Minnesota Statutes, 43.27sections 3.195 and 3.197.43.28EFFECTIVE DATE.This section is effective the day following final enactment.43.29    Sec. 38. STUDENT LOAN CREDIT.43.30    Subdivision 1.Definitions.(a) For purposes of this section, the following terms have 43.31the meanings given.44.1(b) "Adjusted gross income" means federal adjusted gross income as defined in section
         44.262 of the Internal Revenue Code. In the case of a married couple filing jointly, adjusted
         44.3gross income means the adjusted gross income of the taxpayer and spouse.44.4(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
         44.5Code, except that earned income includes combat pay excluded from federal taxable
         income 44.6under section 112 of the Internal Revenue Code.44.7(d) "Education profession" means:44.8(1) a full-time job in public education; early childhood education, including licensed
         or 44.9regulated child care, Head Start, and state-funded prekindergarten; school-based library
         44.10sciences; and other school-based services; or44.11(2) a full-time job as a faculty member at a tribal college or university as defined
         in 44.12section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
         44.13subject areas or areas of shortage, including nursing faculty, foreign language faculty,
         and 44.14part-time faculty at community colleges, as determined by the United States Secretary
         of 44.15Education.44.16(e) "Eligible individual" means an individual who has one or more qualified education
         44.17loans related to an undergraduate or graduate degree program at a postsecondary educational
         44.18institution.44.19(f) "Eligible loan payments" means the amount the eligible individual paid in principal
         44.20and interest on qualified education loans during the taxable year.44.21(g) "Postsecondary educational institution" means a postsecondary institution eligible
         44.22for state student aid under Minnesota Statutes, section 136A.103 or, if the institution
         is not 44.23located in this state, a postsecondary institution participating in the federal Pell
         Grant program 44.24under title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.44.25(h) "Public service job" means a full-time job in emergency management; government,
         44.26excluding time served as a member of Congress; military service; public safety; law
         44.27enforcement; public health, including nurses, nurse practitioners, nurses in a clinical
         setting, 44.28and full-time professionals engaged in health care practitioner occupations and health
         care 44.29support occupations, as such terms are defined by the Bureau of Labor Statistics;
         social 44.30work in a public child or family services agency; public interest law services including
         44.31prosecution or public defense or legal advocacy on behalf of low-income communities
         at 44.32a nonprofit organization; public service for individuals with disabilities or public
         service 44.33for the elderly; public library sciences; or at an organization that is described
         in section 45.1501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a)
         of 45.2the Internal Revenue Code.45.3(i) "Qualified education loan" has the meaning given in section 221 of the Internal
         45.4Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.45.5    Subd. 2.Credit allowed.(a) An eligible individual is allowed a credit against the tax 45.6due under Minnesota Statutes, chapter 290. The credit equals a percentage of eligible
         loan 45.7payments in excess of ten percent of adjusted gross income, up to $700, as follows:45.8(1) for eligible individuals, 50 percent;45.9(2) for eligible individuals in a public service job, 65 percent; and45.10(3) for eligible individuals in an education profession, 75 percent.45.11(b) The credit must not exceed the eligible individual's earned income for the taxable
         45.12year.45.13(c) In the case of a married couple filing a joint return, each spouse is eligible
         for the 45.14credit in this section.45.15(d) For a nonresident or part-year resident, the credit must be allocated based on
         the 45.16percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
         45.17(e).45.18(e) An eligible individual may receive the credit under this section without regard
         to the 45.19individual's eligibility for the public service loan forgiveness program under United
         States 45.20Code, title 20, section 1087e(m).45.21EFFECTIVE DATE.This section is effective for taxable years beginning after December 45.2231, 2016, and before January 1, 2019.45.23    Sec. 39. TAXPAYER ASSISTANCE GRANTS APPROPRIATION.45.24(a) $200,000 in fiscal year 2018 only and $200,000 in fiscal year 2019 only are 45.25appropriated from the general fund to the commissioner of revenue for the provision
         of 45.26taxpayer assistance grants under Minnesota Statutes, section 270C.21. Of the amounts
         45.27appropriated under this paragraph, up to five percent may be used for the administration
         of 45.28the taxpayer assistance grants program. The unencumbered balance in the first year
         does 45.29not cancel but is available for the second year.45.30(b) For purposes of this section, "taxpayer assistance services" means accounting
         and 45.31tax preparation services provided by volunteers to low-income, elderly, and disadvantaged
         46.1Minnesota residents to help them file federal and state income tax returns and Minnesota
         46.2property tax refund claims and to provide personal representation before the Department
         46.3of Revenue and the Internal Revenue Service.46.4    Sec. 40.  REPEALER.46.5Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 18;
         46.6289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10,
         and 46.711, are repealed.46.8EFFECTIVE DATE.This section is effective for estates of decedents dying after 46.9December 31, 2021.46.10ARTICLE 246.11PROPERTY TAX46.12    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:46.13    Subd. 2. Allowed commercial and industrial operations.(a) Commercial and industrial 46.14operations are not allowed on land within an agricultural preserve except:46.15(1) small on-farm commercial or industrial operations normally associated with and
         46.16important to farming in the agricultural preserve area;46.17(2) storage use of existing farm buildings that does not disrupt the integrity of
         the 46.18agricultural preserve; and46.19(3) small commercial use of existing farm buildings for trades not disruptive to the
         46.20integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, 46.21and similar activities that a farm operator might conduct; and46.22(4) wireless communication installments and related equipment and structure capable
         46.23of providing technology potentially beneficial to farming activities.46.24    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)46.25means existing on August 1, 1989.46.26EFFECTIVE DATE.This section is effective the day following enactment.46.27    Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read:46.28138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.47.1    The governing body of any home rule charter or statutory city or town may annually
         47.2appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
         47.3market value, derived from ad valorem taxes on property or other revenues, to be paid
         to 47.4the historical society of its respective city, town, or county to be used for the promotion of 47.5historical work and to aid in defraying the expenses of carrying on the historical
         work in 47.6the county. No city or town may appropriate any funds for the benefit of any historical
         47.7society unless the society is affiliated with and approved by the Minnesota Historical
         Society.47.8EFFECTIVE DATE.This section is effective the day following final enactment.47.9    Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read:47.10270C.9901 ASSESSOR ACCREDITATION; WAIVER.47.11    Subdivision 1.Accreditation. Every individual who appraises or physically inspects 47.12real property for the purpose of determining its valuation or classification for property
         tax 47.13purposes must obtain licensure as an accredited Minnesota assessor from the State
         Board 47.14of Assessors by July 1, 2019 2022, or within four five years of that person having become 47.15licensed as a certified Minnesota assessor, whichever is later.47.16    Subd. 2.Waiver.(a) An individual may apply to the State Board of Assessors for a 47.17waiver from licensure as an accredited Minnesota assessor as required by subdivision
         1 if 47.18the individual:47.19(1) was first licensed as a certified Minnesota assessor before July 1, 2004;47.20(2) has maintained an assessor license in good standing since July 1, 2004;47.21(3) has successfully passed a comprehensive examination substantially equivalent to
         the 47.22requirements by the State Board of Assessors for the accredited Minnesota assessor
         license 47.23designation before May 1, 2020; and47.24    (4) submits an application to the State Board of Assessors no later than July 1, 2022.47.25The examination can only be taken once to fulfill the requirements of the waiver.47.26(b) The commissioner of revenue, in consultation with the State Board of Assessors
         and 47.27the Minnesota Association of Assessing Officers, must determine the contents of the
         waiver 47.28application and the comprehensive examination.47.29(c) A county assessor in any jurisdiction assessed by an applicant may submit additional
         47.30information to the State Board of Assessors to be considered as part of the waiver
         review 47.31proceedings.48.1(d) The State Board of Assessors must not grant a waiver unless the applicant has
         met 48.2the requirements in paragraph (a) and has the ability to perform the duties of assessment
         48.3required in each jurisdiction in which the applicant appraises or physically inspects
         real 48.4property for the purposes of determining its valuation or classification for property
         tax 48.5purposes.48.6(e) An individual granted a waiver under this subdivision is allowed to continue 48.7assessment duties at the individual's licensure level, provided the individual maintains
         48.8licensure in good standing and complies with the continuing education requirements
         for the 48.9accredited Minnesota assessor designation as prescribed by the State Board of Assessors.48.10(f) An individual granted a waiver under this section:48.11(1) is not considered to have achieved the designation as an accredited Minnesota
         assessor 48.12and may not represent himself or herself as an accredited Minnesota assessor; and48.13(2) is not authorized to value income-producing property as defined in section 273.11,
         48.14subdivision 13, unless the individual meets the requirements of that section.48.15(g) A waiver granted by the State Board of Assessors under this section remains in
         effect 48.16unless the individual's licensure lapses or is revoked. If the individual's licensure
         lapses or 48.17is revoked, the waiver is void and the individual is subject to the requirements of
         subdivision 48.181.48.19(h) A decision of the State Board of Assessors to grant or deny a waiver under this
         48.20subdivision is final and is not subject to appeal.48.21(i) Waivers granted under this subdivision expire on June 30, 2032.48.22(j) This subdivision expires July 1, 2032.48.23EFFECTIVE DATE.This section is effective the day following final enactment.48.24    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:48.25    Subd. 86. Apprenticeship training facilities. All or a portion of a building used 48.26exclusively for a state-approved apprenticeship program through the Department of
         Labor 48.27and Industry is exempt if:48.28(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by
         a nonprofit 48.29organization or a nonprofit trust;48.30(2) the program participants receive no compensation; and48.31(3) it is located:49.1(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
         49.2by the 2000 federal census;49.3(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical
         area 49.4that has a population of 7,400 or greater according to the most recent federal census;
         or49.5(iii) in a township that has a population greater than 2,0001,400 but less than 3,000 49.6determined by the 2000 federal census and the building was previously used by a school
         49.7and was exempt for taxes payable in 2010.49.8Use of the property for advanced skills training of incumbent workers does not disqualify
         49.9the property for the exemption under this subdivision. This exemption includes up
         to five 49.10acres of the land on which the building is located and associated parking areas on
         that land, 49.11except that if the building meets the requirements of clause (3), item (iii), then
         the exemption 49.12includes up to ten acres of land on which the building is located and associated parking
         49.13areas on that land. If a parking area associated with the facility is used for the
         purposes of 49.14the facility and for other purposes, a portion of the parking area shall be exempt
         in proportion 49.15to the square footage of the facility used for purposes of apprenticeship training.49.16    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 49.17read:49.18    Subd. 100.Certain property owned by an Indian tribe.(a) Property is exempt that:49.19(1) is located in a city of the first class with a population less than 100,000 as
         of the 49.202010 federal census;49.21(2) was on January 1, 2016, and is for the current assessment, owned by a federally
         49.22recognized Indian tribe, or its instrumentality, that is located within the state
         of Minnesota; 49.23and49.24(3) is used exclusively as a medical clinic.49.25(b) Property that qualifies for the exemption under this subdivision is limited to
         no more 49.26than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000
         49.27square feet. Property acquired for single-family housing, market-rate apartments,
         agriculture, 49.28or forestry does not qualify for this exemption. The exemption created by this subdivision
         49.29expires with taxes payable in 2028.49.30EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.50.1    Sec. 6. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:50.2    Subd. 2. Definitions. (a) For the purposes of this section, the term:50.3(1) "wind energy conversion system" has the meaning given in section 
         216C.06, 50.4subdivision 19
         , and also includes a substation that is used and owned by one or more wind 50.5energy conversion facilities;50.6(2) "large scale wind energy conversion system" means a wind energy conversion system
         50.7of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as 50.8combined with other systems as provided in paragraph (b);50.9(3) "medium scale wind energy conversion system" means a wind energy conversion 50.10system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         50.11of the system or as combined with other systems as provided in paragraph (b); and50.12(4) "small scale wind energy conversion system" means a wind energy conversion system
         50.13of two megawatts and under, as measured by the nameplate capacity of the system or
         as 50.14combined with other systems as provided in paragraph (b).50.15(b) For systems installed and contracted for after January 1, 2002, the total size
         of a 50.16wind energy conversion system under this subdivision shall be determined according
         to this 50.17paragraph. Unless the systems are interconnected with different distribution systems,
         the 50.18nameplate capacity of one wind energy conversion system shall be combined with the
         50.19nameplate capacity of any other wind energy conversion system that is:50.20(1) located within five miles of the wind energy conversion system;50.21(2) constructed within the same calendar year as the wind energy conversion system;
         50.22and50.23(3) under common ownership.50.24In the case of a dispute, the commissioner of commerce shall determine the total size
         of 50.25the system, and shall draw all reasonable inferences in favor of combining the systems.50.26(c) In making a determination under paragraph (b), the commissioner of commerce may
         50.27determine that two wind energy conversion systems are under common ownership when
         50.28the underlying ownership structure contains similarthe same persons or entities, even if the 50.29ownership shares differ between the two systems. Wind energy conversion systems are
         not 50.30under common ownership solely because the same person or entity provided equity financing
         50.31for the systems. Wind energy conversion systems that were determined by the commissioner 50.32of commerce to be eligible for a renewable energy production incentive under section
         51.1216C.41 are not under common ownership unless a change in the qualifying owner was
         51.2made to an owner of another wind energy conversion system subsequent to the determination
         51.3by the commissioner of commerce.51.4EFFECTIVE DATE.This section is effective the day following final enactment.51.5    Sec. 7. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:51.6    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured 51.7home" means a structure transportable in one or more sections, which is built on a
         permanent 51.8chassis, and designed to be used as a dwelling with or without a permanent foundation
         when 51.9connected to the required utilities, and contains the plumbing, heating, air conditioning,
         and 51.10electrical systems in it. Manufactured home includes any accessory structure that
         is an 51.11addition or supplement to the manufactured home and, when installed, becomes a part
         of 51.12the manufactured home.51.13    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
         51.14following criteria must be valued and assessed as an improvement to real property,
         the 51.15appropriate real property classification applies, and the valuation is subject to
         review and 51.16the taxes payable in the manner provided for real property:51.17    (1) the owner of the unit holds title to the land on which it is situated;51.18    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location 51.19in accordance with the Manufactured Home Building Code in sections 
         327.31 to 
         327.34, 51.20and rules adopted under those sections, or is affixed to the land like other real
         property in 51.21the taxing district; and51.22    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced 51.23by water and sewer facilities comparable to other real property in the taxing district.51.24    (c) A manufactured home that meets each of the following criteria must be assessed
         at 51.25the rate provided by the appropriate real property classification but must be treated
         as 51.26personal property, and the valuation is subject to review and the taxes payable in
         the manner 51.27provided in this section:51.28    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the
         unit is 51.29located in a manufactured home park but is not the homestead of the park owner;51.30    (2) the unit is affixed to the land by a permanent foundation or is installed at its
         location 51.31in accordance with the Manufactured Home Building Code contained in sections 
         327.31 to 52.1327.34
         , and the rules adopted under those sections, or is affixed to the land like other
         real 52.2property in the taxing district; and52.3    (3) the unit is connected to public utilities, has a well and septic tank system,
         or is serviced 52.4by water and sewer facilities comparable to other real property in the taxing district.52.5    (d) Sectional structures must be valued and assessed as an improvement to real property
         52.6if the owner of the structure holds title to the land on which it is located or is
         a qualifying 52.7lessee of the land under section 
         273.19. In this paragraph "sectional structure" means a 52.8building or structural unit that has been in whole or substantial part manufactured
         or 52.9constructed at an off-site location to be wholly or partially assembled on site alone
         or with 52.10other units and attached to a permanent foundation.52.11    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
         52.12Act to establish additional criteria for the classification of manufactured homes
         and sectional 52.13structures under this subdivision.52.14    (f) A storage shed, deck, or similar improvement constructed on property that is leased
         52.15or rented as a site for a manufactured home, sectional structure, park trailer, or
         travel trailer 52.16is taxable as provided in this section. In the case of property that is leased or
         rented as a site 52.17for a travel trailer, a storage shed, deck, or similar improvement on the site that
         is considered 52.18personal property under this paragraph is taxable only if its total estimated market
         value is 52.19over $1,000 $10,000. The property is taxable as personal property to the lessee of the site 52.20if it is not owned by the owner of the site. The property is taxable as real estate
         if it is owned 52.21by the owner of the site. As a condition of permitting the owner of the manufactured
         home, 52.22sectional structure, park trailer, or travel trailer to construct improvements on
         the leased or 52.23rented site, the owner of the site must obtain the permanent home address of the lessee
         or 52.24user of the site. The site owner must provide the name and address to the assessor
         upon 52.25request.52.26    Sec. 8. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:52.27    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land 52.28that is homesteaded, along with any class 2b rural vacant land that is contiguous
         to the class 52.292a land under the same ownership. The market value of the house and garage and immediately
         52.30surrounding one acre of land has the same classification rates as class 1a or 1b property
         52.31under subdivision 22. The value of the remaining land including improvements up to
         the 52.32first tier valuation limit of agricultural homestead property has a classification
         rate of 0.5 52.33percent of market value. The remaining property over the first tier has a classification
         rate 52.34of one percent of market value. For purposes of this subdivision, the "first tier
         valuation 53.1limit of agricultural homestead property" and "first tier" means the limit certified
         under 53.2section 
         273.11, subdivision 23.53.3    (b) Class 2a agricultural land consists of parcels of property, or portions thereof,
         that 53.4are agricultural land and buildings. Class 2a property has a classification rate of
         one percent 53.5of market value, unless it is part of an agricultural homestead under paragraph (a).
         Class 2a 53.6property must also include any property that would otherwise be classified as 2b,
         but is 53.7interspersed with class 2a property, including but not limited to sloughs, wooded
         wind 53.8shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
         requirement, 53.9and other similar land that is impractical for the assessor to value separately from
         the rest 53.10of the property or that is unlikely to be able to be sold separately from the rest
         of the property.53.11    An assessor may classify the part of a parcel described in this subdivision that is
         used 53.12for agricultural purposes as class 2a and the remainder in the class appropriate to
         its use.53.13    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
         that 53.14are unplatted real estate, rural in character and not used for agricultural purposes,
         including 53.15land used for growing trees for timber, lumber, and wood and wood products, that is
         not 53.16improved with a structure. The presence of a minor, ancillary nonresidential structure
         as 53.17defined by the commissioner of revenue does not disqualify the property from classification
         53.18under this paragraph. Any parcel of 20 acres or more improved with a structure that
         is not 53.19a minor, ancillary nonresidential structure must be split-classified, and ten acres
         must be 53.20assigned to the split parcel containing the structure. Class 2b property has a classification
         53.21rate of one percent of market value unless it is part of an agricultural homestead
         under 53.22paragraph (a), or qualifies as class 2c under paragraph (d).53.23    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
         53.24acres statewide per taxpayer that is being managed under a forest management plan
         that 53.25meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
         resource 53.26management incentive program. It has a classification rate of .65 percent, provided
         that the 53.27owner of the property must apply to the assessor in order for the property to initially
         qualify 53.28for the reduced rate and provide the information required by the assessor to verify
         that the 53.29property qualifies for the reduced rate. If the assessor receives the application
         and information 53.30before May 1 in an assessment year, the property qualifies beginning with that assessment
         53.31year. If the assessor receives the application and information after April 30 in an
         assessment 53.32year, the property may not qualify until the next assessment year. The commissioner
         of 53.33natural resources must concur that the land is qualified. The commissioner of natural
         53.34resources shall annually provide county assessors verification information on a timely
         basis. 54.1The presence of a minor, ancillary nonresidential structure as defined by the commissioner
         54.2of revenue does not disqualify the property from classification under this paragraph.54.3    (e) Agricultural land as used in this section means:54.4    (1) contiguous acreage of ten acres or more, used during the preceding year for 54.5agricultural purposes; or54.6    (2) contiguous acreage used during the preceding year for an intensive livestock or
         54.7poultry confinement operation, provided that land used only for pasturing or grazing
         does 54.8not qualify under this clause.54.9    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
         or 54.10storage of agricultural products for sale, or the storage of machinery or equipment
         used in 54.11support of agricultural production by the same farm entity. For a property to be classified
         54.12as agricultural based only on the drying or storage of agricultural products, the
         products 54.13being dried or stored must have been produced by the same farm entity as the entity
         operating 54.14the drying or storage facility. "Agricultural purposes" also includes enrollment in
         the Reinvest 54.15in Minnesota program under sections 
         103F.501 to 
         103F.535 or the federal Conservation 54.16Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal 54.17conservation program if the property was classified as agricultural (i) under this
         subdivision 54.18for taxes payable in 2003 because of its enrollment in a qualifying program and the
         land 54.19remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a 54.20local conservation program means a program administered by a town, statutory or home
         54.21rule charter city, or county, including a watershed district, water management organization,
         54.22or soil and water conservation district, in which landowners voluntarily enroll land
         and 54.23receive incentive payments in exchange for use or other restrictions placed on the
         land. 54.24Agricultural classification shall not be based upon the market value of any residential
         54.25structures on the parcel or contiguous parcels under the same ownership.54.26    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
         54.27portion of, a tax parcel as described in section 
         272.193, or all of, or a contiguous portion 54.28of, a set of contiguous tax parcels under that section that are owned by the same
         person.54.29    (f) Agricultural land under this section also includes:54.30    (1) contiguous acreage that is less than ten acres in size and exclusively used in
         the 54.31preceding year for raising or cultivating agricultural products; or55.1    (2) contiguous acreage that contains a residence and is less than 11 acres in size,
         if the 55.2contiguous acreage exclusive of the house, garage, and surrounding one acre of land
         was 55.3used in the preceding year for one or more of the following three uses:55.4    (i) for an intensive grain drying or storage operation, or for intensive machinery
         or 55.5equipment storage activities used to support agricultural activities on other parcels
         of property 55.6operated by the same farming entity;55.7    (ii) as a nursery, provided that only those acres used intensively to produce nursery
         stock 55.8are considered agricultural land; or55.9    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
         55.10means the cultivation of one or more fruits or vegetables or production of animal
         or other 55.11agricultural products for sale to local markets by the farmer or an organization with
         which 55.12the farmer is affiliated.55.13    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
         55.14described in section 
         272.193, or all of a set of contiguous tax parcels under that section that 55.15are owned by the same person.55.16    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
         use 55.17of that property is the leasing to, or use by another person for agricultural purposes.55.18    Classification under this subdivision is not determinative for qualifying under section
         55.19273.111
         .55.20    (h) The property classification under this section supersedes, for property tax purposes
         55.21only, any locally administered agricultural policies or land use restrictions that
         define 55.22minimum or maximum farm acreage.55.23    (i) The term "agricultural products" as used in this subdivision includes production
         for 55.24sale of:55.25    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
         55.26animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage,
         grains, bees, 55.27and apiary products by the owner;55.28    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
         55.29agricultural use;55.30    (3) the commercial boarding of horses, which may include related horse training and
         55.31riding instruction, if the boarding is done on property that is also used for raising
         pasture 55.32to graze horses or raising or cultivating other agricultural products as defined in
         clause (1);56.1    (4) property which is owned and operated by nonprofit organizations used for equestrian
         56.2activities, excluding racing;56.3    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
         56.497A.105
         , provided that the annual licensing report to the Department of Natural Resources,
         56.5which must be submitted annually by March 30 to the assessor, indicates that at least
         500 56.6birds were raised or used for breeding stock on the property during the preceding
         year and 56.7that the owner provides a copy of the owner's most recent schedule F; or (ii) for
         use on a 56.8shooting preserve licensed under section 
         97A.115;56.9    (6) insects primarily bred to be used as food for animals;56.10    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
         sold 56.11for timber, lumber, wood, or wood products; and56.12    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 56.13Department of Agriculture under chapter 28A as a food processor.56.14    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
         56.15purposes, including but not limited to:56.16    (1) wholesale and retail sales;56.17    (2) processing of raw agricultural products or other goods;56.18    (3) warehousing or storage of processed goods; and56.19    (4) office facilities for the support of the activities enumerated in clauses (1),
         (2), and 56.20(3),56.21the assessor shall classify the part of the parcel used for agricultural purposes
         as class 1b, 56.222a, or 2b, whichever is appropriate, and the remainder in the class appropriate to
         its use. 56.23The grading, sorting, and packaging of raw agricultural products for first sale is
         considered 56.24an agricultural purpose. A greenhouse or other building where horticultural or nursery
         56.25products are grown that is also used for the conduct of retail sales must be classified
         as 56.26agricultural if it is primarily used for the growing of horticultural or nursery products
         from 56.27seed, cuttings, or roots and occasionally as a showroom for the retail sale of those
         products. 56.28Use of a greenhouse or building only for the display of already grown horticultural
         or nursery 56.29products does not qualify as an agricultural purpose.56.30    (k) The assessor shall determine and list separately on the records the market value
         of 56.31the homestead dwelling and the one acre of land on which that dwelling is located.
         If any 57.1farm buildings or structures are located on this homesteaded acre of land, their market
         value 57.2shall not be included in this separate determination.57.3    (l) Class 2d airport landing area consists of a landing area or public access area
         of a 57.4privately owned public use airport. It has a classification rate of one percent of
         market value. 57.5To qualify for classification under this paragraph, a privately owned public use airport
         must 57.6be licensed as a public airport under section 
         360.018. For purposes of this paragraph, "landing 57.7area" means that part of a privately owned public use airport properly cleared, regularly
         57.8maintained, and made available to the public for use by aircraft and includes runways,
         57.9taxiways, aprons, and sites upon which are situated landing or navigational aids.
         A landing 57.10area also includes land underlying both the primary surface and the approach surfaces
         that 57.11comply with all of the following:57.12    (i) the land is properly cleared and regularly maintained for the primary purposes
         of the 57.13landing, taking off, and taxiing of aircraft; but that portion of the land that contains
         facilities 57.14for servicing, repair, or maintenance of aircraft is not included as a landing area;57.15    (ii) the land is part of the airport property; and57.16    (iii) the land is not used for commercial or residential purposes.57.17The land contained in a landing area under this paragraph must be described and certified
         57.18by the commissioner of transportation. The certification is effective until it is
         modified, or 57.19until the airport or landing area no longer meets the requirements of this paragraph.
         For 57.20purposes of this paragraph, "public access area" means property used as an aircraft
         parking 57.21ramp, apron, or storage hangar, or an arrival and departure building in connection
         with the 57.22airport.57.23    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
         57.24being mined and is not otherwise classified as class 2a or 2b, provided that the land
         is not 57.25located in a county that has elected to opt-out of the aggregate preservation program
         as 57.26provided in section 
         273.1115, subdivision 6. It has a classification rate of one percent of 57.27market value. To qualify for classification under this paragraph, the property must
         be at 57.28least ten contiguous acres in size and the owner of the property must record with
         the county 57.29recorder of the county in which the property is located an affidavit containing:57.30    (1) a legal description of the property;57.31    (2) a disclosure that the property contains a commercial aggregate deposit that is
         not 57.32actively being mined but is present on the entire parcel enrolled;58.1    (3) documentation that the conditional use under the county or local zoning ordinance
         58.2of this property is for mining; and58.3    (4) documentation that a permit has been issued by the local unit of government or
         the 58.4mining activity is allowed under local ordinance. The disclosure must include a statement
         58.5from a registered professional geologist, engineer, or soil scientist delineating
         the deposit 58.6and certifying that it is a commercial aggregate deposit.58.7    For purposes of this section and section 
         273.1115, "commercial aggregate deposit" 58.8means a deposit that will yield crushed stone or sand and gravel that is suitable
         for use as 58.9a construction aggregate; and "actively mined" means the removal of top soil and overburden
         58.10in preparation for excavation or excavation of a commercial deposit.58.11    (n) When any portion of the property under this subdivision or subdivision 22 begins
         to 58.12be actively mined, the owner must file a supplemental affidavit within 60 days from
         the 58.13day any aggregate is removed stating the number of acres of the property that is actively
         58.14being mined. The acres actively being mined must be (1) valued and classified under
         58.15subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
         58.16resource preservation property tax program under section 
         273.1115, if the land was enrolled 58.17in that program. Copies of the original affidavit and all supplemental affidavits
         must be 58.18filed with the county assessor, the local zoning administrator, and the Department
         of Natural 58.19Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
         58.20time a subsequent portion of the property is actively mined, provided that the minimum
         58.21acreage change is five acres, even if the actual mining activity constitutes less
         than five 58.22acres.58.23    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
         not 58.24rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
         in 58.25section 
         14.386 concerning exempt rules do not apply.58.26EFFECTIVE DATE.This section is effective beginning with assessment year 2017.58.27    Sec. 9. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:58.28    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units 58.29and used or held for use by the owner or by the tenants or lessees of the owner as
         a residence 58.30for rental periods of 30 days or more, excluding property qualifying for class 4d.
         Class 4a 58.31also includes hospitals licensed under sections 
         144.50 to 
         144.56, other than hospitals exempt 58.32under section 
         272.02, and contiguous property used for hospital purposes, without regard 59.1to whether the property has been platted or subdivided. The market value of class
         4a property 59.2has a classification rate of 1.25 percent.59.3    (b) Class 4b includes:59.4    (1) residential real estate containing less than four units that does not qualify
         as class 59.54bb, other than seasonal residential recreational property;59.6    (2) manufactured homes not classified under any other provision;59.7    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
         59.8classified under subdivision 23, paragraph (b) containing two or three units; and59.9    (4) unimproved property that is classified residential as determined under subdivision
         59.1033.59.11    The market value of class 4b property has a classification rate of 1.25 percent.59.12    (c) Class 4bb includes nonhomestead residential real estate containing one unit, other
         59.13than seasonal residential recreational property, and a single family dwelling, garage,
         and 59.14surrounding one acre of property on a nonhomestead farm classified under subdivision
         23, 59.15paragraph (b).59.16    Class 4bb property has the same classification rates as class 1a property under subdivision
         59.1722.59.18    Property that has been classified as seasonal residential recreational property at
         any time 59.19during which it has been owned by the current owner or spouse of the current owner
         does 59.20not qualify for class 4bb.59.21    (d) Class 4c property includes:59.22    (1) except as provided in subdivision 22, paragraph (c), real and personal property
         59.23devoted to commercial temporary and seasonal residential occupancy for recreation
         purposes, 59.24for not more than 250 days in the year preceding the year of assessment. For purposes
         of 59.25this clause, property is devoted to a commercial purpose on a specific day if any
         portion of 59.26the property is used for residential occupancy, and a fee is charged for residential
         occupancy. 59.27Class 4c property under this clause must contain three or more rental units. A "rental
         unit" 59.28is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
         site 59.29equipped with water and electrical hookups for recreational vehicles. A camping pad
         offered 59.30for rent by a property that otherwise qualifies for class 4c under this clause is
         also class 4c 59.31under this clause regardless of the term of the rental agreement, as long as the use
         of the 59.32camping pad does not exceed 250 days. In order for a property to be classified under
         this 60.1clause, either (i) the business located on the property must provide recreational
         activities, 60.2at least 40 percent of the annual gross lodging receipts related to the property must
         be from 60.3business conducted during 90 consecutive days, and either (A) at least 60 percent
         of all paid 60.4bookings by lodging guests during the year must be for periods of at least two consecutive
         60.5nights; or (B) at least 20 percent of the annual gross receipts must be from charges
         for 60.6providing recreational activities, or (ii) the business must contain 20 or fewer rental
         units, 60.7and must be located in a township or a city with a population of 2,500 or less located
         outside 60.8the metropolitan area, as defined under section 
         473.121, subdivision 2, that contains a portion 60.9of a state trail administered by the Department of Natural Resources. For purposes
         of item 60.10(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class
         4c 60.11property also includes commercial use real property used exclusively for recreational
         60.12purposes in conjunction with other class 4c property classified under this clause
         and devoted 60.13to temporary and seasonal residential occupancy for recreational purposes, up to a
         total of 60.14two acres, provided the property is not devoted to commercial recreational use for
         more 60.15than 250 days in the year preceding the year of assessment and is located within two
         miles 60.16of the class 4c property with which it is used. In order for a property to qualify
         for 60.17classification under this clause, the owner must submit a declaration to the assessor
         60.18designating the cabins or units occupied for 250 days or less in the year preceding
         the year 60.19of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
         60.20share of the land on which they are located must be designated class 4c under this
         clause 60.21as otherwise provided. The remainder of the cabins or units and a proportionate share
         of 60.22the land on which they are located will be designated as class 3a. The owner of property
         60.23desiring designation as class 4c property under this clause must provide guest registers
         or 60.24other records demonstrating that the units for which class 4c designation is sought
         were not 60.25occupied for more than 250 days in the year preceding the assessment if so requested.
         The 60.26portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference
         center 60.27or meeting room, and (5) other nonresidential facility operated on a commercial basis
         not 60.28directly related to temporary and seasonal residential occupancy for recreation purposes
         60.29does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
         60.30means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
         60.31ski equipment; providing marina services, launch services, or guide services; or selling
         bait 60.32and fishing tackle;60.33    (2) qualified property used as a golf course if:60.34    (i) it is open to the public on a daily fee basis. It may charge membership fees or
         dues, 60.35but a membership fee may not be required in order to use the property for golfing,
         and its 61.1green fees for golfing must be comparable to green fees typically charged by municipal
         61.2courses; and61.3    (ii) it meets the requirements of section 
         273.112, subdivision 3, paragraph (d).61.4    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
         with 61.5the golf course is classified as class 3a property;61.6    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
         61.7community service oriented organization and not used for residential purposes on either
         a 61.8temporary or permanent basis, provided that:61.9    (i) the property is not used for a revenue-producing activity for more than six days
         in 61.10the calendar year preceding the year of assessment; or61.11    (ii) the organization makes annual charitable contributions and donations at least
         equal 61.12to the property's previous year's property taxes and the property is allowed to be
         used for 61.13public and community meetings or events for no charge, as appropriate to the size
         of the 61.14facility.61.15    For purposes of this clause:61.16    (A) "charitable contributions and donations" has the same meaning as lawful gambling
         61.17purposes under section 
         349.12, subdivision 25, excluding those purposes relating to the 61.18payment of taxes, assessments, fees, auditing costs, and utility payments;61.19    (B) "property taxes" excludes the state general tax;61.20    (C) a "nonprofit community service oriented organization" means any corporation, 61.21society, association, foundation, or institution organized and operated exclusively
         for 61.22charitable, religious, fraternal, civic, or educational purposes, and which is exempt
         from 61.23federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
         61.24Revenue Code; and61.25    (D) "revenue-producing activities" shall include but not be limited to property or
         that 61.26portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent
         malt 61.27liquor establishment licensed under chapter 340A, a restaurant open to the public,
         bowling 61.28alley, a retail store, gambling conducted by organizations licensed under chapter
         349, an 61.29insurance business, or office or other space leased or rented to a lessee who conducts
         a 61.30for-profit enterprise on the premises.61.31    Any portion of the property not qualifying under either item (i) or (ii) is class
         3a. The 61.32use of the property for social events open exclusively to members and their guests
         for periods 62.1of less than 24 hours, when an admission is not charged nor any revenues are received
         by 62.2the organization shall not be considered a revenue-producing activity.62.3    The organization shall maintain records of its charitable contributions and donations
         62.4and of public meetings and events held on the property and make them available upon
         62.5request any time to the assessor to ensure eligibility. An organization meeting the
         requirement 62.6under item (ii) must file an application by May 1 with the assessor for eligibility
         for the 62.7current year's assessment. The commissioner shall prescribe a uniform application
         form 62.8and instructions;62.9    (4) postsecondary student housing of not more than one acre of land that is owned
         by a 62.10nonprofit corporation organized under chapter 317A and is used exclusively by a student
         62.11cooperative, sorority, or fraternity for on-campus housing or housing located within
         two 62.12miles of the border of a college campus;62.13    (5)(i) manufactured home parks as defined in section 
         327.14, subdivision 3, excluding 62.14manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii), 62.15and (ii) manufactured home parks as defined in section 
         327.14, subdivision 3, that are 62.16described in section 
         273.124, subdivision 3a, and (iii) class I manufactured home parks as 62.17defined  in section 327C.01, subdivision 13;62.18    (6) real property that is actively and exclusively devoted to indoor fitness, health,
         social, 62.19recreational, and related uses, is owned and operated by a not-for-profit corporation,
         and is 62.20located within the metropolitan area as defined in section 
         473.121, subdivision 2;62.21    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
         62.22section 
         272.01, subdivision 2, and the land on which it is located, provided that:62.23    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
         62.24Airports Commission, or group thereof; and62.25    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
         leased 62.26premise, prohibits commercial activity performed at the hangar.62.27    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale
         must be 62.28filed by the new owner with the assessor of the county where the property is located
         within 62.2960 days of the sale;62.30    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
         62.31272.01, subdivision 2
         , and the land on which it is located, provided that:62.32    (i) the land abuts a public airport; and63.1    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
         agreement 63.2restricting the use of the premises, prohibiting commercial use or activity performed
         at the 63.3hangar; and63.4    (9) residential real estate, a portion of which is used by the owner for homestead
         purposes, 63.5and that is also a place of lodging, if all of the following criteria are met:63.6    (i) rooms are provided for rent to transient guests that generally stay for periods
         of 14 63.7or fewer days;63.8    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
         in 63.9the basic room rate;63.10    (iii) meals are not provided to the general public except for special events on fewer
         than 63.11seven days in the calendar year preceding the year of the assessment; and63.12    (iv) the owner is the operator of the property.63.13    The market value subject to the 4c classification under this clause is limited to
         five rental 63.14units. Any rental units on the property in excess of five, must be valued and assessed
         as 63.15class 3a. The portion of the property used for purposes of a homestead by the owner
         must 63.16be classified as class 1a property under subdivision 22;63.17    (10) real property up to a maximum of three acres and operated as a restaurant as
         defined 63.18under section 
         157.15, subdivision 12, provided it: (i) is located on a lake as defined under 63.19section 
         103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 63.20commercial purposes for not more than 250 consecutive days, or receives at least 60
         percent 63.21of its annual gross receipts from business conducted during four consecutive months.
         Gross 63.22receipts from the sale of alcoholic beverages must be included in determining the
         property's 63.23qualification under item (ii). The property's primary business must be as a restaurant
         and 63.24not as a bar. Gross receipts from gift shop sales located on the premises must be
         excluded. 63.25Owners of real property desiring 4c classification under this clause must submit an
         annual 63.26declaration to the assessor by February 1 of the current assessment year, based on
         the 63.27property's relevant information for the preceding assessment year;63.28(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
         as 63.29a marina, as defined in section 
         86A.20, subdivision 5, which is made accessible to the public 63.30and devoted to recreational use for marina services. The marina owner must annually
         provide 63.31evidence to the assessor that it provides services, including lake or river access
         to the public 63.32by means of an access ramp or other facility that is either located on the property
         of the 63.33marina or at a publicly owned site that abuts the property of the marina. No more
         than 800 64.1feet of lakeshore may be included in this classification. Buildings used in conjunction
         with 64.2a marina for marina services, including but not limited to buildings used to provide
         food 64.3and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle,
         are classified 64.4as class 3a property; and64.5(12) real and personal property devoted to noncommercial temporary and seasonal 64.6residential occupancy for recreation purposes.64.7    Class 4c property has a classification rate of 1.5 percent of market value, except
         that (i) 64.8each parcel of noncommercial seasonal residential recreational property under clause
         (12) 64.9has the same classification rates as class 4bb property, (ii) manufactured home parks
         assessed 64.10under clause (5), item (i), have the same classification rate as class 4b property,
         and the 64.11market value of manufactured home parks assessed under clause (5), item (ii), has have a 64.12classification rate of 0.75 percent if more than 50 percent of the lots in the park
         are occupied 64.13by shareholders in the cooperative corporation or association and a classification
         rate of 64.14one percent if 50 percent or less of the lots are so occupied, and class I manufactured home 64.15parks as defined in section 327C.01, subdivision 13, have a classification rate of
         1.0 percent, 64.16(iii) commercial-use seasonal residential recreational property and marina recreational
         land 64.17as described in clause (11), has a classification rate of one percent for the first
         $500,000 of 64.18market value, and 1.25 percent for the remaining market value, (iv) the market value
         of 64.19property described in clause (4) has a classification rate of one percent, (v) the
         market value 64.20of property described in clauses (2), (6), and (10) has a classification rate of 1.25
         percent, 64.21and (vi) that portion of the market value of property in clause (9) qualifying for
         class 4c 64.22property has a classification rate of 1.25 percent.64.23    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
         64.24by the Housing Finance Agency under section 
         273.128, subdivision 3. If only a portion of 64.25the units in the building qualify as low-income rental housing units as certified
         under section 64.26273.128, subdivision 3
         , only the proportion of qualifying units to the total number of units 64.27in the building qualify for class 4d. The remaining portion of the building shall
         be classified 64.28by the assessor based upon its use. Class 4d also includes the same proportion of
         land as 64.29the qualifying low-income rental housing units are to the total units in the building.
         For all 64.30properties qualifying as class 4d, the market value determined by the assessor must
         be based 64.31on the normal approach to value using normal unrestricted rents.64.32    (f) The first tier of market value of class 4d property has a classification rate
         of 0.75 64.33percent. The remaining value of class 4d property has a classification rate of 0.25
         percent. 64.34For the purposes of this paragraph, the "first tier of market value of class 4d property"
         means 64.35the market value of each housing unit up to the first tier limit. For the purposes
         of this 65.1paragraph, all class 4d property value must be assigned to individual housing units.
         The 65.2first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit
         is 65.3adjusted each year by the average statewide change in estimated market value of property
         65.4classified as class 4a and 4d under this section for the previous assessment year,
         excluding 65.5valuation change due to new construction, rounded to the nearest $1,000, provided,
         however, 65.6that the limit may never be less than $100,000. Beginning with assessment year 2015,
         the 65.7commissioner of revenue must certify the limit for each assessment year by November
         1 65.8of the previous year.65.9EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.65.10    Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:65.11    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of 65.12the market value of property owned by a veteran and serving as the veteran's homestead
         65.13under this section is excluded in determining the property's taxable market value
         if the 65.14veteran has a service-connected disability of 70 percent or more as certified by the
         United 65.15States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
         the 65.16veteran must have been honorably discharged from the United States armed forces, as
         65.17indicated by United States Government Form DD214 or other official military discharge
         65.18papers.65.19    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
         excluded, 65.20except as provided in clause (2); and65.21    (2) for a total (100 percent) and permanent 100 percent disability rating, $300,000 of 65.22market value is excluded.65.23    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
         clause 65.24(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse
         holds 65.25the legal or beneficial title to the homestead and permanently resides there, the
         exclusion 65.26shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 65.27for eight additional taxes payable years or until such time as the spouse remarries, or sells, 65.28transfers, or otherwise disposes of the property, whichever comes first. Qualification under 65.29this paragraph requires an annual application under paragraph (h).65.30(d) If the spouse of a member of any branch or unit of the United States armed forces
         65.31who dies due to a service-connected cause while serving honorably in active service,
         as 65.32indicated on United States Government Form DD1300 or DD2064, holds the legal or 65.33beneficial title to a homestead and permanently resides there, the spouse is entitled
         to the 66.1benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 66.2time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 66.3whichever comes first.66.4(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
         66.5classified as homestead in the state of Minnesota, then the homestead of the veteran's
         primary 66.6family caregiver, if any, is eligible for the exclusion that the veteran would otherwise
         qualify 66.7for under paragraph (b).66.8    (f) In the case of an agricultural homestead, only the portion of the property consisting
         66.9of the house and garage and immediately surrounding one acre of land qualifies for
         the 66.10valuation exclusion under this subdivision.66.11    (g) A property qualifying for a valuation exclusion under this subdivision is not
         eligible 66.12for the market value exclusion under subdivision 35, or classification under subdivision
         22, 66.13paragraph (b).66.14    (h) To qualify for a valuation exclusion under this subdivision a property owner must
         66.15apply to the assessor by July 1 of each assessment year, except that an annual reapplication
         66.16is not required once a property has been accepted for a valuation exclusion under
         paragraph 66.17(a) and qualifies for the benefit described in paragraph (b), clause (2), and the
         property 66.18continues to qualify until there is a change in ownership. For an application received
         after 66.19July 1 of any calendar year, the exclusion shall become effective for the following
         assessment 66.20year.66.21(i) A first-time application by a qualifying spouse for the market value exclusion
         under 66.22paragraph (d) must be made any time within two years of the death of the service member.66.23(j) For purposes of this subdivision:66.24(1) "active service" has the meaning given in section 
         190.05;66.25(2) "own" means that the person's name is present as an owner on the property deed;66.26(3) "primary family caregiver" means a person who is approved by the secretary of
         the 66.27United States Department of Veterans Affairs for assistance as the primary provider
         of 66.28personal care services for an eligible veteran under the Program of Comprehensive
         Assistance 66.29for Family Caregivers, codified as United States Code, title 38, section 1720G; and66.30(4) "veteran" has the meaning given the term in section 
         197.447.67.1(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
         67.2(2), before dying, the veteran's spouse is entitled to the benefit under paragraph
         (b), clause 67.3(2), until the spouse remarries or sells, transfers, or otherwise disposes of the
         property if:67.4(1) the spouse files a first-time application within two years of the death of the
         service 67.5member or by June 1, 2019, whichever is later;67.6(2) upon the death of the veteran, the spouse holds the legal or beneficial title
         to the 67.7homestead and permanently resides there;67.8(3) the veteran met the honorable discharge requirements of paragraph (a);67.9(4) the spouse complies with the annual application requirement under paragraph (h);
         67.10and67.11(5) the United States Department of Veterans Affairs certifies that:67.12(i) the veteran met the total (100 percent) and permanent disability requirement under
         67.13paragraph (b), clause (2); or67.14(ii) the spouse has been awarded dependency and indemnity compensation.67.15(l) The purpose of this provision of law providing a level of homestead property tax
         67.16relief for gravely disabled veterans, their primary family caregivers, and their surviving
         67.17spouses is to help ease the burdens of war for those among our state's citizens who
         bear 67.18those burdens most heavily.67.19EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.67.20    Sec. 11. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:67.21    Subdivision 1. Levy amount. The state general levy is levied against 67.22commercial-industrial property and seasonal residential recreational property, as
         defined 67.23in this section. The state general levy base amount for commercial-industrial property is 67.24$592,000,000$784,594,000 for taxes payable in 2002 2018 and thereafter. For taxes payable 67.25in subsequent years, the levy base amount is increased each year by multiplying the
         levy 67.26base amount for the prior year by the sum of one plus the rate of increase, if any,
         in the 67.27implicit price deflator for government consumption expenditures and gross investment
         for 67.28state and local governments prepared by the Bureau of Economic Analysts of the United
         67.29States Department of Commerce for the 12-month period ending March 31 of the year
         prior 67.30to the year the taxes are payable The state general levy base amount for seasonal 67.31residential-recreational property is $44,190,000 for taxes payable in 2018 and thereafter. 68.1The tax under this section is not treated as a local tax rate under section 
         469.177 and is not 68.2the levy of a governmental unit under chapters 276A and 473F.68.3The commissioner shall increase or decrease the preliminary or final raterates for a year 68.4as necessary to account for errors and tax base changes that affected a preliminary
         or final 68.5rate for either of the two preceding years. Adjustments are allowed to the extent
         that the 68.6necessary information is available to the commissioner at the time the rates for a
         year must 68.7be certified, and for the following reasons:68.8(1) an erroneous report of taxable value by a local official;68.9(2) an erroneous calculation by the commissioner; and68.10(3) an increase or decrease in taxable value for commercial-industrial or seasonal
         68.11residential recreational property reported on the abstracts of tax lists submitted
         under section 68.12275.29
          that was not reported on the abstracts of assessment submitted under section 
         270C.8968.13for the same year.68.14The commissioner may, but need not, make adjustments if the total difference in the
         tax 68.15levied for the year would be less than $100,000.68.16EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.68.17    Sec. 12. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:68.18    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section, 68.19"commercial-industrial tax capacity" means the tax capacity of all taxable property
         classified 68.20as class 3 or class 5(1) under section 
         273.13, except for excluding: (1) the first $100,000 of 68.21market value of each parcel of commercial-industrial net tax capacity as defined under
         68.22section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation attached machinery 68.23under class 3; and (3) property described in section 
         473.625. County commercial-industrial 68.24tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment
         68.25financing district under section 
         469.177, subdivision 2, the net tax capacity of transmission 68.26lines deducted from a local government's total net tax capacity under section 
         273.425, or 68.27fiscal disparities contribution and distribution net tax capacities under chapter
         276A or 473F. 68.28For purposes of this subdivision, the procedures for determining eligibility for tier
         1under 68.29section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the
         portion 68.30of a property eligible to be considered within the first $100,000 of market value.68.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.69.1    Sec. 13. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:69.2    Subd. 4. Apportionment and levy of state general tax.Ninety-five percent of The 69.3state general tax must be levied by applying a uniform rate to all commercial-industrial
         tax 69.4capacity and five percent of the state general tax must be levied by applying a uniform rate 69.5to all seasonal residential recreational tax capacity. On or before October 1 each
         year, the 69.6commissioner of revenue shall certify the preliminary state general levy rates to
         each county 69.7auditor that must be used to prepare the notices of proposed property taxes for taxes
         payable 69.8in the following year. By January 1 of each year, the commissioner shall certify the
         final 69.9state general levy raterates to each county auditor that shall be used in spreading taxes.69.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.69.11    Sec. 14. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:69.12    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 69.13on or before September 30, each county and each, home rule charter or statutory city, town, 69.14and special taxing district, excluding the Metropolitan Council and the Metropolitan
         Mosquito 69.15Control Commission, shall certify to the county auditor the proposed property tax levy for 69.16taxes payable in the following year. For towns, the final certified levy shall also be considered 69.17the proposed levy.69.18    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         each 69.19town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito 69.20Control Commission shall adopt and certify to the county auditor a proposed property tax 69.21levy for taxes payable in the following year. For towns, the final certified levy shall also be 69.22considered the proposed levy.69.23    (c) On or before September 30, each school district that has not mutually agreed with
         69.24its home county to extend this date shall certify to the county auditor the proposed
         property 69.25tax levy for taxes payable in the following year. Each school district that has agreed
         with 69.26its home county to delay the certification of its proposed property tax levy must
         certify its 69.27proposed property tax levy for the following year no later than October 7. The school
         district 69.28shall certify the proposed levy as:69.29    (1) a specific dollar amount by school district fund, broken down between voter-approved
         69.30and non-voter-approved levies and between referendum market value and tax capacity
         69.31levies; or69.32    (2) the maximum levy limitation certified by the commissioner of education according
         69.33to section 
         126C.48, subdivision 1.70.1    (d) If the board of estimate and taxation or any similar board that establishes maximum
         70.2tax levies for taxing jurisdictions within a first class city certifies the maximum
         property 70.3tax levies for funds under its jurisdiction by charter to the county auditor by the
         date specified 70.4in paragraph (a), the city shall be deemed to have certified its levies for those
         taxing 70.5jurisdictions.70.6    (e) For purposes of this section, "special taxing district" means a special taxing
         district 70.7as defined in section 
         275.066. Intermediate school districts that levy a tax under chapter 70.8124 or 136D, joint powers boards established under sections 
         123A.44 to 
         123A.446, and 70.9Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
         70.10taxing districts for purposes of this section.70.11(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         70.12tax levy under this subdivision, the taxing authority shall announce the time and
         place of 70.13its subsequent regularly scheduled meetings at which the budget and levy will be discussed
         70.14and at which the public will be allowed to speak. The time and place of those meetings
         must 70.15be included in the proceedings or summary of proceedings published in the official
         newspaper 70.16of the taxing authority under section 
         123B.09, 
         375.12, or 
         412.191.70.17EFFECTIVE DATE.This section is effective beginning with proposed levy 70.18certifications for taxes payable in 2018.70.19    Sec. 15. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:70.20    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the 70.21taxes voted by cities, counties, school districts, and special districts shall be
         certified by the 70.22proper authorities to the county auditor on or before five working days after December
         20 70.23in each year. A town must certify the levy adopted by the town board to the county
         auditor 70.24by September 1530 each year. If the town board modifies the levy at a special town meeting 70.25after September 15 30, the town board must recertify its levy to the county auditor on or 70.26before five working days after December 20. If a city, town, county, school district,
         or 70.27special district fails to certify its levy by that date, its levy shall be the amount
         levied by it 70.28for the preceding year.70.29(b)(i) The taxes voted by counties under sections 
         103B.241, 
         103B.245, and 
         103B.25170.30shall be separately certified by the county to the county auditor on or before five
         working 70.31days after December 20 in each year. The taxes certified shall not be reduced by the
         county 70.32auditor by the aid received under section 
         273.1398, subdivision 3. If a county fails to certify 70.33its levy by that date, its levy shall be the amount levied by it for the preceding
         year.71.1(ii) For purposes of the proposed property tax notice under section 
         275.065 and the 71.2property tax statement under section 
         276.04, for the first year in which the county implements 71.3the provisions of this paragraph, the county auditor shall reduce the county's levy
         for the 71.4preceding year to reflect any amount levied for water management purposes under clause
         71.5(i) included in the county's levy.71.6EFFECTIVE DATE.This section is effective beginning with proposed levy 71.7certifications for taxes payable in 2018.71.8    Sec. 16. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:71.9    Subd. 2. Abatement of penalty.(a) The county board may, with the concurrence of the 71.10county treasurer, delegate to the county treasurer the power to abate the penalty
         provided 71.11for late payment of taxes in the current year. Notwithstanding section 
         270C.86, if any county 71.12board so elects, the county treasurer may abate the penalty on finding that the imposition
         71.13of the penalty would be unjust and unreasonable.71.14(b) The county treasurer shall abate the penalty provided for late payment of taxes
         in 71.15the current year if the property tax payment is delivered by mail to the county treasurer
         and 71.16the envelope containing the payment is postmarked by the United States Postal Service
         71.17within one business day of the due date prescribed under this section, but only if
         the property 71.18owner requesting the abatement has not previously received an abatement of penalty
         for 71.19late payment of tax under this paragraph.71.20EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and 71.21thereafter.71.22    Sec. 17. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:71.23    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 contiguous 71.24acres for which the owner has implemented a forest management plan that was prepared
         or 71.25updated within the past ten years by an approved plan writer. For purposes of this
         subdivision, 71.26acres are considered to be contiguous even if they are separated by a road, waterway,
         railroad 71.27track, or other similar intervening property. At least 50 percent of the contiguous
         acreage 71.28must meet the definition of forest land in section 
         88.01, subdivision 7. For the purposes of 71.29sections 
         290C.01 to 
         290C.11 290C.13, forest land does not include (i) land used for 71.30residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota
         program, 71.31a state or federal conservation reserve or easement reserve program under sections
         
         103F.50171.32to 
         103F.531, the Minnesota agricultural property tax law under section 
         273.111, or land 71.33subject to agricultural land preservation controls or restrictions as defined in section
         
         40A.0272.1or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land
         exceeding 72.260,000 acres that is subject to a single conservation easement funded under section
         
         97A.05672.3or a comparable permanent easement conveyed to a governmental or nonprofit entity;
         (iv) 72.4any land that becomes subject to a conservation easement funded under section 
         97A.05672.5or a comparable permanent easement conveyed to a governmental or nonprofit entity
         after 72.6May 30, 2013; or (v) land improved with a structure,; pavement, other than a paved trail 72.7under easement, lease, or terminable license to the state of Minnesota or a political
         72.8subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes 72.9not prescribed in the forest management plan.72.10EFFECTIVE DATE.This section is effective the day following final enactment.72.11    Sec. 18. Minnesota Statutes 2016, section 290C.07, is amended to read:72.12290C.07 CALCULATION OF INCENTIVE PAYMENT.72.13    An approved claimant under the sustainable forest incentive program is eligible to
         receive 72.14an annual payment for each acre of enrolled land, excluding any acre improved with a paved 72.15trail under easement, lease, or terminable license to the state of Minnesota or a
         political 72.16subdivision. The payment shall equal $7 per acre for each acre enrolled in the sustainable 72.17forest incentive program.72.18EFFECTIVE DATE.This section is effective the day following final enactment.72.19    Sec. 19. Minnesota Statutes 2016, section 290C.10, is amended to read:72.20290C.10 WITHDRAWAL PROCEDURES.72.21(a) An approved claimant under the sustainable forest incentive program for a minimum
         72.22of four years may notify the commissioner of the intent to terminate enrollment. Within
         90 72.23days of receipt of notice to terminate enrollment, the commissioner shall inform the
         claimant 72.24in writing, acknowledging receipt of this notice and indicating the effective date
         of 72.25termination from the sustainable forest incentive program. Termination of enrollment
         in 72.26the sustainable forest incentive program occurs on January 1 of the fifth calendar
         year that 72.27begins after receipt by the commissioner of the termination notice. After the commissioner
         72.28issues an effective date of termination, a claimant wishing to continue the land's
         enrollment 72.29in the sustainable forest incentive program beyond the termination date must apply
         for 72.30enrollment as prescribed in section 
         290C.04. A claimant who withdraws a parcel of land 72.31from this program may not reenroll the parcel for a period of three years. Within
         90 days 72.32after the termination date, the commissioner shall execute and acknowledge a document
         73.1releasing the land from the covenant required under this chapter. The document must
         be 73.2mailed to the claimant and is entitled to be recorded.73.3(b) Notwithstanding paragraph (a), the commissioner may allow early withdrawal from 73.4the Sustainable Forest Incentive Act without penalty when the state of Minnesota,
         any local 73.5government unit, or any other entity which has the power of eminent domain acquires
         title 73.6or possession to the land for a public purpose notwithstanding the provisions of this section. 73.7In the case of suchan eligible acquisition under this paragraph, the commissioner shall 73.8execute and acknowledge a document releasing the land acquired by the state, local
         73.9government unit, or other entity from the covenant. All other enrolled land must remain
         in 73.10the program.73.11(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
         shall 73.12allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
         land 73.13that is subject to fee or easement acquisition or lease to the state of Minnesota
         or a political 73.14subdivision of the state for the public purpose of a paved trail. The commissioner
         of natural 73.15resources must notify the commissioner of lands acquired under this paragraph that
         are 73.16eligible for withdrawal. In the case of an eligible fee or easement acquisition or
         lease under 73.17this paragraph, the commissioner shall execute and acknowledge a document releasing
         the 73.18land subject to fee or easement acquisition or lease by the state or political subdivision
         of 73.19the state.73.20EFFECTIVE DATE.This section is effective the day following final enactment.73.21    Sec. 20. Minnesota Statutes 2016, section 473H.09, is amended to read:73.22473H.09 EARLY TERMINATION.73.23    Subdivision 1.Public emergency. Termination of an agricultural preserve earlier than 73.24a date derived through application of section 
         473H.08 may be permitted only in the event 73.25of a public emergency upon petition from the owner or authority to the governor. The
         73.26determination of a public emergency shall be by the governor through executive order
         73.27pursuant to sections 
         4.035 and 
         12.01 to 
         12.46. The executive order shall identify the preserve, 73.28the reasons requiring the action and the date of termination.73.29    Subd. 2.Death of owner.(a) Within 365 days of the death of an owner, an owner's 73.30spouse, or other qualifying person, the surviving owner may elect to terminate the
         agricultural 73.31preserve and the covenant allowing the land to be enrolled as an agricultural preserve
         by 73.32notifying the authority on a form provided by the commissioner of agriculture. Termination
         74.1of a covenant under this subdivision must be executed and acknowledged in the manner
         74.2required by law to execute and acknowledge a deed.74.3(b) For purposes of this subdivision, the following definitions apply:74.4(1) "qualifying person" includes a partner, shareholder, trustee for a trust that
         the decedent 74.5was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
         74.6land and engage in farming under section 500.24 that owned the agricultural preserve;
         and74.7(2) "surviving owner" includes the executor of the estate of the decedent, trustee
         for a 74.8trust that the decedent was the settlor or a beneficiary of, or an entity permitted
         to own farm 74.9land under section 500.24 of which the decedent was a partner, shareholder, or member.74.10(c) When an agricultural preserve is terminated under this subdivision, the property
         is 74.11subject to additional taxes in an amount equal to 50 percent of the taxes actually
         levied 74.12against the property for the current taxes payable year. The additional taxes are
         extended 74.13against the property on the tax list for taxes payable in the current year. The additional
         taxes 74.14must be distributed among the jurisdictions levying taxes on the property in proportion
         to 74.15the current year's taxes.74.16EFFECTIVE DATE.This section is effective July 1, 2017.74.17    Sec. 21. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:74.18    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial 74.19operations are not allowed on land within an agricultural preserve except:74.20(1) small on-farm commercial or industrial operations normally associated with and
         74.21important to farming in the agricultural preserve area;74.22(2) storage use of existing farm buildings that does not disrupt the integrity of
         the 74.23agricultural preserve; and74.24(3) small commercial use of existing farm buildings for trades not disruptive to the
         74.25integrity of the agricultural preserve such as a carpentry shop, small scale mechanics
         shop, 74.26and similar activities that a farm operator might conduct.; and74.27(4) wireless communication installments and related equipment and structure capable
         74.28of providing technology potentially beneficial to farming activities.74.29(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses 74.30(2) and (3), means existing on August 1, 1987.74.31EFFECTIVE DATE.This section is effective the day following enactment.75.1    Sec. 22. Laws 1996, chapter 471, article 3, section 51, is amended to read:75.2    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.75.3    Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the Carlton 75.4county board of commissioners may levy in and for the unorganized township of Sawyer
         75.5an amount up to $1,500 $2,000 annually for recreational purposes, beginning with taxes 75.6payable in 1997 and ending with taxes payable in 2006.75.7    Subd. 2.Effective date.This section is effective June 1, 1996, without local approval.75.8EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and 75.9is effective the day after the Carlton County Board of Commissioners and its chief
         clerical 75.10officer timely complete their compliance with section 645.021, subdivisions 2 and
         3.75.11    Sec. 23. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL 75.12ASSESSMENT.75.13Any real or personal property acquired, owned, leased, controlled, used, or occupied
         by 75.14the city of St. Paul for the primary purpose of providing a stadium for a Major League
         75.15Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied
         for 75.16public, governmental, and municipal purposes, and is exempt from ad valorem taxation
         by 75.17the state or any political subdivision of the state, provided that the properties
         are subject to 75.18special assessments levied by a political subdivision for a local improvement in amounts
         75.19proportionate to and not exceeding the special benefit received by the properties
         from the 75.20improvement. In determining the special benefit received by the properties, no possible
         use 75.21of any of the properties in any manner different from their intended use for providing
         a 75.22Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
         75.23Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject
         to a 75.24lease or use agreement between the city and another person for uses related to the
         purposes 75.25of the operation of the stadium and related parking facilities is exempt from taxation
         75.26regardless of the length of the lease or use agreement. This section, insofar as it
         provides 75.27an exemption or special treatment, does not apply to any real property that is leased
         for 75.28residential, business, or commercial development or other purposes different from
         those 75.29necessary to the provision and operation of the stadium.75.30EFFECTIVE DATE.This section is effective upon approval by the St. Paul City 75.31Council and compliance with Minnesota Statutes, section 645.021.76.1ARTICLE 376.2SALES AND USE76.3    Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read:76.4128C.24 LEAGUE FUNDS TRANSFER.76.5(a) Beginning July 1, 2007, the Minnesota State High School League shall annually 76.6determine the sales tax savings attributable to section 
         297A.70, subdivision 11 11a, and 76.7annually transfer that amount to a nonprofit charitable foundation created for the
         purpose 76.8of promoting high school extracurricular activities. The funds must be used by the
         foundation 76.9to make grants to fund, assist, recognize, or promote high school students' participation
         in 76.10extracurricular activities. The first priority for funding will be grants for scholarships
         to 76.11individuals to offset athletic fees. The foundation must equitably award grants based
         on 76.12considerations of gender balance, school size, and geographic location, to the extent
         feasible.76.13(b) By February 1 of each year, the Minnesota State High School League must report
         76.14to the chairs and ranking minority members of the legislative committees and divisions
         with 76.15jurisdiction over E-12 education on activities funded by the transfer under this section.
         The 76.16report must include the following information for the previous fiscal year beginning
         July 76.171:76.18(1) the number of high schools receiving grants;76.19(2) the amount of grants made to high schools;76.20(3) the number of students benefiting from financial assistance to offset athletic
         fees;76.21(4) the regional breakdown of grants by school; and76.22(5) any other information helpful in assessing the success of the program.76.23EFFECTIVE DATE.This section is effective for sales and purchases made after June 76.2430, 2017, and before July 1, 2027.76.25    Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:76.26    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 76.27each of the transactions listed in this subdivision. In applying the provisions of
         this chapter, 76.28the terms "tangible personal property" and "retail sale" include the taxable services
         listed 76.29in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these
         taxable 76.30services, unless specifically provided otherwise. Services performed by an employee
         for 76.31an employer are not taxable. Services performed by a partnership or association for
         another 77.1partnership or association are not taxable if one of the entities owns or controls
         more than 77.280 percent of the voting power of the equity interest in the other entity. Services
         performed 77.3between members of an affiliated group of corporations are not taxable. For purposes
         of 77.4the preceding sentence, "affiliated group of corporations" means those entities that
         would 77.5be classified as members of an affiliated group as defined under United States Code,
         title 77.626, section 1504, disregarding the exclusions in section 1504(b).77.7    (b) Sale and purchase include:77.8    (1) any transfer of title or possession, or both, of tangible personal property, whether
         77.9absolutely or conditionally, for a consideration in money or by exchange or barter;
         and77.10    (2) the leasing of or the granting of a license to use or consume, for a consideration
         in 77.11money or by exchange or barter, tangible personal property, other than a manufactured
         77.12home used for residential purposes for a continuous period of 30 days or more.77.13    (c) Sale and purchase include the production, fabrication, printing, or processing
         of 77.14tangible personal property for a consideration for consumers who furnish either directly
         or 77.15indirectly the materials used in the production, fabrication, printing, or processing.77.16    (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
         77.17section 
         297A.67, subdivision 2, taxable food includes, but is not limited to, the following:77.18    (1) prepared food sold by the retailer;77.19    (2) soft drinks;77.20    (3) candy; and77.21    (4) dietary supplements; and.77.22    (5) all food sold through vending machines.77.23    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
         gas, 77.24water, or steam for use or consumption within this state.77.25    (f) A sale and a purchase includes the transfer for a consideration of prewritten
         computer 77.26software whether delivered electronically, by load and leave, or otherwise.77.27    (g) A sale and a purchase includes the furnishing for a consideration of the following
         77.28services:77.29    (1) the privilege of admission to places of amusement, recreational areas, or athletic
         77.30events, and the making available of amusement devices, tanning facilities, reducing
         salons, 77.31steam baths, health clubs, and spas or athletic facilities;78.1    (2) lodging and related services by a hotel, rooming house, resort, campground, motel,
         78.2or trailer camp, including furnishing the guest of the facility with access to telecommunication
         78.3services, and the granting of any similar license to use real property in a specific
         facility, 78.4other than the renting or leasing of it for a continuous period of 30 days or more
         under an 78.5enforceable written agreement that may not be terminated without prior notice and
         including 78.6accommodations intermediary services provided in connection with other services provided
         78.7under this clause;78.8    (3) nonresidential parking services, whether on a contractual, hourly, or other periodic
         78.9basis, except for parking at a meter;78.10    (4) the granting of membership in a club, association, or other organization if:78.11    (i) the club, association, or other organization makes available for the use of its
         members 78.12sports and athletic facilities, without regard to whether a separate charge is assessed
         for use 78.13of the facilities; and78.14    (ii) use of the sports and athletic facility is not made available to the general
         public on 78.15the same basis as it is made available to members.78.16Granting of membership means both onetime initiation fees and periodic membership
         dues. 78.17Sports and athletic facilities include golf courses; tennis, racquetball, handball,
         and squash 78.18courts; basketball and volleyball facilities; running tracks; exercise equipment;
         swimming 78.19pools; and other similar athletic or sports facilities;78.20    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
         78.21material used in road construction; and delivery of concrete block by a third party
         if the 78.22delivery would be subject to the sales tax if provided by the seller of the concrete
         block. 78.23For purposes of this clause, "road construction" means construction of:78.24    (i) public roads;78.25    (ii) cartways; and78.26    (iii) private roads in townships located outside of the seven-county metropolitan
         area 78.27up to the point of the emergency response location sign; and78.28    (6) services as provided in this clause:78.29    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
         78.30and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
         78.31drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do
         not 78.32include services provided by coin operated facilities operated by the customer;79.1    (ii) motor vehicle washing, waxing, and cleaning services, including services provided
         79.2by coin operated facilities operated by the customer, and rustproofing, undercoating,
         and 79.3towing of motor vehicles;79.4    (iii) building and residential cleaning, maintenance, and disinfecting services and
         pest 79.5control and exterminating services;79.6    (iv) detective, security, burglar, fire alarm, and armored car services; but not including
         79.7services performed within the jurisdiction they serve by off-duty licensed peace officers
         as 79.8defined in section 
         626.84, subdivision 1, or services provided by a nonprofit organization 79.9or any organization at the direction of a county for monitoring and electronic surveillance
         79.10of persons placed on in-home detention pursuant to court order or under the direction
         of the 79.11Minnesota Department of Corrections;79.12    (v) pet grooming services;79.13    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
         79.14and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
         plant 79.15care; tree, bush, shrub, and stump removal, except when performed as part of a land
         clearing 79.16contract as defined in section 
         297A.68, subdivision 40; and tree trimming for public utility 79.17lines. Services performed under a construction contract for the installation of shrubbery,
         79.18plants, sod, trees, bushes, and similar items are not taxable;79.19    (vii) massages, except when provided by a licensed health care facility or professional
         79.20or upon written referral from a licensed health care facility or professional for
         treatment of 79.21illness, injury, or disease; and79.22    (viii) the furnishing of lodging, board, and care services for animals in kennels
         and other 79.23similar arrangements, but excluding veterinary and horse boarding services.79.24    (h) A sale and a purchase includes the furnishing for a consideration of tangible
         personal 79.25property or taxable services by the United States or any of its agencies or instrumentalities,
         79.26or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.79.27    (i) A sale and a purchase includes the furnishing for a consideration of 79.28telecommunications services, ancillary services associated with telecommunication
         services, 79.29and pay television services. Telecommunication services include, but are not limited
         to, the 79.30following services, as defined in section 
         297A.669: air-to-ground radiotelephone service, 79.31mobile telecommunication service, postpaid calling service, prepaid calling service,
         prepaid 79.32wireless calling service, and private communication services. The services in this
         paragraph 79.33are taxed to the extent allowed under federal law.80.1    (j) A sale and a purchase includes the furnishing for a consideration of installation
         if the 80.2installation charges would be subject to the sales tax if the installation were provided
         by 80.3the seller of the item being installed.80.4    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
         to a 80.5customer when (1) the vehicle is rented by the customer for a consideration, or (2)
         the motor 80.6vehicle dealer is reimbursed pursuant to a service contract as defined in section
         
         59B.02, 80.7subdivision
          11.80.8    (l) A sale and a purchase includes furnishing for a consideration of specified digital
         80.9products or other digital products or granting the right for a consideration to use
         specified 80.10digital products or other digital products on a temporary or permanent basis and regardless
         80.11of whether the purchaser is required to make continued payments for such right. Wherever
         80.12the term "tangible personal property" is used in this chapter, other than in subdivisions
         10 80.13and 38, the provisions also apply to specified digital products, or other digital
         products, 80.14unless specifically provided otherwise or the context indicates otherwise.80.15EFFECTIVE DATE.This section is effective for sales and purchases made after June 80.1630, 2017.80.17    Sec. 3. Minnesota Statutes 2016, section 297A.61, subdivision 4, is amended to read:80.18    Subd. 4. Retail sale. (a) A "retail sale" means:80.19    (1) any sale, lease, or rental of tangible personal property for any purpose, other
         than 80.20resale, sublease, or subrent of items by the purchaser in the normal course of business
         as 80.21defined in subdivision 21; and80.22    (2) any sale of a service enumerated in subdivision 3, for any purpose other than
         resale 80.23by the purchaser in the normal course of business as defined in subdivision 21.80.24    (b) A sale of property used by the owner only by leasing it to others or by holding
         it in 80.25an effort to lease it, and put to no use by the owner other than resale after the
         lease or effort 80.26to lease, is a sale of property for resale.80.27    (c) A sale of master computer software that is purchased and used to make copies for
         80.28sale or lease is a sale of property for resale.80.29    (d) A sale of building materials, supplies, and equipment to owners, contractors,
         80.30subcontractors, or builders for the erection of buildings or the alteration, repair,
         or 80.31improvement of real property is a retail sale in whatever quantity sold, whether the
         sale is 80.32for purposes of resale in the form of real property or otherwise.81.1    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
         for 81.2installation of the floor covering is a retail sale and not a sale for resale since
         a sale of floor 81.3covering which includes installation is a contract for the improvement of real property.81.4    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
         81.5for installation of the items is a retail sale and not a sale for resale since a sale
         of shrubbery, 81.6plants, sod, trees, and similar items that includes installation is a contract for
         the improvement 81.7of real property.81.8    (g) A sale of tangible personal property that is awarded as prizes is a retail sale
         and is 81.9not considered a sale of property for resale.81.10    (h) A sale of tangible personal property utilized or employed in the furnishing or
         81.11providing of services under subdivision 3, paragraph (g), clause (1), including, but
         not 81.12limited to, property given as promotional items, is a retail sale and is not considered
         a sale 81.13of property for resale.81.14    (i) A sale of tangible personal property used in conducting lawful gambling under
         chapter 81.15349 or the State Lottery under chapter 349A, including, but not limited to, property
         given 81.16as promotional items, is a retail sale and is not considered a sale of property for
         resale.81.17    (j) a sale of machines, equipment, or devices that are used to furnish, provide, or
         dispense 81.18goods or services, including, but not limited to, coin-operated devices, is a retail
         sale and 81.19is not considered a sale of property for resale.81.20    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a
         lease 81.21payment becomes due under the terms of the agreement or the trade practices of the
         lessor 81.22or (2) in the case of a lease of a motor vehicle, as defined in section 
         297B.01, subdivision 81.2311
         , but excluding vehicles with a manufacturer's gross vehicle weight rating greater
         than 81.2410,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease
         is 81.25executed.81.26    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer
         of 81.27title or possession of the tangible personal property.81.28    (m) A sale of a bundled transaction in which one or more of the products included
         in 81.29the bundle is a taxable product is a retail sale, except that if one of the products
         is a 81.30telecommunication service, ancillary service, Internet access, or audio or video programming
         81.31service, and the seller has maintained books and records identifying through reasonable
         and 81.32verifiable standards the portions of the price that are attributable to the distinct
         and separately 82.1identifiable products, then the products are not considered part of a bundled transaction.
         82.2For purposes of this paragraph:82.3    (1) the books and records maintained by the seller must be maintained in the regular
         82.4course of business, and do not include books and records created and maintained by
         the 82.5seller primarily for tax purposes;82.6    (2) books and records maintained in the regular course of business include, but are
         not 82.7limited to, financial statements, general ledgers, invoicing and billing systems and
         reports, 82.8and reports for regulatory tariffs and other regulatory matters; and82.9    (3) books and records are maintained primarily for tax purposes when the books and
         82.10records identify taxable and nontaxable portions of the price, but the seller maintains
         other 82.11books and records that identify different prices attributable to the distinct products
         included 82.12in the same bundled transaction.82.13    (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or
         body 82.14shop business is a retail sale and the sales tax is imposed on the gross receipts
         from the retail 82.15sale of the paint and materials. The motor vehicle repair or body shop that purchases
         motor 82.16vehicle repair paint and motor vehicle repair materials for resale must either:82.17    (1) separately state each item of paint and each item of materials, and the sales
         price of 82.18each, on the invoice to the purchaser; or82.19    (2) in order to calculate the sales price of the paint and materials, use a method
         which 82.20estimates the amount and monetary value of the paint and materials used in the repair
         of 82.21the motor vehicle by multiplying the number of labor hours by a rate of consideration
         for 82.22the paint and materials used in the repair of the motor vehicle following industry
         standard 82.23practices that fairly calculate the gross receipts from the retail sale of the motor
         vehicle 82.24repair paint and motor vehicle repair materials. An industry standard practice fairly
         calculates 82.25the gross receipts if the sales price of the paint and materials used or consumed
         in the repair 82.26of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle
         repair or 82.27body shop business. Under this clause, the invoice must either separately state the
         "paint 82.28and materials" as a single taxable item, or separately state "paint" as a taxable
         item and 82.29"materials" as a taxable item. This clause does not apply to wholesale transactions
         at an 82.30auto auction facility.82.31    (o) A sale of specified digital products or other digital products to an end user
         with or 82.32without rights of permanent use and regardless of whether rights of use are conditioned
         82.33upon payment by the purchaser is a retail sale. When a digital code has been purchased
         that 82.34relates to specified digital products or other digital products, the subsequent receipt
         of or 83.1access to the related specified digital products or other digital products is not
         a retail sale.83.2For purposes of this paragraph, "end user" does not include a person, including the
         owner 83.3or operator of a jukebox or similar device that charges customers for access to specified
         83.4digital products or other digital products, who receives by contract a product transferred
         83.5electronically for further commercial broadcast, rebroadcast, transmission, retransmission,
         83.6licensing, relicensing, distribution, redistribution or exhibition of the product,
         in whole or 83.7in part, to another person or persons.83.8    (p) A payment made to a cooperative electric association or public utility as a contribution
         83.9in aid of construction is a contract for improvement to real property and is not a
         retail sale.83.10EFFECTIVE DATE.This section is effective for sales and purchases made after June 83.1130, 2017.83.12    Sec. 4. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read:83.13    Subd. 34. Taxable food sold through vending machines. "Taxable food sold through 83.14vending machines" means food prepared food, soft drinks, or candy dispensed from a 83.15machine or other device that accepts payment including honor payments.83.16EFFECTIVE DATE.This section is effective for sales and purchases made after June 83.1730, 2017.83.18    Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:83.19    Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution 83.20and the laws of the United States, "retailer maintaining a place of business in this
         state," or 83.21a similar term, means a retailer:83.22(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
         an 83.23office, place of distribution, sales or sample room or place, storage, warehouse, or other 83.24place of business, including the employment of a resident of this state who works from a 83.25home office in this state; or83.26(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
         83.27canvasser, or marketplace provider, solicitor, or other third party operating in this state 83.28under the authority of the retailer or its subsidiary, for any purpose, including
         the repairing, 83.29selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for 83.30the retailer's goods or services, or the leasing of tangible personal property located
         in this 83.31state, whether the place of business or agent, representative, affiliate, salesperson,
         canvasser, 83.32or solicitor is located in the state permanently or temporarily, or whether or not
         the retailer, 84.1subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by 84.2a marketplace provider in this state if the retailer makes sales in this state facilitated
         by a 84.3marketplace provider that maintains a place of business in this state.84.4(b) "Destination of a sale" means the location to which the retailer makes delivery
         of 84.5the property sold, or causes the property to be delivered, to the purchaser of the
         property, 84.6or to the agent or designee of the purchaser. The delivery may be made by any means,
         84.7including the United States Postal Service or a for-hire carrier.84.8(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
         84.9by:84.10(1) listing or advertising for sale by the retailer in any forum tangible personal
         property, 84.11services, or digital goods that are subject to tax under this chapter; and84.12(2) either directly or indirectly through agreements or arrangements with third parties
         84.13collecting payment from the customer and transmitting that payment to the retailer
         regardless 84.14of whether the marketplace provider receives compensation or other consideration in
         84.15exchange for its services.84.16(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
         84.17goods, services, and digital goods subject to sales and use tax under this chapter.84.18    Sec. 6. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:84.19    Subd. 2. Retailer maintaining place of business in this state.(a) Except as provided 84.20in paragraph (b), a retailer maintaining a place of business in this state who makes retail 84.21sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes
         and 84.22remit them to the commissioner under section 
         297A.77.84.23(b) A retailer with total taxable retail sales to customers in this state of less
         than $10,000 84.24in the 12-month period ending on the last day of the most recently completed calendar
         84.25quarter is not required to collect and remit sales tax if it is determined to be a
         retailer 84.26maintaining a place of business in the state solely because it made sales through
         one or more 84.27marketplace providers. The provisions of this paragraph do not apply to a retailer
         that is or 84.28was registered to collect sales and use tax in this state.84.29    Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:84.30    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 84.31subdivision 1, paragraph (a), if the entity:85.1(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate
         85.2the establishment or maintenance of a market for sales of items by the retailer to
         purchasers 85.3in this state or for the provision of services to the retailer's purchasers in this
         state, such as 85.4accepting returns of purchases for the retailer, providing assistance in resolving
         customer 85.5complaints of the retailer, or providing other services; and85.6(2) the retailer and the entity are related parties has the same or a similar business name 85.7to the retailer and sells, from a location or locations in this state, tangible personal
         property, 85.8digital goods, or services, taxable under this chapter, that are similar to that sold
         by the 85.9retailer;85.10(3) maintains an office, distribution facility, salesroom, warehouse, storage place,
         or 85.11other similar place of business in this state to facilitate the delivery of tangible
         personal 85.12property, digital goods, or services sold by the retailer to its customers in this
         state;85.13(4) maintains a place of business in this state and uses trademarks, service marks,
         or 85.14trade names in this state that are the same or substantially similar to those used
         by the retailer, 85.15and that use is done with the express or implied consent of the holder of the marks
         or names;85.16(5) delivers, installs, or assembles tangible personal property in this state, or
         performs 85.17maintenance or repair services on tangible personal property in this state, for tangible
         85.18personal property sold by the retailer;85.19(6) facilitates the delivery of tangible personal property to customers of the retailer
         by 85.20allowing the customers to pick up tangible personal property sold by the retailer
         at a place 85.21of business the entity maintains in this state; or85.22(7) shares management, business systems, business practices, or employees with the
         85.23retailer, or engages in intercompany transactions with the retailer related to the
         activities 85.24that establish or maintain the market in this state of the retailer.85.25(b) Two entities are related parties under this section if one of the entities meets
         at least 85.26one of the following tests with respect to the other entity:85.27(1) one or both entities is a corporation, and one entity and any party related to
         that entity 85.28in a manner that would require an attribution of stock from the corporation to the
         party or 85.29from the party to the corporation under the attribution rules of section 318 of the
         Internal 85.30Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
         percent 85.31of the value of the corporation's outstanding stock;85.32(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
         85.33and the partnership, estate, or trust and its partners or beneficiaries own directly,
         indirectly, 86.1beneficially, or constructively, in the aggregate, at least 50 percent of the profits,
         capital, 86.2stock, or value of the other entity or both entities; or86.3(3) an individual stockholder and the members of the stockholder's family (as defined
         86.4in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
         or 86.5constructively, in the aggregate, at least 50 percent of the value of both entities'
         outstanding 86.6stock;86.7(4) the entities are related within the meaning of subsections (b) and (c) of section
         267 86.8or 707(b)(1) of the Internal Revenue Code; or86.9(5) the entities have one or more ownership relationships and the relationships were
         86.10designed with a principal purpose of avoiding the application of this section.86.11(c) An entity is an affiliate under the provisions of this subdivision if the requirements
         86.12of paragraphs (a) and (b) are met during any part of the 12-month period ending on
         the first 86.13day of the month before the month in which the sale was made.86.14    Sec. 8. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to 86.15read:86.16    Subd. 4b.Collection and remittance requirements for marketplace providers and 86.17marketplace retailers.(a) A marketplace provider shall collect sales and use taxes and 86.18remit them to the commissioner under section 297A.77 for all facilitated sales for
         a retailer, 86.19and is subject to audit on the retail sales it facilitates unless either:86.20(1) the retailer provides a copy of the retailer's registration to collect sales and
         use tax 86.21in this state to the marketplace provider before the marketplace provider facilitates
         a sale; 86.22or86.23(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
         86.24that the retailer is registered to collect sales and use taxes in this state.86.25(b) Nothing in this subdivision shall be construed to interfere with the ability of
         a 86.26marketplace provider and a retailer to enter into an agreement regarding fulfillment
         of the 86.27requirements of this chapter.86.28(c) A marketplace provider is not liable under this subdivision for failure to file
         and 86.29collect and remit sales and use taxes if the marketplace provider demonstrates that
         the error 86.30was due to incorrect or insufficient information given to the marketplace provider
         by the 86.31retailer. This paragraph does not apply if the marketplace provider and the marketplace
         86.32retailer are related as defined in subdivision 4, paragraph (b).87.1    Sec. 9. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read:87.2    Subd. 2. Food and food ingredients. Except as otherwise provided in this subdivision, 87.3food and food ingredients are exempt. For purposes of this subdivision, "food" and
         "food 87.4ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried,
         or 87.5dehydrated form, that are sold for ingestion or chewing by humans and are consumed
         for 87.6their taste or nutritional value. Food and food ingredients exempt under this subdivision
         do 87.7not include candy, soft drinks, food sold through vending machines, dietary supplements, 87.8and prepared foods. Food and food ingredients do not include alcoholic beverages and
         87.9tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that
         are 87.10suitable for human consumption and contain one-half of one percent or more of alcohol
         by 87.11volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing
         or 87.12pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision,
         87.13"dietary supplements" means any product, other than tobacco, intended to supplement
         the 87.14diet that:87.15(1) contains one or more of the following dietary ingredients:87.16(i) a vitamin;87.17(ii) a mineral;87.18(iii) an herb or other botanical;87.19(iv) an amino acid;87.20(v) a dietary substance for use by humans to supplement the diet by increasing the
         total 87.21dietary intake; and87.22(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
         87.23described in items (i) to (v);87.24(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid
         form, 87.25or if not intended for ingestion in such form, is not represented as conventional
         food and is 87.26not represented for use as a sole item of a meal or of the diet; and87.27(3) is required to be labeled as a dietary supplement, identifiable by the supplement
         facts 87.28box found on the label and as required pursuant to Code of Federal Regulations, title
         21, 87.29section 101.36.87.30    Sec. 10. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read:87.31    Subd. 4. Exempt meals at residential facilities.  Prepared food, candy, and soft drinks 87.32served to patients, inmates, or persons residing at hospitals, sanitariums, nursing
         homes, 88.1senior citizen homes, and correctional, detention, and detoxification facilities are
         exempt. 88.2Taxable food sold through vending machines is not exempt.88.3EFFECTIVE DATE.This section is effective for sales and purchases made after June 88.430, 2017.88.5    Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read:88.6    Subd. 5. Exempt meals at schools. Prepared food, candy, and soft drinks served at 88.7public and private elementary, middle, or secondary schools as defined in section
         
         120A.0588.8are exempt. Prepared food, candy, and soft drinks served to students at a college,
         university, 88.9or private career school under a board contract are exempt. Taxable food sold through 88.10vending machines is not exempt.88.11EFFECTIVE DATE.This section is effective for sales and purchases made after June 88.1230, 2017.88.13    Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read:88.14    Subd. 6. Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 88.15and served exclusively to individuals who are 60 years of age or over and their spouses
         or 88.16to disabled persons and their spouses by governmental agencies, nonprofit organizations,
         88.17or churches, or pursuant to any program funded in whole or in part through United
         States 88.18Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served,
         are 88.19exempt. Taxable food sold through vending machines is not exempt.88.20(b) Prepared food, candy, and soft drinks purchased for and served exclusively to
         children 88.21who are less than 14 years of age or disabled children who are less than 16 years
         of age and 88.22who are attending a child care or early childhood education program, are exempt if
         they 88.23are:88.24(1) purchased by a nonprofit child care facility that is exempt under section 
         297A.70, 88.25subdivision 4
         , and that primarily serves families with income of 250 percent or less of 88.26federal poverty guidelines; and88.27(2) prepared at the site of the child care facility.88.28EFFECTIVE DATE.This section is effective for sales and purchases made after June 88.2930, 2017.89.1    Sec. 13. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 89.2to read:89.3    Subd. 34.Precious metal bullion and bullion coin.(a) Precious metal bullion and 89.4bullion coin is exempt. For purposes of this subdivision, "precious metal bullion"
         means 89.5bars or rounds that consist of 99.9 percent or more by weight of either gold, silver
         platinum, 89.6or palladium and are marked with weight, purity, and content. For purposes of this
         89.7subdivision, "bullion coin" means only the following coins:89.8(1) gold, silver, or platinum American eagle;89.9(2) gold American buffalo;89.10(3) silver Australian koala;89.11(4) silver Australian kookaburra;89.12(5) gold or silver Austrian philharmonic;89.13(6) gold or silver British britannia;89.14(7) gold British sovereign;89.15(8) gold, silver, platinum, or palladium Canadian maple leaf;89.16(9) palladium Isle of Man noble;89.17(10) gold or silver Chinese panda;89.18(11) gold or silver Mexican libertad or peso;89.19(12) gold South African krugerrand;89.20(13) gold French, Swiss, or Belgian 20 francs; and89.21(14) junk United States silver coins issued before 1965 that are at least 90 percent
         silver.89.22(b) The intent of this subdivision is to eliminate the difference in tax treatment
         between 89.23the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and
         other 89.24investment instruments.89.25EFFECTIVE DATE.This section is effective for sales and purchases made after June 89.2630, 2017.90.1    Sec. 14. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 90.2to read:90.3    Subd. 11a.Minnesota State High School League tickets and admissions.Tickets and 90.4admissions to games, events, and activities sponsored by the Minnesota State High
         School 90.5League under chapter 128C are exempt.90.6EFFECTIVE DATE.This section is effective for sales and purchases made after June 90.730, 2017, and before July 1, 2027.90.8    Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:90.9    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 90.10personal property or services at, and admission charges for fund-raising events sponsored
         90.11by, a nonprofit organization are exempt if:90.12(1) all gross receipts are recorded as such, in accordance with generally accepted
         90.13accounting practices, on the books of the nonprofit organization; and90.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely
         90.15and exclusively for charitable, religious, or educational purposes. Exempt sales include
         the 90.16sale of prepared food, candy, and soft drinks at the fund-raising event.90.17(b) This exemption is limited in the following manner:90.18(1) it does not apply to admission charges for events involving bingo or other gambling
         90.19activities or to charges for use of amusement devices involving bingo or other gambling
         90.20activities;90.21(2) all gross receipts are taxable if the profits are not used solely and exclusively
         for 90.22charitable, religious, or educational purposes;90.23(3) it does not apply unless the organization keeps a separate accounting record,
         including 90.24receipts and disbursements from each fund-raising event that documents all deductions
         from 90.25gross receipts with receipts and other records;90.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation
         as 90.27the active or passive agent of a person that is not a nonprofit corporation;90.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; and90.29(6) it does not apply to fund-raising events conducted on premises leased for more than
         90.30five days but less than 30 days; and91.1(7) it does not apply if the risk of the event is not borne by the nonprofit organization
         91.2and the benefit to the nonprofit organization is less than the total amount of the
         state and 91.3local tax revenues forgone by this exemption.91.4(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
         91.5government, corporation, society, association, foundation, or institution organized
         and 91.6operated for charitable, religious, educational, civic, fraternal, and senior citizens'
         or veterans' 91.7purposes, no part of the net earnings of which inures to the benefit of a private
         individual.91.8(d) For purposes of this subdivision, "fund-raising events" means activities of limited
         91.9duration, not regularly carried out in the normal course of business, that attract
         patrons for 91.10community, social, and entertainment purposes, such as auctions, bake sales, ice cream
         91.11socials, block parties, carnivals, competitions, concerts, concession stands, craft
         sales, 91.12bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows,
         festivals, 91.13galas, special event workshops, sporting activities such as marathons and tournaments,
         and 91.14similar events. Fund-raising events do not include the operation of a regular place
         of business 91.15in which services are provided or sales are made during regular hours such as bookstores,
         91.16thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled
         classes, or 91.17other activities carried out in the normal course of business.91.18EFFECTIVE DATE.This section is effective for sales and purchases made after June 91.1930, 2017.91.20    Sec. 16. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:91.21    Subd. 44. Building materials, capital projects.(a) Materials and supplies used or 91.22consumed in and equipment incorporated into the construction or improvement of a capital
         91.23project funded partially or wholly under section 
         297A.9905 are exempt, provided that the 91.24project has a total construction cost of at least $40,000,000 within a 24-month period.91.25(b) Materials and supplies used or consumed in and equipment incorporated into the
         91.26construction, remodeling, expansion, or improvement of an ice arena or other buildings
         or 91.27facilities owned and operated by the city of Plymouth are exempt. For purposes of
         this 91.28subdivision, "facilities" include municipal streets and facilities associated with
         streets 91.29including but not limited to lighting, curbs and gutters, and sidewalks. The total
         amount of 91.30refund on all building materials, supplies, and equipment that the city may apply
         for under 91.31this paragraph is $2,500,000.92.1(c) The tax on purchases exempt under this provision must be imposed and collected as
         92.2if the rate under section 
         297A.62, subdivision 1, applied and then refunded in the manner 92.3provided in section 
         297A.75.92.4EFFECTIVE DATE.This section is effective retroactively for sales and purchases 92.5made after January 1, 2015.92.6    Sec. 17. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.7to read:92.8    Subd. 49.Properties destroyed by fire.Building materials and supplies used in, and 92.9equipment incorporated into, the construction or replacement of real property that
         is located 92.10in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
         92.11and collected as if the rate under section 297A.62, subdivision 1, applied and then
         refunded 92.12in the manner provided in section 297A.75.92.13EFFECTIVE DATE.This section is effective retroactively for sales and purchases 92.14made after December 31, 2015, and before July 1, 2018.92.15    Sec. 18. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.16to read:92.17    Subd. 50.Properties destroyed by fire.(a) Building materials and supplies used in, 92.18and equipment incorporated into, the construction or replacement of real property
         that is 92.19located in Melrose affected by the fire on September 8, 2016, are exempt.92.20(b) For sales and purchases made after September 30, 2016, and before July 1, 2017,
         92.21the tax must be imposed and collected as if the rate under section 297A.62, subdivision
         1, 92.22applied and then refunded in the manner provided in section 297A.75.92.23EFFECTIVE DATE.Paragraph (a) is effective retroactively for sales and purchases 92.24made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective
         for 92.25sales and purchases made after September 30, 2016, and before July 1, 2017.92.26    Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 92.27to read:92.28    Subd. 51.Building materials; Major League Soccer stadium.Materials and supplies 92.29used or consumed in, and equipment incorporated into, the construction of a Major
         League 92.30Soccer stadium and related infrastructure constructed in the city of St. Paul are
         exempt. 93.1This subdivision expires one year after the date that the first Major League Soccer
         game is 93.2played in the stadium.93.3EFFECTIVE DATE.This section is effective for sales and purchases made after the 93.4day following final enactment.93.5    Sec. 20. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:93.6    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following 93.7exempt items must be imposed and collected as if the sale were taxable and the rate
         under 93.8section 
         297A.62, subdivision 1, applied. The exempt items include:93.9    (1) building materials for an agricultural processing facility exempt under section
         93.10297A.71, subdivision 13
         ;93.11    (2) building materials for mineral production facilities exempt under section 
         297A.71, 93.12subdivision 14
         ;93.13    (3) building materials for correctional facilities under section 
         297A.71, subdivision 3;93.14    (4) building materials used in a residence for disabled veterans exempt under section
         93.15297A.71, subdivision 11
         ;93.16    (5) elevators and building materials exempt under section 
         297A.71, subdivision 12;93.17    (6) materials and supplies for qualified low-income housing under section 
         297A.71, 93.18subdivision 23
         ;93.19    (7) materials, supplies, and equipment for municipal electric utility facilities under
         93.20section 
         297A.71, subdivision 35;93.21    (8) equipment and materials used for the generation, transmission, and distribution
         of 93.22electrical energy and an aerial camera package exempt under section 
         297A.68, subdivision 93.2337;93.24    (9) commuter rail vehicle and repair parts under section 
         297A.70, subdivision 3, paragraph 93.25(a), clause (10);93.26    (10) materials, supplies, and equipment for construction or improvement of projects
         and 93.27facilities under section 
         297A.71, subdivision 40;93.28(11) materials, supplies, and equipment for construction, improvement, or expansion
         93.29of:93.30(i) an aerospace defense manufacturing facility exempt under section 
         297A.71, 93.31subdivision 42
         ;94.1(ii) a biopharmaceutical manufacturing facility exempt under section 
         297A.71, subdivision 94.245
         ;94.3(iii) a research and development facility exempt under section 
         297A.71, subdivision 46; 94.4and94.5(iv) an industrial measurement manufacturing and controls facility exempt under section
         94.6297A.71, subdivision 47
         ;94.7(12) enterprise information technology equipment and computer software for use in
         a 94.8qualified data center exempt under section 
         297A.68, subdivision 42;94.9(13) materials, supplies, and equipment for qualifying capital projects under section
         94.10297A.71, subdivision 44
         ;94.11(14) items purchased for use in providing critical access dental services exempt under
         94.12section 
         297A.70, subdivision 7, paragraph (c); and94.13(15) items and services purchased under a business subsidy agreement for use or 94.14consumption primarily in greater Minnesota exempt under section 
         297A.68, subdivision 94.1544
         ;94.16(16) building materials, equipment, and supplies for constructing or replacing real
         94.17property exempt under section 297A.71, subdivision 49; and94.18(17) building materials, equipment, and supplies for constructing or replacing real
         94.19property exempt under section 297A.71, subdivision 50.94.20EFFECTIVE DATE.(a) Clause (16) is effective retroactively for sales and purchases 94.21made after December 31, 2015.94.22(b) Clause (17) is effective retroactively for sales and purchases made after September
         94.2330, 2016.94.24    Sec. 21. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:94.25    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 94.26commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
         must 94.27be paid to the applicant. Only the following persons may apply for the refund:94.28    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;94.29    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;94.30    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
         94.31provided in United States Code, title 38, chapter 21;95.1    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
         95.2property;95.3    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;95.4    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility
         or a 95.5joint venture of municipal electric utilities;95.6    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
         95.7business; and95.8    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
         95.9entity that owns or contracts for the project or facility;95.10    (9) for subdivision 1, clause (16), the applicant must be the owner or developer of
         the 95.11building or project; and95.12    (10) for subdivision 1, clause (17), the applicant must be the owner or developer
         of the 95.13building or project..95.14EFFECTIVE DATE.(a) Clause (9) is effective retroactively for sales and purchases 95.15made after December 31, 2015.95.16(b) Clause (10) is effective retroactively for sales and purchases made after September
         95.1730, 2016.95.18    Sec. 22. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:95.19    Subd. 3. Application. (a) The application must include sufficient information to permit 95.20the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
         95.21or builder, under subdivision 1, clauses (3) to (13), or (15), (16), and (17), the contractor, 95.22subcontractor, or builder must furnish to the refund applicant a statement including
         the cost 95.23of the exempt items and the taxes paid on the items unless otherwise specifically
         provided 95.24by this subdivision. The provisions of sections 
         289A.40 and 
         289A.50 apply to refunds under 95.25this section.95.26    (b) An applicant may not file more than two applications per calendar year for refunds
         95.27for taxes paid on capital equipment exempt under section 
         297A.68, subdivision 5.95.28EFFECTIVE DATE.This section is effective the day following final enactment.96.1    Sec. 23. EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.96.2(a) Notwithstanding the seven-year certification period under Minnesota Statutes,
         section 96.3116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
         96.4component distribution center investing a minimum of $200,000,000 and constructing
         a 96.5facility at least 700,000 square feet in size is effective for the ten-year period
         beginning on 96.6the first day of the calendar month immediately following the date that the commissioner
         96.7informs the business of the award of the benefit.96.8(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes,
         section 96.9116J.8738, subdivision 4, the sales tax exemption for an eligible electronic wholesale
         96.10component distribution center investing a minimum of $200,000,000 and constructing
         a 96.11facility at least 700,000 square feet in size may be authorized up to $5,000,000 annually
         96.12and up to $40,000,000 during the total period of the agreement.96.13    Sec. 24. SEVERABILITY.96.14If any provision of sections 5 to 8 or the application thereof is held invalid, such
         invalidity 96.15shall not affect the provisions or applications of the sections that can be given
         effect without 96.16the invalid provisions or applications.96.17EFFECTIVE DATE.This section is effective the day following final enactment.96.18    Sec. 25. EFFECTIVE DATE.96.19(a) The provisions of sections 5 to 8 are effective at the earlier of:96.20(1) a decision by the United States Supreme Court modifying its decision in Quill
         Corp. 96.21v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without
         a physical 96.22presence in the state to collect and remit sales tax; or96.23(2) July 1, 2018.96.24(b) Notwithstanding paragraph (a) or the provisions of sections 5 to 8, if a federal
         law 96.25is enacted authorizing a state to impose a requirement to collect and remit sales
         tax on 96.26retailers without a physical presence in the state, the commissioner must enforce
         the 96.27provisions of this section and sections 5 to 8 to the extent allowed under federal
         law.96.28(c) The commissioner of revenue shall notify the revisor of statutes when either of
         the 96.29provisions in paragraph (a) or (b) apply.97.1ARTICLE 497.2PROPERTY TAX: AIDS AND CREDITS97.3    Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read:97.4    Subd. 4. Debt service equalization revenue. (a) The debt service equalization revenue 97.5of a district equals the sum of the first tier debt service equalization revenue and
         the second 97.6tier debt service equalization revenue.97.7    (b) The first tier debt service equalization revenue of a district equals the greater
         of zero 97.8or the eligible debt service revenue minus the amount raised by a levy of 
         15.74 percentthe 97.9first tier initial effort rate times the adjusted net tax capacity of the district minus the second 97.10tier debt service equalization revenue of the district.97.11    (c) The second tier debt service equalization revenue of a district equals the greater
         of 97.12zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24
         percent 97.13times the adjusted net tax capacity of the district.97.14(d) The first tier initial effort rate for taxes payable in 2018 is ten percent. The
         initial 97.15effort rate for taxes payable in 2019 and later is 15.74 percent.97.16EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.97.17    Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:97.18    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a district 97.19equals the sum of the first tier equalized debt service levy and the second tier equalized
         debt 97.20service levy.97.21(b) A district's first tier equalized debt service levy equals the district's first
         tier debt 97.22service equalization revenue times the lesser of one or the ratio of:97.23(1) the quotient derived by dividing the adjusted net tax capacity of the district
         for the 97.24year before the year the levy is certified by the adjusted pupil units in the district
         for the 97.25school year ending in the year prior to the year the levy is certified; to97.26(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or 97.2755.33 percent of the initial equalizing factor in fiscal year 2018 and later, 75 percent of the 97.28initial equalizing factor in fiscal year 2019, and 55.33 percent of the initial equalizing
         factor 97.29in fiscal year 2020 and later.97.30(c) A district's second tier equalized debt service levy equals the district's second
         tier 97.31debt service equalization revenue times the lesser of one or the ratio of:98.1(1) the quotient derived by dividing the adjusted net tax capacity of the district
         for the 98.2year before the year the levy is certified by the adjusted pupil units in the district
         for the 98.3school year ending in the year prior to the year the levy is certified; to98.4(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent
         of 98.5the initial equalizing factor in fiscal year 2018 and later.98.6(d) For the purposes of this subdivision, the initial equalizing factor equals the
         quotient 98.7derived by dividing the total adjusted net tax capacity of all school districts in
         the state for 98.8the year before the year the levy is certified by the total number of adjusted pupil
         units in 98.9all school districts in the state in the year before the year the levy is certified.98.10EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.98.11    Sec. 3. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:98.12    Subd. 6. Referendum equalization levy. (a) A district's referendum equalization levy 98.13equals the sum of the first tier referendum equalization levy, the second tier referendum
         98.14equalization levy, and the third tier referendum equalization levy.98.15(b) A district's first tier referendum equalization levy equals the district's first
         tier 98.16referendum equalization revenue times the lesser of one or the ratio of the district's
         98.17referendum market value per resident pupil unit to $880,000 $950,000.98.18(c) A district's second tier referendum equalization levy equals the district's second
         tier 98.19referendum equalization revenue times the lesser of one or the ratio of the district's
         98.20referendum market value per resident pupil unit to $510,000 $611,000.98.21(d) A district's third tier referendum equalization levy equals the district's third
         tier 98.22referendum equalization revenue times the lesser of one or the ratio of the district's
         98.23referendum market value per resident pupil unit to $290,000.98.24EFFECTIVE DATE.This section is effective for taxes payable in 2018 and later.98.25    Sec. 4. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:98.26    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund 98.27payments for a district nonoperating fund must be made at the current year aid payment
         98.28percentage of the estimated entitlement during the fiscal year of the entitlement.
         This amount 98.29shall be paid in 12 six equal monthly installments beginning in July. The amount of the 98.30actual entitlement, after adjustment for actual data, minus the payments made during
         the 98.31fiscal year of the entitlement must be paid prior to October 31 of the following school
         year. 99.1The commissioner may make advance payments of debt service equalization aid and 99.2state-paid tax credits for a district's debt service fund earlier than would occur
         under the 99.3preceding schedule if the district submits evidence showing a serious cash flow problem
         in 99.4the fund. The commissioner may make earlier payments during the year and, if necessary,
         99.5increase the percent of the entitlement paid to reduce the cash flow problem.99.6EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.99.7    Sec. 5. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:99.8    Subd. 13. Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a, 99.9and 14, each fiscal year, all education aids and credits in this chapter and chapters
         120A, 99.10120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 
         273.1392, 99.11shall be paid at the current year aid payment percentage of the estimated entitlement
         during 99.12the fiscal year of the entitlement. For the purposes of this subdivision, a district's
         estimated 99.13entitlement for special education aid under section 
         125A.76 for fiscal year 2014 and later 99.14equals 97.4 percent of the district's entitlement for the current fiscal year. The
         final adjustment 99.15payment, according to subdivision 9, must be the amount of the actual entitlement,
         after 99.16adjustment for actual data, minus the payments made during the fiscal year of the
         entitlement.99.17EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.99.18    Sec. 6. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.99.19    Subdivision 1.Eligibility.All class 2a, 2b, and 2c property under section 273.13, 99.20subdivision 23, other than property consisting of the house, garage, and immediately
         99.21surrounding one acre of land of an agricultural homestead, is eligible to receive
         the credit 99.22under this section.99.23    Subd. 2.Credit amount.For each qualifying property, the school building bond 99.24agricultural credit is equal to 40 percent of the property's eligible net tax capacity
         multiplied 99.25by the school debt tax rate determined under section 275.08, subdivision 1b.99.26    Subd. 3.Credit reimbursements.The county auditor shall determine the tax reductions 99.27allowed under this section within the county for each taxes payable year and shall
         certify 99.28that amount to the commissioner of revenue as a part of the abstracts of tax lists
         submitted 99.29under section 275.29. Any prior year adjustments shall also be certified on the abstracts
         of 99.30tax lists. The commissioner shall review the certifications for accuracy, and may
         make such 99.31changes as are deemed necessary, or return the certification to the county auditor
         for 100.1correction. The credit under this section must be used to reduce the school district
         net tax 100.2capacity-based property tax as provided in section 273.1393.100.3    Subd. 4.Payment.The commissioner of revenue shall certify the total of the tax 100.4reductions granted under this section for each taxes payable year within each school
         district 100.5to the commissioner of education who shall pay the reimbursement amounts to each school
         100.6district as provided in section 273.1392.100.7    Subd. 5.Appropriation.An amount sufficient to make the payments required by this 100.8section is annually appropriated from the general fund to the commissioner of education.100.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.100.10    Sec. 7. Minnesota Statutes 2016, section 273.1392, is amended to read:100.11273.1392 PAYMENT; SCHOOL DISTRICTS.100.12The amounts of bovine tuberculosis credit reimbursements under section 
         273.113; 100.13conservation tax credits under section 
         273.119; disaster or emergency reimbursement under 100.14sections 
         273.1231 to 
         273.1235; homestead and agricultural credits under section sections100.15273.1384
          and 273.1387; aids and credits under section 
         273.1398; enterprise zone property 100.16credit payments under section 
         469.171; and metropolitan agricultural preserve reduction 100.17under section 
         473H.10 for school districts, shall be certified to the Department of Education 100.18by the Department of Revenue. The amounts so certified shall be paid according to
         section 100.19127A.45
         , subdivisions 9, 10, and 13.100.20EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.100.21    Sec. 8. Minnesota Statutes 2016, section 273.1393, is amended to read:100.22273.1393 COMPUTATION OF NET PROPERTY TAXES.100.23    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
         100.24by subtracting the credits in the order listed from the gross tax:100.25    (1) disaster credit as provided in sections 
         273.1231 to 
         273.1235;100.26    (2) powerline credit as provided in section 
         273.42;100.27    (3) agricultural preserves credit as provided in section 
         473H.10;100.28    (4) enterprise zone credit as provided in section 
         469.171;100.29    (5) disparity reduction credit;100.30    (6) conservation tax credit as provided in section 
         273.119;101.1    (7) the school bond credit as provided in section 273.1387;101.2    (8) agricultural credit as provided in section 
         273.1384;101.3    (8) (9) taconite homestead credit as provided in section 
         273.135;101.4    (9) (10) supplemental homestead credit as provided in section 
         273.1391; and101.5    (10) (11) the bovine tuberculosis zone credit, as provided in section 
         273.113.101.6    The combination of all property tax credits must not exceed the gross tax amount.101.7EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.101.8    Sec. 9. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:101.9    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and 101.10the county treasurer shall deliver after November 10 and on or before November 24
         each 101.11year, by first class mail to each taxpayer at the address listed on the county's current
         year's 101.12assessment roll, a notice of proposed property taxes. Upon written request by the
         taxpayer, 101.13the treasurer may send the notice in electronic form or by electronic mail instead
         of on paper 101.14or by ordinary mail.101.15    (b) The commissioner of revenue shall prescribe the form of the notice.101.16    (c) The notice must inform taxpayers that it contains the amount of property taxes
         each 101.17taxing authority proposes to collect for taxes payable the following year. In the
         case of a 101.18town, or in the case of the state general tax, the final tax amount will be its proposed
         tax. 101.19The notice must clearly state for each city that has a population over 500, county,
         school 101.20district, regional library authority established under section 
         134.201, and metropolitan taxing 101.21districts as defined in paragraph (i), the time and place of a meeting for each taxing
         authority 101.22in which the budget and levy will be discussed and public input allowed, prior to
         the final 101.23budget and levy determination. The taxing authorities must provide the county auditor
         with 101.24the information to be included in the notice on or before the time it certifies its
         proposed 101.25levy under subdivision 1. The public must be allowed to speak at that meeting, which
         must 101.26occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
         101.27number for the taxing authority that taxpayers may call if they have questions related
         to the 101.28notice and an address where comments will be received by mail, except that no notice
         101.29required under this section shall be interpreted as requiring the printing of a personal
         101.30telephone number or address as the contact information for a taxing authority. If
         a taxing 101.31authority does not maintain public offices where telephone calls can be received by
         the 102.1authority, the authority may inform the county of the lack of a public telephone number
         and 102.2the county shall not list a telephone number for that taxing authority.102.3    (d) The notice must state for each parcel:102.4    (1) the market value of the property as determined under section 
         273.11, and used for 102.5computing property taxes payable in the following year and for taxes payable in the
         current 102.6year as each appears in the records of the county assessor on November 1 of the current
         102.7year; and, in the case of residential property, whether the property is classified
         as homestead 102.8or nonhomestead. The notice must clearly inform taxpayers of the years to which the
         market 102.9values apply and that the values are final values;102.10    (2) the items listed below, shown separately by county, city or town, and state general
         102.11tax, agricultural homestead credit under section 
         273.1384, school building bond agricultural 102.12credit under section 273.1387, voter approved school levy, other local school levy, and the 102.13sum of the special taxing districts, and as a total of all taxing authorities:102.14    (i) the actual tax for taxes payable in the current year; and102.15    (ii) the proposed tax amount.102.16    If the county levy under clause (2) includes an amount for a lake improvement district
         102.17as defined under sections 
         103B.501 to 
         103B.581, the amount attributable for that purpose 102.18must be separately stated from the remaining county levy amount.102.19    In the case of a town or the state general tax, the final tax shall also be its proposed
         tax 102.20unless the town changes its levy at a special town meeting under section 
         365.52. If a school 102.21district has certified under section 
         126C.17, subdivision 9, that a referendum will be held 102.22in the school district at the November general election, the county auditor must note
         next 102.23to the school district's proposed amount that a referendum is pending and that, if
         approved 102.24by the voters, the tax amount may be higher than shown on the notice. In the case
         of the 102.25city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed
         separately 102.26from the remaining amount of the city's levy. In the case of the city of St. Paul,
         the levy for 102.27the St. Paul Library Agency must be listed separately from the remaining amount of
         the 102.28city's levy. In the case of Ramsey County, any amount levied under section 
         134.07 may be 102.29listed separately from the remaining amount of the county's levy. In the case of a
         parcel 102.30where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
         102.31applies, the proposed tax levy on the captured value or the proposed tax levy on the
         tax 102.32capacity subject to the areawide tax must each be stated separately and not included
         in the 102.33sum of the special taxing districts; and103.1    (3) the increase or decrease between the total taxes payable in the current year and
         the 103.2total proposed taxes, expressed as a percentage.103.3    For purposes of this section, the amount of the tax on homesteads qualifying under
         the 103.4senior citizens' property tax deferral program under chapter 290B is the total amount
         of 103.5property tax before subtraction of the deferred property tax amount.103.6    (e) The notice must clearly state that the proposed or final taxes do not include
         the 103.7following:103.8    (1) special assessments;103.9    (2) levies approved by the voters after the date the proposed taxes are certified,
         including 103.10bond referenda and school district levy referenda;103.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first
         Monday 103.12in November of the levy year as provided under section 
         275.73;103.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
         103.14after the date the proposed taxes are certified;103.15    (5) amounts necessary to pay tort judgments against the taxing authority that become
         103.16final after the date the proposed taxes are certified; and103.17    (6) the contamination tax imposed on properties which received market value reductions
         103.18for contamination.103.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare
         or the 103.20county treasurer to deliver the notice as required in this section does not invalidate
         the 103.21proposed or final tax levy or the taxes payable pursuant to the tax levy.103.22    (g) If the notice the taxpayer receives under this section lists the property as 103.23nonhomestead, and satisfactory documentation is provided to the county assessor by
         the 103.24applicable deadline, and the property qualifies for the homestead classification in
         that 103.25assessment year, the assessor shall reclassify the property to homestead for taxes
         payable 103.26in the following year.103.27    (h) In the case of class 4 residential property used as a residence for lease or rental
         103.28periods of 30 days or more, the taxpayer must either:103.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
         renter, 103.30or lessee; or103.31    (2) post a copy of the notice in a conspicuous place on the premises of the property.104.1    The notice must be mailed or posted by the taxpayer by November 27 or within three
         104.2days of receipt of the notice, whichever is later. A taxpayer may notify the county
         treasurer 104.3of the address of the taxpayer, agent, caretaker, or manager of the premises to which
         the 104.4notice must be mailed in order to fulfill the requirements of this paragraph.104.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
         104.6districts" means the following taxing districts in the seven-county metropolitan area
         that 104.7levy a property tax for any of the specified purposes listed below:104.8    (1) Metropolitan Council under section 
         473.132, 
         473.167, 
         473.249, 
         473.325, 
         473.446, 104.9473.521
         , 
         473.547, or 
         473.834;104.10    (2) Metropolitan Airports Commission under section 
         473.667, 
         473.671, or 
         473.672; and104.11    (3) Metropolitan Mosquito Control Commission under section 
         473.711.104.12    For purposes of this section, any levies made by the regional rail authorities in
         the county 104.13of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
         104.14shall be included with the appropriate county's levy.104.15    (j) The governing body of a county, city, or school district may, with the consent
         of the 104.16county board, include supplemental information with the statement of proposed property
         104.17taxes about the impact of state aid increases or decreases on property tax increases
         or 104.18decreases and on the level of services provided in the affected jurisdiction. This
         supplemental 104.19information may include information for the following year, the current year, and
         for as 104.20many consecutive preceding years as deemed appropriate by the governing body of the
         104.21county, city, or school district. It may include only information regarding:104.22    (1) the impact of inflation as measured by the implicit price deflator for state and
         local 104.23government purchases;104.24    (2) population growth and decline;104.25    (3) state or federal government action; and104.26    (4) other financial factors that affect the level of property taxation and local services
         104.27that the governing body of the county, city, or school district may deem appropriate
         to 104.28include.104.29    The information may be presented using tables, written narrative, and graphic 104.30representations and may contain instruction toward further sources of information
         or 104.31opportunity for comment.104.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.105.1    Sec. 10. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:105.2    Subd. 2. School district in more than one county levies; special requirements.(a) In 105.3school districts lying in more than one county, the clerk shall certify the tax levied
         to the 105.4auditor of the county in which the administrative offices of the school district are
         located.105.5(b) The district must identify the portion of the school district levy that is levied
         for debt 105.6service at the time the levy is certified under this section. For the purposes of
         this paragraph, 105.7"levied for debt service" means levies authorized under sections 123B.53, 123B.535,
         and 105.8123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
         reductions 105.9under section 475.61, subdivision 4, excluding debt service amounts necessary for
         repayment 105.10of other postemployment benefits under section 475.52, subdivision 6.105.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.105.12    Sec. 11. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:105.13    Subd. 1b. Computation of tax rates.(a) The amounts certified to be levied against net 105.14tax capacity under section 
         275.07 by an individual local government unit shall be divided 105.15by the total net tax capacity of all taxable properties within the local government
         unit's 105.16taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied
         by 105.17each property's net tax capacity shall be each property's net tax capacity tax for
         that local 105.18government unit before reduction by any credits.105.19(b) The auditor must also determine the school debt tax rate for each school district
         equal 105.20to (1) the school debt service levy certified under section 275.07, subdivision 2,
         divided by 105.21(2) the total net tax capacity of all taxable property within the district.105.22(c) Any amount certified to the county auditor to be levied against market value shall
         105.23be divided by the total referendum market value of all taxable properties within the
         taxing 105.24district. The resulting ratio, the taxing district's new referendum tax rate, multiplied
         by each 105.25property's referendum market value shall be each property's new referendum tax before
         105.26reduction by any credits. For the purposes of this subdivision, "referendum market
         value" 105.27means the market value as defined in section 
         126C.01, subdivision 3.105.28EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.105.29    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:105.30    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of 105.31the tax statements. The commissioner of revenue shall prescribe the form of the property
         105.32tax statement and its contents. The tax statement must not state or imply that property
         tax 106.1credits are paid by the state of Minnesota. The statement must contain a tabulated
         statement 106.2of the dollar amount due to each taxing authority and the amount of the state tax
         from the 106.3parcel of real property for which a particular tax statement is prepared. The dollar
         amounts 106.4attributable to the county, the state tax, the voter approved school tax, the other
         local school 106.5tax, the township or municipality, and the total of the metropolitan special taxing
         districts 106.6as defined in section 
         275.065, subdivision 3, paragraph (i), must be separately stated. The 106.7amounts due all other special taxing districts, if any, may be aggregated except that
         any 106.8levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
         Hennepin, 106.9Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line
         directly 106.10under the appropriate county's levy. If the county levy under this paragraph includes
         an 106.11amount for a lake improvement district as defined under sections 
         103B.501 to 
         103B.581, 106.12the amount attributable for that purpose must be separately stated from the remaining
         county 106.13levy amount. In the case of Ramsey County, if the county levy under this paragraph
         includes 106.14an amount for public library service under section 
         134.07, the amount attributable for that 106.15purpose may be separated from the remaining county levy amount. The amount of the
         tax 106.16on homesteads qualifying under the senior citizens' property tax deferral program
         under 106.17chapter 290B is the total amount of property tax before subtraction of the deferred
         property 106.18tax amount. The amount of the tax on contamination value imposed under sections 
         270.91106.19to 
         270.98, if any, must also be separately stated. The dollar amounts, including the dollar
         106.20amount of any special assessments, may be rounded to the nearest even whole dollar.
         For 106.21purposes of this section whole odd-numbered dollars may be adjusted to the next higher
         106.22even-numbered dollar. The amount of market value excluded under section 
         273.11, 106.23subdivision 16
         , if any, must also be listed on the tax statement.106.24    (b) The property tax statements for manufactured homes and sectional structures taxed
         106.25as personal property shall contain the same information that is required on the tax
         statements 106.26for real property.106.27    (c) Real and personal property tax statements must contain the following information
         106.28in the order given in this paragraph. The information must contain the current year
         tax 106.29information in the right column with the corresponding information for the previous
         year 106.30in a column on the left:106.31    (1) the property's estimated market value under section 
         273.11, subdivision 1;106.32    (2) the property's homestead market value exclusion under section 
         273.13, subdivision 106.3335;106.34    (3) the property's taxable market value under section 
         272.03, subdivision 15;107.1    (4) the property's gross tax, before credits;107.2    (5) for homestead agricultural properties, the credit credits under section sections107.3273.1384 and 273.1387;107.4    (6) any credits received under sections 
         273.119; 
         273.1234 or 
         273.1235; 
         273.135; 107.5273.1391
         ; 
         273.1398, subdivision 4; 
         469.171; and 
         473H.10, except that the amount of credit 107.6received under section 
         273.135 must be separately stated and identified as "taconite tax 107.7relief"; and107.8    (7) the net tax payable in the manner required in paragraph (a).107.9    (d) If the county uses envelopes for mailing property tax statements and if the county
         107.10agrees, a taxing district may include a notice with the property tax statement notifying
         107.11taxpayers when the taxing district will begin its budget deliberations for the current
         year, 107.12and encouraging taxpayers to attend the hearings. If the county allows notices to
         be included 107.13in the envelope containing the property tax statement, and if more than one taxing
         district 107.14relative to a given property decides to include a notice with the tax statement, the
         county 107.15treasurer or auditor must coordinate the process and may combine the information on
         a 107.16single announcement.107.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.107.18    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:107.19    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than 107.2010,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
         107.21percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970;
         plus 107.22(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5)
         307.664.107.23    (b) For a city with a population equal to or greater than 2,500 and less than 10,000,
         "city 107.24revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940
         housing 107.25percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
         107.26decline.107.27    (c) For a city with a population less than 2,500, "city revenue need" is the sum of
         410 107.28plus 0.367 times the city's population over 100. The city revenue need under this
         paragraph 107.29shall not exceed 630.107.30    (d) For a city with a population of at least 2,500 but less than 3,000, the "city
         revenue 107.31need" equals (1) the transition factor times the city's revenue need calculated in
         paragraph 107.32(b); plus (2) 630 times the difference between one and the transition factor. For
         a city with 108.1a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals 108.2(1) the transition factor times the city's revenue need calculated in paragraph (a);
         plus (2) 108.3the city's revenue need calculated under the formula in paragraph (b) times the difference
         108.4between one and the transition factor. For purposes of the first sentence of this paragraph,108.5"transition factor" is 0.2 percent times the amount that the city's population exceeds
         the 108.6minimum threshold in either of the first two sentences. For purposes of the second sentence 108.7of this paragraph, "transition factor" is 0.1 percent times the amount that the city's
         population 108.8exceeds the minimum threshold.108.9    (e) The city revenue need cannot be less than zero.108.10    (f) For calendar year 2015 and subsequent years, the city revenue need for a city,
         as 108.11determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit
         price 108.12deflator for government consumption expenditures and gross investment for state and
         local 108.13governments as prepared by the United States Department of Commerce, for the most
         108.14recently available year to the 2013 implicit price deflator for state and local government
         108.15purchases.108.16EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 108.17and thereafter.108.18    Sec. 14. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 108.19CERTAIN OUT-OF-HOME PLACEMENT.108.20    Subdivision 1.Definition.For purposes of this section, "out-of-home placement" means 108.2124-hour substitute care for an Indian child as defined by section 260C.007, subdivision
         21, 108.22placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's
         108.23parent or guardian and for whom the county social services agency or county correctional
         108.24agency has been assigned responsibility for the child's placement and care, which
         includes 108.25placement in foster care under section 260C.007, subdivision 18, and a correctional
         facility 108.26pursuant to a court order.108.27    Subd. 2.Determination of nonfederal share of costs.(a) By July 1, 2017, each county 108.28shall report the following information to the commissioners of human services and
         108.29corrections: (1) the separate amounts paid out of the county's social service agency
         and its 108.30corrections budget for out-of-home placement of children under the ICWA in calendar
         years 108.312013, 2014, and 2015; and (2) the number of case days associated with the expenditures
         108.32from each budget. The commissioner of human services shall prescribe the format of
         the 108.33report. By July 15, 2017, the commissioner of human services, in consultation with
         the 108.34commissioner of corrections, shall certify to the commissioner of revenue and to the
         109.1legislative committees with jurisdiction over local government aids and out-of-home
         109.2placement funding whether the data reported under this subdivision accurately reflect
         total 109.3expenditures by counties for out-of-home placement costs of children under the ICWA.109.4(b) By January 1, 2018, and each January 1 thereafter, each county shall report to
         the 109.5commissioners of human services and corrections the separate amounts paid out of the
         109.6county's social service agency and its corrections budget for out-of-home placement
         of 109.7children under the ICWA in the calendar years two years before the current calendar
         year 109.8along with the number of case days associated with the expenditures from each budget.
         The 109.9commissioner of human services shall prescribe the format of the report.109.10(c) Until the commissioner of human services develops another mechanism for collecting
         109.11and verifying data on out-of-home placements of children under the ICWA, and the 109.12legislature authorizes the use of that data, the data collected under this subdivision
         must be 109.13used to calculate payments under subdivision 3. The commissioner of human services
         shall 109.14certify the nonfederal out-of-home placement costs for the three prior calendar years
         for 109.15each county and the amount of any federal reimbursement received by a tribe under
         the 109.16ICWA for the three prior calendar years to the commissioner of revenue by June 1 of
         the 109.17year before the aid payment.109.18    Subd. 3.Aid for counties.For aids payable in calendar year 2018 and thereafter, the 109.19amount of reimbursement to each county is a county's proportionate share of the appropriation
         109.20in subdivision 6 that remains after the aid for tribes has been paid. Each county's
         109.21proportionate share is based on the county's average nonfederal share of the cost
         for 109.22out-of-home placement of children under the ICWA for the three calendar years that
         were 109.23certified by the commissioner of human services by June 1 of the prior year, provided
         that 109.24the commissioner of human services, in consultation with the commissioner of corrections,
         109.25certifies to the commissioner of revenue that accurate data are available to make
         the aid 109.26determination under this section. For aids payable in calendar year 2018, each county's
         109.27proportionate share is based on the county's nonfederal share of the cost for out-of-home
         109.28placement of children under the ICWA that was certified by the commissioner of human
         109.29services by July 15, 2017.109.30    Subd. 4.Aid for tribes.For aids payable in 2018 and thereafter, the amount of 109.31reimbursement to each tribe shall be the greater of (1) five percent of the average
         109.32reimbursement amount received from the federal government for out-of-home placement
         109.33costs for the three calendar years that were certified by June 1 of the prior year,
         or (2) 109.34$200,000.110.1    Subd. 5.Payments.The commissioner of revenue must compute the amount of the 110.2reimbursement aid payable to each county and tribe under this section. On or before
         August 110.31 of each year, the commissioner shall certify the amount to be paid to each county
         and 110.4tribe in the following year. The commissioner shall pay reimbursement aid annually
         at the 110.5times provided in section 477A.015.110.6    Subd. 6.Appropriation.$2,000,000 is annually appropriated to the commissioner of 110.7revenue from the general fund to pay aid under this section.110.8EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.110.9    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:110.10    Subd. 8. City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula 110.11aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 110.12of (i) (1) the difference between its unmet need and its formula certified aid in the previous 110.13year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage.110.14    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
         110.15year is greater than the sum of its unmet need plus its aid adjustment under subdivision
         13, 110.16its formula aid is adjusted to equal its unmet need.110.17    (c) No city may have a formula aid amount less than zero. The aid gap percentage must
         110.18be the same for all cities subject to paragraph (a).110.19    (d) (b) The applicable aid gap percentage must be calculated by the Department of 110.20Revenue so that the total of the aid under subdivision 9 equals the total amount available
         110.21for aid under section 
         477A.03. The aid gap percentage must be the same for all cities subject 110.22to paragraph (a). Data used in calculating aids to cities under sections 
         477A.011 to 
         477A.013110.23shall be the most recently available data as of January 1 in the year in which the
         aid is 110.24calculated.110.25EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 110.26and thereafter.110.27    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:110.28    Subd. 9. City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city110.29if a city's certified aid before any aid adjustment under subdivision 13 for the previous
         year 110.30is less than its current unmet need, the city shall receive an aid distribution equal to the sum 110.31of (1) its certified aid in the previous year before any aid adjustment under subdivision
         13, 111.1(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision 111.213.111.3    (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid 111.4adjustment under subdivision 13 for the previous year is equal to or greater than
         its current 111.5unmet need, the total aid for a city must not be less than is equal to the greater of (1) its 111.6unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified 111.7to receive in the previous year minus the lesser of $10 multiplied by its population,
         or five 111.8percent of its net levy in the year prior to the aid distribution. No city may have a total aid 111.9amount less than $0.111.10EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 111.11and thereafter.111.12    Sec. 17. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:111.13    Subd. 2a. Cities.The total aid paid under section 477A.013, subdivision 9, is 111.14$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the 111.15total aid paid under section 
         477A.013, subdivision 9, is $519,398,012. For aids payable in 111.162018, the total aid paid under section 477A.013, subdivision 9, is $531,398,012. For
         aids 111.17payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision
         9, is 111.18$519,398,012.111.19EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018 111.20and thereafter.111.21    Sec. 18. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:111.22    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter through 2017, the total 111.23aid payable under section 
         477A.0124, subdivision 3, is $100,795,000. For aids payable in 111.242018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000,
         of 111.25which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article
         4, 111.26section 6. For aids payable in 2019 through 2024, the total aid payable under section
         111.27477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as
         required 111.28under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter,
         111.29the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar 111.30year, $500,000 of this appropriation shall be retained by the commissioner of revenue
         to 111.31make reimbursements to the commissioner of management and budget for payments made
         111.32under section 
         611.27. The reimbursements shall be to defray the additional costs associated 111.33with court-ordered counsel under section 
         611.27. Any retained amounts not used for 112.1reimbursement in a year shall be included in the next distribution of county need
         aid that 112.2is certified to the county auditors for the purpose of property tax reduction for
         the next taxes 112.3payable year.112.4    (b) For aids payable in 2014 and thereafter 2017, the total aid under section 
         477A.0124, 112.5subdivision 4
         , is $104,909,575. For aids payable in 2018, the total aid payable under section 112.6477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter,
         the 112.7total aid payable under section 477A.0124, subdivision 4, is $104,909,575. The commissioner 112.8of revenue shall transfer to the commissioner of management and budget $207,000 annually
         112.9for the cost of preparation of local impact notes as required by section 
         3.987, and other local 112.10government activities. The commissioner of revenue shall transfer to the commissioner
         of 112.11education $7,000 annually for the cost of preparation of local impact notes for school
         districts 112.12as required by section 
         3.987. The commissioner of revenue shall deduct the amounts 112.13transferred under this paragraph from the appropriation under this paragraph. The
         amounts 112.14transferred are appropriated to the commissioner of management and budget and the
         112.15commissioner of education respectively.112.16EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.112.17    Sec. 19. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision 112.18to read:112.19    Subd. 5a.Large forest easement value reduction."Large forest easement value 112.20reduction" means the market value reduction due to a single forest for the future
         easement 112.21on land exceeding 60,000 acres that was acquired as provided in section 84.66.112.22EFFECTIVE DATE.This section is effective retroactively for assessment year 2011 112.23and thereafter.112.24    Sec. 20. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read:112.25    Subdivision 1. Types of land; payments.  The following amounts are annually 112.26appropriated to the commissioner of natural resources from the general fund for transfer
         to 112.27the commissioner of revenue. The commissioner of revenue shall pay the transferred
         funds 112.28to counties as required by sections 
         477A.11 to 
         477A.14. The amounts, based on the acreage 112.29as of July 1 of each year prior to the payment year, are:112.30(1) $5.133 multiplied by the total number of acres of acquired natural resources land
         or, 112.31at the county's option three-fourths of one percent of the appraised value of all
         acquired 112.32natural resources land in the county, whichever is greater;113.1(2) $5.133, multiplied by the total number of acres of transportation wetland or,
         at the 113.2county's option, three-fourths of one percent of the appraised value of all transportation
         113.3wetland in the county, whichever is greater;113.4(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
         at 113.5the county's option, three-fourths of one percent of the appraised value of all wildlife
         113.6management land in the county, whichever is greater;113.7(4) $5.133, multiplied by the total number of acres of large forest easement land,
         or, at 113.8the county's option, three-fourths of one percent of the large forest easement value
         reduction 113.9in the county, whichever is greater;113.10(4) (5) 50 percent of the dollar amount as determined under clause (1), multiplied by 113.11the number of acres of military refuge land in the county;113.12(5) (6)$1.50 $2, multiplied by the number of acres of county-administered other natural 113.13resources land in the county;113.14(6) (7) $5.133, multiplied by the total number of acres of land utilization project land
         in 113.15the county;113.16(7) (8)$1.50 $2, multiplied by the number of acres of commissioner-administered other 113.17natural resources land in the county; and113.18    (8) (9) without regard to acreage, and notwithstanding the rules adopted under section 113.1984A.55
         , $300,000 for local assessments under section 
         84A.55, subdivision 9, that shall be 113.20divided and distributed to the counties containing state-owned lands within a conservation
         113.21area in proportion to each county's percentage of the total annual ditch assessments.113.22EFFECTIVE DATE.Clause (4) is effective retroactively for assessment year 2011 113.23and thereafter. Clauses (6) and (8) are effective for payments made in calendar year
         2018 113.24and thereafter.113.25    Sec. 21. Minnesota Statutes 2016, section 477A.12, subdivision 2, is amended to read:113.26    Subd. 2. Procedure. (a) Each county auditor shall certify to the Department of Natural 113.27Resources during July of each year prior to the payment year: (1)  the number of acres of 113.28county-administered other natural resources land within the county; and (2) the assessed 113.29value of large forest easement value reduction in the county. The Department of Natural 113.30resources may, in addition to the certification of acreage, require descriptive lists
         of land 113.31so certified. The commissioner of natural resources shall determine and certify to
         the 113.32commissioner of revenue by March 1 of the payment year:114.1(1) the number of acres and most recent appraised value of acquired natural resources
         114.2land, wildlife management land, and military refuge land within each county;114.3(2) the number of acres of commissioner-administered natural resources land within
         114.4each county;114.5(3) the number of acres of county-administered other natural resources land within
         each 114.6county, based on the reports filed by each county auditor with the commissioner of
         natural 114.7resources; and114.8(4) the number of acres of land utilization project land within each county.114.9(b) The commissioner of transportation shall determine and certify to the commissioner
         114.10of revenue by March 1 of the payment year the number of acres of transportation wetland
         114.11and the appraised value of the land, but only if it exceeds 500 acres in a county.114.12(c) Each auditor of a county that contains state-owned lands within a conservation
         area 114.13shall determine and certify to the commissioner of natural resources by May 31 of
         the 114.14payment year, the county's ditch assessments for state-owned lands subject to section
         
         84A.55, 114.15subdivision 9
         . A joint certification for two or more counties may be submitted to the 114.16commissioner of natural resources through the Consolidated Conservation Counties Joint
         114.17Powers Board. The commissioner of natural resources shall certify the ditch assessments
         114.18to the commissioner of revenue by June 15 of the payment year.114.19(d) The commissioner of revenue shall determine the distributions provided for in
         this 114.20section using: (1) the number of acres and appraised values certified by the commissioner
         114.21of natural resources and the commissioner of transportation by March 1 of the payment
         114.22year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year; and 114.23(3) the assessed value of large forest easement value reduction certified by the county
         auditor.114.24EFFECTIVE DATE.This section is effective retroactively for assessment year 2011 114.25and thereafter.114.26    Sec. 22. Minnesota Statutes 2016, section 477A.14, subdivision 3, is amended to read:114.27    Subd. 3. Distribution for wildlife management lands and military refuge lands. (a) 114.28The county treasurer shall allocate the payment for wildlife management land, large forest 114.29easement value reduction, and military game refuge land among the county, towns, and 114.30school districts on the same basis as if the payments were taxes on the land received
         in the 114.31year. Payment of a town's or a school district's allocation must be made by the county
         114.32treasurer to the town or school district within 30 days of receipt of the payment
         to the county. 114.33The county's share of the payment shall be deposited in the county general revenue
         fund.115.1(b) The county treasurer of a county with a population over 39,000, but less than
         42,000, 115.2in the 1950 federal census shall allocate the payment only among the towns and school
         115.3districts on the same basis as if the payments were taxes on the lands received in
         the current 115.4year.115.5(c) If a town received a payment in calendar year 2006 or thereafter under this subdivision,
         115.6and subsequently incorporated as a city, the city shall continue to receive any future
         year's 115.7allocations of wildlife land payments that would have been made to the town had it
         not 115.8incorporated, provided that the payments shall terminate if the governing body of
         the city 115.9passes an ordinance that prohibits hunting within the boundaries of the city.115.10EFFECTIVE DATE.This section is effective retroactively for assessment year 2011 115.11and thereafter.115.12    Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read:115.13477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 115.14ANNUAL PAYMENTS.115.15    (a) In lieu of the payment amount provided under section 
         477A.12, subdivision 1, clause 115.16(1), the county shall receive an annual payment for state-owned land within the boundary
         115.17of Lake Vermilion-Soudan Underground Mine State Park, established in section
          85.012, 115.18subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.115.19    (b) For the purposes of this section, the appraised value of the land acquired for
         Lake 115.20Vermilion-Soudan Underground Mine State Park for the first five years after acquisition
         115.21shall be the purchase price of the land, plus the value of any portion of the land
         that is 115.22acquired by donation. Thereafter, the appraised value of the state-owned land shall
         be as 115.23determined under section 
         477A.12, subdivision 3, except that the appraised value of the 115.24state-owned land within the park shall not be reduced below the 2010 appraised value
         of 115.25the land.115.26    (c) The annual payments under this section shall be distributed to the taxing jurisdictions
         115.27containing the property as follows: one-third to the school districts; one-third to
         the town; 115.28and one-third to the county. The payment to school districts is not a county apportionment
         115.29under section 
         127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 115.30may use the payments for their general purposes.115.31    (d) Except as provided in this section, the payments shall be made as provided in
         sections 115.32477A.11
          to 
         477A.13.115.33EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.116.1    Sec. 24. 2014 AID PENALTY FORGIVENESS.116.2(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
         of 116.3Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
         116.4that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
         that 116.5the state auditor certifies to the commissioner of revenue that the city complied
         with all 116.6reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3,
         for 116.7calendar years 2013 and 2014 by June 1, 2015.116.8(b) The commissioner of revenue shall make payment to each city no later than July
         20, 116.92017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to
         the 116.10commissioner of revenue to make the payments under this section.116.11EFFECTIVE DATE.This section is effective the day following final enactment.116.12    Sec. 25. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.116.13For a city that incorporated on October 13, 2015, and first qualifies for aid under
         116.14Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's formula
         aid 116.15for 2016, used in calculating aid payable in 2017, shall be deemed to equal $115 multiplied
         116.16by its population.116.17EFFECTIVE DATE.This section is effective for aids payable in 2017. The 2017 aid 116.18payment under section 477A.013, subdivision 9, for a city that qualifies under this
         section 116.19shall be recalculated based on this section. The increase shall be treated as an aid
         correction 116.20under Minnesota Statutes, section 477A.014, subdivision 3.116.21    Sec. 26. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.116.22Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
         116.23shall receive the portion of its aid payment for calendar year 2013 under Minnesota
         Statutes, 116.24section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
         116.253, provided that the state auditor certifies to the commissioner of revenue that it
         received 116.26audited financial statements from the city for calendar year 2012 by December 31,
         2013. 116.27The commissioner of revenue shall make a payment of $37,473.50 with the first payment
         116.28of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from
         the 116.29general fund to the commissioner of revenue in fiscal year 2018 to make this payment.116.30EFFECTIVE DATE.This section is effective the day following final enactment.117.1    Sec. 27. APPROPRIATION; DEBT SERVICE EQUALIZATION AID.117.2For fiscal year 2019 only, $14,182,000 is appropriated from the general fund to the
         117.3Department of Education for debt service aid under Minnesota Statutes, section 123B.53.
         117.4This amount is in addition to other appropriations for the same purpose.117.5    Sec. 28. APPROPRIATION; FIRE REMEDIATION GRANTS.117.6$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner
         117.7of public safety for grants to remediate the effects of fires in the city of Melrose
         on September 117.88, 2016. The commissioner must allocate the grants as follows:117.9(1) $1,296,458 to the city of Melrose; and117.10(2) $95,800 to Stearns County.117.11A grant recipient must use the money appropriated under this section for remediation
         117.12costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
         117.13costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
         117.14incurred by public or private entities as a result of the fires. This is a onetime
         appropriation 117.15and is available until June 30, 2018.117.16EFFECTIVE DATE.This section is effective the day following final enactment.117.17    Sec. 29. APPROPRIATION.117.18For fiscal year 2019, $28,827,000 is appropriated from the general fund to the 117.19commissioner of education for additional referendum equalization aid under Minnesota
         117.20Statutes, section 126C.17, subdivision 7. This amount is in addition to other appropriations
         117.21for the same purpose.117.22    Sec. 30. AID REDUCTIONS.117.23(a) Notwithstanding any law to the contrary, for aids payable in 2018 and thereafter,
         117.24under Minnesota Statutes, section 477A.013, the total aid payable to the city of Minneapolis
         117.25shall be $50,000,000.117.26(b) The total appropriation under section 477A.03, subdivision 2a, shall be reduced
         by 117.27$28,827,000 for aids payable in 2018 and thereafter.117.28EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.118.1ARTICLE 5118.2LOCAL OPTION SALES AND SPECIAL TAXES118.3    Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 118.4chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25,
         Laws 2003, 118.5First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article
         5, 118.6section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:118.7    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         477A.016, or any other law, 118.8ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
         118.9impose an additional sales tax of up to one and three-quarter percent on sales transactions
         118.10which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause
         (c). 118.11The imposition of this tax shall not be subject to voter referendum under either state
         law or 118.12city charter provisions. When the city council determines that the taxes imposed under
         this 118.13paragraph at a rate of three-quarters of one percent and other sources of revenue
         produce 118.14revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000
         plus 118.15issuance and discount costs, issued for capital improvements at the Duluth Entertainment
         118.16and Convention Center, which include a new arena, the rate of tax under this subdivision
         118.17must be reduced by three-quarters of one percent.118.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section 118.19477A.016
         , or any other law, ordinance, or city charter provision to the contrary, the city
         of 118.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent 118.21on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
         118.22subdivision 3, clause (c). This tax expires when the city council determines that
         the tax 118.23imposed under this paragraph, along with the tax imposed under section 22, paragraph
         (b), 118.24has produced revenues sufficient to pay the debt service on bonds in a principal amount
         of 118.25no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
         118.26to public facilities to support tourism and recreational activities in that portion
         of the city 118.27west of 34th 14th Avenue West and the area south of and including Skyline Parkway.118.28(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
         bonds 118.29under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs
         of 118.30issuance and any premiums. The proceeds may be used to finance capital improvements
         to 118.31public facilities that support tourism and recreational activities in the portion
         of the city 118.32west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as 118.33described in paragraph (b). The issuance of the bonds is subject to the provisions
         of 118.34Minnesota Statutes, chapter 475, except no election shall be required unless required
         by the 119.1city charter. The bonds shall not be included in computing net debt. The revenues
         from the 119.2taxes that the city of Duluth may impose under paragraph (b) and under section 22,
         paragraph 119.3(b), may be pledged to pay principal of and interest on such bonds.119.4EFFECTIVE DATE.This section is effective the day after the governing body of the 119.5city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 119.6subdivisions 2 and 3.119.7    Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 119.88, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12,
         and Laws 119.92014, chapter 308, article 3, section 22, is amended to read:119.10    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.119.11    (a) Notwithstanding Minnesota Statutes, section 
         477A.016, or any other law, or ordinance, 119.12or city charter provision to the contrary, the city of Duluth may, by ordinance, impose
         an 119.13additional tax of one percent upon the gross receipts from the sale of lodging for
         periods of 119.14less than 30 days in hotels and motels located in the city. The tax shall be collected
         in the 119.15same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph
         one. 119.16The imposition of this tax shall not be subject to voter referendum under either state
         law or 119.17city charter provisions.119.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
         section 119.19477A.016
         , or any other law, ordinance, or city charter provision to the contrary, the city
         of 119.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one
         percent 119.21on the gross receipts from the sale of lodging for periods of less than 30 days in
         hotels and 119.22motels located in the city. This tax expires when the city council first determines
         that the 119.23tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
         119.24(b), has produced revenues sufficient to pay the debt service on bonds in a principal
         amount 119.25of no more than $18,000,000, plus issuance and discount costs, to finance capital
         119.26improvements to public facilities to support tourism and recreational activities in
         that portion 119.27of the city west of 34th 14th Avenue West and the area south of and including Skyline 119.28Parkway.119.29EFFECTIVE DATE.This section is effective the day after the governing body of the 119.30city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 119.31subdivisions 2 and 3.120.1    Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 120.21998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section
         9, and 120.3Laws 2009, chapter 88, article 4, section 14, is amended to read:120.4    Subd. 3.  Use of revenues.(a) Revenues received from taxes authorized by subdivisions 120.51 and 2 shall be used by the city to pay the cost of collecting the tax and to pay
         all or a 120.6portion of the expenses of constructing and improving facilities as part of an urban
         120.7revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
         120.8include, but are not limited to, acquiring property and paying relocation expenses
         related 120.9to the development of Riverfront 2000 and related facilities, and securing or paying
         debt 120.10service on bonds or other obligations issued to finance the construction of Riverfront
         2000 120.11and related facilities. For purposes of this section, "Riverfront 2000 and related
         facilities" 120.12means a civic-convention center, an arena, a riverfront park, a technology center
         and related 120.13educational facilities, and all publicly owned real or personal property that the
         governing 120.14body of the city determines will be necessary to facilitate the use of these facilities,
         including 120.15but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping.
         It also 120.16includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
         120.17Center, for use by Minnesota State University, Mankato.120.18    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         120.19by voters at the November 4, 2016, general election, the city may by ordinance also
         use 120.20revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
         120.21plus associated bond costs, to pay all or a portion of the expenses of the following
         capital 120.22projects:120.23    (1) construction and improvements to regional recreational facilities including existing
         120.24hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
         municipal 120.25swimming pool including improvements to make the pool compliant with the Americans
         120.26with Disabilities Act, and indoor regional athletic facilities;120.27    (2) improvements to flood control and the levee system;120.28(3) water quality improvement projects in Blue Earth and Nicollet Counties;120.29(4) expansion of the regional transit building and related multimodal transit 120.30improvements;120.31(5) regional public safety and emergency communications improvements and equipment;
         120.32and121.1(6) matching funds for improvements to publicly owned regional facilities including
         a 121.2historic museum, supportive housing, and a senior center.121.3EFFECTIVE DATE.This section is effective the day after the governing body of the 121.4city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
         121.5645.021, subdivisions 2 and 3.121.6    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 121.72005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
         366, 121.8article 7, section 10, is amended to read:121.9    Subd. 4.  Expiration of taxing authority and expenditure limitation. The authority 121.10granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
         shall 121.11expire on at the earlier of when revenues are sufficient to pay off the bonds, including 121.12interest and all other associated bond costs authorized under subdivision 5, or  December 121.1331, 2022 2038.121.14EFFECTIVE DATE.This section is effective the day following final enactment without 121.15local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.121.16    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:121.17    Subd. 5. Bonds.(a) The city of Mankato may issue general obligation bonds of the city 121.18in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
         without 121.19election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or 121.20a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
         121.21facilities shall not be included in computing any debt limitations applicable to the
         city of 121.22Mankato, and the levy of taxes required by section 
         475.61 to pay principal of and interest 121.23on the bonds shall not be subject to any levy limitation or be included in computing
         or 121.24applying any levy limitation applicable to the city.121.25    (b) The city of Mankato may issue general obligation bonds of the city in an amount
         not 121.26to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
         without 121.27election under Minnesota Statutes, chapter 475, on the question of issuance of the
         bonds or 121.28a tax to pay them. The debt represented by bonds under this paragraph shall not be
         included 121.29in computing any debt limitations applicable to the city of Mankato, and the levy
         of taxes 121.30required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 121.31and shall not be subject to any levy limitation or be included in computing or applying
         any 121.32levy limitation applicable to the city. The city may use tax revenue in excess of
         one year's 122.1principal interest reserve for intended annual bond payments to pay all or a portion
         of the 122.2cost of capital improvements authorized in subdivision 3.122.3EFFECTIVE DATE.This section is effective the day following final enactment without 122.4local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.122.5    Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 122.62006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
         7, 122.7article 4, section 4, is amended to read:122.8    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 122.9477A.016, or any other contrary provision of law, ordinance, or city charter, the
         city of 122.10Hermantown may, by ordinance, impose an additional sales tax of up to one percent
         on 122.11sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
         within 122.12the city. The proceeds of the tax imposed under this section must be used to meet
         the costs 122.13of:122.14    (1) extending a sewer interceptor line;122.15    (2) construction of a booster pump station, reservoirs, and related improvements to
         the 122.16water system; and122.17    (3) construction of a building containing a police and fire station and an administrative
         122.18services facility.122.19(b) If the city imposed a sales tax of only one-half of one percent under paragraph
         (a), 122.20it may increase the tax to one percent to fund the purposes under paragraph (a) provided
         it 122.21is approved by the voters at a general election held before December 31, 2012.122.22(c) As approved by the voters at the November 8, 2016, general election, the proceeds
         122.23under this section may also be used to meet the costs of debt service payments for
         122.24construction of the Hermantown Wellness Center.122.25EFFECTIVE DATE.This section is effective the day after the governing body of the 122.26city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
         section 122.27645.021, subdivisions 2 and 3.122.28    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 122.292006, chapter 259, article 3, section 4, is amended to read:122.30    Subd. 4. Termination. The tax authorized under this section terminates on March 31, 122.312026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
         123.1first determines that sufficient funds have been received from the tax to fund the
         costs, 123.2including bonds and associated bond costs for the uses specified in subdivision 1. Any funds 123.3remaining after completion of the improvements and retirement or redemption of the
         bonds 123.4may be placed in the general fund of the city.123.5EFFECTIVE DATE.This section is effective the day following final enactment without 123.6local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.123.7    Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:123.8    Subd. 3. Use of revenues.(a) Revenues received from taxes authorized by subdivisions 123.91 and 2 must be used by the city to pay the cost of collecting the taxes and to pay
         for 123.10construction and improvement of a civic and community center and recreational facilities
         123.11to serve all ages, including seniors and youth. Authorized expenses include, but are
         not 123.12limited to, acquiring property, paying construction and operating expenses related
         to the 123.13development of an authorized facility, funding facilities replacement reserves, and
         paying 123.14debt service on bonds or other obligations issued to finance the construction or expansion
         123.15of an authorized facility. The capital expenses for all projects authorized under
         this 123.16subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
         123.17equal to the costs related to issuance of the bonds and funding facilities replacement
         reserves.123.18    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
         123.19by the voters at the November 8, 2016, general election, the city of New Ulm may by
         123.20ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to
         a 123.21maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the
         expenses 123.22of the following capital projects:123.23    (1) constructing an indoor water park and making safety improvements to the existing
         123.24recreational center pool;123.25    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;123.26    (3) constructing a winter multipurpose dome;123.27    (4) making improvements to Johnson Park Grandstand; and123.28    (5) making improvements to the entrance road and parking at Hermann Heights Park.123.29EFFECTIVE DATE.This section is effective the day after the governing body of the 123.30city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         123.31645.021, subdivisions 2 and 3.124.1    Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
         124.2to read:124.3    Subd. 4a.Bonding authority; additional use and extension of tax.As approved by 124.4the voters at the November 8, 2016, general election, and in addition to the bonds
         issued 124.5under subdivision 4, the city of New Ulm may issue general obligation bonds of the
         city in 124.6an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph
         (b). 124.7The debt represented by bonds under this subdivision shall not be included in computing
         124.8any debt limitations applicable to the city of New Ulm, and the levy of taxes required
         by 124.9Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
         and shall 124.10not be subject to any levy limitation or be included in computing or applying any
         levy 124.11limitation applicable to the city.124.12EFFECTIVE DATE.This section is effective the day after the governing body of the 124.13city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         124.14645.021, subdivisions 2 and 3.124.15    Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:124.16    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 124.17when the city council determines that sufficient funds have been received from the
         taxes to 124.18finance the capital and administrative costs for the acquisition, construction, and
         improvement 124.19of facilities described in subdivision 3, including the additional use of revenues under 124.20subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
         124.21election, and to prepay or retire at maturity the principal, interest, and premium due on
         any 124.22bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining 124.23after completion of the project and retirement or redemption of the bonds may be placed
         in 124.24the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire
         at 124.25an earlier time if the city so determines by ordinance.124.26EFFECTIVE DATE.This section is effective the day after the governing body of the 124.27city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
         124.28645.021, subdivisions 2 and 3.124.29    Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 124.302008, chapter 366, article 7, section 12, is amended to read:124.31    Subdivision 1. Sales and use tax.(a) Notwithstanding Minnesota Statutes, section 124.32477A.016
         , or any other provision of law, ordinance, or city charter, if approved by the city
         124.33voters at the first municipal general election held after the date of final enactment
         of this 125.1act or at a special election held November 2, 1999, the city of Proctor may impose
         by 125.2ordinance a sales and use tax of up to one-half of one percent for the purposes specified
         in 125.3subdivision 3. The provisions of Minnesota Statutes, section 
         297A.99, govern the imposition, 125.4administration, collection, and enforcement of the tax authorized under this subdivision.125.5(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
         125.6law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
         125.7sales and use tax of up to one-half of one percent, as approved by the voters at the
         November 125.84 election. The revenues received from the additional tax must be used for the purposes
         125.9specified in subdivision 3, paragraph (b).125.10EFFECTIVE DATE.This section is effective the day after the governing body of the 125.11city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 125.12subdivisions 2 and 3.125.13    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
         125.14as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:125.15    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be 125.16used to pay for lake water quality improvement projects as detailed in the Shell Rock River 125.17watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
         125.18any provision of statute, other law, or city charter to the contrary, the city shall
         transfer all 125.19revenues from the tax imposed under subdivision 1, as soon as they are received, to
         the 125.20Shell Rock River Watershed District. The city is not required to review the intended uses 125.21of the revenues by the watershed district, nor is the watershed district required
         to submit to 125.22the city proposed budgets, statements, or invoices explaining the intended uses of
         the 125.23revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed 125.24District shall appear before the city of Albert Lea City Council on a biannual basis
         to present 125.25a report of its activities, expenditures, and intended uses of the city sales tax
         revenue.125.26EFFECTIVE DATE.This section is effective the day after the chief clerical officer 125.27and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
         125.28645.021, subdivisions 2 and 3.125.29    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
         125.30as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:125.31    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier 125.32of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first 125.33determines that the amount of revenues raised to pay for the projects under subdivision
         2, 126.1shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after 126.2completion of the projects may be placed in the general fund of the city.126.3EFFECTIVE DATE.This section is effective the day after the chief clerical officer 126.4and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
         126.5645.021, subdivisions 2 and 3.126.6    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3,
         126.7as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read:126.8    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 126.91 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes 126.10and; (2) to pay for the costs of a community center complex and; (3) to make renovations 126.11to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that 126.12this use of the tax is subject to the same restrictions that apply to the issuance
         of debt provided 126.13in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring 126.14property and paying construction expenses related to these improvements, and paying
         debt 126.15service on bonds or other obligations issued to finance acquisition and construction
         of these 126.16improvements.126.17    (b) Notwithstanding Minnesota Statutes, section 
         297A.99, subdivisions 2 and 3, if the 126.18city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision
         5, 126.19paragraph (b), the city must use any amounts in excess of the amounts necessary to
         meet 126.20the obligations under paragraph (a) to pay the city's share of debt service on bonds
         issued 126.21under Minnesota Statutes, section 
         469.194, to fund the Lewis and Clark Regional Water 126.22System Project.126.23EFFECTIVE DATE.This section is effective the day after the governing body of the 126.24city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section 126.25645.021, subdivisions 2 and 3.126.26    Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4,
         126.27is amended to read:126.28    Subd. 4. Bonding authority. (a) If the tax authorized under subdivision 1 is approved 126.29by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to
         pay capital 126.30and administrative expenses for the improvements described in subdivision 3 in an amount 126.31that does not exceed $6,000,000. An election to approve the bonds under Minnesota Statutes, 126.32section 
         475.58, is not required.127.1    (b) The debt represented by the bonds is not included in computing any debt limitation
         127.2applicable to the city, and any levy of taxes under Minnesota Statutes, section 
         475.61, to 127.3pay principal of and interest on the bonds is not subject to any levy limitation.127.4    (c) If the Worthington City Council intends to issue debt after June 30, 2017, for
         the 127.5purposes of this subdivision, it must pass a resolution stating the intent to issue
         debt and 127.6proposing a public hearing. The resolution must be published for two successive weeks
         in 127.7the official newspaper of the city together with a notice setting a date for the public
         hearing. 127.8The hearing must be held at least two weeks, but not more than four weeks, after the
         first 127.9publication after passage of the resolution. Following the public hearing, if the
         city adopts 127.10a resolution confirming its intention to issue additional debt, that resolution must
         also be 127.11published in the official newspaper of the city, but the resolution is not effective
         for 30 days. 127.12If within 30 days after publication of the resolution confirming the city's intention
         to issue 127.13additional debt a petition signed by voters equal in number to ten percent of the
         votes cast 127.14in the city in the last general election requesting a vote on the proposed resolution
         is filed 127.15with the county auditor, the resolution is not effective until it has been submitted
         to the 127.16voters in a general or special election and a majority of the votes cast on the question
         of 127.17approving the resolution are in the affirmative. The commissioner of revenue shall
         prepare 127.18a suggested form of question to be presented at the election.127.19EFFECTIVE DATE.This section is effective the day after the governing body of the 127.20city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section 127.21645.021, subdivisions 2 and 3.127.22    Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5,
         127.23as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read:127.24    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 127.25at the earlier of (1) ten years, or (2) when the city council determines that the
         amount of 127.26revenue received from the taxes is sufficient to pay for the projects under subdivision 3 127.27equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to 127.28issuance of bonds under subdivision 4, including interest on the bonds. Any funds
         remaining 127.29after completion of the project and retirement or redemption of the bonds shall be
         placed 127.30in a capital project fund of the city. The taxes imposed under subdivisions 1 and
         2 may 127.31expire at an earlier time if the city so determines by ordinance.127.32    (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the
         taxes 127.33imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional
         127.34revenues that exceed those necessary to fund the projects and associated financing
         costs 128.1listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds
         issued 128.2under Minnesota Statutes, section 
         469.194, to fund the Lewis and Clark Regional Water 128.3System Project.128.4EFFECTIVE DATE.This section is effective the day after the governing body of the 128.5city of Worthington and its chief clerical officer comply with Minnesota Statutes,
         section 128.6645.021, subdivisions 2 and 3.128.7    Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read:128.8    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.128.9    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, 128.10section 
         477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 128.11approval of the voters on November 7, 2006, the city of North Mankato may impose by
         128.12ordinance a sales and use tax of one-half of one percent for the purposes specified
         in 128.13subdivision 2. The provisions of Minnesota Statutes, section 
         297A.99, govern the imposition, 128.14administration, collection, and enforcement of the taxes authorized under this subdivision.128.15    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 128.16must be used to pay all or part of the capital costs of the following projects:128.17    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
         128.18project;128.19    (2) development of regional parks and hiking and biking trails, including construction 128.20of regional athletic facilities;128.21    (3) expansion of the North Mankato Taylor Library;128.22    (4) riverfront redevelopment; and128.23    (5) lake improvement projects.128.24    The total amount of revenues from the tax in subdivision 1 that may be used to fund
         128.25these projects is $6,000,000 $21,000,000 plus any associated bond costs.128.26    Subd. 2a.Authorization to extend the tax.Notwithstanding Minnesota Statutes, section 128.27297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend
         the 128.28tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus
         128.29associated bond costs, to fund the projects in subdivision 2 as approved by the voters
         at the 128.30November 8, 2016, general election.129.1    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 129.2at the November 7, 2006 referendum authorizing the imposition of the taxes in this
         section, 129.3may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
         129.4expenses for the projects described in subdivision 2, in an amount that does not exceed
         129.5$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
         129.6475.58
         , is not required.129.7    (b) The city of North Mankato, pursuant to approval of the voters at the November 8,
         129.82016, referendum extending the tax fee to provide additional revenue to be spent for
         the 129.9projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
         129.10475, to pay capital and administrative expenses for those projects in an amount that
         does 129.11not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes,
         129.12section 475.58, is not required.129.13    (c) The debt represented by the bonds is not included in computing any debt limitation
         129.14applicable to the city, and any levy of taxes under Minnesota Statutes, section 
         475.61, to 129.15pay principal and interest on the bonds is not subject to any levy limitation.129.16    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the 129.17city council determines that the amount of revenues received from the taxes to pay
         for the 129.18projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional
         amount 129.19needed to pay the costs related to issuance of bonds under subdivision 3, including
         interest 129.20on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first 129.21equal or exceed $21,000,000 plus the additional amount needed to pay costs related
         to 129.22issuance of bonds under subdivision 3, including interest. Any funds remaining after 129.23completion of the projects and retirement or redemption of the bonds shall be placed
         in a 129.24capital facilities and equipment replacement fund of the city. The tax imposed under
         129.25subdivision 1 may expire at an earlier time if the city so determines by ordinance.129.26EFFECTIVE DATE.This section is effective the day after the governing body of the 129.27city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section 129.28645.021, subdivisions 2 and 3.129.29    Sec. 18. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.129.30    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 129.31section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 129.32charter, and as approved by the voters at a special election on March 7, 2016, the
         city of 129.33East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent
         for 129.34the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 130.1provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         130.2collection, and enforcement of the tax authorized under this subdivision.130.3    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 130.4under subdivision 1 must be used by the city of East Grand Forks to pay the costs
         of 130.5collecting and administering the tax and to finance the capital and administrative
         costs of 130.6improvement to the city public swimming pool. Authorized expenses include, but are
         not 130.7limited to, paying construction expenses related to the renovation and the development
         of 130.8these facilities and improvements, and securing and paying debt service on bonds issued
         130.9under subdivision 3 or other obligations issued to finance improvement of the public
         130.10swimming pool in the city of East Grand Forks.130.11    Subd. 3.Bonding authority.(a) The city of East Grand Forks may issue bonds under 130.12Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         130.13authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 130.14subdivision may not exceed $2,820,000, plus an amount to be applied to the payment
         of 130.15the costs of issuing the bonds. The bonds may be paid from or secured by any funds
         available 130.16to the city of East Grand Forks, including the tax authorized under subdivision 1.
         The 130.17issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
         275.60 130.18and 275.61.130.19(b) The bonds are not included in computing any debt limitation applicable to the
         city 130.20of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
         to 130.21pay principal and interest on the bonds is not subject to any levy limitation. A separate
         130.22election to approve the bonds under Minnesota Statutes, section 475.58, is not required.130.23    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the later 130.24of: (1) five years after the tax is first imposed; or (2) when the city council determines
         that 130.25$2,820,000 has been received from the tax to pay for the cost of the projects authorized
         130.26under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the 130.27bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         130.28after payment of all such costs and retirement or redemption of the bonds shall be
         placed 130.29in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 130.30time if the city so determines by ordinance.130.31EFFECTIVE DATE.This section is effective the day after compliance by the governing 130.32body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions
         130.332 and 3.131.1    Sec. 19. CITY OF EXCELSIOR; TAXES AUTHORIZED.131.2    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 131.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 131.4charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up
         to one-half 131.5of one percent for the purposes specified in subdivision 2, as approved by the voters
         at the 131.6November 4, 2014, general election. Except as otherwise provided in this section,
         the 131.7provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         131.8collection, and enforcement of the tax authorized under this subdivision.131.9    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 131.10under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting
         and 131.11administering the tax and to finance the capital and administrative costs of improvements
         131.12to the commons as indicated in the November 2016 findings of the commons master planning
         131.13work group. Authorized expenses include, but are not limited to, improvements for
         131.14walkability and accessibility, enhancement of beach area and facilities, prevention
         and 131.15management of shoreline erosion, redesign of the port and bandshell, improvement of
         131.16playground equipment, and securing and paying debt service on bonds issued under 131.17subdivision 3 or other obligations issued to the improvements listed in this subdivision
         in 131.18the city of Excelsior.131.19    Subd. 3.Bonding authority.(a) The city of Excelsior may issue bonds under Minnesota 131.20Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized
         in 131.21subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 131.22not exceed $7,000,000, plus an amount to be applied to the payment of the costs of
         issuing 131.23the bonds. The bonds may be paid from or secured by any funds available to the city
         of 131.24Excelsior, including the tax authorized under subdivision 1. The issuance of bonds
         under 131.25this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.131.26(b) The bonds are not included in computing any debt limitation applicable to the
         city 131.27of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 131.28and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 131.29the bonds under Minnesota Statutes, section 475.58, is not required.131.30    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the later 131.31of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
         that 131.32$7,000,000 has been received from the tax to pay for the cost of the projects authorized
         131.33under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the 131.34bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         132.1after payment of all such costs and retirement or redemption of the bonds shall be
         placed 132.2in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 132.3time if the city so determines by ordinance.132.4EFFECTIVE DATE.This section is effective the day after compliance by the governing 132.5body of the city of Excelsior with Minnesota Statutes, section 645.021, subdivisions
         2 and 132.63.132.7    Sec. 20. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.132.8    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 132.9section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 132.10charter, and as approved by the voters at the general election of November 8, 2016,
         the city 132.11of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent
         for 132.12the purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 132.13provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         132.14collection, and enforcement of the tax authorized under this subdivision.132.15    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 132.16under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting
         and 132.17administering the tax and to finance the capital and administrative costs of constructing
         and 132.18funding recreational amenities, trails, and a community center. The total that may
         be raised 132.19from the tax to pay for these projects is limited to $15,000,000, plus the costs related
         to the 132.20issuance and paying debt service on bonds for these projects.132.21    Subd. 3.Bonding authority.(a) The city of Fairmont may issue bonds under Minnesota 132.22Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in 132.23subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 132.24not exceed $15,000,000, plus an amount to be applied to the payment of the costs of
         issuing 132.25the bonds. The bonds may be paid from or secured by any funds available to the city
         of 132.26Fairmont, including the tax authorized under subdivision 1. The issuance of bonds
         under 132.27this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.132.28(b) The bonds are not included in computing any debt limitation applicable to the
         city 132.29of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 132.30and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 132.31the bonds under Minnesota Statutes, section 475.58, is not required.132.32    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 132.33earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council
         determines 133.1that $15,000,000, plus an amount sufficient to pay the costs related to issuing the
         bonds 133.2authorized under subdivision 3, including interest on the bonds, has been received
         from the 133.3tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 133.4after payment of all such costs and retirement or redemption of the bonds shall be
         placed 133.5in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 133.6time if the city so determines by ordinance.133.7EFFECTIVE DATE.This section is effective the day after compliance by the governing 133.8body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions
         2 and 133.93.133.10    Sec. 21. CITY OF FERGUS FALLS; TAXES AUTHORIZED.133.11    Subdivision 1.Sales and use tax authorized.Notwithstanding Minnesota Statutes, 133.12section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or
         city 133.13charter, and as approved by the voters at the November 8, 2016, general election,
         the city 133.14of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of
         one 133.15percent for the purposes specified in subdivision 2. Except as otherwise provided
         in this 133.16section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
         133.17administration, collection, and enforcement of the tax authorized under this subdivision.133.18    Subd. 2.Use of sales and use tax revenues.The revenues from the tax authorized under 133.19subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting
         and 133.20administering the tax and securing and paying debt service on bonds issued to finance
         all 133.21or part of the costs of the expansion and betterment of the Fergus Falls Public Library
         located 133.22at 205 East Hampden Avenue in the city of Fergus Falls.133.23    Subd. 3.Bonding authority.(a) The city of Fergus Falls may issue bonds under 133.24Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
         133.25authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 133.26subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs
         of 133.27issuing the bonds. The bonds may be paid from or secured by any funds available to
         the 133.28city of Fergus Falls, including the tax authorized under subdivision 1. The issuance
         of bonds 133.29under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.133.30(b) The bonds are not included in computing any debt limitation applicable to the
         city, 133.31and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
         and 133.32interest on the bonds is not subject to any levy limitation. A separate election to
         approve 133.33the bonds under Minnesota Statutes, section 475.58, is not required.134.1    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 134.2earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council
         determines 134.3that $9,800,000 has been received from the tax to pay for the cost of the project
         authorized 134.4under subdivision 2, plus an amount sufficient to pay the costs related to the issuance
         of the 134.5bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         134.6after payment of all such costs and retirement or redemption of the bonds shall be
         placed 134.7in the general fund of the city. The tax imposed under subdivision 1 may expire at
         any 134.8earlier time if the city so determines by ordinance.134.9EFFECTIVE DATE.This section is effective the day after compliance by the governing 134.10body of the city of Fergus Falls with Minnesota Statutes, section 645.021, subdivisions
         2 134.11and 3.134.12    Sec. 22. CITY OF MOOSE LAKE; TAXES AUTHORIZED.134.13    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 134.14section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city
         charter, 134.15as approved by the voters at the November 6, 2012, general election, the city of Moose
         Lake 134.16may impose, by ordinance, a sales and use tax of up to one-half of one percent for
         the 134.17purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 134.18provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         134.19collection, and enforcement of the tax authorized under this subdivision.134.20    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 134.21under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
         134.22and administering the tax and to finance the costs of: (1) improvements to the city's
         park 134.23system; (2) street and related infrastructure improvements; and (3) municipal arena
         134.24improvements. Authorized costs include construction and engineering costs and associated
         134.25bond costs.134.26    Subd. 3.Bonding authority.The city of Moose Lake may issue bonds under Minnesota 134.27Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in 134.28subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 134.29not exceed $3,000,000, plus an amount to be applied to the payment of the costs of
         issuing 134.30the bonds. The bonds may be paid from or secured by any funds available to the city
         of 134.31Moose Lake, including the tax authorized under subdivision 1.  The issuance of bonds
         under 134.32this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.134.33The bonds are not included in computing any debt limitation applicable to the city
         of 134.34Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 135.1and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 135.2the bonds under Minnesota Statutes, section 475.58, is not required.135.3    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 135.4earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines 135.5that $3,000,000 has been received from the tax to pay for the cost of the projects
         authorized 135.6under subdivision 2, plus an amount sufficient to pay the costs related to issuance
         of the 135.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
         135.8after payment of all such costs and retirement or redemption of the bonds shall be
         placed 135.9in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 135.10time if the city so determines by ordinance.135.11EFFECTIVE DATE.This section is effective the day after compliance by the governing 135.12body of the city of Moose Lake with Minnesota Statutes, section 645.021, subdivisions
         2 135.13and 3.135.14    Sec. 23. CITY OF NEW LONDON; TAX AUTHORIZED.135.15    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 135.16section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 135.17charter, and as approved by the voters at the general election of November 8, 2016,
         the city 135.18of New London may impose, by ordinance, a sales and use tax of one-half of one percent
         135.19for the purposes specified in subdivision 2. Except as otherwise provided in this
         section, 135.20the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         135.21collection, and enforcement of the tax authorized under this subdivision.135.22    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 135.23under subdivision 1 must be used by the city of New London to pay the costs of collecting
         135.24and administering the tax and to finance the capital and administrative costs of the
         following 135.25projects:135.26(1) construction and equipping of a new library and community room;135.27(2) construction of an ambulance bay at the fire hall; and135.28(3) improvements to the New London Senior Citizen Center.135.29The total that may be raised from the tax to pay for these projects is limited to
         $872,000 135.30plus the costs related to the issuance and paying debt service on bonds for these
         projects.135.31    Subd. 3.Bonding authority.(a) The city of New London may issue bonds under 135.32Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         136.1authorized in subdivision 2. The aggregate principal amount of bonds issued under
         this 136.2subdivision may not exceed $872,000, plus an amount to be applied to the payment of
         the 136.3costs of issuing the bonds. The bonds may be paid from or secured by any funds available
         136.4to the city of New London, including the tax authorized under subdivision 1. The issuance
         136.5of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
         and 136.6275.61.136.7(b) The bonds are not included in computing any debt limitation applicable to the
         city 136.8of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to
         pay 136.9principal and interest on the bonds is not subject to any levy limitation. A separate
         election 136.10to approve the bonds under Minnesota Statutes, section 475.58, is not required.136.11    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 136.12earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council
         determines 136.13that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
         136.14authorized under subdivision 3, including interest on the bonds, has been received
         from the 136.15tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 136.16after payment of all such costs and retirement or redemption of the bonds shall be
         placed 136.17in the general fund of the city. The tax imposed under subdivision 1 may expire at
         an earlier 136.18time if the city so determines by ordinance.136.19EFFECTIVE DATE.This section is effective the day after compliance by the governing 136.20body of the city of New London with Minnesota Statutes, section 645.021, subdivisions
         2 136.21and 3.136.22    Sec. 24. CITY OF NORTH MANKATO; FOOD AND BEVERAGE TAX 136.23AUTHORIZED.136.24    Subdivision 1.Food and beverage tax authorized.Notwithstanding Minnesota Statutes, 136.25section 477A.016, or any ordinance, city charter, or other provision of law, the city of North 136.26Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts
         136.27on all sales of food and beverages by a restaurant or place of refreshment, as defined
         by 136.28resolution of the city, that are located within the city. For purposes of this section,
         "food 136.29and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.136.30    Subd. 2.Use of proceeds from tax.The proceeds of any tax imposed under subdivision 136.311 shall be used by the city to pay all or a portion of the expenses of:136.32(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting
         136.33Complex; and137.1(2) for costs related to regional tourism events.137.2Authorized capital expenses include securing or paying debt service on bonds or other
         137.3obligations issued to finance the construction of the Caswell Park Regional Sporting
         Complex 137.4facilities.137.5    Subd. 3.Collection, administration, and enforcement.If the city desires, it may enter 137.6into an agreement with the commissioner of revenue to administer, collect, and enforce
         the 137.7taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect
         the tax, 137.8the provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 137.9and enforcement apply.137.10EFFECTIVE DATE.This section is effective the day after the governing body of the 137.11city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
         section 137.12645.021, subdivisions 2 and 3.137.13    Sec. 25. CITY OF SLEEPY EYE; LODGING TAX.137.14Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
         137.15ordinance, or city charter, the city council for the city of Sleepy Eye may impose,
         by 137.16ordinance, a tax of up to two percent on the gross receipts subject to the lodging
         tax under 137.17Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         137.18Minnesota Statutes, section 469.190, and the total tax imposed under that section
         and this 137.19provision must not exceed five percent. Revenue from the tax imposed under this section
         137.20may only be used for the same purposes as a tax imposed under Minnesota Statutes,
         section 137.21469.190.137.22EFFECTIVE DATE.This section is effective the day after compliance by the governing 137.23body of the city of Sleepy Eye with Minnesota Statutes, section 645.021, subdivisions
         2 137.24and 3.137.25    Sec. 26. CITY OF SPICER; TAX AUTHORIZED.137.26    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 137.27section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or
         city 137.28charter, and as approved by the voters at the general election of November 8, 2016,
         the city 137.29of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent
         for the 137.30purposes specified in subdivision 2. Except as otherwise provided in this section,
         the 137.31provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
         137.32collection, and enforcement of the tax authorized under this subdivision.138.1    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 138.2under subdivision 1 must be used by the city of Spicer to pay the costs of collecting
         and 138.3administering the tax and to finance the capital and administrative costs of the following
         138.4projects:138.5(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
         138.6signals at marked Trunk Highway 23;138.7(2) park and trail capital improvements including signage for bicycle share the road
         138.8improvements and replacement of playground and related facilities; and138.9(3) capital improvements to regional community facilities such as the Dethelfs roof
         and 138.10window replacement and the Pioneerland branch library roof replacement.138.11    Subd. 3.Bonding authority.(a) The city of Spicer may issue bonds under Minnesota 138.12Statutes, chapter 475, to finance all or a portion of the costs of the facilities
         authorized in 138.13subdivision 2. The aggregate principal amount of bonds issued under this subdivision
         may 138.14not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing
         138.15the bonds. The bonds may be paid from or secured by any funds available to the city
         of 138.16Spicer, including the tax authorized under subdivision 1. The issuance of bonds under
         this 138.17subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.138.18(b) The bonds are not included in computing any debt limitation applicable to the
         city 138.19of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
         principal 138.20and interest on the bonds is not subject to any levy limitation. A separate election
         to approve 138.21the bonds under Minnesota Statutes, section 475.58, is not required.138.22    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 138.23earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or
         (3) when 138.24the city council determines that $800,000, plus an amount sufficient to pay the costs
         related 138.25to issuing the bonds authorized under subdivision 3, including interest on the bonds,
         has 138.26been received from the tax to pay for the cost of the projects authorized under subdivision
         138.272. All funds not used to pay collection and administration costs of the tax must be
         used for 138.28projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at
         an earlier 138.29time if the city so determines by ordinance.138.30EFFECTIVE DATE.This section is effective the day after compliance by the governing 138.31body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions
         2 and 3.139.1    Sec. 27. CLAY COUNTY; TAX AUTHORIZED.139.2    Subdivision 1.Sales and use tax authorization.Notwithstanding Minnesota Statutes, 139.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance,
         and as 139.4approved by the voters at the November 8, 2016, general election, Clay County may
         impose, 139.5by ordinance, a sales and use tax of up to one-half of one percent for the purposes
         specified 139.6in subdivision 2. Except as otherwise provided in this section, the provisions of
         Minnesota 139.7Statutes, section 297A.99, govern the imposition, administration, collection, and
         enforcement 139.8of the tax authorized under this subdivision.139.9    Subd. 2.Use of sales and use tax revenues.The revenues derived from the tax authorized 139.10under subdivision 1 must be used by Clay County to pay the costs of collecting and
         139.11administering the tax and to finance the capital costs of constructing and equipping
         a new 139.12correctional facility, law enforcement center, and related parking facility. Authorized
         139.13expenses include but are not limited to paying design, development, and construction
         costs 139.14related to these facilities and improvements, and securing and paying debt service
         on bonds 139.15issued under subdivision 3 or other obligations issued to finance the facilities listed
         in this 139.16subdivision.139.17    Subd. 3.Bonding authority.Clay County may issue bonds under Minnesota Statutes, 139.18chapter 475, to finance all or a portion of the costs of the facilities authorized
         in subdivision 139.192. The aggregate principal amount of bonds issued under this subdivision may not exceed
         139.20$52,000,000, plus an amount to be applied to the payment of the costs of issuing the
         bonds. 139.21The bonds may be paid from or secured by any funds available to Clay County, including
         139.22the tax authorized under subdivision 1. The issuance of bonds under this subdivision
         is not 139.23subject to Minnesota Statutes, sections 275.60 and 275.61.139.24    Subd. 4.Termination of taxes.The tax imposed under subdivision 1 expires at the 139.25earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board
         determines 139.26that $52,000,000, plus an amount sufficient to pay the costs related to issuance of
         the bonds 139.27authorized under subdivision 3, including interest on the bonds, has been received
         from the 139.28tax to pay for the cost of the projects authorized under subdivision 2. Any funds
         remaining 139.29after payment of all such costs and retirement or redemption of the bonds shall be
         placed 139.30in the general fund of the county. The tax imposed under subdivision 1 may expire
         at an 139.31earlier time if the county so determines by ordinance.139.32EFFECTIVE DATE.This section is effective the day after compliance by the governing 139.33body of Clay County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.140.1    Sec. 28. WOODBURY LODGING TAX.140.2Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to
         a 140.3tax authorized in Minnesota Statutes, section 469.190, the city of Woodbury may impose
         140.4by ordinance a tax of up to two percent on the gross receipts subject to the lodging
         tax under  140.5Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
         140.6Minnesota Statutes, section 469.190, and the total tax imposed by the city under this
         section 140.7and Minnesota Statutes, section 469.190, must not exceed five percent. Revenue from
         the 140.8tax imposed under this section may only be used for the same purposes as a tax imposed
         140.9under Minnesota Statutes, section 469.190.140.10EFFECTIVE DATE.This section is effective the day after the governing body of the 140.11city of Woodbury and its chief clerical officer timely complete their compliance with
         140.12Minnesota Statutes, section 645.021, subdivisions 2 and 3.140.13    Sec. 29. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.140.14Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
         140.15Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010,
         chapter 140.16389, article 5, sections 1 and 2, and file its approval with the secretary of state
         by January 140.171, 2015. If approved under this paragraph, actions undertaken by the city pursuant
         to the 140.18approval of the voters on November 2, 2010, and otherwise in accordance with those
         laws 140.19are validated.140.20EFFECTIVE DATE.This section is effective the day following final enactment, without 140.21local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph
         140.22(a).140.23ARTICLE 6140.24TAX INCREMENT FINANCING140.25    Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:140.26    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 140.27the meanings given.140.28(b) "Activities" means acquisition of property, clearing of land, site preparation,
         soils 140.29correction, removal of hazardous waste or pollution, installation of utilities, construction
         140.30of public or private improvements, and other similar activities, but only to the extent
         that 140.31tax increment revenues may be spent for such purposes under other law.141.1(c) "Third party" means an entity other than (1) the person receiving the benefit
         of 141.2assistance financed with tax increments, or (2) the municipality or the development
         authority 141.3or other person substantially under the control of the municipality.141.4(d) "Revenues derived from tax increments paid by properties in the district" means
         only 141.5tax increment as defined in section 
         469.174, subdivision 25, clause (1), and does not include 141.6tax increment as defined in section 
         469.174, subdivision 25, clauses (2), (3), and (4) to (5).141.7EFFECTIVE DATE.This section is effective the day following final enactment.141.8    Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:141.9    Subd. 2. Expenditures outside district. (a) For each tax increment financing district, 141.10an amount equal to at least 75 percent of the total revenue derived from tax increments
         paid 141.11by properties in the district must be expended on activities in the district or to
         pay bonds, 141.12to the extent that the proceeds of the bonds were used to finance activities in the
         district or 141.13to pay, or secure payment of, debt service on credit enhanced bonds. For districts,
         other 141.14than redevelopment districts for which the request for certification was made after
         June 30, 141.151995, the in-district percentage for purposes of the preceding sentence is 80 percent.
         Not 141.16more than 25 percent of the total revenue derived from tax increments paid by properties
         141.17in the district may be expended, through a development fund or otherwise, on activities
         141.18outside of the district but within the defined geographic area of the project except
         to pay, 141.19or secure payment of, debt service on credit enhanced bonds. For districts, other
         than 141.20redevelopment districts for which the request for certification was made after June
         30, 1995, 141.21the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue141.22revenues derived from tax increments forpaid by properties in the district that are expended 141.23on costs under section 
         469.176, subdivision 4h, paragraph (b), may be deducted first before 141.24calculating the percentages that must be expended within and without the district.141.25    (b) In the case of a housing district, a housing project, as defined in section 
         469.174, 141.26subdivision 11
         , is an activity in the district.141.27    (c) All administrative expenses are for activities outside of the district, except
         that if the 141.28only expenses for activities outside of the district under this subdivision are for
         the purposes 141.29described in paragraph (d), administrative expenses will be considered as expenditures
         for 141.30activities in the district.141.31    (d) The authority may elect, in the tax increment financing plan for the district,
         to increase 141.32by up to ten percentage points the permitted amount of expenditures for activities
         located 141.33outside the geographic area of the district under paragraph (a). As permitted by section
         142.1469.176, subdivision 4k
         , the expenditures, including the permitted expenditures under 142.2paragraph (a), need not be made within the geographic area of the project. Expenditures
         142.3that meet the requirements of this paragraph are legally permitted expenditures of
         the district, 142.4notwithstanding section 
         469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 142.5under this paragraph, the expenditures must:142.6    (1) be used exclusively to assist housing that meets the requirement for a qualified
         142.7low-income building, as that term is used in section 42 of the Internal Revenue Code;
         and142.8    (2) not exceed the qualified basis of the housing, as defined under section 42(c)
         of the 142.9Internal Revenue Code, less the amount of any credit allowed under section 42 of the
         Internal 142.10Revenue Code; and142.11    (3) be used to:142.12    (i) acquire and prepare the site of the housing;142.13    (ii) acquire, construct, or rehabilitate the housing; or142.14    (iii) make public improvements directly related to the housing; or142.15(4) be used to develop housing:142.16(i) if the market value of the housing does not exceed the lesser of:142.17(A) 150 percent of the average market value of single-family homes in that municipality;
         142.18or142.19(B) $200,000 for municipalities located in the metropolitan area, as defined in section
         142.20473.121
         , or $125,000 for all other municipalities; and142.21(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
         demolition 142.22of existing structures, site preparation, and pollution abatement on one or more parcels,
         if 142.23the parcel contains a residence containing one to four family dwelling units that
         has been 142.24vacant for six or more months and is in foreclosure as defined in section 
         325N.10, subdivision 142.257
         , but without regard to whether the residence is the owner's principal residence,
         and only 142.26after the redemption period has expired.142.27(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 142.28Increments may continue to be expended under this authority after that date, if they
         are used 142.29to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
         (a), if 142.30December 31, 2016, is considered to be the last date of the five-year period after
         certification 142.31under that provision.142.32EFFECTIVE DATE.This section is effective the day following final enactment.143.1    Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:143.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties 143.3in the district are considered to have been expended on an activity within the district under 143.4subdivision 2 only if one of the following occurs:143.5(1) before or within five years after certification of the district, the revenues
         are actually 143.6paid to a third party with respect to the activity;143.7(2) bonds, the proceeds of which must be used to finance the activity, are issued
         and 143.8sold to a third party before or within five years after certification, the revenues
         are spent to 143.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
         reasonably 143.10expected to be spent before the end of the later of (i) the five-year period, or (ii)
         a reasonable 143.11temporary period within the meaning of the use of that term under section 148(c)(1)
         of the 143.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
         143.13fund;143.14(3) binding contracts with a third party are entered into for performance of the activity
         143.15before or within five years after certification of the district and the revenues are
         spent under 143.16the contractual obligation;143.17(4) costs with respect to the activity are paid before or within five years after
         certification 143.18of the district and the revenues are spent to reimburse a party for payment of the
         costs, 143.19including interest on unreimbursed costs; or143.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
         143.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
         143.222, paragraph (e).143.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
         the 143.24original refunded bonds meet the requirements of paragraph (a), clause (2).143.25(c) For a redevelopment district or a renewal and renovation district certified after
         June 143.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph
         (a) are 143.27extended to ten years after certification of the district. For a redevelopment district
         certified 143.28after April 20, 2009, and before June 30, 2012, the five-year periods described in
         paragraph 143.29(a) are extended to eight years after certification of the district. This extension
         is provided 143.30primarily to accommodate delays in development activities due to unanticipated economic
         143.31circumstances.143.32EFFECTIVE DATE.This section is effective the day following final enactment.144.1    Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:144.2    Subd. 7. Interfund loans.(a) The authority or municipality may advance or loan money 144.3to finance expenditures under section 
         469.176, subdivision 4, from its general fund or any 144.4other fund under which it has legal authority to do so.144.5    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
         is 144.6earliest, the loan or advance must be authorized, by resolution of the governing body or of 144.7the authority, whichever has jurisdiction over the fund from which the advance or
         loan is 144.8authorized, before money is transferred, advanced, or spent, whichever is earliest.144.9    (c) The resolution may generally grant to the municipality or the authority the power to 144.10make interfund loans under one or more tax increment financing plans or for one or
         more 144.11districts. The resolution may be adopted before or after the adoption of the tax increment 144.12financing plan or the creation of the tax increment financing district from which
         the advance 144.13or loan is to be repaid.144.14    (d) The terms and conditions for repayment of the loan must be provided in writing and. 144.15The written terms and conditions may be in any form, but must include, at a minimum, the 144.16principal amount, the interest rate, and maximum term. Written terms may be modified or 144.17amended in writing by the municipality or the authority before the latest decertification
         of 144.18any tax increment financing district from which the interfund loan is to be repaid.
         The 144.19maximum rate of interest permitted to be charged is limited to the greater of the
         rates 144.20specified under section 
         270C.40 or 
         549.09 as of the date the loan or advance is authorized, 144.21unless the written agreement states that the maximum interest rate will fluctuate
         as the 144.22interest rates specified under section 
         270C.40 or 
         549.09 are from time to time adjusted.144.23Loans or advances may be structured as draw-down or line-of-credit obligations of
         the 144.24lending fund.144.25    (e) The authority shall report in the annual report submitted pursuant to section
         469.175, 144.26subdivision 6:144.27    (1) the amount of any interfund loan or advance made in a calendar year; and144.28    (2) any amendment of an interfund loan or advance made in a calendar year.144.29EFFECTIVE DATE.This section is effective the day following final enactment and 144.30applies to all districts, regardless of when the request for certification was made.145.1    Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:145.2    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 145.3financing plan for a district, the rules under this section apply to a redevelopment
         district, 145.4renewal and renovation district, economic development district, soil condition district, or 145.5a soil deficiency district established by the city or a development authority of the
         city in the 145.6project area.145.7    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
         145.8rules under this subdivision, the city must find by resolution that parcels consisting
         of at 145.9least 80 percent of the acreage of the project area (excluding street and railroad
         right of 145.10way) are characterized by one or more of the following conditions:145.11    (1) peat or other soils with geotechnical deficiencies that impair development of
         145.12residential or commercial buildings or infrastructure;145.13    (2) soils or terrain that requires substantial filling in order to permit the development
         of 145.14commercial or residential buildings or infrastructure;145.15    (3) landfills, dumps, or similar deposits of municipal or private waste;145.16    (4) quarries or similar resource extraction sites;145.17    (5) floodway; and145.18    (6) substandard buildings within the meaning of Minnesota Statutes, section 
         469.174, 145.19subdivision 10
         .145.20    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed
         to be 145.21characterized by the relevant condition if at least 70 percent of the area of the
         parcel contains 145.22the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
         deemed to 145.23be characterized by substandard buildings if the buildings occupy at least 30 percent
         of the 145.24area of the parcel.145.25    (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 145.26extended to nine years for any district. The five-year rule under Minnesota Statutes, section 145.27469.1763, subdivision 3
         , is extended to ten years for any district, and section 
         469.1763, 145.28subdivision 4
         , does not apply to any district.145.29    (e) Notwithstanding anything to the contrary in section 
         469.1763, subdivision 2, paragraph 145.30(a), not more than 80 percent of the total revenue derived from tax increments paid
         by 145.31properties in any district (measured over the life of the district) may be expended
         on activities 145.32outside the district but within the project area.146.1    (f) For a soil deficiency district:146.2    (1) increments may be collected through 20 years after the receipt by the authority
         of 146.3the first increment from the district; and146.4    (2) except as otherwise provided in this subdivision, increments may be used only
         to:146.5    (i) acquire parcels on which the improvements described in item (ii) will occur;146.6    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional 146.7cost of installing public improvements directly caused by the deficiencies; and146.8    (iii) pay for the administrative expenses of the authority allocable to the district.146.9    (g) Increments spent for any infrastructure costs, whether inside a district or outside
         a 146.10district but within the project area, are deemed to satisfy the requirements of paragraph
         (f) 146.11and Minnesota Statutes, section 
         469.176, subdivisions 4b, 4c, and 4j.146.12    (h) Increments from any district may not be used to pay the costs of landfill closure
         or 146.13public infrastructure located on the following parcels within the plat known as Burnsville
         146.14Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.146.15    (i) The authority to approve tax increment financing plans to establish tax increment
         146.16financing districts under this section expires on December 31, 2018 2020.146.17EFFECTIVE DATE.This section is effective upon approval by the governing body 146.18of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
         section 146.19645.021.146.20    Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 146.21382, section 84, is amended to read:146.22    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 146.23FINANCING DISTRICT; SPECIAL RULES.146.24(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
         146.25the governing body of the city of Duluth approves the plan for the tax increment financing
         146.26district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
         146.27010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 146.28010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 146.29010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  010-2746-01250; 146.30010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 146.31010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 146.32010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 147.1010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 147.2010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
         147.3Statutes, section 
         469.1763, subdivision 3, that activities must be undertaken within a five-year 147.4period from the date of certification of the tax increment financing district, must
         be 147.5considered to be met if the activities are undertaken within five years after the
         date all 147.6qualifying parcels are delisted from the Federal Superfund list.147.7(b) The requirements of Minnesota Statutes, section 
         469.1763, subdivision 4, beginning 147.8in the sixth year following certification of the district requirement, will begin
         in the sixth 147.9year following the date all qualifying parcels are delisted from the Federal Superfund
         list.147.10(c) The action required under Minnesota Statutes, section 
         469.176, subdivision 6, are 147.11satisfied if the action is commenced within four years after the date all qualifying
         parcels 147.12are delisted from the Federal Superfund list and evidence of the action required is
         submitted 147.13to the county auditor by February 1 of the fifth year following the year in which
         all qualifying 147.14parcels are delisted from the Federal Superfund list.147.15(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
         147.16listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
         of the 147.17USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the 147.18tax increment financing district.147.19(e) In addition to the reporting requirements of Minnesota Statutes, section 
         469.175, 147.20subdivision 5
         , the Seaway Port Authority of Duluth shall report the status of all parcels 147.21listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund147.22Site (USEPA OU 02). The status report must show the parcel numbers, the listed or
         delisted 147.23status, and if delisted, the delisting date.147.24(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
         147.25law to the contrary, the Seaway Port Authority of Duluth may establish an interfund
         loan 147.26program before approval of the tax increment financing plan for or the establishment
         of the 147.27district authorized by this section. The authority may make loans under this program.
         The 147.28proceeds of the loans may be used for any permitted use of increments under this law
         or 147.29Minnesota Statutes, section  469.176, for the district and may be repaid with increments
         147.30from the district established under this section. This paragraph applies to any action
         147.31authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.147.32EFFECTIVE DATE.This section is effective the day after the governing body of the 147.33city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
         645.021, 147.34subdivision 3.148.1    Sec. 7. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:148.2    Subdivision 1. Authority to create districts. (a) The governing body of the city of 148.3Edina or its development authority may establish one or more tax increment financing
         148.4housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
         148.5exist on March 31, 2014.148.6(b) The authority to request certification of districts under this section expires
         on June 148.730, 2017 December 31, 2019.148.8EFFECTIVE DATE.This section is effective upon compliance by the governing body 148.9of the city of Edina with the requirements of Minnesota Statutes, section 645.021,
         148.10subdivisions 2 and 3.148.11    Sec. 8. Laws 2014, chapter 308, article 6, section 9, is amended to read:148.12    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.148.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have 148.14the meanings given them.148.15(b) "City" means the city of Maple Grove.148.16(c) "Project area" means all or a portion of the area in the city commencing at a point 148.17130 feet East and 120 feet North of the southwest corner of the Southeast Quarter
         of Section 148.1823, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
         148.19line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
         148.20Lane to a point on the west line of the east one-half of the Southeast Quarter of
         section 23, 148.21thence south along said west line a distance of 1,200 feet; thence easterly to the
         east line of 148.22Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
         148.23East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West
         a distance 148.24of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st
         Avenue 148.25North, 650 feet westerly measured at right angles, from the east line of the Northwest
         Quarter 148.26of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to
         the west 148.27line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North
         55 148.28degrees West to the south line of the Northwest Quarter of the Northwest Quarter of
         Section 148.2924; thence West along said south line to the east right-of-way line of Zachary Lane;
         thence 148.30North along the east right-of-way line of Zachary Lane to the southwest corner of
         Lot 1, 148.31Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line
         of said 148.32Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
         thence 148.33South along the east line of said Outlot A and its southerly extension to the south
         right-of-way 149.1line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
         149.2line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter
         of 149.3Section 24; thence South along said east line to the north line of the South Half
         of the 149.4Northeast Quarter of Section 24; thence East along said north line to the westerly
         right-of-way 149.5line of Jefferson Highway North; thence southerly along the westerly right-of-way
         line of 149.6Jefferson Highway to the centerline of CSAH 130; thence continuing South along the
         west 149.7right-of-way line of Pilgrim Lane North to the westerly extension of the north line
         of Outlot 149.8A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park
         North 149.9Fourth Addition to the northeast corner of said Outlot A; thence southerly along the
         east 149.10line of said Outlot A to the southeast corner of said Outlot A; thence easterly along
         the south 149.11line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line
         of State 149.12Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
         149.13westerly right-of-way line of State Highway 169 and the northerly right-of-way line
         of 149.14Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
         149.15line of Zachary Lane North; thence northerly along the easterly right-of-way line
         of Zachary 149.16Lane North and its northerly extension to the north right-of-way line of CSAH 130;
         thence 149.17westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
         149.18and there terminating, provided that the project area includes the rights-of-way for
         all present 149.19and future highway interchanges abutting the area described in this paragraph, and may 149.20include any additional property necessary to cause the property included in the tax
         increment 149.21financing district to consist of complete parcels.149.22(d) "Soil deficiency district" means a type of tax increment financing district consisting
         149.23of a portion of the project area in which the city finds by resolution that the following
         149.24conditions exist:149.25(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage
         in 149.26the district require substantial filling, grading, or other physical preparation for
         use; and149.27(2) the estimated cost of the physical preparation under clause (1), but excluding
         costs 149.28directly related to roads as defined in Minnesota Statutes, section 
         160.01, and local 149.29improvements as described in Minnesota Statutes, sections 
         429.021, subdivision 1, clauses 149.30(1) to (7), (11), and (12), and 
         430.01, exceeds the fair market value of the land before 149.31completion of the preparation.149.32    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 149.33financing plan for a district, the rules under this section apply to a redevelopment
         district, 149.34renewal and renovation district, soil condition district, or soil deficiency district
         established 149.35by the city or a development authority of the city in the project area.150.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
         150.2rules under this subdivision, the city must find by resolution that parcels consisting
         of at 150.3least 80 percent of the acreage of the project area, excluding street and railroad
         rights-of-way, 150.4are characterized by one or more of the following conditions:150.5(1) peat or other soils with geotechnical deficiencies that impair development of
         150.6commercial buildings or infrastructure;150.7(2) soils or terrain that require substantial filling in order to permit the development
         of 150.8commercial buildings or infrastructure;150.9(3) landfills, dumps, or similar deposits of municipal or private waste;150.10(4) quarries or similar resource extraction sites;150.11(5) floodway; and150.12(6) substandard buildings, within the meaning of Minnesota Statutes, section 
         469.174, 150.13subdivision 10
         .150.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized
         by the 150.15relevant condition if at least 70 percent of the area of the parcel contains the relevant
         150.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized
         by 150.17substandard buildings if substandard buildings occupy at least 30 percent of the area
         of the 150.18parcel.150.19(d) The five-year rule under Minnesota Statutes, section 
         469.1763, subdivision 3, is 150.20extended to eight years for any district, and Minnesota Statutes, section 
         469.1763, subdivision 150.214
         , does not apply to any district.150.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 
         469.1763, 150.23subdivision 2
         , paragraph (a), not more than 40 percent of the total revenue derived from tax 150.24increments paid by properties in any district, measured over the life of the district,
         may be 150.25expended on activities outside the district but within the project area.150.26(f) For a soil deficiency district:150.27(1) increments may be collected through 20 years after the receipt by the authority
         of 150.28the first increment from the district;150.29(2) increments may be used only to:150.30(i) acquire parcels on which the improvements described in item (ii) will occur;151.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
         additional 151.2cost of installing public improvements directly caused by the deficiencies; and151.3(iii) pay for the administrative expenses of the authority allocable to the district;
         and151.4(3) any parcel acquired with increments from the district must be sold at no less
         than 151.5their fair market value.151.6(g) Increments spent for any infrastructure costs, whether inside a district or outside
         a 151.7district but within the project area, are deemed to satisfy the requirements of Minnesota
         151.8Statutes, section 
         469.176, subdivision 4j.151.9(h) The authority to approve tax increment financing plans to establish tax increment
         151.10financing districts under this section expires June 30, 2020.151.11(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
         151.12increments from a soil deficiency district to acquire parcels and for other infrastructure
         costs 151.13either inside or outside of the district, but within the project area, if the acquisition
         or 151.14infrastructure is for a qualified development. For purposes of this paragraph, a development
         151.15is a qualified development only if all of the following requirements are satisfied:151.16(1) the city finds, by resolution, that the land acquisition and infrastructure are
         undertaken 151.17primarily to serve the development;151.18(2) the city has a binding, written commitment and adequate financial assurances from
         151.19the developer that the development will be constructed; and151.20(3) the development does not consist of retail trade or housing improvements.151.21EFFECTIVE DATE.This section is effective upon approval by the governing body 151.22of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
         151.23section 645.021.151.24    Sec. 9. CITY OF ANOKA; TAX INCREMENT FINANCING; FIVE-YEAR RULE 151.25EXTENSION.151.26For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the 151.27city of Anoka's Greens of Anoka redevelopment tax increment financing district is
         deemed 151.28to be certified on June 29, 2012, rather than its actual certification date of July
         2, 2012, and 151.29the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply
         as if 151.30the district were certified on that date.152.1EFFECTIVE DATE.This section is effective upon approval by the governing body 152.2of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
         152.3645.021, subdivisions 2 and 3.152.4    Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING; EXTENSION 152.5OF DISTRICT.152.6Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
         1b, 152.7or any other law to the contrary, the city of Coon Rapids may collect tax increment
         from 152.8District 6-1 Port Riverwalk through December 31, 2038.152.9EFFECTIVE DATE.This section is effective upon compliance by the governing bodies 152.10of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
         152.11the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
         152.12subdivision 3.152.13    Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING; 152.14FIVE-YEAR RULE EXTENSION.152.15The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         152.16must be undertaken within a five-year period from the date of certification of a tax
         increment 152.17financing district, is considered to be met for Tax Increment Financing District No.
         1-12 152.18(Gateway North), administered by the Cottage Grove Economic Development Authority,
         152.19if the activities are undertaken prior to January 1, 2017.152.20EFFECTIVE DATE.This section is effective upon compliance by the chief clerical 152.21officer of the governing body of the city of Cottage Grove with the requirements of
         Minnesota 152.22Statutes, section 645.021, subdivisions 2 and 3.152.23    Sec. 12. CITY OF EDINA; TAX INCREMENT FINANCING; APPROVAL OF 2014 152.24SPECIAL LAW.152.25Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
         3, 152.26the chief clerical officer of the city of Edina must file with the secretary of state
         certificate 152.27of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016,
         and, if 152.28the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
         152.29subdivision 3, are otherwise complied with, the special law is deemed approved, and
         all 152.30actions taken by the city before the effective date of this section in reliance on
         Laws 2014, 152.31chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308,
         article 152.326, section 8, and this act.153.1EFFECTIVE DATE.This section is effective the day following final enactment without 153.2local approval as an amendment to the provisions of Laws 2014, chapter 308, article
         6, 153.3section 8.153.4    Sec. 13. CITY OF MOORHEAD; TAX INCREMENT FINANCING; FIVE-YEAR 153.5RULE EXTENSION.153.6For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
         the 153.7city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment TIF district
         is 153.8deemed to be certified on June 29, 2012, rather than its actual certification date
         of July 12, 153.92012, and Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
         the district 153.10were certified on that date.153.11EFFECTIVE DATE.This section is effective upon approval by the governing body 153.12of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
         153.13645.021, subdivisions 2 and 3.153.14    Sec. 14. CITY OF RICHFIELD; TAX INCREMENT FINANCING; EXTENSION 153.15OF DISTRICT.153.16Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
         law 153.17to the contrary, the city of Richfield and the Housing and Redevelopment Authority
         in and 153.18for the city of Richfield may elect to extend the duration limit of the redevelopment
         tax 153.19increment financing district known as the Cedar Avenue Tax Increment Financing District
         153.20established by Laws 2005, chapter 152, article 2, section 25, by ten years.153.21EFFECTIVE DATE.This section is effective upon compliance by the city of Richfield, 153.22Hennepin County, and Independent School District No. 280 with the requirements of
         153.23Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2
         and 3.153.24    Sec. 15. CITY OF RICHFIELD; TAX INCREMENT FINANCING; FIVE-YEAR 153.25RULE EXTENSION.153.26The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
         153.27must be undertaken within a five-year period from the date of certification of a tax
         increment 153.28financing district, are considered to be met for the Lyndale Gardens Tax Increment
         Financing 153.29District established by the city of Richfield and the housing and redevelopment authority
         153.30in and for the city of Richfield if the activities are undertaken within seven years
         from the 153.31date of certification.154.1EFFECTIVE DATE.This section is effective upon the city of Richfield's compliance 154.2with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
         645.021, 154.3subdivisions 2 and 3.154.4    Sec. 16. CITY OF ST. LOUIS PARK; TAX INCREMENT FINANCING; POOLING 154.5PERCENTAGE INCREASE.154.6For purposes of the Elmwood Village Tax Increment Financing District in the city of
         154.7St. Louis Park, including the duration extension authorized by Laws 2009, chapter
         88, article 154.85, section 19, the permitted percentage of increments that may be expended on activities
         154.9outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is
         increased 154.10to 30 percent for the district.154.11EFFECTIVE DATE.This section is effective upon compliance by the governing body 154.12of the city of St. Louis Park with the requirements of Minnesota Statutes, section
         645.021, 154.13subdivision 3.154.14    Sec. 17. CITY OF ST. PAUL; TAX INCREMENT FINANCING; FORD SITE 154.15REDEVELOPMENT.154.16(a) For purposes of computing the duration limits under Minnesota Statutes, section
         154.17469.176, subdivision 1b, the housing and redevelopment authority of the city of St.
         Paul 154.18may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
         154.19District. This authority is limited to the first four years of increment or increments
         derived 154.20from taxes payable in 2023, whichever occurs first.154.21(b) If the city elects to waive receipt of increment under paragraph (a), for purposes
         of 154.22applying any limits based on when the district was certified under Minnesota Statutes,
         154.23section 469.176, subdivision 6, or 469.1763, the date of certification for the district
         is deemed 154.24to be January 2 of the property tax assessment year for which increment is first received
         154.25under the waiver.154.26EFFECTIVE DATE.This section is effective July 1, 2017, without local approval 154.27under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).154.28    Sec. 18. WASHINGTON COUNTY; TAX INCREMENT FINANCING; SPECIAL 154.29RULES AUTHORIZATION.154.30(a) If Washington County elects, upon the adoption of a tax increment financing plan
         154.31for a district, the rules under this section apply to one or more tax increment financing
         155.1districts established by the county or the community development agency of the county.
         155.2The area within which the tax increment districts may be created is located in the
         city of 155.3Newport and is south of marked Interstate Highway 494, north of 15th Street extended
         to 155.4the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
         155.561 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock
         Crossing 155.6Project Area" or "project area."155.7(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
         155.8section 469.174, subdivision 10, do not apply to the parcels identified by parcel
         identification 155.9numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, 155.102602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, 155.11260282244024, and 2602822440023, which are deemed substandard for the purpose of 155.12qualifying the district as a redevelopment district.155.13(c) Increments spent outside a district shall only be spent within the project area
         and on 155.14costs described in Minnesota Statutes, section 469.176, subdivision 4j.155.15(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
         155.16subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived
         from tax 155.17increments paid by properties in any district, measured over the life of the district,
         may be 155.18expended on activities outside the district but within the project area. The five-year
         rule 155.19under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit
         is nine 155.20years.155.21(e) The authority to approve a tax increment financing plan and to establish a tax
         155.22increment financing district under this section expires December 31, 2027.155.23EFFECTIVE DATE.This section is effective and shall retroactively include the 155.24redevelopment district in the project area approved by Washington County on November
         155.258, 2016, upon approval by the governing body of the city of Newport and Washington
         155.26County and upon compliance by the county with Minnesota Statutes, section 645.021,
         155.27subdivision 3.155.28ARTICLE 7155.29PUBLIC FINANCE155.30    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:155.31    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of 155.32indebtedness within the debt limits for a town purpose otherwise authorized by law.
         The 155.33certificates shall be payable in not more than ten years and be issued on the terms
         and in 156.1the manner as the board may determine, provided that notes issued for projects that eliminate 156.2R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in
         not more 156.3than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the 156.4estimated market value of the town, they shall not be issued for at least ten days
         after 156.5publication in a newspaper of general circulation in the town of the board's resolution
         156.6determining to issue them. If within that time, a petition asking for an election
         on the 156.7proposition signed by voters equal to ten percent of the number of voters at the last
         regular 156.8town election is filed with the clerk, the certificates shall not be issued until
         their issuance 156.9has been approved by a majority of the votes cast on the question at a regular or
         special 156.10election. A tax levy shall be made to pay the principal and interest on the certificates
         as in 156.11the case of bonds.156.12    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:156.13    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and 156.14without public referendum, issue capital notes within existing debt limits for the
         purpose 156.15of purchasing ambulance and other medical equipment, road construction or maintenance
         156.16equipment, public safety equipment and other capital equipment having an expected
         useful 156.17life at least equal to the term of the notes issued. The notes shall be payable in
         not more 156.18than ten years and shall be issued on terms and in a manner as the board determines, provided 156.19that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph 156.20(b), clause (2), must be payable in not more than 20 years. The total principal amount of 156.21the notes issued for any fiscal year shall not exceed one percent of the total annual
         budget 156.22for that year and shall be issued solely for the purchases authorized in this subdivision.
         A 156.23tax levy shall be made for the payment of the principal and interest on such notes
         as in the 156.24case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
         156.25and software, whether bundled with machinery or equipment or unbundled. For purposes
         156.26of this subdivision, the term "medical equipment" includes computer hardware and software
         156.27and other intellectual property for use in medical diagnosis, medical procedures,
         research, 156.28record keeping, billing, and other hospital applications, together with application
         development 156.29services and training related to the use of the computer hardware and software and
         other 156.30intellectual property, all without regard to their useful life. For purposes of determining
         the 156.31amount of capital notes which the county may issue in any year, the budget of the
         county 156.32and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under
         this 156.33subdivision shall be in addition to obligations issuable under section 
         373.01, subdivision 156.343
         .157.1    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:157.2410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.157.3    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
         157.4city may, by resolution and without public referendum, issue capital notes subject
         to the 157.5city debt limit to purchase capital equipment.157.6    (b) For purposes of this section, "capital equipment" means:157.7    (1) public safety equipment, ambulance and other medical equipment, road construction
         157.8and maintenance equipment, and other capital equipment; and157.9    (2) computer hardware and software, whether bundled with machinery or equipment or
         157.10unbundled, together with application development services and training related to
         the use 157.11of the computer hardware and software.157.12    (c) The equipment or software must have an expected useful life at least as long as
         the 157.13term of the notes.157.14    (d) The notes shall be payable in not more than ten years and be issued on terms and
         in 157.15the manner the city determines, provided that notes issued for projects that eliminate R-22, 157.16as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
         than 157.1720 years. The total principal amount of the capital notes issued in a fiscal year shall not
         157.18exceed 0.03 percent of the estimated market value of taxable property in the city
         for that 157.19year.157.20    (e) A tax levy shall be made for the payment of the principal and interest on the
         notes, 157.21in accordance with section 
         475.61, as in the case of bonds.157.22    (f) Notes issued under this section shall require an affirmative vote of two-thirds
         of the 157.23governing body of the city.157.24    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
         157.25city may also issue capital notes subject to its debt limit in the manner and subject
         to the 157.26limitations applicable to statutory cities pursuant to section 
         412.301.157.27    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:157.28412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.157.29    (a) The council may issue certificates of indebtedness or capital notes subject to
         the city 157.30debt limits to purchase capital equipment.157.31    (b) For purposes of this section, "capital equipment" means:158.1    (1) public safety equipment, ambulance and other medical equipment, road construction
         158.2and maintenance equipment, and other capital equipment; and158.3    (2) computer hardware and software, whether bundled with machinery or equipment or
         158.4unbundled, together with application development services and training related to
         the use 158.5of the computer hardware or software.158.6    (c) The equipment or software must have an expected useful life at least as long as
         the 158.7terms of the certificates or notes.158.8    (d) Such certificates or notes shall be payable in not more than ten years and shall
         be 158.9issued on such terms and in such manner as the council may determine, provided, however, 158.10that notes issued for projects that eliminate R-22, as defined in section 240A.09,
         paragraph 158.11(b), clause (2), must be payable in not more than 20 years.158.12    (e) If the amount of the certificates or notes to be issued to finance any such purchase
         158.13exceeds 0.25 percent of the estimated market value of taxable property in the city,
         they shall 158.14not be issued for at least ten days after publication in the official newspaper of
         a council 158.15resolution determining to issue them; and if before the end of that time, a petition
         asking 158.16for an election on the proposition signed by voters equal to ten percent of the number
         of 158.17voters at the last regular municipal election is filed with the clerk, such certificates
         or notes 158.18shall not be issued until the proposition of their issuance has been approved by a
         majority 158.19of the votes cast on the question at a regular or special election.158.20    (f) A tax levy shall be made for the payment of the principal and interest on such
         158.21certificates or notes, in accordance with section 
         475.61, as in the case of bonds.158.22    Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:158.23    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general 158.24obligation of the general jurisdiction governmental unit as additional security for
         bonds 158.25payable from income or revenues of the project or the authority. The authority must
         find 158.26that the pledged revenues will equal or exceed 110 percent of the principal and interest
         due 158.27on the bonds for each year. The proceeds of the bonds must be used for a qualified
         housing 158.28development project or projects. The obligations must be issued and sold in the manner
         and 158.29following the procedures provided by chapter 475, except the obligations are not subject
         to 158.30approval by the electors, and the maturities may extend to not more than 35 years
         for 158.31obligations sold to finance housing for the elderly and 40 years for other obligations
         issued 158.32under this subdivision. The authority is the municipality for purposes of chapter
         475.159.1    (b) The principal amount of the issue must be approved by the governing body of the
         159.2general jurisdiction governmental unit whose general obligation is pledged. Public
         hearings 159.3must be held on issuance of the obligations by both the authority and the general
         jurisdiction 159.4governmental unit. The hearings must be held at least 15 days, but not more than 120
         days, 159.5before the sale of the obligations.159.6    (c) The maximum amount of general obligation bonds that may be issued and outstanding
         159.7under this section equals the greater of (1) one-half of one percent of the estimated
         market 159.8value of the general jurisdiction governmental unit whose general obligation is pledged,
         or 159.9(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, 159.10the outstanding general obligation bonds of all cities in the county or counties issued
         under 159.11this subdivision must be added in calculating the limit under clause (1).159.12    (d) "General jurisdiction governmental unit" means the city in which the housing 159.13development project is located. In the case of a county or multicounty authority,
         the county 159.14or counties may act as the general jurisdiction governmental unit. In the case of
         a multicounty 159.15authority, the pledge of the general obligation is a pledge of a tax on the taxable
         property 159.16in each of the counties.159.17    (e) "Qualified housing development project" means a housing development project 159.18providing housing either for the elderly or for individuals and families with incomes
         not 159.19greater than 80 percent of the median family income as estimated by the United States
         159.20Department of Housing and Urban Development for the standard metropolitan statistical
         159.21area or the nonmetropolitan county in which the project is located. The project must
         be 159.22owned for the term of the bonds either by the authority or by a limited partnership
         or other 159.23entity in which the authority or another entity under the sole control of the authority
         is the 159.24sole general partner and the partnership or other entity must receive (1) an allocation
         from 159.25the Department of Management and Budget or an entitlement issuer of tax-exempt bonding
         159.26authority for the project and a preliminary determination by the Minnesota Housing
         Finance 159.27Agency or the applicable suballocator of tax credits that the project will qualify
         for four 159.28percent low-income housing tax credits or (2) a reservation of nine percent low-income
         159.29housing tax credits from the Minnesota Housing Finance Agency or a suballocator of
         tax 159.30credits for the project. A qualified housing development project may admit nonelderly
         159.31individuals and families with higher incomes if:159.32    (1) three years have passed since initial occupancy;160.1    (2) the authority finds the project is experiencing unanticipated vacancies resulting
         in 160.2insufficient revenues, because of changes in population or other unforeseen circumstances
         160.3that occurred after the initial finding of adequate revenues; and160.4    (3) the authority finds a tax levy or payment from general assets of the general jurisdiction
         160.5governmental unit will be necessary to pay debt service on the bonds if higher income
         160.6individuals or families are not admitted.160.7    (f) The authority may issue bonds to refund bonds issued under this subdivision in
         160.8accordance with section 
         475.67. The finding of the adequacy of pledged revenues required 160.9by paragraph (a) and the public hearing required by paragraph (b) shall not apply
         to the 160.10issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
         after 160.11July 1, 1992.160.12    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:160.13    Subdivision 1. Establishment. An economic development authority may create and 160.14define the boundaries of economic development districts at any place or places within
         the 160.15city, except that the district boundaries must be contiguous, and may use the powers
         granted 160.16in sections 
         469.090 to 
         469.108 to carry out its purposes. First the authority must hold a 160.17public hearing on the matter. At least ten days before the hearing, the authority
         shall publish 160.18notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 160.19shall find that an economic development district is proper and desirable to establish
         and 160.20develop within the city.160.21    Sec. 7. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:160.22    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, 160.23without regard to the election requirement under subdivision 1, issue and sell obligations
         160.24for street reconstruction or bituminous overlays, if the following conditions are
         met:160.25    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
         plan 160.26that describes the street reconstruction or overlay to be financed, the estimated
         costs, and 160.27any planned reconstruction or overlay of other streets in the municipality over the
         next five 160.28years, and the plan and issuance of the obligations has been approved by a vote of
         all a 160.29majority of the members of the governing body present at the meeting following a public 160.30hearing for which notice has been published in the official newspaper at least ten
         days but 160.31not more than 28 days prior to the hearing; and161.1    (2) if a petition requesting a vote on the issuance is signed by voters equal to five
         percent 161.2of the votes cast in the last municipal general election and is filed with the municipal
         clerk 161.3within 30 days of the public hearing, the municipality may issue the bonds only after
         161.4obtaining the approval of a majority of the voters voting on the question of the issuance
         of 161.5the obligations. If the municipality elects not to submit the question to the voters,
         the 161.6municipality shall not propose the issuance of bonds under this section for the same
         purpose 161.7and in the same amount for a period of 365 days from the date of receipt of the petition.
         If 161.8the question of issuing the bonds is submitted and not approved by the voters, the
         provisions 161.9of section 
         475.58, subdivision 1a, shall apply.161.10    (b) Obligations issued under this subdivision are subject to the debt limit of the
         161.11municipality and are not excluded from net debt under section 
         475.51, subdivision 4.161.12    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
         161.13includes utility replacement and relocation and other activities incidental to the
         street 161.14reconstruction, turn lanes and other improvements having a substantial public safety
         function, 161.15realignments, other modifications to intersect with state and county roads, and the
         local 161.16share of state and county road projects. For purposes of this subdivision, "street
         161.17reconstruction" includes expenditures for street reconstruction that have been incurred
         by 161.18a municipality before approval of a street reconstruction plan, if such expenditures
         are 161.19included in a street reconstruction plan approved on or before the date of the public
         hearing 161.20under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.161.21    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
         161.22modifications, and the local share of state and county road projects, street reconstruction
         161.23and bituminous overlays does not include the portion of project cost allocable to
         widening 161.24a street or adding curbs and gutters where none previously existed.161.25    Sec. 8. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:161.26    Subd. 2. Requirements waived. The requirements as to public sale shall not apply:161.27(1) to obligations issued under the provisions of a home rule charter or of a law
         161.28specifically authorizing a different method of sale, or authorizing them to be issued
         in such 161.29manner or on such terms and conditions as the governing body may determine;161.30(2) to obligations sold by an issuer in an amount not exceeding the total sum of 161.31$1,200,000 in any 12-month period;162.1(3) to obligations issued by a governing body other than a school board in anticipation
         162.2of the collection of taxes or other revenues appropriated for expenditure in a single
         year, if 162.3sold in accordance with the most favorable of two or more proposals solicited privately;162.4(4) to obligations sold to any board, department, or agency of the United States of
         162.5America or of the state of Minnesota, in accordance with rules or regulations promulgated
         162.6by such board, department, or agency;162.7(5) to obligations issued to fund pension and retirement fund liabilities under section
         162.8475.52, subdivision 6
         , obligations issued with tender options under section 
         475.54, 162.9subdivision 5a
         , crossover refunding obligations referred to in section 
         475.67, subdivision 162.1013
         , and any issue of obligations comprised in whole or in part of obligations bearing
         interest 162.11at a rate or rates which vary periodically referred to in section 
         475.56;162.12(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
         162.13authorized by law, if the governing body of the municipality, on the advice of bond
         counsel 162.14or special tax counsel, determines that interest on the obligations cannot be represented
         to 162.15be excluded from gross income for purposes of federal income taxation;162.16(7) to obligations issued in the form of an installment purchase contract, lease purchase
         162.17agreement, or other similar agreement;162.18(8) to obligations sold under a bond reinvestment program; and162.19(9) if the municipality has retained an independent financial advisor municipal adviser, 162.20obligations which the governing body determines shall be sold by private negotiation.162.21ARTICLE 8162.22MISCELLANEOUS162.23    Section 1. Minnesota Statutes 2016, section 287.08, is amended to read:162.24287.08 TAX, HOW PAYABLE; RECEIPTS.162.25    (a) The tax imposed by sections 
         287.01 to 
         287.12 must be paid to the treasurer of any 162.26county in this state in which the real property or some part is located at or before
         the time 162.27of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage
         and 162.28the receipt is conclusive proof that the tax has been paid in the amount stated and
         authorizes 162.29any county recorder or registrar of titles to record the mortgage. Its form, in substance,
         shall 162.30be "registration tax hereon of ..................... dollars paid." If the mortgage
         is exempt from 162.31taxation the endorsement shall, in substance, be "exempt from registration tax." In
         either 162.32case the receipt must be signed by the treasurer. In case the treasurer is unable
         to determine 163.1whether a claim of exemption should be allowed, the tax must be paid as in the case
         of a 163.2taxable mortgage. For documents submitted electronically, the endorsements and tax
         amount 163.3shall be affixed electronically and no signature by the treasurer will be required.
         The actual 163.4payment method must be arranged in advance between the submitter and the receiving
         163.5county.163.6    (b) The county treasurer may refund in whole or in part any mortgage registry tax
         163.7overpayment if a written application by the taxpayer is submitted to the county treasurer
         163.8within 3-1/2 years from the date of the overpayment. If the county has not issued
         a denial 163.9of the application, the taxpayer may bring an action in Tax Court in the county in
         which 163.10the tax was paid at any time after the expiration of six months from the time that
         the 163.11application was submitted. A denial of refund may be appealed within 60 days from
         the 163.12date of the denial by bringing an action in Tax Court in the county in which the tax
         was 163.13paid. The action is commenced by the serving of a petition for relief on the county
         treasurer, 163.14and by filing a copy with the court. The county attorney shall defend the action.
         The county 163.15treasurer shall notify the treasurer of each county that has or would receive a portion
         of the 163.16tax as paid.163.17    (c) If the county treasurer determines a refund should be paid, or if a refund is
         ordered 163.18by the court, the county treasurer of each county that actually received a portion
         of the tax 163.19shall immediately pay a proportionate share of three percent of the refund using any
         available 163.20county funds. The county treasurer of each county that received, or would have received,
         163.21a portion of the tax shall also pay their county's proportionate share of the remaining
         97 163.22percent of the court-ordered refund on or before the 20th day of the following month
         using 163.23solely the mortgage registry tax funds that would be paid to the commissioner of revenue
         163.24on that date under section 
         287.12. If the funds on hand under this procedure are insufficient 163.25to fully fund 97 percent of the court-ordered refund, the county treasurer of the
         county in 163.26which the action was brought shall file a claim with the commissioner of revenue under
         163.27section 
         16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 163.28remaining portion upon receipt of a warrant from the state issued pursuant to the
         claim.163.29    (d) When any mortgage covers real property located in more than one county in this
         163.30state the total tax must be paid to the treasurer of the county where the mortgage
         is first 163.31presented for recording, and the payment must be receipted as provided in paragraph
         (a). 163.32If the principal debt or obligation secured by such a multiple county mortgage exceeds
         163.33$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the 163.34commissioner of revenue and the nonstate portion of the tax must be divided and paid over 163.35by the county treasurer receiving it commissioner of revenue, on or before the 20th day of 164.1each month after receipt, to the county or counties entitled in the ratio that the
         estimated 164.2market value of the real property covered by the mortgage in each county bears to
         the 164.3estimated market value of all the real property in this state described in the mortgage.
         In 164.4making the division and payment the county treasurer commissioner of revenue shall send 164.5a statement giving the description of the real property described in the mortgage
         and the 164.6estimated market value of the part located in each county. For this purpose, the treasurer of 164.7any county commissioner of revenue may require the treasurer of any other county to certify 164.8to the former the estimated market value of any tract of real property in any mortgage in 164.9the county.164.10    (e) The mortgagor must pay the tax imposed by sections 
         287.01 to 
         287.12. The mortgagee 164.11may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
         164.12collects money from the mortgagor to remit the tax on behalf of the mortgagor, the
         mortgagee 164.13has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount
         of the tax 164.14collected for that purpose and the mortgagor is relieved of any further obligation
         to pay the 164.15tax as to the amount collected by the mortgagee for this purpose.164.16    Sec. 2. Minnesota Statutes 2016, section 295.53, subdivision 1, is amended to read:164.17    Subdivision 1. Exemptions. (a) The following payments are excluded from the gross 164.18revenues subject to the hospital, surgical center, or health care provider taxes under
         sections 164.19295.50
          to 
         295.59:164.20(1) payments received for services provided under the Medicare program, including
         164.21payments received from the government, and organizations governed by sections 1833
         and 164.221876 of title XVIII of the federal Social Security Act, United States Code, title
         42, section 164.231395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the
         Medicare 164.24enrollee or by a Medicare supplemental coverage as defined in section 
         62A.011, subdivision 164.253
         , clause (10), or by Medicaid payments under title XIX of the federal Social Security
         Act. 164.26Payments for services not covered by Medicare are taxable;164.27(2) payments received for home health care services;164.28(3) payments received from hospitals or surgical centers for goods and services on
         which 164.29liability for tax is imposed under section 
         295.52 or the source of funds for the payment is 164.30exempt under clause (1), (7), (10), or (14);164.31(4) payments received from health care providers for goods and services on which 164.32liability for tax is imposed under this chapter or the source of funds for the payment
         is 164.33exempt under clause (1), (7), (10), or (14);165.1(5) amounts paid for legend drugs, other than nutritional products and blood and blood
         165.2components, to a wholesale drug distributor who is subject to tax under section 
         295.52, 165.3subdivision 3
         , reduced by reimbursements received for legend drugs otherwise exempt 165.4under this chapter;165.5(6) payments received by a health care provider or the wholly owned subsidiary of
         a 165.6health care provider for care provided outside Minnesota;165.7(7) payments received from the chemical dependency fund under chapter 254B;165.8(8) payments received in the nature of charitable donations that are not designated
         for 165.9providing patient services to a specific individual or group;165.10(9) payments received for providing patient services incurred through a formal program
         165.11of health care research conducted in conformity with federal regulations governing
         research 165.12on human subjects. Payments received from patients or from other persons paying on
         behalf 165.13of the patients are subject to tax;165.14(10) payments received from any governmental agency for services benefiting the public,
         165.15not including payments made by the government in its capacity as an employer or insurer
         165.16or payments made by the government for services provided under general assistance
         medical 165.17care, the MinnesotaCare program, or the medical assistance program governed by title
         XIX 165.18of the federal Social Security Act, United States Code, title 42, sections 1396 to
         1396v;165.19(11) government payments received by the commissioner of human services for 165.20state-operated services;165.21(12) payments received by a health care provider for hearing aids and related equipment
         165.22or prescription eyewear delivered outside of Minnesota;165.23(13) payments received by an educational institution from student tuition, student
         activity 165.24fees, health care service fees, government appropriations, donations, or grants, and
         for 165.25services identified in and provided under an individualized education program as defined
         165.26in section 
         256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 165.27for service payments and payments for extended coverage are taxable;165.28(14) payments received under the federal Employees Health Benefits Act, United States
         165.29Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990.
         165.30Enrollee deductibles, coinsurance, and co-payments are subject to tax; and165.31(15) payments received under the federal Tricare program, Code of Federal Regulations,
         165.32title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments
         are subject 165.33to tax.166.1(b) Payments received by wholesale drug distributors for legend drugs sold directly
         to 166.2veterinarians or veterinary bulk purchasing organizations are excluded from the gross
         166.3revenues subject to the wholesale drug distributor tax under sections 
         295.50 to 
         295.59.166.4(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision
         166.51c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under
         sections 166.6295.50 to 295.59.166.7EFFECTIVE DATE.This section is effective retroactively for gross revenues received 166.8on or after July 1, 2016.166.9    Sec. 3. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:166.10    Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of 166.11use for the purpose of producing or generatingused to produce or generate power for 166.12propelling internal combustion engine aircraft, that meets the specifications in ASTM 166.13specification D910-11, and that either.166.14    Aviation gasoline includes any gasoline:166.15    (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor
         166.16or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as
         "aviation 166.17gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM 166.18specification as gasoline appropriate for use in producing or generating power for
         propelling 166.19internal combustion engine aircraft; or166.20    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored,
         166.21or withdrawn from storage by any person, to be used for the purpose of producing or
         166.22generating power for propelling internal combustion engine aircraft sold to a dealer of 166.23aviation gasoline for dispensing directly into the fuel tank of an aircraft.166.24EFFECTIVE DATE.This section is effective the day following final enactment except 166.25that the change to clause (2) is effective for sales and purchases made after June
         30, 2017.166.26    Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:166.27    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 166.28means natural gas, primarily methane, condensed under high pressure and stored in
         specially 166.29designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
         166.30of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic 166.31foot.167.1EFFECTIVE DATE.This section is effective for sales and purchases made after June 167.230, 2017.167.3    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 167.4read:167.5    Subd. 13a.Dealer of aviation gasoline."Dealer of aviation gasoline" means any person 167.6who sells gasoline on the premises of an airport as defined under section 360.013,
         subdivision 167.739, to be dispensed directly into the fuel tank of an aircraft.167.8EFFECTIVE DATE.This section is effective for sales and purchases made after June 167.930, 2017.167.10    Sec. 6. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:167.11    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or 167.12denatured ethanol purchased by:167.13    (1) a transit system or transit provider receiving financial assistance or reimbursement
         167.14under section 
         174.24, 
         256B.0625, subdivision 17, or 
         473.384;167.15    (2) providers of transportation to recipients of medical assistance home and 167.16community-based services waivers enrolled in day programs, including adult day care,
         167.17family adult day care, day treatment and habilitation, prevocational services, and
         structured 167.18day services;167.19(3) an ambulance service licensed under chapter 144E;167.20(4) providers of medical or dental services by a federally qualified health center,
         as 167.21defined under title 19 of the Social Security Act, as amended by Section 4161 of the
         Omnibus 167.22Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
         167.23medical unit; or167.24    (5) a licensed distributor to be delivered to a terminal for use in blending; or167.25    (6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended
         to 167.26be dispensed directly into the fuel tank of an aircraft.167.27EFFECTIVE DATE.This section is effective for sales and purchases made after June 167.2830, 2017.167.29    Sec. 7. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:167.30    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:168.1    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.168.2    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.168.3    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; 168.4or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
         168.5as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
         168.6gas or 126.67 cubic feet.168.7    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
         specified 168.8in section 
         296A.07, subdivision 2. The tax is payable in the form and manner prescribed 168.9by the commissioner.168.10EFFECTIVE DATE.This section is effective for sales and purchases made after June 168.1130, 2017.168.12    Sec. 8. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:168.13    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided 168.14in paragraph (e), on or before the 23rd day of each month, every person who is required
         to 168.15pay a gasoline tax shall file with the commissioner a report, in the form and manner
         168.16prescribed by the commissioner, showing the number of gallons of petroleum products
         168.17received by the reporter during the preceding calendar month, and other information
         the 168.18commissioner may require. A written report is deemed to have been filed as required
         in this 168.19subdivision if postmarked on or before the 23rd day of the month in which the tax
         is payable.168.20(b) The number of gallons of gasoline must be reported in United States standard liquid
         168.21gallons, 231 cubic inches, except that the commissioner may upon written application
         and 168.22for cause shown permit the distributor to report the number of gallons of gasoline
         as corrected 168.23to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline
         covered 168.24in the application and allowed by the commissioner must continue to be reported by
         the 168.25distributor on the adjusted basis for a period of one year from the date of the granting
         of 168.26the application. The number of gallons of petroleum products other than gasoline must
         be 168.27reported as originally invoiced. Each report must show separately the number of gallons
         of 168.28aviation gasoline received by the reporter during each calendar month and the number of 168.29gallons of gasoline sold to a dealer of aviation gasoline during each calendar month.168.30(c) Each report must also include the amount of gasoline tax on gasoline received
         by 168.31the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
         168.32of the quantity of gasoline received by a distributor shall be made for evaporation
         and loss. 169.1At the time of reporting, the reporter shall submit satisfactory evidence that one-third
         of the 169.22.5 percent deduction has been credited or paid to dealers on quantities sold to them.169.3(d) Each report shall contain a confession of judgment for the amount of the tax shown
         169.4due to the extent not timely paid.169.5(e) Under certain circumstances and with the approval of the commissioner, taxpayers
         169.6may be allowed to file reports annually.169.7EFFECTIVE DATE.This section is effective for sales and purchases made after June 169.830, 2017.169.9    Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:169.10    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person 169.11who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for 169.12aircraft use, and who has paid the excise taxes due directly or indirectly through the amount 169.13of the tax being included in the price, or otherwise, and uses said gasoline or special
         fuel 169.14in motor vehicles or knowingly sells it to any person for use in motor vehicles shall,
         on or 169.15before the 23rd day of the month following that in which such gasoline or special
         fuel was 169.16so used or sold, report the fact of the use or sale to the commissioner in the form
         and manner 169.17prescribed by the commissioner.169.18(b) Any person who buys gasoline other than aviation gasoline and who has paid the 169.19motor vehicle gasoline excise tax directly or indirectly through the amount of the
         tax being 169.20included in the price of the gasoline, or otherwise, who knowingly sells such gasoline
         to 169.21any person to be used for the purpose of producing or generating power for propelling
         169.22aircraft, or who receives, stores, or withdraws from storage gasoline to be used for
         that 169.23purpose, shall, on or before the 23rd day of the month following that in which such
         gasoline 169.24was so sold, stored, or withdrawn from storage, report the fact of the sale, storage,
         or 169.25withdrawal from storage to the commissioner in the form and manner prescribed by the
         169.26commissioner.169.27EFFECTIVE DATE.This section is effective for sales and purchases made after June 169.2830, 2017.169.29    Sec. 10. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:169.30    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and uses 169.31gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except
         as 169.32provided in clause (2), or motorboats, or special fuel for a qualifying purpose other
         than 170.1use in licensed motor vehicles, and who paid the tax directly or indirectly through
         the amount 170.2of the tax being included in the price of the gasoline or special fuel, or otherwise,
         shall be 170.3reimbursed and repaid the amount of the tax paid upon filing with the commissioner
         a claim 170.4for refund in the form and manner prescribed by the commissioner, and containing the
         170.5information the commissioner shall require. By signing any such claim which is false
         or 170.6fraudulent, the applicant shall be subject to the penalties provided in this chapter
         for 170.7knowingly making a false claim. The claim shall set forth the total amount of the
         gasoline 170.8so purchased and used by the applicant other than in motor vehicles, or special fuel
         purchased 170.9and used by the applicant other than in licensed motor vehicles, and shall state when
         and 170.10for what purpose it was used. When a claim contains an error in computation or preparation,
         170.11the commissioner is authorized to adjust the claim in accordance with the evidence
         shown 170.12on the claim or other information available to the commissioner. The commissioner,
         on 170.13being satisfied that the claimant is entitled to the payments, shall approve the claim
         and 170.14transmit it to the commissioner of management and budget. The words "gasoline" or
         "special 170.15fuel" as used in this subdivision do not include aviation gasoline or special fuel
         for aircraft. 170.16Gasoline or special fuel bought and used for a "qualifying purpose" means:170.17    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
         170.18situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose"
         have 170.19the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue
         Code 170.20as defined in section 
         289A.02, subdivision 7.170.21    (2) Gasoline or special fuel used for off-highway business use.170.22    (i) "Off-highway business use" means any use off the public highway by a person in
         170.23that person's trade, business, or activity for the production of income.170.24    (ii) Off-highway business use includes use of a passenger snowmobile off the public
         170.25highways as part of the operations of a resort as defined in section 
         157.15, subdivision 11; 170.26and use of gasoline or special fuel to operate a power takeoff unit on a vehicle,
         but not 170.27including fuel consumed during idling time.170.28    (iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
         170.29at the time of use, is registered or is required to be registered for highway use
         under the 170.30laws of any state or foreign country; or use of a licensed motor vehicle fuel tank
         in lieu of 170.31a separate storage tank for storing fuel to be used for a qualifying purpose, as defined
         in 170.32this section. Fuel purchased to be used for a qualifying purpose cannot be placed
         in the fuel 170.33tank of a licensed motor vehicle and must be stored in a separate supply tank.171.1    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
         171.2in Minnesota, and shipped by interstate carrier to destinations in other states or
         foreign 171.3countries.171.4    (4) Special fuel used in one of the following:171.5    (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that
         the 171.6unit has an engine separate from the one used to propel the vehicle and the fuel is
         used 171.7exclusively for the unit;171.8    (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
         171.9semitrailers within a cargo yard, warehouse facility, or intermodal facility; or171.10    (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor
         vehicle, 171.11whether or not the unit or engine is fueled from the same or a different fuel tank
         as that 171.12from which the motor vehicle is fueled.171.13EFFECTIVE DATE.This section is effective for sales and purchases made after June 171.1430, 2017.171.15    Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:171.16    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid 171.17the excise tax on aviation gasoline or special fuel for aircraft use provided for
         by this chapter 171.18and has either paid the airflight property tax under section 
         270.072 or is an aerial applicator 171.19with a category B, general aerial license, under section 18B.33, shall, as to all such aviation 171.20gasoline and special fuel received, stored, or withdrawn from storage by the person
         in this 171.21state in any calendar year and not sold or otherwise disposed of to others, or intended
         for 171.22sale or other disposition to others, on which such tax has been so paid, be entitled
         to the 171.23following graduated reductions in such tax for that calendar year, to be obtained
         by means 171.24of the following refunds:171.25(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but 171.26five cents per gallon;171.27(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 171.28not more than 150,000 gallons, all but two cents per gallon;171.29(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and 171.30not more than 200,000 gallons, all but one cent per gallon;171.31(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half 171.32cent per gallon.172.1EFFECTIVE DATE.This section is effective for sales and purchases made after June 172.230, 2017.172.3    Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:172.4    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers,172.5dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record 172.6of all purchases, transfers, sales, and use of petroleum products and special fuel,
         including 172.7copies of all sales tickets issued, in a form and manner approved by the commissioner,
         and 172.8shall retain all such records for 3-1/2 years.172.9EFFECTIVE DATE.This section is effective for sales and purchases made after June 172.1030, 2017.172.11    Sec. 13. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:172.12    Subd. 19. Petroleum products. The following petroleum products are exempt:172.13(1) products upon which a tax has been imposed and paid under chapter 296A, and for
         172.14which no refund has been or will be allowed because the buyer used the fuel for nonhighway
         172.15use;172.16(2) products that are used in the improvement of agricultural land by constructing,
         172.17maintaining, and repairing drainage ditches, tile drainage systems, grass waterways,
         water 172.18impoundment, and other erosion control structures;172.19(3) products purchased by a transit system receiving financial assistance under section
         172.20174.24
         , 
         256B.0625, subdivision 17, or 
         473.384;172.21(4) products purchased by an ambulance service licensed under chapter 144E;172.22(5) products used in a passenger snowmobile, as defined in section 
         296A.01, subdivision 172.2339
         , for off-highway business use as part of the operations of a resort as provided under
         172.24section 
         296A.16, subdivision 2, clause (2);172.25(6) products purchased by a state or a political subdivision of a state for use in
         motor 172.26vehicles exempt from registration under section 
         168.012, subdivision 1, paragraph (b);172.27(7) products purchased by providers of transportation to recipients of medical assistance
         172.28home and community-based services waivers enrolled in day programs, including adult
         day 172.29care, family adult day care, day treatment and habilitation, prevocational services,
         and 172.30structured day services; or173.1(8) products used in a motor vehicle used exclusively as a mobile medical unit for
         the 173.2provision of medical or dental services by a federally qualified health center, as
         defined 173.3under title 19 of the federal Social Security Act, as amended by Section 4161 of the
         Omnibus 173.4Budget Reconciliation Act of 1990; or173.5(9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
         173.62, clause (4).173.7EFFECTIVE DATE.This section is effective for sales and purchases made after June 173.830, 2017.173.9    Sec. 14. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision 173.10to read:173.11    Subd. 6.Small winery credit.(a) A qualified winery producing wine or cider is entitled 173.12to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to
         (g), on the 173.13wine or cider sold in any fiscal year beginning July 1. A qualified winery may take
         the credit 173.14on the 18th day of each month, but the total credit allowed may not exceed, in any
         fiscal 173.15year, the lesser of:173.16(1) the liability for tax; or173.17(2) $136,275.173.18(b) For purposes of this subdivision, "qualified winery" means a winery, whether or
         not 173.19located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually.173.20(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall
         173.21provide a report to the chairs and ranking minority members of the legislative committees
         173.22having jurisdiction over taxes that includes the following information for the previous
         fiscal 173.23year, regarding the credit authorized under this subdivision:173.24(1) the total amount of the tax expenditure for the credit, including the amount of
         credits 173.25claimed by Minnesota small wineries and out-of-state small wineries; and173.26(2) the number of claimants for the credit, including the number of Minnesota small
         173.27wineries and the number of out-of-state small wineries.173.28EFFECTIVE DATE.This section is effective July 1, 2017.173.29    Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read:173.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND.174.1    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         174.2production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by the 174.3Iron Range Resources and Rehabilitation Board in a separate taconite economic development
         174.4fund for each taconite and direct reduced ore producer. Money from the fund for each
         174.5producer shall be released by the commissioner after review by a joint committee consisting
         174.6of an equal number of representatives of the salaried employees and the nonsalaried
         174.7production and maintenance employees of that producer. The District 11 director of
         the 174.8United States Steelworkers of America, on advice of each local employee president,
         shall 174.9select the employee members. In nonorganized operations, the employee committee shall
         174.10be elected by the nonsalaried production and maintenance employees. The review must
         be 174.11completed no later than six months after the producer presents a proposal for expenditure
         174.12of the funds to the committee. The funds held pursuant to this section may be released
         only 174.13for workforce development and associated public facility improvement, concurrent 174.14reclamation, or for acquisition of plant and stationary mining equipment and facilities for 174.15the producer or for research and development in Minnesota on new mining, or taconite,
         174.16iron, or steel production technology, but only if the producer provides a matching
         expenditure 174.17equal to the amount of the distribution to be used for the same purpose beginning
         with 174.18distributions in 2014. Effective for proposals for expenditures of money from the
         fund 174.19beginning May 26, 2007, the commissioner may not release the funds before the next
         174.20scheduled meeting of the board. If a proposed expenditure is not approved by the board,
         174.21the funds must be deposited in the Taconite Environmental Protection Fund under sections
         174.22298.222
          to 
         298.225. If a producer uses money which has been released from the fund prior 174.23to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and
         the 174.24producer removes the piece of equipment from the taconite tax relief area defined
         in section 174.25273.134
          within ten years from the date of receipt of the money from the fund, a portion of
         174.26the money granted from the fund must be repaid to the taconite economic development
         174.27fund. The portion of the money to be repaid is 100 percent of the grant if the equipment
         is 174.28removed from the taconite tax relief area within 12 months after receipt of the money
         from 174.29the fund, declining by ten percent for each of the subsequent nine years during which
         the 174.30equipment remains within the taconite tax relief area. If a taconite production facility
         is sold 174.31after operations at the facility had ceased, any money remaining in the fund for the
         former 174.32producer may be released to the purchaser of the facility on the terms otherwise applicable
         174.33to the former producer under this section. If a producer fails to provide matching
         funds for 174.34a proposed expenditure within six months after the commissioner approves release of
         the 174.35funds, the funds are available for release to another producer in proportion to the
         distribution 174.36provided and under the conditions of this section. Any portion of the fund which is
         not 175.1released by the commissioner within one year of its deposit in the fund shall be divided
         175.2between the taconite environmental protection fund created in section 
         298.223 and the 175.3Douglas J. Johnson economic protection trust fund created in section 
         298.292 for placement 175.4in their respective special accounts. Two-thirds of the unreleased funds shall be
         distributed 175.5to the taconite environmental protection fund and one-third to the Douglas J. Johnson
         175.6economic protection trust fund.175.7    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 175.8distributions and the review process, an amount equal to ten cents per taxable ton
         of 175.9production in 2007, for distribution in 2008 only, that would otherwise be distributed
         under 175.10paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
         175.11wood product facility located in the taconite tax relief area and in a county that
         contains a 175.12city of the first class. This amount must be deducted from the distribution under
         paragraph 175.13(a) for which a matching expenditure by the producer is not required. The granting
         of the 175.14loan or grant is subject to approval by the board. If the money is provided as a loan,
         interest 175.15must be payable on the loan at the rate prescribed in section 
         298.2213, subdivision 3. (ii) 175.16Repayments of the loan and interest, if any, must be deposited in the taconite environment
         175.17protection fund under sections 
         298.222 to 
         298.225. If a loan or grant is not made under this 175.18paragraph by July 1, 2012, the amount that had been made available for the loan under
         this 175.19paragraph must be transferred to the taconite environment protection fund under sections
         175.20298.222
          to 
         298.225. (iii) Money distributed in 2008 to the fund established under this section 175.21that exceeds ten cents per ton is available to qualifying producers under paragraph
         (a) on a 175.22pro rata basis.175.23(c) Repayment or transfer of money to the taconite environmental protection fund under
         175.24paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation
         175.25Board for public works projects in house legislative districts in the same proportion
         as 175.26taxable tonnage of production in 2007 in each house legislative district, for distribution
         in 175.272008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
         175.28Notwithstanding any other law to the contrary, expenditures under this paragraph do
         not 175.29require approval by the governor. For purposes of this paragraph, "house legislative
         districts" 175.30means the legislative districts in existence on May 15, 2009.175.31EFFECTIVE DATE.This section is effective the day following final enactment.175.32    Sec. 16. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, 175.33article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended
         to read:175.34    Sec. 58. 2010 DISTRIBUTIONS ONLY.176.1    For distributions in 2010 only, a special fund is established to receive the sum of
         the 176.2following amounts that otherwise would be allocated under Minnesota Statutes, section
         176.3298.28, subdivision 6
         . The following amounts are allocated to St. Louis County acting as 176.4the fiscal agent for the recipients for the specific purposes:176.5    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives
         176.6for at least two dentists to establish dental practices in high-need areas of the
         taconite tax 176.7relief area;176.8(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
         176.9heat at the Olcott Park Greenhouse/Virginia Commons project;176.10(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
         repairs 176.11at the Miners Memorial;176.12(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
         of 176.13Highway 142/Grant and Park Avenues;176.14(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades
         176.15and capital improvements to the public arena in Coleraine;176.16(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
         176.17pumphouse modifications;176.18(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial
         176.19claims for water damage due to water and flood-related damage caused by the Canisteo
         Pit;176.20(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child
         176.21care center;176.22(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;176.23(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library
         176.24project;176.25(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
         water 176.26and sewer services for Lakewood Housing;176.27(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the
         176.28Children's Museum;176.29(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
         176.30corrections. This amount must be matched by local sources;176.31(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;177.1(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;177.2(16) 0.159 cent per ton must be paid to Aitkin County for a trail;177.3(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad
         177.4crossing;177.5(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping
         177.6of the community center parking lot;177.7(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;177.8(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements,
         177.9milling, and overlay for Summit Street between Alaska Avenue and Highway 135;177.10(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
         177.11replacements and improvements in the Northeast Lower Alley area;177.12(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz
         177.13Road culvert;177.14(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
         177.15Street and associated infrastructure;177.16(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements
         177.17at the Park Ridge development;177.18(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
         and 177.19site preparation for its renewable and sustainable energy park;177.20(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 177.21improvements;177.22(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding
         177.23for the Summit Addition;177.24(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
         177.25improvements;177.26(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer
         177.27infrastructure improvements;177.28(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
         177.29improvements;177.30(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 177.31improvements and land purchase, provided that if the city sells or otherwise disposes
         of any 178.1of the land purchased with the money provided under this clause within a period of
         ten five178.2years after it was purchased, the city must transfer a portion of the proceeds of
         the sale equal 178.3to the amount of the purchase price paid from the money provided under this clause
         to the 178.4commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite
         178.5environmental protection fund to be used for the purposes of the fund under Minnesota
         178.6Statutes, section 
         298.223;178.7(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
         178.8improvements;178.9(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 178.10improvements;178.11(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
         178.12improvements;178.13(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 178.14improvements;178.15(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
         178.16improvements;178.17(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 178.18improvements;178.19(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;178.20(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
         178.21infrastructure improvements;178.22(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
         178.23improvements at the athletic facility;178.24(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
         178.25improvements;178.26(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure
         178.27related to a housing development;178.28(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;178.29(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a
         nonprofit 178.30for a signage kiosk;179.1(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
         lines 179.2and adjacent development near County State-Aid Highway 24; and179.3(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
         wall 179.4infrastructure around the athletic complex.179.5EFFECTIVE DATE.This section is effective the day following final enactment.179.6    Sec. 17. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 179.7TACONITE TAX PROCEEDS.179.8The commissioner of Iron Range Resources and Rehabilitation may use any unspent 179.9amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5,
         clause 179.10(19), remaining as of May 22, 2016, for the specific purposes identified in that section.
         179.11Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a),
         or any 179.12other law to the contrary, interest accrued on this amount shall also be distributed
         to the 179.13recipient. Amounts under this section are available until expended and do not lapse
         or cancel 179.14under Minnesota Statutes, section 16A.28.179.15EFFECTIVE DATE.This section is effective retroactively from May 22, 2016.179.16    Sec. 18. 2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION.179.17(a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph
         (a), 179.1825.1 cents per taxable ton of the tax collected under Minnesota Statutes, section
         298.24, for 179.19production year 2016, may be transferred by the commissioner of Iron Range Resources
         179.20and Rehabilitation, as provided in paragraph (b), to the taconite economic development
         179.21fund under Minnesota Statutes, section 298.227.179.22(b) If the amount is transferred by the commissioner of Iron Range Resources and 179.23Rehabilitation under paragraph (a), two-thirds shall be transferred from the taconite
         179.24environmental protection fund, and one-third shall be transferred from the Douglas
         J. Johnson 179.25economic protection fund, and deposited into the taconite economic development fund
         by 179.26June 30, 2017.179.27(c) Money from the taconite economic development fund shall be released as provided
         179.28in Minnesota Statutes, section 298.227, except that no distribution shall be made
         to a taconite 179.29producer's fund unless the producer has timely paid its tax under Minnesota Statutes,
         section 179.30298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided
         for 179.31by administrative agreement.179.32EFFECTIVE DATE.This section is effective the day following final enactment.180.1    Sec. 19. APPROPRIATION CANCELLATION.180.2All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt
         180.3Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are
         canceled 180.4to the Minnesota 21st century fund on June 1, 2017.180.5    Sec. 20.  REPEALER.180.6Minnesota Rules, part 8125.1300, subpart 3, is repealed.180.7EFFECTIVE DATE.This section is effective the day following final enactment.180.8ARTICLE 9180.9IRON RANGE RESOURCES AND REHABILITATION BOARD180.10    Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:180.11    Subd. 7. Iron Range resources and rehabilitation Board.After seeking a 180.12recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner 180.13of Iron Range resources and rehabilitation Board may purchase insurance it considers the 180.14commissioner deems necessary and appropriate to insure facilities operated by the board.180.15    Sec. 2. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:180.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or, 180.17including forgivable loans, equity investments or grants for infrastructure in mineral, steel, 180.18or any other industry processing, production, manufacturing, or technology project
         that 180.19would enhance the economic diversification and that is located within the taconite
         relief 180.20tax area as defined under section 
         273.134. The commissioner must, prior to making any 180.21loans or equity investments and after consultation with industry and public officials,
         develop 180.22a strategy for making loans and, equity investments or grants for infrastructure that assists 180.23the taconite relief area in retaining and enhancing its economic competitiveness.
         Money in 180.24the fund may also be used to pay for the costs of carrying out the commissioner's
         due 180.25diligence duties under this section.180.26EFFECTIVE DATE.This section is effective the day following final enactment.180.27    Sec. 3. Minnesota Statutes 2016, section 116J.424, is amended to read:180.28116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 180.29CONTRIBUTION.181.1The commissioner of the Iron Range resources and rehabilitation Board with approval 181.2by the board, may provide an equal match for any loan or equity investment made for a 181.3project located in the tax relief area defined in section 
         273.134, paragraph (b), by the 181.4Minnesota 21st century fund created by section 
         116J.423. The match may be in the form 181.5of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
         181.6investment. The state shall not acquire an equity interest because of an equity investment
         181.7or loan by the board under this section and the board at its sole discretion commissioner, 181.8after consultation with the Iron Range Resources and Rehabilitation Board, shall have the 181.9sole discretion to decide what interest it the board acquires in a project. The commissioner 181.10of employment and economic development may require a commitment from the board181.11commissioner to make the match prior to disbursing money from the fund.181.12    Sec. 4. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:181.13    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 181.14the meanings given them in this subdivision.181.15(b) "Area development rate" means a rate schedule established by a utility that provides
         181.16customers within an area development zone service under a base utility rate schedule,
         except 181.17that charges may be reduced from the base rate as agreed upon by the utility and the
         customer 181.18consistent with this section.181.19(c) "Area development zone" means a contiguous or noncontiguous area designated by
         181.20an authority or municipality for development or redevelopment and within which one
         of 181.21the following conditions exists:181.22(1) obsolete buildings not suitable for improvement or conversion or other identified
         181.23hazards to the health, safety, and general well-being of the community;181.24(2) buildings in need of substantial rehabilitation or in substandard condition; or181.25(3) low values and damaged investments.181.26(d) "Authority" means a rural development financing authority established under sections
         181.27469.142
          to 
         469.151; a housing and redevelopment authority established under sections 181.28469.001
          to 
         469.047; a port authority established under sections 
         469.048 to 
         469.068; an 181.29economic development authority established under sections 
         469.090 to 
         469.108; a 181.30redevelopment agency as defined in sections 
         469.152 to 
         469.165; the commissioner of Iron 181.31Range resources and rehabilitation, acting after consultation with the board established 181.32under section 
         298.22; a municipality that is administering a development district created 181.33under sections 
         469.124 to 
         469.133 or any special law; a municipality that undertakes a 182.1project under sections 
         469.152 to 
         469.165, except a town located outside the metropolitan 182.2area as defined in section 
         473.121, subdivision 2, or with a population of 5,000 persons or 182.3less; or a municipality that exercises the powers of a port authority under any general
         or 182.4special law.182.5(e) "Municipality" means a city, however organized, and, with respect to a project
         182.6undertaken under sections 
         469.152 to 
         469.165, "municipality" has the meaning given in 182.7sections 
         469.152 to 
         469.165, and, with respect to a project undertaken under sections 
         469.142182.8to 
         469.151 or a county or multicounty project undertaken under sections 
         469.004 to 
         469.008, 182.9also includes any county.182.10    Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:182.11    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole 182.12or part within the area. If a municipality is located partly within and partly without
         the area, 182.13the references in sections 
         276A.01 to 
         276A.09 to property or any portion thereof subject to 182.14taxation or taxing jurisdiction within the municipality are to the property or portion
         thereof 182.15that is located in that portion of the municipality within the area, except that the
         fiscal 182.16capacity of the municipality must be computed upon the basis of the valuation and
         population 182.17of the entire municipality. A municipality shall be excluded from the area if its
         municipal 182.18comprehensive zoning and planning policies conscientiously exclude most 182.19commercial-industrial development, for reasons other than preserving an agricultural
         use. 182.20The commissioner of Iron Range resources and rehabilitation Board and the commissioner 182.21of revenue shall jointly make this determination annually and shall notify those municipalities
         182.22that are ineligible to participate in the tax base sharing program provided in this
         chapter for 182.23the following year. Before making the joint determination, the commissioner of Iron Range 182.24resources and rehabilitation shall seek a recommendation from the Iron Range Resources
         182.25and Rehabilitation Board.182.26    Sec. 6. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:182.27    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to 182.2825 percent of the areawide levy certified by the commissioner of Iron Range resources and 182.29rehabilitation, after seeking a recommendation from the Iron Range Resources and 182.30Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation 182.31and cooperatively operated school account under section 
         298.28, subdivision 7a.182.32(b) The allocation under paragraph (a) shall only be made after the commissioner of 182.33Iron Range resources and rehabilitation, after seeking a recommendation from the Iron 183.1Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range 183.2school consolidation and cooperatively operated account has insufficient funds to
         make 183.3payments as authorized under section 
         298.28, subdivision 7a.183.4    Sec. 7. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:183.5    Subdivision 1. Development. In any county where the county board by proper resolution 183.6sets aside funds for forest development pursuant to section 
         282.08, clause (5), item (i), or 183.7section 
         459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 183.8with the approval of the, after seeking a recommendation from the Iron Range Resources 183.9and Rehabilitation Board, may upon request of the county board assist said county in carrying 183.10out any project for the long range development of its forest resources through matching
         of 183.11funds or otherwise.183.12    Sec. 8. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:183.13    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the 183.14state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to 183.15298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.183.16    Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:183.17    Subdivision 1. The Office of the Commissioner of Iron Range Resources and 183.18Rehabilitation. (a) The Office of the Commissioner of Iron Range Resources and 183.19Rehabilitation is created as an agency in the executive branch of state government.
         The 183.20governor shall appoint the commissioner of Iron Range resources and rehabilitation
         under 183.21section 
         15.06. The commissioner may expend amounts appropriated to the commissioner 183.22or the board for projects after submitting the expenditure to the board for a recommendation
         183.23under subdivision 1a.183.24(b) The commissioner may hold other positions or appointments that are not incompatible
         183.25with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
         183.26may appoint a deputy commissioner. All expenses of the commissioner, including the
         183.27payment of staff and other assistance as may be necessary, must be paid out of the
         amounts 183.28appropriated by section 
         298.28 or otherwise made available by law to the commissioner. 183.29Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
         183.30options available under section 
         471.345 when the commissioner determines it is in the best 183.31interest of the agency. The agency is not subject to sections 
         16E.016 and 
         16C.05. The agency 183.32has the authority to reimburse any nongovernmental manager operating state-owned facilities
            184.1within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment,
            or 184.2other items used in the operations at such facilities.184.3(c) When the commissioner determines that distress and unemployment exists or may
         184.4exist in the future in any county by reason of the removal of natural resources or
         a possibly 184.5limited use of natural resources in the future and any resulting decrease in employment,
         the 184.6commissioner may use whatever amounts of the appropriation made to the commissioner
         184.7of revenue in section 
         298.28 that are determined to be necessary and proper in the 184.8development of the remaining resources of the county and in the vocational training
         and 184.9rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 184.10to a contractor by an arbitrator in relation to a contract awarded by the commissioner
         or in 184.11effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 184.12section, "development of remaining resources" includes, but is not limited to, the
         promotion 184.13of tourism.184.14    Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:184.15    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range Resources 184.16and Rehabilitation Board consists of the state senators and representatives elected
         from state 184.17senatorial or legislative districts in which one-third or more of the residents reside
         in a 184.18taconite assistance area as defined in section 
         273.1341. One additional state senator shall 184.19also be appointed by the senate Subcommittee on Committees of the Committee on Rules
         184.20and Administration. All expenditures and projects made by the commissioner shall first
         be 184.21submitted to the board for approval. The board shall recommend approval or disapproval 184.22or modification of the expenditures and projects. The expenses of the board shall be paid 184.23by the state from the funds raised pursuant to this section. Members of the board
         may be 184.24reimbursed for expenses in the manner provided in sections 
         3.099, subdivision 1, and 
         3.101, 184.25and may receive per diem payments during the interims between legislative sessions
         in the 184.26manner provided in section 
         3.099, subdivision 1.184.27The members shall be appointed in January of every odd-numbered year, and shall serve
         184.28until January of the next odd-numbered year. Vacancies on the board shall be filled
         in the 184.29same manner as original members were chosen.184.30    Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:184.31    Subd. 5a. Forest trust. The commissioner, upon approval by after requesting a 184.32recommendation from the board, may purchase forest lands in the taconite assistance area 184.33defined in under section 
         273.1341 with funds specifically authorized for the purchase. The 185.1acquired forest lands must be held in trust for the benefit of the citizens of the
         taconite 185.2assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands
         shall be 185.3managed and developed for recreation and economic development purposes. The 185.4commissioner, upon approval by after requesting a recommendation from the board, may 185.5sell forest lands purchased under this subdivision if the board finds commissioner determines185.6that the sale advances the purposes of the trust. Proceeds derived from the management
         or 185.7sale of the lands and from the sale of timber or removal of gravel or other minerals
         from 185.8these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account
         185.9that is established within the state financial accounts. Funds may be expended from
         the 185.10account upon approval by after the commissioner has sought a recommendation from the 185.11board, to purchase, manage, administer, convey interests in, and improve the forest
         lands. 185.12With approval by After the commissioner has sought a recommendation from the board, 185.13money in the Iron Range Miners' Memorial Forest account may be transferred into the
         185.14corpus of the Douglas J. Johnson economic protection trust fund established under
         sections 185.15298.291 
         to 
         298.294. The property acquired under the authority granted by this subdivision 185.16and income derived from the property or the operation or management of the property
         are 185.17exempt from taxation by the state or its political subdivisions while held by the
         forest trust.185.18    Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:185.19    Subd. 6. Private entity participation.After seeking a recommendation from the board, 185.20the commissioner may acquire an equity interest in any project for which it the commissioner185.21provides funding. The commissioner may establish, participate in the management of,
         and 185.22dispose of the assets of charitable foundations, nonprofit limited liability companies,
         and 185.23nonprofit corporations associated with any project for which it provides funding,
         including 185.24specifically, but without limitation, a corporation within the meaning of section
         
         317A.011, 185.25subdivision 6
         .185.26    Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:185.27    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources 185.28and rehabilitation may not sell or privatize the IronworldMinnesota Discovery Center or 185.29Giants Ridge Golf and Ski Resort without prior approval by the board.185.30    Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:185.31    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation 185.32shall annually prepare a budget for operational expenditures, programs, and projects,
         and 185.33submit it to the Iron Range Resources and Rehabilitation Board for approval. After the 186.1budget is approved by the board and the governor, the commissioner may spend money
         in 186.2accordance with the approved budget.186.3    Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read:186.4298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.186.5(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
         pursuant 186.6to the terms of any contract entered into by the state under authority of section
         
         298.22 and 186.7any fees which may, in the discretion of the commissioner of Iron Range resources
         and 186.8rehabilitation, be charged in connection with any project pursuant to that section
         as amended, 186.9shall be deposited in the state treasury to the credit of the Iron Range Resources
         and 186.10Rehabilitation Board account in the special revenue fund and are hereby appropriated
         for 186.11the purposes of section 
         298.22.186.12(b) Notwithstanding section 
         16A.013, merchandise may be accepted by the commissioner 186.13of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts
         186.14if the commissioner determines that the merchandise can be used for special event
         prizes 186.15or mementos at facilities operated by the board. Nothing in this paragraph authorizes
         the 186.16commissioner or a member of the board to receive merchandise for personal use.186.17(c) All fees charged by the commissioner in connection with public use of the state-owned
         186.18ski and golf facilities at the Giants Ridge Recreation Area and all other revenues
         derived 186.19by the commissioner from the operation or lease of those facilities and from the lease,
         sale, 186.20or other disposition of undeveloped lands at the Giants Ridge Recreation Area must
         be 186.21deposited into an Iron Range Resources and Rehabilitation Board account that is created
         186.22within the state enterprise fund. All funds deposited in the enterprise fund account
         are 186.23appropriated to the commissioner to be expended, subject to approval by after seeking a 186.24recommendation from the board, as follows:186.25(1) to pay costs associated with the construction, equipping, operation, repair, or
         186.26improvement of the Giants Ridge Recreation Area facilities or lands;186.27(2) to pay principal, interest and associated bond issuance, reserve, and servicing
         costs 186.28associated with the financing of the facilities; and186.29(3) to pay the costs of any other project authorized under section 
         298.22.186.30    Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:186.31    Subd. 3. Project approval. All projects authorized by this section shall be submitted 186.32by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 187.1by a recommendation from the board. Prior to the commencement of a project involving 187.2the exercise by the commissioner of any authority of sections 
         469.174 to 
         469.179, the 187.3governing body of each municipality in which any part of the project is located and
         the 187.4county board of any county containing portions of the project not located in an incorporated
         187.5area shall by majority vote approve or disapprove the project. Any project approved
         by the 187.6board commissioner and the applicable governing bodies, if any, together with detailed 187.7information concerning the project, its costs, the sources of its funding, and the
         amount of 187.8any bonded indebtedness to be incurred in connection with the project, shall be transmitted
         187.9to the governor, who shall approve, disapprove, or return the proposal for additional
         187.10consideration within 30 days of receipt. No project authorized under this section
         shall be 187.11undertaken, and no obligations shall be issued and no tax increments shall be expended
         for 187.12a project authorized under this section until the project has been approved by the
         governor.187.13    Sec. 17. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:187.14    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection 187.15fund is created for the purpose of reclaiming, restoring and enhancing those areas
         of northeast 187.16Minnesota located within the taconite assistance area defined in section 
         273.1341, that are 187.17adversely affected by the environmentally damaging operations involved in mining taconite
         187.18and iron ore and producing iron ore concentrate and for the purpose of promoting the
         187.19economic development of northeast Minnesota. The taconite environmental protection
         fund 187.20shall be used for the following purposes:187.21(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
         187.22Board determines are in need of study and which will determine the environmental problems
         187.23requiring remedial action;187.24(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
         for 187.25by state law;187.26(3) local economic development projects but only if those projects are approved by
         the 187.27commissioner after seeking a recommendation of the projects from the board, and public 187.28works, including construction of sewer and water systems located within the taconite
         187.29assistance area defined in section 
         273.1341;187.30(4) monitoring of mineral industry related health problems among mining employees;
         187.31and187.32(5) local public works projects under section 
         298.227, paragraph (c).188.1    Sec. 18. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:188.2    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be 188.3administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
         188.4The commissioner shall by September 1 of each year submit to the board a list of projects
         188.5to be funded from the taconite area environmental protection fund, with such supporting
         188.6information including description of the projects, plans, and cost estimates as may
         be 188.7necessary.188.8    (b) Each year no less than one-half of the amounts deposited into the taconite 188.9environmental protection fund must be used for public works projects, including construction
         188.10of sewer and water systems, as specified under subdivision 1, clause (3). the Iron
         Range 188.11Resources and Rehabilitation Board may waive the requirements of this paragraph.188.12    (c) Upon approval by the board, the list of projects approved under this subdivision
         shall 188.13be submitted to the governor by November 1 of each year. By December 1 of each year,
         188.14the governor shall approve or disapprove, or return for further consideration, each
         project.188.15The commissioner must seek review of the projects by the board. Funds for a project may 188.16be expended only upon approval of the project by the board and the governor. The 188.17commissioner may submit supplemental projects to the board and governor for approval
         at 188.18any time after seeking review of the projects by the board.188.19    Sec. 19. Minnesota Statutes 2016, section 298.227, is amended to read:188.20298.227 TACONITE ECONOMIC DEVELOPMENT FUND.188.21    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
         188.22production and qualifying sales under section 
         298.28, subdivision 9a, shall be held by the 188.23Iron Range Resources and Rehabilitation Board in a separate taconite economic development
         188.24fund for each taconite and direct reduced ore producer. Money from the fund for each
         188.25producer shall be released by the commissioner after review by a joint committee consisting
         188.26of an equal number of representatives of the salaried employees and the nonsalaried
         188.27production and maintenance employees of that producer. The District 11 director of
         the 188.28United States Steelworkers of America, on advice of each local employee president,
         shall 188.29select the employee members. In nonorganized operations, the employee committee shall
         188.30be elected by the nonsalaried production and maintenance employees. The review must
         be 188.31completed no later than six months after the producer presents a proposal for expenditure
         188.32of the funds to the committee. The funds held pursuant to this section may be released
         only 188.33for workforce development and associated public facility improvement, or for acquisition
         188.34of plant and stationary mining equipment and facilities for the producer or for research
         and 189.1development in Minnesota on new mining, or taconite, iron, or steel production technology,
         189.2but only if the producer provides a matching expenditure equal to the amount of the
         189.3distribution to be used for the same purpose beginning with distributions in 2014.
         Effective 189.4for proposals for expenditures of money from the fund beginning May 26, 2007, the
         189.5commissioner may not release the funds before the next scheduled meeting of the board.
         If 189.6a proposed expenditure is not approved by the commissioner, after seeking a recommendation 189.7from the board, the funds must be deposited in the Taconite Environmental Protection Fund
         189.8under sections 
         298.222 to 
         298.225. If a producer uses money which has been released from 189.9the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining
         189.10shovels, and the producer removes the piece of equipment from the taconite tax relief
         area 189.11defined in section 273.134 within ten years from the date of receipt of the money from the 189.12fund, a portion of the money granted from the fund must be repaid to the taconite
         economic 189.13development fund. The portion of the money to be repaid is 100 percent of the grant
         if the 189.14equipment is removed from the taconite tax relief area within 12 months after receipt
         of the 189.15money from the fund, declining by ten percent for each of the subsequent nine years
         during 189.16which the equipment remains within the taconite tax relief area. If a taconite production 189.17facility is sold after operations at the facility had ceased, any money remaining
         in the fund 189.18for the former producer may be released to the purchaser of the facility on the terms
         otherwise 189.19applicable to the former producer under this section. If a producer fails to provide
         matching 189.20funds for a proposed expenditure within six months after the commissioner approves
         release 189.21of the funds, the funds are available for release to another producer in proportion
         to the 189.22distribution provided and under the conditions of this section. Any portion of the
         fund which 189.23is not released by the commissioner within one year of its deposit in the fund shall
         be divided 189.24between the taconite environmental protection fund created in section 
         298.223 and the 189.25Douglas J. Johnson economic protection trust fund created in section 
         298.292 for placement 189.26in their respective special accounts. Two-thirds of the unreleased funds shall be
         distributed 189.27to the taconite environmental protection fund and one-third to the Douglas J. Johnson
         189.28economic protection trust fund.189.29    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 189.30distributions and the review process, an amount equal to ten cents per taxable ton
         of 189.31production in 2007, for distribution in 2008 only, that would otherwise be distributed
         under 189.32paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
         189.33wood product facility located in the taconite tax relief area and in a county that
         contains a 189.34city of the first class. This amount must be deducted from the distribution under
         paragraph 189.35(a) for which a matching expenditure by the producer is not required. The granting
         of the 189.36loan or grant is subject to approval by the board. If the money is provided as a loan,
         interest 190.1must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 190.2Repayments of the loan and interest, if any, must be deposited in the taconite environment
         190.3protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 190.4paragraph by July 1, 2012, the amount that had been made available for the loan under
         this 190.5paragraph must be transferred to the taconite environment protection fund under sections
         190.6298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 190.7that exceeds ten cents per ton is available to qualifying producers under paragraph
         (a) on a 190.8pro rata basis.190.9(c) Repayment or transfer of money to the taconite environmental protection fund under
         190.10paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
         190.11Board for public works projects in house legislative districts in the same proportion
         as 190.12taxable tonnage of production in 2007 in each house legislative district, for distribution
         in 190.132008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
         190.14Notwithstanding any other law to the contrary, expenditures under this paragraph do
         not 190.15require approval by the governor. For purposes of this paragraph, "house legislative
         districts" 190.16means the legislative districts in existence on May 15, 2009.190.17    Sec. 20. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:190.18    Subd. 7a. Iron Range school consolidation and cooperatively operated school account.190.19(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation
         190.20Board to be deposited in the Iron Range school consolidation and cooperatively operated
         190.21school account that is hereby created:190.22(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
         imposed 190.23under section 
         298.24; and190.24(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
         190.25under section 
         298.24;190.26(2) the amount as determined under section 
         298.17, paragraph (b), clause (3);190.27(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
         190.28proceeds attributable to the increase in the implicit price deflator as provided in
         section 190.29298.24, subdivision 1
         , with the remaining one-third to be distributed to the Douglas J. 190.30Johnson economic protection trust fund;190.31(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
         190.32tax proceeds attributable to the increase in the implicit price deflator as provided
         in section 191.1298.24, subdivision 1
         , for distribution years 2015 and 2016, with the remaining one-third 191.2to be distributed to the Douglas J. Johnson economic protection trust fund; and191.3(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
         191.4tax proceeds attributable to the increase in the implicit price deflator as provided
         in section 191.5298.24, subdivision 1
         , for distribution years 2015, 2016, and 2017, with the remaining 191.6one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
         and191.7(4) any other amount as provided by law.191.8(b) Expenditures from this account may be approved as ongoing annual expenditures 191.9and shall be made only to provide disbursements to assist school districts with the payment
         191.10of bonds that were issued for qualified school projects, or for any other school disbursement
         191.11as approved by the commissioner of Iron Range resources and rehabilitation after the 191.12commissioner of Iron Range resources and rehabilitation has sought review of the 191.13expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this 191.14section, "qualified school projects" means school projects within the taconite assistance
         191.15area as defined in section 
         273.1341, that were (1) approved, by referendum, after April 3, 191.162006; and (2) approved by the commissioner of education pursuant to section 
         123B.71.191.17(c) Beginning in fiscal year 2019, the disbursement to school districts for payments
         for 191.18bonds issued under section 
         123A.482, subdivision 9, must be increased each year to offset 191.19any reduction in debt service equalization aid that the school district qualifies
         for in that 191.20year, under section 
         123B.53, subdivision 6, compared with the amount the school district 191.21qualified for in fiscal year 2018.191.22(d) No expenditure under this section shall be made unless approved by seven members 191.23of the commissioner of Iron Range resources and rehabilitation after seeking review
         of the 191.24expenditure from the Iron Range Resources and Rehabilitation Board.191.25    Sec. 21. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:191.26    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be 191.27allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
         an Iron 191.28Range higher education account that is hereby created, to be used for higher education
         191.29programs conducted at educational institutions in the taconite assistance area defined
         in 191.30section 
         273.1341. The Iron Range Higher Education committee under section 
         298.2214,191.31and the Iron Range Resources and Rehabilitation Board commissioner of Iron Range 191.32resources and rehabilitation must approve all expenditures from the account, after seeking 192.1review and recommendation of the expenditures from the Iron Range Resources and 192.2Rehabilitation Board.192.3    Sec. 22. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:192.4    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 192.5fund may be used for the following purposes:192.6    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
         192.7with private sources of financing, but a loan to a private enterprise shall be for
         a principal 192.8amount not to exceed one-half of the cost of the project for which financing is sought,
         and 192.9the rate of interest on a loan to a private enterprise shall be no less than the lesser
         of eight 192.10percent or an interest rate three percentage points less than a full faith and credit
         obligation 192.11of the United States government of comparable maturity, at the time that the loan
         is approved;192.12    (2) to fund reserve accounts established to secure the payment when due of the principal
         192.13of and interest on bonds issued pursuant to section 
         298.2211;192.14    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
         on 192.15bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
         or 192.16retrofitting heating facilities in connection with district heating systems or systems
         utilizing 192.17alternative energy sources;192.18    (4) to invest in a venture capital fund or enterprise that will provide capital to
         other 192.19entities that are engaging in, or that will engage in, projects or programs that have
         the 192.20purposes set forth in subdivision 1. No investments may be made in a venture capital
         fund 192.21or enterprise unless at least two other unrelated investors make investments of at
         least 192.22$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
         J. 192.23Johnson economic protection trust fund may not exceed the amount of the largest investment
         192.24by an unrelated investor in the venture capital fund or enterprise. For purposes of
         this 192.25subdivision, an "unrelated investor" is a person or entity that is not related to
         the entity in 192.26which the investment is made or to any individual who owns more than 40 percent of
         the 192.27value of the entity, in any of the following relationships: spouse, parent, child,
         sibling, 192.28employee, or owner of an interest in the entity that exceeds ten percent of the value
         of all 192.29interests in it. For purposes of determining the limitations under this clause, the
         amount of 192.30investments made by an investor other than the Douglas J. Johnson economic protection
         192.31trust fund is the sum of all investments made in the venture capital fund or enterprise
         during 192.32the period beginning one year before the date of the investment by the Douglas J.
         Johnson 192.33economic protection trust fund; and193.1    (5) to purchase forest land in the taconite assistance area defined in section 
         273.1341 to 193.2be held and managed as a public trust for the benefit of the area for the purposes
         authorized 193.3in section 
         298.22, subdivision 5a. Property purchased under this section may be sold by the 193.4commissioner upon approval by after seeking a recommendation from the board. The net 193.5proceeds must be deposited in the trust fund for the purposes and uses of this section.193.6    Money from the trust fund shall be expended only in or for the benefit of the taconite
         193.7assistance area defined in section 
         273.1341.193.8    Sec. 23. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:193.9    Subdivision 1. Project approval.(a) The commissioner of Iron Range resources and 193.10rehabilitation, after seeking a recommendation from the board and commissioner shall by 193.11August 1 of each year prepare a list of projects to be funded, may expend funds for projects 193.12to be funded from the Douglas J. Johnson economic protection trust with necessary 193.13supporting information including description of the projects, plans, and cost estimates.
         These 193.14projects shall be consistent with the priorities established in section 
         298.292 and shall not 193.15be approved by the board commissioner unless it the commissioner, after seeking a 193.16recommendation from the board, finds that:193.17(a) (1) the project will materially assist, directly or indirectly, the creation of additional
         193.18long-term employment opportunities;193.19(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and193.20(c) (3) in the case of assistance to private enterprise, the project will serve a sound 193.21business purpose.193.22(b) Each project must be approved by over one-half of all of the members of the board 193.23and the commissioner of Iron Range resources and rehabilitation after seeking a 193.24recommendation from the board for the project. The list of projects shall be submitted to 193.25the governor, who shall, by November 15 of each year, approve or disapprove, or return
         193.26for further consideration, each project. The money for a project may be expended only
         upon 193.27approval of the project by the governor. The board may submit supplemental projects
         for 193.28approval at any time.193.29    Sec. 24. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:193.30    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 193.31projects and for administration of the trust fund only from the net interest, earnings,
         and 193.32dividends arising from the investment of the trust at any time, including net interest,
         earnings, 194.1and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available
         for 194.2use in fiscal year 1983, except that any amount required to be paid out of the trust
         fund to 194.3provide the property tax relief specified in Laws 1977, chapter 423, article X, section
         4, and 194.4to make school bond payments and payments to recipients of taconite production tax
         proceeds 194.5pursuant to section 
         298.225, may be taken from the corpus of the trust.194.6    (b) Additionally, upon recommendation by the commissioner after seeking a 194.7recommendation from the board, up to $13,000,000 from the corpus of the trust may be 194.8made available for use as provided in subdivision 4, and up to $10,000,000 from the
         corpus 194.9of the trust may be made available for use as provided in section 
         298.2961.194.10    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the
         trust 194.11on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
         194.12made available under section 
         298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 194.13section 17, may be expended on projects. Funds may be expended for projects under
         this 194.14paragraph only if the project:194.15    (1) is for the purposes established under section 
         298.292, subdivision 1, clause (1) or 194.16(2); and194.17    (2) is approved by two-thirds of all of the members of the commissioner after seeking 194.18a recommendation from the board.194.19No money made available under this paragraph or paragraph (d) can be used for 194.20administrative or operating expenses of the Iron Range Resources and Rehabilitation
         Board 194.21or expenses relating to any facilities owned or operated by the board on May 18, 2002.194.22    (d) Upon recommendation by a unanimous vote of all members the commissioner after 194.23seeking a recommendation of the board, amounts in addition to those authorized under 194.24paragraphs (a), (b), and (c) may be expended on projects described in section 
         298.292, 194.25subdivision 1
         .194.26    (e) Annual administrative costs, not including detailed engineering expenses for the
         194.27projects, shall not exceed five percent of the net interest, dividends, and earnings
         arising 194.28from the trust in the preceding fiscal year.194.29    (f) Principal and interest received in repayment of loans made pursuant to this section,
         194.30and earnings on other investments made under section 
         298.292, subdivision 2, clause (4), 194.31shall be deposited in the state treasury and credited to the trust. These receipts
         are 194.32appropriated to the board for the purposes of sections 
         298.291 to 
         298.298.195.1    (g) Additionally, notwithstanding section 
         298.293, upon the approval of the commissioner 195.2of Iron Range resources and rehabilitation, after seeking a recommendation from the board, 195.3money from the corpus of the trust may be expanded to purchase forest lands within
         the 195.4taconite assistance area as provided in sections 
         298.22, subdivision 5a, and 
         298.292, 195.5subdivision 2
         , clause (5).195.6    Sec. 25. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:195.7    Subd. 4. Temporary loan authority. (a) After seeking a recommendation from the 195.8board, the commissioner of Iron Range resources and rehabilitation may recommend that195.9use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 195.10grants, or equity investments as provided in this subdivision. The money would be
         available 195.11for loans for construction and equipping of facilities constituting (1) a value added
         iron 195.12products plant, which may be either a new plant or a facility incorporated into an
         existing 195.13plant that produces iron upgraded to a minimum of 75 percent iron content or any iron
         alloy 195.14with a total minimum metallic content of 90 percent; or (2) a new mine or minerals
         processing 195.15plant for any mineral subject to the net proceeds tax imposed under section 
         298.015. A loan 195.16or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.195.17(b) Additionally, the board commissioner of Iron Range resources and rehabilitation195.18must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
         from 195.19the investment of the trust after June 30, 1996, to be used for grants, loans, loan
         guarantees, 195.20or equity investments for the purposes set forth in paragraph (a). This amount must
         be 195.21reserved until it is used as described in this subdivision.195.22(c) Additionally, the board commissioner may recommend that up to $5,500,000 from 195.23the corpus of the trust may be used for additional grants, loans, loan guarantees,
         or equity 195.24investments for the purposes set forth in paragraph (a).195.25(d) The commissioner of Iron Range resources and rehabilitation, after seeking a 195.26recommendation from the board, may require that it the board receive an equity percentage 195.27in any project to which it contributes under this section.195.28    Sec. 26. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:195.29    Subd. 2. Projects; approval. (a) Projects funded must be for:195.30    (1) environmentally unique reclamation projects; or195.31    (2) pit or plant repairs, expansions, or modernizations other than for a value added
         iron 195.32products plant.196.1    (b) To be proposed by the board, a project must be approved by Before the commissioner 196.2may propose a project, the commissioner must seek a recommendation from the board. The 196.3money for a project may be spent only upon approval of the project by the governor.
         The 196.4board commissioner may submit a supplemental projects project for approval at any time196.5after seeking a recommendation for the project from the board.196.6    (c) The board commissioner may require that it the board receive an equity percentage 196.7in any project to which it contributes under this section.196.8    Sec. 27. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:196.9    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under 196.10section 
         298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 196.11Any grant or loan made under this subdivision must first be approved by the commissioner 196.12after seeking a recommendation from the board, established under section 
         298.22.196.13    (b) All distributions received in 2009 and subsequent years are allocated for projects
         196.14under section 
         298.223, subdivision 1.196.15    Sec. 28. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:196.16    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly 196.17constituted authorities of a taxing district there are in existence reserves of unmined
         iron 196.18ore located in such district, these authorities may petition the commissioner of Iron Range 196.19resources and rehabilitation Board for authority to petition the county assessor to verify the 196.20existence of such reserves and to ascertain the value thereof by drilling in a manner
         consistent 196.21with established engineering and geological exploration methods, in order that such
         taxing 196.22district may be able to forecast in a proper manner its future economic and fiscal
         potentials.196.23The commissioner of Iron Range resources and rehabilitation may grant the authority
         to 196.24petition after seeking a recommendation from the Iron Range Resources and Rehabilitation
         196.25Board.196.26    Sec. 29. IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY 196.27SEPARATION INCENTIVE PROGRAM AUTHORIZATION.196.28(a) "Commissioner" as used in this section means the commissioner of the Iron Range
         196.29Resources and Rehabilitation Board unless otherwise specified.196.30(b) Notwithstanding any law to the contrary, the commissioner, in consultation with
         the 196.31commissioner of management and budget, shall offer a targeted early separation incentive
         196.32program for employees of the commissioner who have attained the age of 60 years or
         who 197.1have received credit for at least 30 years of allowable service under the provisions
         of 197.2Minnesota Statutes, chapter 352.  The commissioner shall also offer a targeted separation
         197.3incentive program for employees of the commissioner whose positions are in support
         of 197.4operations at Giants Ridge and will be eliminated if the agency no longer directly
         manages 197.5Giants Ridge operations.197.6(c) The early separation incentive program may include one or more of the following:197.7(1) employer-paid postseparation health, medical, and dental insurance until age 65;
         and197.8(2) cash incentives that may, but are not required to be, used to purchase additional
         years 197.9of service credit through the Minnesota State Retirement System, to the extent that
         the 197.10purchases are otherwise authorized by law.197.11(d) The commissioner shall establish eligibility requirements for employees to receive
         197.12an incentive.197.13(e) The commissioner, consistent with the established program provisions under paragraph
         197.14(b), and with the eligibility requirements under paragraph (f), may designate specific
         197.15programs or employees as eligible to be offered the incentive program.197.16(f) Acceptance of the offered incentive must be voluntary on the part of the employee
         197.17and must be in writing. The incentive may only be offered at the sole discretion of
         the 197.18commissioner.197.19(g) The cost of the incentive is payable solely by funds made available to the 197.20commissioner by law, but only on prior approval of the expenditures by the commissioner,
         197.21after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.197.22(h) Unilateral implementation of this section by the commissioner is not an unfair
         labor 197.23practice under Minnesota Statutes, chapter 179A.197.24EFFECTIVE DATE.This section is effective the day following final enactment. This 197.25section is repealed July 30, 2019.197.26    Sec. 30. REVISOR'S INSTRUCTION.197.27The revisor of statutes shall identify and propose necessary changes to Minnesota
         Statutes 197.28and Minnesota Rules that are consistent with the goals of this act to (i) transfer
         discretionary 197.29approval authority for all expenditures and projects from the Iron Range Resources
         and 197.30Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation,
         and 197.31(ii) provide that the commissioner must, in good faith, seek the review and recommendation
         197.32of the board, as required, before exercising approval authority. The revisor shall
         submit the 198.1proposal, in a form ready for introduction, during the 2018 regular legislative session
         to the 198.2chairs and ranking minority members of the senate and house of representatives committees
         198.3with jurisdiction over taxes.198.4    Sec. 31.  REPEALER.198.5Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4,
         5, 198.6and 6; and 298.298, are repealed.198.7ARTICLE 10198.8DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION DEVICES 198.9PROVISIONS198.10    Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; 198.11DEFINITIONS.198.12(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12,
         and 198.13609.5316, subdivision 3, the following terms have the meanings given.198.14(b) "Automated sales suppression device" or "zapper" means a software program, carried
         198.15on any tangible medium, or accessed through any other means, that falsifies the electronic
         198.16records of electronic cash registers and other point-of-sale systems including, but
         not limited 198.17to, transaction data and transaction reports.198.18(c) "Electronic cash register" means a device that keeps a register or supporting
         documents 198.19through the means of an electronic device or computer system designed to record transaction
         198.20data for the purpose of computing, compiling, or processing retail sales transaction
         data in 198.21whatever manner.198.22(d) "Phantom-ware" means hidden preinstalled or later-installed programming option
         198.23embedded in the operating system of an electronic cash register or hardwired into
         the 198.24electronic cash register that can be used to create a virtual second electronic cash
         register 198.25or may eliminate or manipulate transaction records that may or may not be preserved
         in 198.26digital formats to represent the true or manipulated record of transactions in the
         electronic 198.27cash register.198.28(e) "Transaction data" includes items purchased by a customer, the price of each item,
         198.29the taxability determination for each item, a segregated tax amount for each of the
         taxed 198.30items, the date and time of the purchase, the name, address, and identification number
         of 198.31the vendor, and the receipt or invoice number of the transaction.199.1(f) "Transaction report" means a report documenting, but not limited to, the sales,
         taxes 199.2collected, media totals, and discount voids at an electronic cash register that is
         printed on 199.3cash register tape at the end of a day or shift, or a report documenting every action
         at an 199.4electronic cash register that is stored electronically.199.5EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota 199.6Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur
         on or after 199.7August 1, 2017.199.8    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 199.9read:199.10    Subd. 32.Sales suppression.(a) A person who:199.11(1) sells;199.12(2) transfers;199.13(3) develops;199.14(4) manufactures; or199.15(5) possesses with the intent to sell or transfer199.16an automated sales suppression device, zapper, phantom-ware, or similar device capable
         of 199.17being used to commit tax fraud or suppress sales is liable for a civil penalty calculated
         under 199.18paragraph (b).199.19(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
         199.20amount of all taxes and penalties due that are attributable to the use of any automated
         sales 199.21suppression device, zapper, phantom-ware, or similar device facilitated by the sale,
         transfer, 199.22development, or manufacture of the automated sales suppression device, zapper, 199.23phantom-ware, or similar device by the person.199.24(c) The definitions in section 289A.14 apply to this subdivision.199.25(d) This subdivision does not apply to the commissioner, a person acting at the direction
         199.26of the commissioner, an agent of the commissioner, law enforcement agencies, or 199.27postsecondary education institutions that possess an automated sales suppression device,
         199.28zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         199.29sales suppression devices, zappers, or phantom-ware.199.30EFFECTIVE DATE.This section is effective for activities enumerated that occur on 199.31or after August 1, 2017.200.1    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 200.2read:200.3    Subd. 12.Felony.(a) A person who sells, purchases, installs, transfers, develops, 200.4manufactures, or uses an automated sales suppression device, zapper, phantom-ware,
         or 200.5similar device knowing that the device or phantom-ware is capable of being used to
         commit 200.6tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment
         for 200.7not more than five years or to a payment of a fine of not more than $10,000, or both.200.8(b) An automated sales suppression device, zapper, phantom-ware, and any other device
         200.9containing an automated sales suppression, zapper, or phantom-ware device or software
         is 200.10contraband and subject to forfeiture under section 609.5316.200.11(c) The definitions in section 289A.14 apply to this subdivision.200.12(d) This subdivision does not apply to the commissioner, a person acting at the direction
         200.13of the commissioner, an agent of the commissioner, law enforcement agencies, or 200.14postsecondary education institutions that possess an automated sales suppression device,
         200.15zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
         200.16sales suppression devices, zappers, or phantom-ware.200.17EFFECTIVE DATE.This section is effective for activities enumerated that occur on 200.18or after August 1, 2017.200.19    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:200.20    Subd. 3. Weapons, telephone cloning paraphernalia, automated sales suppression 200.21devices, and bullet-resistant vests. Weapons used are contraband and must be summarily 200.22forfeited to the appropriate agency upon conviction of the weapon's owner or possessor
         for 200.23a controlled substance crime; for any offense of this chapter or chapter 624, or for
         a violation 200.24of an order for protection under section 
         518B.01, subdivision 14. Bullet-resistant vests, as 200.25defined in section 
         609.486, worn or possessed during the commission or attempted 200.26commission of a crime are contraband and must be summarily forfeited to the appropriate
         200.27agency upon conviction of the owner or possessor for a controlled substance crime
         or for 200.28any offense of this chapter. Telephone cloning paraphernalia used in a violation of
         section 200.29609.894
         , and automated sales suppression devices, phantom-ware, and other devices 200.30containing an automated sales suppression or phantom-ware device or software used
         in 200.31violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited 200.32to the appropriate agency upon a conviction.201.1EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota 201.2Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.201.3ARTICLE 11201.4DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 201.5PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES201.6    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:201.7    Subd. 11. Information included in income tax return. (a) The return must state:201.8    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
         address 201.9of the taxpayer in the same name or names and same address as the taxpayer has used
         in 201.10making the taxpayer's income tax return to the United States;201.11    (2) the date or dates of birth of the taxpayer or taxpayers;201.12    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
         number 201.13has been issued by the United States with respect to the taxpayers; and201.14    (4) the amount of the taxable income of the taxpayer as it appears on the federal
         return 201.15for the taxable year to which the Minnesota state return applies.201.16    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a
         copy 201.17of the federal income tax return that the taxpayer has filed or is about to file for
         the period, 201.18unless the taxpayer is eligible to telefile the federal return and does file the Minnesota
         return 201.19by telefiling.201.20EFFECTIVE DATE.This section is effective the day following final enactment.201.21    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:201.22    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed.201.23(a) A "tax refund or return preparer," as defined in section 
         289A.60, subdivision 13, paragraph 201.24(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
         201.25Code, and who reasonably expects to prepare more than ten Minnesota individual income, 201.26corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior 201.27calendar year must file all Minnesota individual income, corporate franchise, S corporation, 201.28partnership, or fiduciary income tax returns prepared for that calendar year by electronic 201.29means.201.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the
         return 201.31that the taxpayer did not want the return filed by electronic means.202.1(c) For each return that is not filed electronically by a tax refund or return preparer
         under 202.2this subdivision, including returns filed under paragraph (b), a paper filing fee
         of $5 is 202.3imposed upon the preparer. The fee is collected from the preparer in the same manner
         as 202.4income tax. The fee does not apply to returns that the commissioner requires to be
         filed in 202.5paper form.202.6EFFECTIVE DATE.This section is effective for taxable years beginning after December 202.731, 2016.202.8    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:202.9    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from 202.10an employee a tax under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 2, or 202.11who would have been required to deduct and withhold a tax under section 
         290.92, subdivision 202.122a
          or 3, or persons required to withhold tax under section 
         290.923, subdivision 2, determined 202.13without regard to section 
         290.92, subdivision 19, if the employee or payee had claimed no 202.14more than one withholding exemption, or who paid wages or made payments not subject
         202.15to withholding under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 2, to an 202.16employee or person receiving royalty payments in excess of $600, or who has entered
         into 202.17a voluntary withholding agreement with a payee under section 
         290.92, subdivision 20, must 202.18give every employee or person receiving royalty payments in respect to the remuneration
         202.19paid by the person to the employee or person receiving royalty payments during the
         calendar 202.20year, on or before January 31 of the succeeding year, or, if employment is terminated
         before 202.21the close of the calendar year, within 30 days after the date of receipt of a written
         request 202.22from the employee if the 30-day period ends before January 31, a written statement
         showing 202.23the following:202.24    (1) name of the person;202.25    (2) the name of the employee or payee and the employee's or payee's Social Security
         202.26account number;202.27    (3) the total amount of wages as that term is defined in section 
         290.92, subdivision 1, 202.28paragraph (1); the total amount of remuneration subject to withholding under section
         
         290.92, 202.29subdivision 20
         ; the amount of sick pay as required under section 6051(f) of the Internal 202.30Revenue Code; and the amount of royalties subject to withholding under section 
         290.923, 202.31subdivision 2
         ; and202.32    (4) the total amount deducted and withheld as tax under section 
         290.92, subdivision 2a202.33or 3, or 
         290.923, subdivision 2.203.1    (b) The statement required to be furnished by paragraph (a) with respect to any 203.2remuneration must be furnished at those times, must contain the information required,
         and 203.3must be in the form the commissioner prescribes.203.4    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
         203.5not in excess of 30 days, to employers or payers required to give the statements to
         their 203.6employees or payees under this subdivision.203.7    (d) A duplicate of any statement made under this subdivision and in accordance with
         203.8rules prescribed by the commissioner, along with a reconciliation in the form the 203.9commissioner prescribes of the statements for the calendar year, including a reconciliation
         203.10of the quarterly returns required to be filed under subdivision 1, must be filed with the 203.11commissioner on or before February 28 January 31 of the year after the payments were 203.12made.203.13    (e) If an employer cancels the employer's Minnesota withholding account number required
         203.14by section 
         290.92, subdivision 24, the information required by paragraph (d), must be filed 203.15with the commissioner within 30 days of the end of the quarter in which the employer
         203.16cancels its account number.203.17    (f) The employer must submit the statements required to be sent to the commissioner
         in 203.18the same manner required to satisfy the federal reporting requirements of section
         6011(e) 203.19of the Internal Revenue Code and the regulations issued under it. An employer must
         submit 203.20statements to the commissioner required by this section by electronic means if the
         employer 203.21is required to send more than 25 statements to the commissioner, even though the employer
         203.22is not required to submit the returns federally by electronic means. For statements
         issued 203.23for wages paid in 2011 and after, the threshold is ten. All statements issued for
         withholding 203.24required under section 290.92 are aggregated for purposes of determining whether the 203.25electronic submission threshold is met. The commissioner shall prescribe the content, format, 203.26and manner of the statement pursuant to section 270C.30.203.27    (g) A "third-party bulk filer" as defined in section 
         290.92, subdivision 30, paragraph 203.28(a), clause (2), must submit the returns required by this subdivision and subdivision
         1, 203.29paragraph (a), with the commissioner by electronic means.203.30EFFECTIVE DATE.This section is effective for statements required to be sent to the 203.31commissioner after December 31, 2017, except that the date change in paragraph (d)
         is 203.32effective for wages paid after December 31, 2016.204.1    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:204.2    Subd. 14. Regulated investment companies; Reporting exempt interest and204.3exempt-interest dividends. (a) A regulated investment company paying $10 or more in 204.4exempt-interest dividends to an individual who is a resident of Minnesota, or any person 204.5receiving $10 or more of exempt interest or exempt-interest dividends and paying as
         nominee 204.6to an individual who is a resident of Minnesota, must make a return indicating the amount 204.7of the exempt interest or exempt-interest dividends, the name, address, and Social Security 204.8number of the recipient, and any other information that the commissioner specifies.
         The 204.9return must be provided to the shareholder recipient by February 15 of the year following 204.10the year of the payment. The return provided to the shareholder recipient must include a 204.11clear statement, in the form prescribed by the commissioner, that the exempt interest or204.12exempt-interest dividends must be included in the computation of Minnesota taxable
         income. 204.13By June 1 of each year, the regulated investment company payor must file a copy of the 204.14return with the commissioner.204.15    (b) For purposes of this subdivision, the following definitions apply.204.16    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
         204.17852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
         204.18dividends that are not required to be added to federal taxable income under section
         
         290.0131, 204.19subdivision 2
         , paragraph (b).204.20    (2) "Regulated investment company" means regulated investment company as defined 204.21in section 851(a) of the Internal Revenue Code or a fund of the regulated investment
         company 204.22as defined in section 851(g) of the Internal Revenue Code.204.23    (3) "Exempt interest" means income on obligations of any state other than Minnesota,
         204.24or a political or governmental subdivision, municipality, or governmental agency or
         204.25instrumentality of any state other than Minnesota, and exempt from federal income
         taxes 204.26under the Internal Revenue Code or any other federal statute.204.27EFFECTIVE DATE.This section is effective for reports required to be filed after 204.28December 31, 2017.204.29    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 204.30read:204.31    Subd. 2a.Annual withholding returns; eligible employers.(a) An employer who 204.32deducts and withholds an amount required to be withheld by section 290.92 may file
         an 204.33annual return and make an annual payment of the amount required to be deducted and
         205.1withheld for that calendar year if the employer has received a notification under
         paragraph 205.2(b). The ability to elect to file an annual return continues through the year following
         the 205.3year where an employer is required to deduct and withhold more than $500.205.4(b) The commissioner is authorized to determine which employers are eligible to file
         205.5an annual return and to notify employers who newly qualify to file an annual return
         because 205.6the amount an employer is required to deduct and withhold for that calendar year is
         $500 205.7or less based on the most recent period of four consecutive quarters for which the
         205.8commissioner has compiled data on that employer's withholding tax for that period.
         At the 205.9time of notification, eligible employers may still decide to file returns and make
         deposits 205.10quarterly. An employer who decides to file returns and make deposits quarterly is
         required 205.11to make all returns and deposits required by this chapter and, notwithstanding paragraph
         205.12(a), is subject to all applicable penalties for failing to do so.205.13(c) If, at the end of any calendar month other than the last month of the calendar
         year, 205.14the aggregate amount of undeposited tax withheld by an employer who has elected to
         file 205.15an annual return exceeds $500, the employer must deposit the aggregate amount with
         the 205.16commissioner within 30 days of the end of the calendar month.205.17(d) If an employer who has elected to file an annual return ceases to pay wages for
         which 205.18withholding is required, the employer must file a final return and deposit any undeposited
         205.19tax within 30 days of the end of the calendar month following the month in which the
         205.20employer ceased paying wages.205.21(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
         205.22must file the return and pay the tax not previously deposited before February 1 of
         the year 205.23following the year in which the tax was withheld.205.24(f) A notification to an employer regarding eligibility to file an annual return under
         205.25Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).205.26EFFECTIVE DATE.This section is effective for taxable years beginning after December 205.2731, 2016.205.28    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:205.29    Subd. 2. Withholding from wages, entertainer withholding, withholding from 205.30payments to out-of-state contractors, and withholding by partnerships, small business
         205.31corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax 205.32required to be deducted and withheld during the quarterly period must be paid on or
         before 205.33the last day of the month following the close of the quarterly period, unless an earlier
         time 206.1for payment is provided. A tax required to be deducted and withheld from compensation
         206.2of an entertainer and from a payment to an out-of-state contractor must be paid on
         or before 206.3the date the return for such tax must be filed under section 
         289A.18, subdivision 2. Taxes 206.4required to be deducted and withheld by partnerships, S corporations, and trusts must
         be 206.5paid on a quarterly basis as estimated taxes under section 
         289A.25 for partnerships and 206.6trusts and under section 
         289A.26 for S corporations.206.7(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
         206.8under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 2, must deposit tax 206.9withheld under those sections with the commissioner within the time allowed to deposit
         the 206.10employer's federal withheld employment taxes under Code of Federal Regulations, title
         26, 206.11section 31.6302-1, as amended through December 31, 2001, without regard to the safe
         206.12harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
         Taxpayers 206.13must submit a copy of their federal notice of deposit status to the commissioner upon
         request 206.14by the commissioner.206.15(c) The commissioner may prescribe by rule other return periods or deposit requirements.
         206.16In prescribing the reporting period, the commissioner may classify payors according
         to the 206.17amount of their tax liability and may adopt an appropriate reporting period for the
         class that 206.18the commissioner judges to be consistent with efficient tax collection. In no event
         will the 206.19duration of the reporting period be more than one year.206.20(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
         206.21with respect to both the tax and the amount to be deducted must be made, without interest,
         206.22in the manner and at the times the commissioner prescribes. If the underpayment cannot
         be 206.23adjusted, the amount of the underpayment will be assessed and collected in the manner
         and 206.24at the times the commissioner prescribes.206.25(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year
         ending 206.26June 30, the employer must remit each required deposit for wages paid in all subsequent
         206.27calendar years by electronic means.206.28(f) A third-party bulk filer as defined in section 
         290.92, subdivision 30, paragraph (a), 206.29clause (2), who remits withholding deposits must remit all deposits by electronic
         means as 206.30provided in paragraph (e), regardless of the aggregate amount of tax withheld during
         a fiscal 206.31year for all of the employers.206.32EFFECTIVE DATE.This section is effective for taxable years beginning after December 206.3331, 2016.207.1    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:207.2    Subdivision 1. Individual income, fiduciary income, mining company, corporate 207.3franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 207.4company, and corporate franchise taxes, and interest and penalties, must be paid by
         the 207.5taxpayer upon whom the tax is imposed, except in the following cases:207.6(1) The tax due from a decedent for that part of the taxable year in which the decedent
         207.7died during which the decedent was alive and the taxes, interest, and penalty due
         for the 207.8prior years must be paid by the decedent's personal representative, if any. If there
         is no 207.9personal representative, the taxes, interest, and penalty must be paid by the transferees,
         as 207.10defined in section 
         270C.58, subdivision 3, to the extent they receive property from the 207.11decedent;207.12(2) The tax due from an infant or other incompetent person must be paid by the person's
         207.13guardian or other person authorized or permitted by law to act for the person;207.14(3) The tax due from the estate of a decedent must be paid by the estate's personal
         207.15representative;207.16(4) The tax due from a trust, including those within the definition of a corporation,
         as 207.17defined in section 
         290.01, subdivision 4, must be paid by a trustee; and207.18(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
         207.19trustee in bankruptcy, assignee, or other conservator, must be paid by the person
         in charge 207.20of the business or property so far as the tax is due to the income from the business
         or property.207.21(b) Entertainment taxes are the joint and several liability of the entertainer and
         the 207.22entertainment entity. The payor is liable to the state for the payment of the tax
         required to 207.23be deducted and withheld under section 
         290.9201, subdivision 7, and is not liable to the 207.24entertainer for the amount of the payment.207.25(c) The tax taxes imposed under section sections 289A.35 and290.0922 on partnerships 207.26is are the joint and several liability of the partnership and the general partners.207.27EFFECTIVE DATE.This section is effective the day following final enactment.207.28    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:207.29289A.35 ASSESSMENTS ON RETURNS.207.30(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
         207.31income, items of federal tax preferences, or federal credit amounts to make them conform
         207.32with the provisions of chapter 290 or section 
         298.01. If a return has been filed, the 208.1commissioner shall enter the liability reported on the return and may make any audit
         or 208.2investigation that is considered necessary.208.3(b) Upon petition by a taxpayer, and when the commissioner determines that it is in
         the 208.4best interest of the state, the commissioner may allow S corporations and partnerships
         to 208.5receive orders of assessment issued under section 270C.33, subdivision 4, on behalf
         of their 208.6owners, and to pay liabilities shown on such orders. In such cases, the owners' liability
         must 208.7be calculated using the method provided in section 289A.08, subdivision 7, paragraph
         (b).208.8(c) A taxpayer may petition the commissioner for the use of the method described in
         208.9paragraph (b) after the taxpayer is notified that an audit has been initiated and
         before an 208.10order of assessment has been issued.208.11(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
         208.12of a taxpayer cannot be appealed to the Tax Court or any other court.208.13(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under 208.14chapter 291. In the case of a return filed pursuant to section 
         289A.10, the commissioner 208.15shall notify the estate no later than nine months after the filing date, as provided
         by section 208.16289A.38, subdivision 2
         , whether the return is under examination or the return has been 208.17processed as filed.208.18EFFECTIVE DATE.This section is effective the day following final enactment.208.19    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:208.20    Subd. 28. Preparer identification number. Any Minnesota individual income tax return 208.21or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
         208.2213, paragraph (f), shall bear the identification number the preparer is required to
         use federally 208.23under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer
         who 208.24prepares a Minnesota individual income tax return required by section 289A.08, subdivisions 208.251, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required 208.26number on the return or claim is subject to a penalty of $50 for each failure.208.27EFFECTIVE DATE.This section is effective for taxable years beginning after December 208.2831, 2016.208.29    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:208.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have 208.31the meanings given.209.1(b) "Long-term care insurance" means a policy that:209.2(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
         209.3the 7.5 percent adjusted gross income test; or meets the requirements given in section 
         62A.46; 209.4or provides similar coverage issued under the laws of another jurisdiction; and209.5(2) has a lifetime long-term care benefit limit of not less than $100,000; and209.6(3) has been offered in compliance with the inflation protection requirements of section
         209.762S.23
         .209.8(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.209.9(d) "Premiums deducted in determining federal taxable income" means the lesser of
         (1) 209.10long-term care insurance premiums that qualify as deductions under section 213 of
         the 209.11Internal Revenue Code; and (2) the total amount deductible for medical care under
         section 209.12213 of the Internal Revenue Code.209.13EFFECTIVE DATE.This section is effective retroactively for taxable years beginning 209.14after December 31, 2012.209.15    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:209.16    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings 209.17given.209.18    (a) "Qualified research expenses" means (i) qualified research expenses and basic
         research 209.19payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
         it does 209.20not include expenses incurred for qualified research or basic research conducted outside
         209.21the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code;
         and 209.22(ii) contributions to a nonprofit corporation established and operated pursuant to
         the 209.23provisions of chapter 317A for the purpose of promoting the establishment and expansion
         209.24of business in this state, provided the contributions are invested by the nonprofit
         corporation 209.25for the purpose of providing funds for small, technologically innovative enterprises
         in 209.26Minnesota during the early stages of their development.209.27    (b) "Qualified research" means qualified research as defined in section 41(d) of the
         209.28Internal Revenue Code, except that the term does not include qualified research conducted
         209.29outside the state of Minnesota.209.30    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
         209.31Code, except that the average annual gross receipts and aggregate gross receipts must be 210.1calculated using Minnesota sales or receipts under section 
         290.191 and the definitions 210.2contained in clauses paragraphs (a) and (b) shall apply.210.3EFFECTIVE DATE.This section is effective the day following final enactment.210.4    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:210.5    Subd. 2. Income not derived from conduct of a trade or business. The income of a 210.6taxpayer subject to the allocation rules that is not derived from the conduct of a
         trade or 210.7business must be assigned in accordance with paragraphs (a) to (f):210.8    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
         210.93401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to
         the extent 210.10that, the work of the employee is performed within it; all other income from such
         sources 210.11is treated as income from sources without this state.210.12    Severance pay shall be considered income from labor or personal or professional services.210.13    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
         210.14or entertainer, income from compensation for labor or personal services performed
         within 210.15this state shall be determined in the following manner:210.16    (i) The amount of income to be assigned to Minnesota for an individual who is a 210.17nonresident salaried athletic team employee shall be determined by using a fraction
         in which 210.18the denominator contains the total number of days in which the individual is under
         a duty 210.19to perform for the employer, and the numerator is the total number of those days spent
         in 210.20Minnesota. For purposes of this paragraph, off-season training activities, unless
         conducted 210.21at the team's facilities as part of a team imposed program, are not included in the
         total number 210.22of duty days. Bonuses earned as a result of play during the regular season or for
         participation 210.23in championship, play-off, or all-star games must be allocated under the formula.
         Signing 210.24bonuses are not subject to allocation under the formula if they are not conditional
         on playing 210.25any games for the team, are payable separately from any other compensation, and are
         210.26nonrefundable; and210.27    (ii) The amount of income to be assigned to Minnesota for an individual who is a 210.28nonresident, and who is an athlete or entertainer not listed in clause (i), for that
         person's 210.29athletic or entertainment performance in Minnesota shall be determined by assigning
         to this 210.30state all income from performances or athletic contests in this state.210.31    (3) For purposes of this section, amounts received by a nonresident as "retirement
         income" 210.32as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
         210.33Law 104-95, are not considered income derived from carrying on a trade or business
         or 211.1from wages or other compensation for work an employee performed in Minnesota, and
         are 211.2not taxable under this chapter.211.3    (b) Income or gains from tangible property located in this state that is not employed
         in 211.4the business of the recipient of the income or gains must be assigned to this state.211.5    (c) Income or gains from intangible personal property not employed in the business
         of 211.6the recipient of the income or gains must be assigned to this state if the recipient
         of the 211.7income or gains is a resident of this state or is a resident trust or estate.211.8    Gain on the sale of a partnership interest is allocable to this state in the ratio
         of the 211.9original cost of partnership tangible property in this state to the original cost
         of partnership 211.10tangible property everywhere, determined at the time of the sale. If more than 50
         percent 211.11of the value of the partnership's assets consists of intangibles, gain or loss from
         the sale of 211.12the partnership interest is allocated to this state in accordance with the sales factor
         of the 211.13partnership for its first full tax period immediately preceding the tax period of
         the partnership 211.14during which the partnership interest was sold.211.15Gain on the sale of an interest in a single member limited liability company that
         is 211.16disregarded for federal income tax purposes is allocable to this state as if the single
         member 211.17limited liability company did not exist and the assets of the limited liability company
         are 211.18personally owned by the sole member.211.19    Gain on the sale of goodwill or income from a covenant not to compete that is connected
         211.20with a business operating all or partially in Minnesota is allocated to this state
         to the extent 211.21that the income from the business in the year preceding the year of sale was assignable211.22allocable to Minnesota under subdivision 3.211.23    When an employer pays an employee for a covenant not to compete, the income allocated
         211.24to this state is in the ratio of the employee's service in Minnesota in the calendar
         year 211.25preceding leaving the employment of the employer over the total services performed
         by the 211.26employee for the employer in that year.211.27    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned
         211.28to this state. In this paragraph, "bet" has the meaning given in section 
         609.75, subdivision 211.292
         , as limited by section 
         609.75, subdivision 3, clauses (1), (2), and (3).211.30    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of
         the 211.31taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.211.32    (f) For the purposes of this section, working as an employee shall not be considered
         to 211.33be conducting a trade or business.212.1EFFECTIVE DATE.This section is effective the day following final enactment.212.2    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:212.3    Subdivision 1. Partners, not partnership, subject to tax.Except as provided under 212.4section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax 212.5imposed by this chapter, but is subject to the tax imposed under section 
         290.0922. Persons 212.6carrying on business as partners shall be liable for income tax only in their separate
         or 212.7individual capacities.212.8EFFECTIVE DATE.This section is effective the day following final enactment.212.9    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:212.10290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.212.11(a) The owner or managing agent of any property for which rent is paid for occupancy 212.12as a homestead must furnish a certificate of rent paid to a person who is a renter
         on December 212.1331, in the form prescribed by the commissioner. If the renter moves before December
         31, 212.14the owner or managing agent may give the certificate to the renter at the time of
         moving, 212.15or mail the certificate to the forwarding address if an address has been provided
         by the 212.16renter. The certificate must be made available to the renter before February 1 of
         the year 212.17following the year in which the rent was paid. The owner or managing agent must retain
         a 212.18duplicate of each certificate or an equivalent record showing the same information
         for a 212.19period of three years. The duplicate or other record must be made available to the
         212.20commissioner upon request.212.21(b) The commissioner may require the owner or managing agent, through a simple 212.22process, to furnish to the commissioner on or before March 1 a copy of each certificate
         of 212.23rent paid furnished to a renter for rent paid in the prior year, in the content, format,
         and 212.24manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
         212.25the commissioner, after consulting with representatives of owners or managing agents,
         shall 212.26develop an implementation and administration plan for the requirements of this paragraph
         212.27that attempts to minimize financial burdens, administration and compliance costs,
         and takes 212.28into consideration existing systems of owners and managing agents.212.29(c) For the purposes of this section, "owner" includes a park owner as defined under
         212.30section 
         327C.01, subdivision 6, and "property" includes a lot as defined under section 212.31327C.01, subdivision 3
         .213.1EFFECTIVE DATE.This section is effective for certificates of rent paid furnished to 213.2a renter for rent paid after December 31, 2016.213.3    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:213.4    Subd. 2. Additions. The following amounts, to the extent deducted in computing or 213.5otherwise excluded from the federal taxable estate, must be added in computing the 213.6Minnesota taxable estate:213.7(1) the amount of the deduction for state death taxes allowed under section 2058 of
         the 213.8Internal Revenue Code;213.9(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
         213.10of the Internal Revenue Code; and213.11(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
         213.12Revenue Code, made by the decedent within three years of the date of death. For purposes
         213.13of this clause, the amount of the addition equals the value of the gift under section
         2512 of 213.14the Internal Revenue Code and excludes any value of the gift included in the federal
         estate.213.15EFFECTIVE DATE.This section is effective retroactively for estates of decedents 213.16dying after June 30, 2013.213.17    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:213.18    Subd. 3. Subtraction.The following amounts, to the extent included in computing the 213.19federal taxable estate, may be subtracted in computing the Minnesota taxable estate
         but 213.20must not reduce the Minnesota taxable estate to less than zero:213.21(1) the value of property subject to an election under section 291.03, subdivision
         1d; 213.22and213.23(2) the value of qualified small business property under section 
         291.03, subdivision 9, 213.24and the value of qualified farm property under section 
         291.03, subdivision 10, or the result 213.25of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5)items (i) 213.26to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but 213.27must not reduce the Minnesota taxable estate to less than zero:213.28(1) (i) $1,200,000 for estates of decedents dying in 2014;213.29(2) (ii) $1,400,000 for estates of decedents dying in 2015;213.30(3) (iii) $1,600,000 for estates of decedents dying in 2016;214.1(4) (iv) $1,800,000 for estates of decedents dying in 2017; and214.2(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.214.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents 214.4dying after June 30, 2011.214.5    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:214.6    Subd. 9. Qualified small business property. Property satisfying all of the following 214.7requirements is qualified small business property:214.8(1) The value of the property was included in the federal adjusted taxable estate.214.9(2) The property consists of the assets of a trade or business or shares of stock
         or other 214.10ownership interests in a corporation or other entity engaged in a trade or business.
         Shares 214.11of stock in a corporation or an ownership interest in another type of entity do not
         qualify 214.12under this subdivision if the shares or ownership interests are traded on a public
         stock 214.13exchange at any time during the three-year period ending on the decedent's date of
         death. 214.14For purposes of this subdivision, an ownership interest includes the interest the
         decedent is 214.15deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.214.16(3) During the taxable year that ended before the decedent's death, the trade or business
         214.17must not have been a passive activity within the meaning of section 469(c) of the
         Internal 214.18Revenue Code, and the decedent or the decedent's spouse must have materially participated
         214.19in the trade or business within the meaning of section 469(h) of the Internal Revenue
         Code, 214.20excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
         214.21by United States Treasury Department regulation that substitutes material participation
         in 214.22prior taxable years for material participation in the taxable year that ended before
         the 214.23decedent's death.214.24(4) The gross annual sales of the trade or business were $10,000,000 or less for the
         last 214.25taxable year that ended before the date of the death of the decedent.214.26(5) The property does not consist of include:214.27(i) cash,;214.28(ii) cash equivalents,;214.29(iii) publicly traded securities,; or214.30(iv) any assets not used in the operation of the trade or business.215.1(6) For property consisting of shares of stock or other ownership interests in an entity,
         215.2the value of cash, cash equivalents, publicly traded securities, or assets not used in the 215.3operation of the trade or business held by the corporation or other entity items described in 215.4clause (5) must be deducted from the value of the property qualifying under this subdivision 215.5in proportion to the decedent's share of ownership of the entity on the date of death excluded 215.6in the valuation of the decedent's interest in the entity.215.7(6) (7) The decedent continuously owned the property, including property the decedent 215.8is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,
         for 215.9the three-year period ending on the date of death of the decedent. In the case of
         a sole 215.10proprietor, if the property replaced similar property within the three-year period,
         the 215.11replacement property will be treated as having been owned for the three-year period
         ending 215.12on the date of death of the decedent.215.13(7) (8) For three years following the date of death of the decedent, the trade or business
         215.14is not a passive activity within the meaning of section 469(c) of the Internal Revenue
         Code, 215.15and a family member materially participates in the operation of the trade or business
         within 215.16the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
         215.17of the Internal Revenue Code and any other provision provided by United States Treasury
         215.18Department regulation that substitutes material participation in prior taxable years
         for 215.19material participation in the three years following the date of death of the decedent.215.20(8) (9) The estate and the qualified heir elect to treat the property as qualified small
         215.21business property and agree, in the form prescribed by the commissioner, to pay the
         recapture 215.22tax under subdivision 11, if applicable.215.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents 215.24dying after June 30, 2011.215.25    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:215.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before 215.27the death of the qualified heir, the qualified heir disposes of any interest in the
         qualified 215.28property, other than by a disposition to a family member, or a family member ceases
         to 215.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional
         estate 215.30tax is imposed on the property. In the case of a sole proprietor, if the qualified
         heir replaces 215.31qualified small business property excluded under subdivision 9 with similar property,
         then 215.32the qualified heir will not be treated as having disposed of an interest in the qualified
         property.216.1(b) The amount of the additional tax equals the amount of the exclusion claimed by
         the 216.2estate under subdivision 8, paragraph (d), multiplied by 16 percent.216.3(c) The additional tax under this subdivision is due on the day which is six months
         after 216.4the date of the disposition or cessation in paragraph (a).216.5(d) This subdivision shall not apply as a result of any of the following:216.6(1) a portion of qualified farm property consisting of less than one-fifth of the
         acreage 216.7of the property is reclassified as class 2b property under section 273.13, subdivision
         23, and 216.8the qualified heir has not substantially altered the reclassified property during
         the three-year 216.9holding period; or216.10(2) a portion of qualified farm property classified as 2a property at the death of
         the 216.11decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of
         a residence, 216.12garage, and immediately surrounding one acre of land is reclassified as 4bb property
         during 216.13the three-year holding period, and the qualified heir has not substantially altered
         the property.216.14EFFECTIVE DATE.This section is effective retroactively for estates of decedents 216.15dying after June 30, 2011.216.16    Sec. 19.  REPEALER.216.17(a) Minnesota Rules, part 8092.1400, is repealed.216.18(b) Minnesota Rules, part 8092.2000, is repealed.216.19EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after 216.20December 31, 2016, except that notifications from the Department of Revenue to employers
         216.21regarding eligibility to file an annual return for taxes withheld in calendar year
         2017 remain 216.22in force. Paragraph (b) is effective the day following final enactment.216.23ARTICLE 12216.24DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 216.25PROVISIONS; PROPERTY TAX216.26    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:216.27    Subd. 2. Income property assessment data. The following data collected by political 216.28subdivisions and the state from individuals or business entities concerning income properties 216.29are classified as private or nonpublic data pursuant to section 
         13.02, subdivisions 9 and 12:216.30(a) detailed income and expense figures;216.31(b) average vacancy factors;217.1(c) verified net rentable areas or net usable areas, whichever is appropriate;217.2(d) anticipated income and expenses;217.3(e) projected vacancy factors; and217.4(f) lease information.217.5EFFECTIVE DATE.This section is effective the day following final enactment.217.6    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:217.7    Subd. 2. Air commerce.(a) "Air commerce" means the transportation by aircraft of 217.8persons or property for hire in interstate, intrastate, or international transportation
         on regularly 217.9scheduled flights or on intermittent or irregularly timed flights by airline companies and 217.10includes transportation by any airline company making three or more flights in or
         out of 217.11Minnesota, or within Minnesota, during a calendar year.217.12(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
         217.13flight, a flight arranged at the convenience of an airline and the person contracting
         for the 217.14transportation, or a charter flight. It includes any airline company making three
         or more 217.15flights in or out of Minnesota during a calendar year.217.16(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
         217.17owned and used for private air flight purposes if the person furnishing the transportation
         217.18does not hold out to be engaged regularly in transportation for hire.217.19EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.217.20    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:217.21    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used 217.22in connection therewith, including spare flight equipment. Flight property also includes
         217.23computers and computer software used in operating, controlling, or regulating aircraft
         and 217.24flight equipment. Flight property does not include aircraft with a maximum takeoff weight 217.25of less than 30,000 pounds.217.26EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.217.27    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:217.28    Subd. 8. Person. "Person" means any an individual, corporation, firm, copartnership, 217.29company, or association, and includes any guardian, trustee, executor, administrator,
         receiver, 217.30conservator, or any person acting in any fiduciary capacity therefortrust, estate, fiduciary, 218.1partnership, company, corporation, limited liability company, association, governmental
         218.2unit or agency, public or private organization of any kind, or other legal entity.218.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.218.4    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 218.5read:218.6    Subd. 10.Intermittent or irregularly timed flights."Intermittently or irregularly timed 218.7flights" means any flight in which the departure time, departure location, and arrival
         location 218.8are specifically negotiated with the customer or the customer's representative, including
         but 218.9not limited to charter flights.218.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.218.11    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:218.12    Subd. 2. Assessment of flight property.  Flight property that is owned by, or is leased, 218.13loaned, or otherwise made available to an airline company operating in Minnesota shall
         be 218.14assessed and appraised annually by the commissioner with reference to its value on
         January 218.152 of the assessment year in the manner prescribed by sections 
         270.071 to 
         270.079. Aircraft 218.16with a gross weight of less than 30,000 pounds and used on intermittent or irregularly
         timed 218.17flights shall be excluded from the provisions of sections 270.071 to 270.079.218.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.218.19    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:218.20    Subd. 3. Report by airline company.(a) Each year, on or before July 1, every airline 218.21company engaged in air commerce in this state shall file with the commissioner a report
         218.22under oath setting forth specifically the information prescribed by the commissioner
         to 218.23enable the commissioner to make the assessment required in sections 
         270.071 to 
         270.079, 218.24unless the commissioner determines that the airline company or person should be excluded 218.25from is exempt from filing because its activities do not constitute air commerce as defined 218.26herein.218.27    (b) The commissioner shall prescribe the content, format, and manner of the report
         218.28pursuant to section 270C.30, except that a "law administered by the commissioner"
         includes 218.29the property tax laws. If a report is made by electronic means, the taxpayer's signature
         is 218.30defined pursuant to section 270C.304, except that a "law administered by the commissioner"
         218.31includes the property tax laws.219.1EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports filed in 219.22018 and thereafter. The amendment adding paragraph (b) is effective the day following
         219.3final enactment.219.4    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 219.5read:219.6    Subd. 3a.Commissioner filed reports.If an airline company fails to file a report required 219.7by subdivision 3, the commissioner may, from information in the commissioner's possession
         219.8or obtainable by the commissioner, make and file a report for the airline company,
         or may 219.9issue a notice of net tax capacity and tax under section 270.075, subdivision 2.219.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.219.11    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 219.12read:219.13    Subd. 6.Reassessment orders.If the State Board of Equalization determines that a 219.14considerable amount of property has been undervalued or overvalued compared to like
         219.15property such that the assessment is grossly unfair or inequitable, the State Board
         of 219.16Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue
         orders 219.17to the county assessor to reassess all parcels or an identified set of parcels in
         a county.219.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.219.19    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:219.20    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the 219.21commissioner a copy of the abstract that will be acted upon by the local and county
         boards 219.22of review. The abstract must list the real and personal property in the county itemized
         by 219.23assessment districts. The assessor of each county in the state shall file with the
         commissioner, 219.24within ten working days following final action of the local board of review or equalization
         219.25and within five days following final action of the county board of equalization, any
         changes 219.26made by the local or county board. The information must be filed in the manner prescribed
         219.27by the commissioner. It must be accompanied by a printed or typewritten copy of the 219.28proceedings of the appropriate board.219.29EFFECTIVE DATE.This section is effective for local and county boards of appeal 219.30and equalization meetings held in 2017 and thereafter.220.1    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:220.2    Subd. 9. Personal property; exceptions. Except for the taxable personal property 220.3enumerated below, all personal property and the property described in section 
         272.03, 220.4subdivision 1
         , paragraphs (c) and (d), shall be exempt.220.5The following personal property shall be taxable:220.6(a) personal property which is part of (1) an electric generating, transmission, or 220.7distribution system or; (2) a pipeline system transporting or distributing water, gas, crude 220.8oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot 220.9or chilled water for heating or cooling buildings and structures;220.10(b) railroad docks and wharves which are part of the operating property of a railroad
         220.11company as defined in section 
         270.80;220.12(c) personal property defined in section 
         272.03, subdivision 2, clause (3);220.13(d) leasehold or other personal property interests which are taxed pursuant to section
         220.14272.01, subdivision 2
         ; 
         273.124, subdivision 7; or 
         273.19, subdivision 1; or any other law 220.15providing the property is taxable as if the lessee or user were the fee owner;220.16(e) manufactured homes and sectional structures, including storage sheds, decks, and
         220.17similar removable improvements constructed on the site of a manufactured home, sectional
         220.18structure, park trailer or travel trailer as provided in section 
         273.125, subdivision 8, paragraph 220.19(f); and220.20(f) flight property as defined in section 
         270.071.220.21EFFECTIVE DATE.This section is effective the day following final enactment.220.22    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:220.23    Subd. 2. Definitions. (a) For the purposes of this section, the term:220.24(1) "wind energy conversion system" has the meaning given in section 216C.06, 220.25subdivision 19, and also includes a substation that is used and owned by one or more
         wind 220.26energy conversion facilities;220.27(2) "large scale wind energy conversion system" means a wind energy conversion system
         220.28of more than 12 megawatts, as measured by the nameplate capacity of the system or
         as 220.29combined with other systems as provided in paragraph (b);221.1(3) "medium scale wind energy conversion system" means a wind energy conversion 221.2system of over two and not more than 12 megawatts, as measured by the nameplate capacity
         221.3of the system or as combined with other systems as provided in paragraph (b); and221.4(4) "small scale wind energy conversion system" means a wind energy conversion system
         221.5of two megawatts and under, as measured by the nameplate capacity of the system or
         as 221.6combined with other systems as provided in paragraph (b).221.7(b) For systems installed and contracted for after January 1, 2002, the total size
         of a 221.8wind energy conversion system under this subdivision shall be determined according
         to this 221.9paragraph. Unless the systems are interconnected with different distribution systems,
         the 221.10nameplate capacity of one wind energy conversion system shall be combined with the
         221.11nameplate capacity of any other wind energy conversion system that is:221.12(1) located within five miles of the wind energy conversion system;221.13(2) constructed within the same calendar year 12-month period as the wind energy 221.14conversion system; and221.15(3) under common ownership.221.16In the case of a dispute, the commissioner of commerce shall determine the total size
         of 221.17the system, and shall draw all reasonable inferences in favor of combining the systems.221.18(c) In making a determination under paragraph (b), the commissioner of commerce may
         221.19determine that two wind energy conversion systems are under common ownership when
         221.20the underlying ownership structure contains similar persons or entities, even if the
         ownership 221.21shares differ between the two systems. Wind energy conversion systems are not under
         221.22common ownership solely because the same person or entity provided equity financing
         for 221.23the systems.221.24EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.221.25    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 221.26to read:221.27    Subd. 8.Extension.The commissioner may, for good cause, extend the time for filing 221.28the report required by subdivision 4. The extension must not exceed 15 days.221.29EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.222.1    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:222.2    Subd. 7. Division of duties between local and county assessor. The duty of the duly 222.3appointed local assessor shall be to view and appraise the value of all property as
         provided 222.4by law, but all the book work shall be done by the county assessor, or the assessor's
         assistants, 222.5and the value of all property subject to assessment and taxation shall be determined
         by the 222.6county assessor, except as otherwise hereinafter provided. If directed by the county
         assessor, 222.7the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), 222.8and must enter construction and valuation data into the records in the manner prescribed
         222.9by the county assessor.222.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.222.11    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:222.12273.08 ASSESSOR'S DUTIES.222.13The assessor shall actually view, and determine the market value of each tract or
         lot of 222.14real property listed for taxation, including the value of all improvements and structures
         222.15thereon, at maximum intervals of five years and shall enter the value opposite each
         222.16description. When directed by the county assessor, local assessors must enter construction 222.17and valuation data into the records in the manner prescribed by the county assessor.222.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.222.19    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 222.20to read:222.21    Subd. 3.Compliance.A county assessor, or a city assessor having the powers of a 222.22county assessor, who does not comply with the timely notice requirement under subdivision
         222.231 must:222.24(1) mail an additional valuation notice to each person who was not provided timely
         222.25notice; and222.26(2) convene a supplemental local board of appeal and equalization or local review
         session 222.27no sooner than ten days after sending the additional notices required by clause (1).222.28EFFECTIVE DATE.This section is effective for valuation notices sent in 2018 and 222.29thereafter.223.1    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:223.2    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 223.3(c), real estate which is residential and used for homestead purposes is class 1a.
         In the case 223.4of a duplex or triplex in which one of the units is used for homestead purposes, the
         entire 223.5property is deemed to be used for homestead purposes. The market value of class 1a
         property 223.6must be determined based upon the value of the house, garage, and land.223.7    The first $500,000 of market value of class 1a property has a net classification rate
         of 223.8one percent of its market value; and the market value of class 1a property that exceeds
         223.9$500,000 has a classification rate of 1.25 percent of its market value.223.10    (b) Class 1b property includes homestead real estate or homestead manufactured homes
         223.11used for the purposes of a homestead by:223.12    (1) any person who is blind as defined in section 
         256D.35, or the blind person and the 223.13blind person's spouse;223.14    (2) any person who is permanently and totally disabled or by the disabled person and
         223.15the disabled person's spouse; or223.16    (3) the surviving spouse of a permanently and totally disabled veteran homesteading
         a 223.17property classified under this paragraph for taxes payable in 2008.223.18    Property is classified and assessed under clause (2) only if the government agency
         or 223.19income-providing source certifies, upon the request of the homestead occupant, that
         the 223.20homestead occupant satisfies the disability requirements of this paragraph, and that
         the 223.21property is not eligible for the valuation exclusion under subdivision 34.223.22    Property is classified and assessed under paragraph (b) only if the commissioner of
         223.23revenue or the county assessor certifies that the homestead occupant satisfies the
         requirements 223.24of this paragraph.223.25    Permanently and totally disabled for the purpose of this subdivision means a condition
         223.26which is permanent in nature and totally incapacitates the person from working at
         an 223.27occupation which brings the person an income. The first $50,000 market value of class
         1b 223.28property has a net classification rate of .45 percent of its market value. The remaining
         market 223.29value of class 1b property has a classification rate using the rates for is classified as class 223.301a or class 2a property, whichever is appropriate, of similar market value.223.31    (c) Class 1c property is commercial use real and personal property that abuts public
         223.32water as defined in section 
         103G.005, subdivision 15, and is devoted to temporary and 223.33seasonal residential occupancy for recreational purposes but not devoted to commercial
         224.1purposes for more than 250 days in the year preceding the year of assessment, and
         that 224.2includes a portion used as a homestead by the owner, which includes a dwelling occupied
         224.3as a homestead by a shareholder of a corporation that owns the resort, a partner in
         a 224.4partnership that owns the resort, or a member of a limited liability company that
         owns the 224.5resort even if the title to the homestead is held by the corporation, partnership,
         or limited 224.6liability company. For purposes of this paragraph, property is devoted to a commercial
         224.7purpose on a specific day if any portion of the property, excluding the portion used
         224.8exclusively as a homestead, is used for residential occupancy and a fee is charged
         for 224.9residential occupancy. Class 1c property must contain three or more rental units.
         A "rental 224.10unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
         camping 224.11site equipped with water and electrical hookups for recreational vehicles. Class 1c
         property 224.12must provide recreational activities such as the rental of ice fishing houses, boats
         and motors, 224.13snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
         224.14services, or guide services; or sell bait and fishing tackle. Any unit in which the
         right to use 224.15the property is transferred to an individual or entity by deeded interest, or the
         sale of shares 224.16or stock, no longer qualifies for class 1c even though it may remain available for
         rent. A 224.17camping pad offered for rent by a property that otherwise qualifies for class 1c is
         also class 224.181c, regardless of the term of the rental agreement, as long as the use of the camping
         pad 224.19does not exceed 250 days. If the same owner owns two separate parcels that are located
         in 224.20the same township, and one of those properties is classified as a class 1c property
         and the 224.21other would be eligible to be classified as a class 1c property if it was used as
         the homestead 224.22of the owner, both properties will be assessed as a single class 1c property; for
         purposes of 224.23this sentence, properties are deemed to be owned by the same owner if each of them
         is 224.24owned by a limited liability company, and both limited liability companies have the
         same 224.25membership. The portion of the property used as a homestead is class 1a property under
         224.26paragraph (a). The remainder of the property is classified as follows: the first $600,000
         of 224.27market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
         224.28market value is tier III. The classification rates for class 1c are: tier I, 0.50
         percent; tier II, 224.291.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted
         to 224.30temporary and seasonal residential occupancy for recreation purposes in which all
         or a 224.31portion of the property was devoted to commercial purposes for not more than 250 days
         in 224.32the year preceding the year of assessment desiring classification as class 1c, must
         submit a 224.33declaration to the assessor designating the cabins or units occupied for 250 days
         or less in 224.34the year preceding the year of assessment by January 15 of the assessment year. Those
         224.35cabins or units and a proportionate share of the land on which they are located must
         be 224.36designated as class 1c as otherwise provided. The remainder of the cabins or units
         and a 225.1proportionate share of the land on which they are located must be designated as class
         3a 225.2commercial. The owner of property desiring designation as class 1c property must provide
         225.3guest registers or other records demonstrating that the units for which class 1c designation
         225.4is sought were not occupied for more than 250 days in the year preceding the assessment
         225.5if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
         (3) gift shop, 225.6(4) conference center or meeting room, and (5) other nonresidential facility operated
         on a 225.7commercial basis not directly related to temporary and seasonal residential occupancy
         for 225.8recreation purposes does not qualify for class 1c.225.9    (d) Class 1d property includes structures that meet all of the following criteria:225.10    (1) the structure is located on property that is classified as agricultural property
         under 225.11section 
         273.13, subdivision 23;225.12    (2) the structure is occupied exclusively by seasonal farm workers during the time
         when 225.13they work on that farm, and the occupants are not charged rent for the privilege of
         occupying 225.14the property, provided that use of the structure for storage of farm equipment and
         produce 225.15does not disqualify the property from classification under this paragraph;225.16    (3) the structure meets all applicable health and safety requirements for the appropriate
         225.17season; and225.18    (4) the structure is not salable as residential property because it does not comply
         with 225.19local ordinances relating to location in relation to streets or roads.225.20    The market value of class 1d property has the same classification rates as class 1a
         property 225.21under paragraph (a).225.22EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.225.23    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:225.24    Subdivision 1. Listing and assessment in county. The personal property of express, 225.25stage and transportation companies, and of pipeline companies engaged in the business
         of 225.26transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise 225.27provided by law, shall be listed and assessed in the county, town or district where
         the same 225.28is usually kept.225.29EFFECTIVE DATE.This section is effective the day following final enactment.226.1    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:226.2    Subd. 2. Listing and assessment by commissioner. The personal property, consisting 226.3of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline
         companies 226.4and others engaged in the operations or business of transporting natural gas, gasoline, crude 226.5oil, or other petroleum products by pipelines, shall be listed with and assessed by the 226.6commissioner of revenue and the values provided to the city or county assessor by
         order. 226.7This subdivision shall not apply to the assessment of the products transported through
         the 226.8pipelines nor to the lines of local commercial gas companies engaged primarily in
         the 226.9business of distributing gas products to consumers at retail nor to pipelines used by the 226.10owner thereof to supply natural gas or other petroleum products exclusively for such owner's 226.11own consumption and not for resale to others. If more than 85 percent of the natural gas or 226.12other petroleum products actually transported over the pipeline is used for the owner's own 226.13consumption and not for resale to others, then this subdivision shall not apply; provided,
         226.14however, that in that event, the pipeline shall be assessed in proportion to the percentage
         226.15of gas products actually transported over such pipeline that is not used for the owner's own 226.16consumption. On or before August 1, the commissioner shall certify to the auditor
         of each 226.17county, the amount of such personal property assessment against each company in each
         226.18district in which such property is located. If the commissioner determines that the
         amount 226.19of personal property assessment certified on or before August 1 is in error, the commissioner
         226.20may issue a corrected certification on or before October 1. The commissioner may correct
         226.21errors that are merely clerical in nature until December 31.226.22EFFECTIVE DATE.This section is effective the day following final enactment.226.23    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:226.24    Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or railroad 226.25company concerning property for which the commissioner of revenue has provided the
         city 226.26or county assessor with valuations by order, or for which the commissioner has recommended
         226.27values to the city or county assessor, must be brought against the commissioner, and not 226.28against the county or taxing district where the property is located. Service must be made 226.29on the commissioner only, and not on the county or taxing district.226.30(b) This section governs administrative appeals and appeals to court of a claim that
         utility 226.31or railroad operating property has been partially, unfairly, or unequally assessed,
         or assessed 226.32at a valuation greater than its real or actual value, misclassified, or that the property
         is 226.33exempt. This section applies only to property described in sections 
         270.81, subdivision 1, 226.34273.33
         , 
         273.35, 
         273.36, and 
         273.37, and only with regard to taxable net tax capacities that 227.1have been provided to the city or county by the commissioner and which have not been
         227.2changed by city or county. If the taxable net tax capacity being appealed is not the
         taxable 227.3net tax capacity established by the commissioner, or if the appeal claims that the
         tax rate 227.4applied against the parcel is incorrect, or that the tax has been paid, this section
         does not 227.5apply.227.6EFFECTIVE DATE.This section is effective for appeals of valuations made in 227.7assessment year 2018 and thereafter.227.8    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:227.9    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to 227.10be brought against the commissioner under this section, the petition initiating the
         appeal 227.11must be served on the commissioner and must be filed with the Tax Court in Ramsey
         County, 227.12as provided in paragraph (b) or (c).227.13(b) If the appeal to court is from an order of the commissioner, it must be brought
         under 227.14chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, 227.15except that when the provisions of this section conflict with chapter 271 or 278, this section 227.16prevails. In addition, the petition must include all the parcels encompassed by that
         order 227.17which the petitioner claims have been partially, unfairly, or unequally assessed,
         assessed 227.18at a valuation greater than their real or actual value, misclassified, or are exempt.
         For this 227.19purpose, an order of the commissioner is either (1) a certification or notice of value
         by the 227.20commissioner for property described in subdivision 1, or (2) the final determination
         by the 227.21commissioner of either an administrative appeal conference or informal administrative
         227.22appeal described in subdivision 4.227.23(c) If the appeal is from the tax that results from implementation of the commissioner's
         227.24order, certification, or recommendation, it must be brought under chapter 278, and
         the 227.25provisions in that chapter apply, except that service shall be on the commissioner
         only and 227.26not on the local officials specified in section 
         278.01, subdivision 1, and if any other provision 227.27of this section conflicts with chapter 278, this section prevails. In addition, the
         petition must 227.28include either all the utility parcels or all the railroad parcels in the state in
         which the 227.29petitioner claims an interest and which the petitioner claims have been partially,
         unfairly, 227.30or unequally assessed, assessed at a valuation greater than their real or actual value,
         227.31misclassified, or are exempt.227.32EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.228.1    Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:228.2    Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 228.3270.82
          or 
         273.371 by the date specified in that section, or by the date specified by the 228.4commissioner in an extension, may appeal administratively to the commissioner prior
         to 228.5bringing an action in court.228.6    (b) Companies that must submit reports under section 270.82 must submit file a written 228.7request to for an appeal with the commissioner for a conference within ten 30 days after 228.8the notice date of the commissioner's valuation certification or other notice to the company, 228.9or by June 15, whichever is earlier. For purposes of this section, "notice date" means the 228.10notice date of the valuation certification, commissioner's order, recommendation,
         or other 228.11notice.228.12    (c) Companies that submit reports under section 273.371 must submit a written request 228.13to the commissioner for a conference within ten days after the date of the commissioner's
         228.14valuation certification or notice to the company, or by July 1, whichever is earlier The appeal 228.15need not be in any particular form but must contain the following information:228.16    (1) name and address of the company;228.17    (2) the date;228.18    (3) its Minnesota identification number;228.19    (4) the assessment year or period involved;228.20    (5) the findings in the valuation that the company disputes;228.21    (6) a summary statement specifying its reasons for disputing each item; and228.22    (7) the signature of the company's duly authorized agent or representative.228.23    (d) When requested in writing and within the time allowed for filing an administrative
         228.24appeal, the commissioner may extend the time for filing an appeal for a period of
         not more 228.25than 15 days from the expiration of the time for filing the appeal.228.26    (d) (e) The commissioner shall conduct the conference either in person or by telephone 228.27upon the commissioner's entire files and records and such further information as may
         be 228.28offered. The conference must be held no later than 20 days after the date of the 228.29commissioner's valuation certification or notice to the company, or by the date specified
         by 228.30the commissioner in an extension request for an appeal. Within 60 30 days after the 228.31conference the commissioner shall make a final determination of the matter and shall
         notify 229.1the company promptly of the determination. The conference is not a contested case
         hearing229.2subject to chapter 14.229.3    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
         229.4shall also provide the railroad and utility companies the opportunity to discuss any
         questions 229.5or concerns relating to the values established by the commissioner through certification
         or 229.6notice in a less formal manner. This does not change or modify the deadline for requesting
         229.7a conference under paragraph (a), the deadline in section 271.06 for appealing an order of 229.8the commissioner, or the deadline in section 278.01 for appealing property taxes in court.229.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.229.10    Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 229.11to read:229.12    Subd. 5.Agreement determining valuation.When it appears to be in the best interest 229.13of the state, the commissioner may settle any matter under consideration regarding
         an appeal 229.14filed under this section. The agreement must be in writing and signed by the commissioner
         229.15and the company or the company's authorized representative. The agreement is final
         and 229.16conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation
         of a 229.17material fact, the case may not be reopened as to the matters agreed upon.229.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.229.19    Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 229.20to read:229.21    Subd. 6.Dismissal of administrative appeal.If a taxpayer files an administrative appeal 229.22from an order of the commissioner and also files an appeal to the Tax Court for that
         same 229.23order of the commissioner, the administrative appeal is dismissed and the commissioner
         is 229.24no longer required to make the determination of appeal under subdivision 4.229.25EFFECTIVE DATE.This section is effective beginning with assessment year 2017.229.26    Sec. 25. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.229.27After making the apportionment provided in Minnesota Rules, part 8100.0600, the 229.28commissioner must equalize the values of the operating structures to the level accepted
         by 229.29the State Board of Equalization if the appropriate sales ratio for each county, as
         conducted 229.30by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6),
         is 229.31outside the range accepted by the State Board of Equalization. The commissioner must
         not 230.1equalize the value of the operating structures if the sales ratio determined pursuant
         to this 230.2subdivision is within the range accepted by the State Board of Equalization.230.3EFFECTIVE DATE.This section is effective beginning with assessment year 2017.230.4    Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:230.5    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board 230.6of a town, or the council or other governing body of a city, is the local board of appeal and 230.7equalization except (1) in cities whose charters provide for a board of equalization
         or (2) 230.8in any city or town that has transferred its local board of review power and duties
         to the 230.9county board as provided in subdivision 3. The county assessor shall fix a day and
         time 230.10when the board or the local board of equalization shall meet in the assessment districts of 230.11the county. Notwithstanding any law or city charter to the contrary, a city board
         of 230.12equalization shall be referred to as a local board of appeal and equalization. On or before 230.13February 15 of each year the assessor shall give written notice of the time to the
         city or 230.14town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
         must 230.15be held between April 1 and May 31 each year. The clerk shall give published and posted
         230.16notice of the meeting at least ten days before the date of the meeting.230.17    The board shall meet either at a central location within the county or at the office
         of the 230.18clerk to review the assessment and classification of property in the town or city.
         No changes 230.19in valuation or classification which are intended to correct errors in judgment by
         the county 230.20assessor may be made by the county assessor after the board has adjourned in those
         cities 230.21or towns that hold a local board of review; however, corrections of errors that are
         merely 230.22clerical in nature or changes that extend homestead treatment to property are permitted
         after 230.23adjournment until the tax extension date for that assessment year. The changes must
         be fully 230.24documented and maintained in the assessor's office and must be available for review
         by any 230.25person. A copy of the changes made during this period in those cities or towns that
         hold a 230.26local board of review must be sent to the county board no later than December 31 of
         the 230.27assessment year.230.28    (b) The board shall determine whether the taxable property in the town or city has
         been 230.29properly placed on the list and properly valued by the assessor. If real or personal
         property 230.30has been omitted, the board shall place it on the list with its market value, and
         correct the 230.31assessment so that each tract or lot of real property, and each article, parcel, or
         class of 230.32personal property, is entered on the assessment list at its market value. No assessment
         of 230.33the property of any person may be raised unless the person has been duly notified
         of the 230.34intent of the board to do so. On application of any person feeling aggrieved, the
         board shall 231.1review the assessment or classification, or both, and correct it as appears just.
         The board 231.2may not make an individual market value adjustment or classification change that would
         231.3benefit the property if the owner or other person having control over the property
         has refused 231.4the assessor access to inspect the property and the interior of any buildings or structures
         as 231.5provided in section 
         273.20. A board member shall not participate in any actions of the board 231.6which result in market value adjustments or classification changes to property owned
         by 231.7the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
         231.8brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which
         a 231.9board member has a financial interest. The relationship may be by blood or marriage.231.10    (c) A local board may reduce assessments upon petition of the taxpayer but the total
         231.11reductions must not reduce the aggregate assessment made by the county assessor by
         more 231.12than one percent. If the total reductions would lower the aggregate assessments made
         by 231.13the county assessor by more than one percent, none of the adjustments may be made.
         The 231.14assessor shall correct any clerical errors or double assessments discovered by the
         board 231.15without regard to the one percent limitation.231.16    (d) A local board does not have authority to grant an exemption or to order property
         231.17removed from the tax rolls.231.18    (e) A majority of the members may act at the meeting, and adjourn from day to day
         until 231.19they finish hearing the cases presented. The assessor shall attend and take part in
         the 231.20proceedings, but must not vote. The county assessor, or an assistant delegated by
         the county 231.21assessor shall attend the meetings. The board shall list separately all omitted property
         added 231.22to the list by the board and all items of property increased or decreased, with the
         market 231.23value of each item of property, added or changed by the board. The county assessor
         shall 231.24enter all changes made by the board.231.25    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
         counsel, 231.26or by written communication before the board after being duly notified of the board's
         intent 231.27to raise the assessment of the property, or if a person feeling aggrieved by an assessment
         231.28or classification fails to apply for a review of the assessment or classification,
         the person 231.29may not appear before the county board of appeal and equalization for a review. This
         231.30paragraph does not apply if an assessment was made after the local board meeting,
         as 231.31provided in section 
         273.01, or if the person can establish not having received notice of 231.32market value at least five days before the local board meeting.231.33    (g) The local board must complete its work and adjourn within 20 days from the time
         231.34of convening stated in the notice of the clerk, unless a longer period is approved
         by the 232.1commissioner of revenue. No action taken after that date is valid. All complaints
         about an 232.2assessment or classification made after the meeting of the board must be heard and
         232.3determined by the county board of equalization. A nonresident may, at any time, before
         the 232.4meeting of the board file written objections to an assessment or classification with
         the county 232.5assessor. The objections must be presented to the board at its meeting by the county
         assessor 232.6for its consideration.232.7EFFECTIVE DATE.This section is effective the day following final enactment.232.8    Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:232.9    Subdivision 1. Members; meetings; rules for equalizing assessments. The county 232.10commissioners, or a majority of them, with the county auditor, or, if the auditor
         cannot be 232.11present, the deputy county auditor, or, if there is no deputy, the court administrator
         of the 232.12district court, shall form a board for the equalization of the assessment of the property
         of 232.13the county, including the property of all cities whose charters provide for a board
         of 232.14equalization. This board shall be referred to as the county board of appeal and equalization.
         232.15The board shall meet annually, on the date specified in section 
         274.14, at the office of the 232.16auditor. Each member shall take an oath to fairly and impartially perform duties as
         a member. 232.17Members shall not participate in any actions of the board which result in market value
         232.18adjustments or classification changes to property owned by the board member, the spouse,
         232.19parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
         aunt, 232.20nephew, or niece of a board member, or property in which a board member has a financial
         232.21interest. The relationship may be by blood or marriage. The board shall examine and
         compare 232.22the returns of the assessment of property of the towns or districts, and equalize
         them so that 232.23each tract or lot of real property and each article or class of personal property
         is entered on 232.24the assessment list at its market value, subject to the following rules:232.25    (1) The board shall raise the valuation of each tract or lot of real property which
         in its 232.26opinion is returned below its market value to the sum believed to be its market value.
         The 232.27board must first give notice of intention to raise the valuation to the person in
         whose name 232.28it is assessed, if the person is a resident of the county. The notice must fix a time
         and place 232.29for a hearing.232.30    (2) The board shall reduce the valuation of each tract or lot which in its opinion
         is returned 232.31above its market value to the sum believed to be its market value.232.32    (3) The board shall raise the valuation of each class of personal property which in
         its 232.33opinion is returned below its market value to the sum believed to be its market value.
         It 232.34shall raise the aggregate value of the personal property of individuals, firms, or
         corporations, 233.1when it believes that the aggregate valuation, as returned, is less than the market
         value of 233.2the taxable personal property possessed by the individuals, firms, or corporations,
         to the 233.3sum it believes to be the market value. The board must first give notice to the persons
         of 233.4intention to do so. The notice must set a time and place for a hearing.233.5    (4) The board shall reduce the valuation of each class of personal property that is
         returned 233.6above its market value to the sum it believes to be its market value. Upon complaint
         of a 233.7party aggrieved, the board shall reduce the aggregate valuation of the individual's
         personal 233.8property, or of any class of personal property for which the individual is assessed,
         which 233.9in its opinion has been assessed at too large a sum, to the sum it believes was the
         market 233.10value of the individual's personal property of that class.233.11    (5) The board must not reduce the aggregate value of all the property of its county,
         as 233.12submitted to the county board of equalization, with the additions made by the auditor
         under 233.13this chapter, by more than one percent of its whole valuation. The board may raise
         the 233.14aggregate valuation of real property, and of each class of personal property, of the
         county, 233.15or of any town or district of the county, when it believes it is below the market
         value of the 233.16property, or class of property, to the aggregate amount it believes to be its market
         value.233.17    (6) The board shall change the classification of any property which in its opinion
         is not 233.18properly classified.233.19    (7) The board does not have the authority to grant an exemption or to order property
         233.20removed from the tax rolls.233.21    (8) The board may not make an individual market value adjustment or classification
         233.22change that would benefit property if the owner or other person having control over
         the 233.23property has refused the assessor access to inspect the property and the interior
         of any 233.24buildings or structures as provided in section 273.20.233.25EFFECTIVE DATE.This section is effective for county board of appeal and 233.26equalization meetings in 2018 and thereafter.233.27    Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:233.28    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 233.29boards of appeal and equalization meetings must provide proof to the commissioner
         by 233.30December 1, 2009, and each year thereafter, February 1  that it is in compliance with the 233.31requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 233.32was a quorum of voting members at each meeting of the board of appeal and equalization
         233.33in the current previous year. A county that does not comply with these requirements is 234.1deemed to have transferred its board of appeal and equalization powers to the special
         board 234.2of equalization appointed pursuant to section 
         274.13, subdivision 2, beginning with the 234.3following year's assessment and continuing unless the powers are reinstated under
         paragraph 234.4(c). A county that does not comply with the requirements of subdivision 2 and has
         not 234.5appointed a special board of equalization shall appoint a special board of equalization
         before 234.6the following year's assessment.234.7    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for 234.8a county has been transferred to the special board of equalization under this subdivision
         234.9and, prior to the meeting time of the special board of equalization, the county shall
         make 234.10available to those taxpayers a procedure for a review of the assessments, including,
         but not 234.11limited to, open book meetings. This alternate review process must take place in April
         and 234.12May.234.13    (c) A county board whose powers are transferred to the special board of equalization
         234.14under this subdivision may be reinstated by resolution of the county board and upon
         proof 234.15of compliance with the requirements of subdivision 2. The resolution and proofs must
         be 234.16provided to the commissioner by December February 1 in order to be effective for the 234.17following current year's assessment.234.18(d) If a person who was entitled to appeal to the county board of appeal and equalization
         234.19or to the county special board of equalization is not able to do so in a particular
         year because 234.20the county board or special board did not meet the quorum and training requirements
         in this 234.21section and section 
         274.13, or because the special board was not appointed, that person may 234.22instead appeal to the commissioner of revenue, provided that the appeal is received
         by the 234.23commissioner prior to August 1. The appeal is not subject to either chapter 14 or
         section 234.24270C.92
         . The commissioner must issue an appropriate order to the county assessor in 234.25response to each timely appeal, either upholding or changing the valuation or classification
         234.26of the property. Prior to October 1 of each year, the commissioner must charge and
         bill the 234.27county where the property is located $500 for each tax parcel covered by an order
         issued 234.28under this paragraph in that year. Amounts received by the commissioner under this
         paragraph 234.29must be deposited in the state's general fund. If payment of a billed amount is not
         received 234.30by the commissioner before December 1 of the year when billed, the commissioner must
         234.31deduct that unpaid amount from any state aid the commissioner would otherwise pay
         to the 234.32county under chapter 477A in the next year. Late payments may either be returned to
         the 234.33county uncashed and undeposited or may be accepted. If a late payment is accepted,
         the 234.34state aid paid to the county under chapter 477A must be adjusted within 12 months
         to 234.35eliminate any reduction that occurred because the payment was late. Amounts needed
         to 235.1make these adjustments are included in the appropriation under section 
         477A.03, subdivision 235.22
         .235.3EFFECTIVE DATE.This section is effective for county board of appeal and 235.4equalization meetings held in 2018 and thereafter.235.5    Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:235.6    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, 235.7on or before September 30, each county and each home rule charter or statutory city
         shall 235.8certify to the county auditor the proposed property tax levy for taxes payable in
         the following 235.9year.235.10    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
         each 235.11town and each special taxing district shall adopt and certify to the county auditor
         a proposed 235.12property tax levy for taxes payable in the following year. For towns, the final certified
         levy 235.13shall also be considered the proposed levy.235.14    (c) On or before September 30, each school district that has not mutually agreed with
         235.15its home county to extend this date shall certify to the county auditor the proposed
         property 235.16tax levy for taxes payable in the following year. Each school district that has agreed
         with 235.17its home county to delay the certification of its proposed property tax levy must
         certify its 235.18proposed property tax levy for the following year no later than October 7. The school
         district 235.19shall certify the proposed levy as:235.20    (1) a specific dollar amount by school district fund, broken down between voter-approved
         235.21and non-voter-approved levies and between referendum market value and tax capacity
         235.22levies; or235.23    (2) the maximum levy limitation certified by the commissioner of education according
         235.24to section 
         126C.48, subdivision 1.235.25    (d) If the board of estimate and taxation or any similar board that establishes maximum
         235.26tax levies for taxing jurisdictions within a first class city certifies the maximum
         property 235.27tax levies for funds under its jurisdiction by charter to the county auditor by the
         date specified 235.28in paragraph (a), the city shall be deemed to have certified its levies for those
         taxing 235.29jurisdictions.235.30    (e) For purposes of this section, "special taxing district" means a special taxing
         district 235.31as defined in section 
         275.066. Intermediate school districts that levy a tax under chapter 235.32124 or 136D, joint powers boards established under sections 
         123A.44 to 
         123A.446, and 236.1Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
         236.2taxing districts for purposes of this section.236.3(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
         236.4tax levy under this subdivision, the taxing authority shall announce the time and
         place of 236.5its any subsequent regularly scheduled meetings at which the budget and levy will be 236.6discussed and at which the public will be allowed to speak. The time and place of
         those 236.7meetings must be included in the proceedings or summary of proceedings published in
         the 236.8official newspaper of the taxing authority under section 
         123B.09, 
         375.12, or 
         412.191.236.9EFFECTIVE DATE.This section is effective the day following final enactment.236.10    Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:236.11    Subd. 2. Local governments required to report. For purposes of this section, "local 236.12governmental unit" means a county, home rule charter or statutory city with a population
         236.13greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 236.14statutory city or town that receives a distribution from the taconite municipal aid
         account 236.15in the levy year.236.16EFFECTIVE DATE.This section is effective the day following final enactment.236.17    Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:236.18    Subdivision 1. Determination of validity. (a) Any person having personal property, or 236.19any estate, right, title, or interest in or lien upon any parcel of land, who claims
         that such 236.20property has been partially, unfairly, or unequally assessed in comparison with other
         property 236.21in the (1) city, or (2) county, or (3) in the case of a county containing a city of
         the first class, 236.22the portion of the county excluding the first class city, or that the parcel has been
         assessed 236.23at a valuation greater than its real or actual value, or that the tax levied against
         the same is 236.24illegal, in whole or in part, or has been paid, or that the property is exempt from
         the tax so 236.25levied, may have the validity of the claim, defense, or objection determined by the
         district 236.26court of the county in which the tax is levied or by the Tax Court by serving one
         copy of a 236.27petition for such determination upon the county auditor, one copy on the county attorney,
         236.28one copy on the county treasurer, and three copies on the county assessor. The county
         236.29assessor shall immediately forward one copy of the petition to the appropriate governmental
         236.30authority in a home rule charter or statutory city or town in which the property is
         located if 236.31that city or town employs its own certified assessor. A copy of the petition shall
         also be 236.32forwarded by the assessor to the school board of the school district in which the
         property 236.33is located.237.1(b) In counties where the office of county treasurer has been combined with the office
         237.2of county auditor, the county may elect to require the petitioner to serve the number
         of 237.3copies as determined by the county. The county assessor shall immediately forward
         one 237.4copy of the petition to the appropriate governmental authority in a home rule charter
         or 237.5statutory city or town in which the property is located if that city or town employs
         its own 237.6certified assessor. A list of petitioned properties, including the name of the petitioner,
         the 237.7identification number of the property, and the estimated market value, shall be sent
         on or 237.8before the first day of July by the county auditor/treasurer to the school board of
         the school 237.9district in which the property is located.237.10(c) For all counties, the petitioner must file the copies with proof of service, in
         the office 237.11of the court administrator of the district court on or before April 30 of the year
         in which the 237.12tax becomes payable. A petition for determination under this section may be transferred
         by 237.13the district court to the Tax Court. An appeal may also be taken to the Tax Court
         under 237.14chapter 271 at any time following receipt of the valuation notice that county assessors or 237.15city assessors having the powers of a county assessor are required by section 
         273.121 to 237.16send to persons whose property is to be included on the assessment roll that year, but prior 237.17to May 1 of the year in which the taxes are payable.237.18EFFECTIVE DATE.This section is effective the day following final enactment.237.19    Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:237.20    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency 237.21or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
         must be 237.22withheld from sale or lease to others for a maximum of six months. The request must
         be 237.23submitted to the county auditor. Upon receipt, the county auditor must withhold the
         parcel 237.24from sale or lease to any other party for six months, and must confirm the starting
         date of 237.25the six-month withholding period to the requesting agency or subdivision. If the request
         is 237.26from a governmental subdivision of the state, the governmental subdivision must pay
         the 237.27maintenance costs incurred by the county during the period the parcel is withheld.
         The 237.28county board may approve a sale or conveyance to the requesting party during the 237.29withholding period. A conveyance of the property to the requesting party terminates
         the 237.30withholding period.237.31A governmental subdivision of the state must not make, and a county auditor must not
         237.32act upon, a second request to withhold a parcel from sale or lease within 18 months
         of a 237.33previous request for that parcel. A county may reject a request made under this paragraph
         237.34if the request is made more than 30 days after the county has given notice to the
         requesting 238.1state agency or governmental subdivision of the state that the county intends to sell
         or 238.2otherwise dispose of the property.238.3(b) Nonconservation tax-forfeited lands may be sold by the county board, for their
         market 238.4value as determined by the county board, to an organized or incorporated governmental
         238.5subdivision of the state for any public purpose for which the subdivision is authorized
         to 238.6acquire property. When the term "market value" is used in this section, it means an
         estimate 238.7of the full and actual market value of the parcel as determined by the county board,
         but in 238.8making this determination, the board and the persons employed by or under contract
         with 238.9the board in order to perform, conduct, or assist in the determination, are exempt
         from the 238.10licensure requirements of chapter 82B.238.11(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 238.12taxing districts on application to sold by the county board by, for their market value as 238.13determined by the county board, to a state agency for an authorized use at not less than their 238.14market value as determined by the county board any public purpose for which the agency 238.15is authorized to acquire property.238.16(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
         238.17or incorporated governmental subdivision of the state or state agency for less than
         their 238.18market value if:238.19(1) the county board determines that a sale at a reduced price is in the public interest
         238.20because a reduced price is necessary to provide an incentive to correct the blighted
         conditions 238.21that make the lands undesirable in the open market, or the reduced price will lead
         to the 238.22development of affordable housing; and238.23(2) the governmental subdivision or state agency has documented its specific plans
         for 238.24correcting the blighted conditions or developing affordable housing, and the specific
         law 238.25or laws that empower it to acquire real property in furtherance of the plans.238.26If the sale under this paragraph is to a governmental subdivision of the state, the
         238.27commissioner of revenue must convey the property on behalf of the state by quitclaim
         deed. 238.28If the sale under this paragraph is to a state agency, the property is released from the trust 238.29in favor of the taxing districts and the commissioner of revenue must issue a conveyance 238.30document that releases the property from the trust in favor of the taxing districts convey the 238.31property on behalf of the state by quitclaim deed to the agency.238.32(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
         may 238.33be conveyed by the commissioner of revenue in the name of the state to a governmental
         238.34subdivision for an authorized public use, if an application is submitted to the commissioner
         239.1which includes a statement of facts as to the use to be made of the tract and the
         favorable 239.2recommendation of the county board. For the purposes of this paragraph, "authorized
         public 239.3use" means a use that allows an indefinite segment of the public to physically use
         and enjoy 239.4the property in numbers appropriate to its size and use, or is for a public service
         facility. 239.5Authorized public uses as defined in this paragraph are limited to:239.6(1) a road, or right-of-way for a road;239.7(2) a park that is both available to, and accessible by, the public that contains
         239.8improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;239.9(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
         239.10with a reasonable amount of surrounding land maintained in its natural state;239.11(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
         including 239.12transit ways, park-and-ride lots, transit stations, maintenance and garage facilities,
         and other 239.13facilities related to a public transit system;239.14(5) public beaches or boat launches;239.15(6) public parking;239.16(7) civic recreation or conference facilities; and239.17(8) public service facilities such as fire halls, police stations, lift stations,
         water towers, 239.18sanitation facilities, water treatment facilities, and administrative offices.239.19No monetary compensation or consideration is required for the conveyance, except as
         239.20provided in subdivision 1g, but the conveyance is subject to the conditions provided
         in law, 239.21including, but not limited to, the reversion provisions of subdivisions 1c and 1d.239.22(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         239.23land to a local governmental subdivision of the state by quitclaim deed on behalf
         of the state 239.24upon the favorable recommendation of the county board if the governmental subdivision
         239.25has certified to the board that prior to forfeiture the subdivision was entitled to
         the parcel 239.26under a written development agreement or instrument, but the conveyance failed to
         occur 239.27prior to forfeiture. No compensation or consideration is required for, and no conditions
         239.28attach to, the conveyance.239.29(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
         239.30land to the association of a common interest community by quitclaim deed upon the
         favorable 239.31recommendation of the county board if the association certifies to the board that
         prior to 239.32forfeiture the association was entitled to the parcel under a written agreement, but
         the 240.1conveyance failed to occur prior to forfeiture. No compensation or consideration is
         required 240.2for, and no conditions attach to, the conveyance.240.3(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
         240.4state for less than its market value for either: (1) creation or preservation of wetlands;
         (2) 240.5drainage or storage of storm water under a storm water management plan; or (3) preservation,
         240.6or restoration and preservation, of the land in its natural state. The deed must contain
         a 240.7restrictive covenant limiting the use of the land to one of these purposes for 30
         years or 240.8until the property is reconveyed back to the state in trust. At any time, the governmental
         240.9subdivision may reconvey the property to the state in trust for the taxing districts.
         The deed 240.10of reconveyance is subject to approval by the commissioner of revenue. No part of
         a purchase 240.11price determined under this paragraph shall be refunded upon a reconveyance, but the
         240.12amount paid for a conveyance under this paragraph may be taken into account by the
         county 240.13board when setting the terms of a future sale of the same property to the same governmental
         240.14subdivision under paragraph (b) or (d). If the lands are unplatted and located outside
         of an 240.15incorporated municipality and the commissioner of natural resources determines there
         is a 240.16mineral use potential, the sale is subject to the approval of the commissioner of
         natural 240.17resources.240.18(i) A park and recreation board in a city of the first class is a governmental subdivision
         240.19for the purposes of this section.240.20(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
         by 240.21the commissioner of revenue in the name of the state to a governmental subdivision
         for a 240.22school forest under section 
         89.41. An application that includes a statement of facts as to the 240.23use to be made of the tract and the favorable recommendation of the county board and
         the 240.24commissioner of natural resources must be submitted to the commissioner of revenue.
         No 240.25monetary compensation or consideration is required for the conveyance, but the conveyance
         240.26is subject to the conditional use and reversion provisions of subdivisions 1c and
         1d, paragraph 240.27(e). At any time, the governmental subdivision may reconvey the property back to the
         state 240.28in trust for the taxing districts. The deed of reconveyance is subject to approval
         by the 240.29commissioner of revenue.240.30EFFECTIVE DATE.This section is effective the day following final enactment.240.31    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:240.32    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from 240.33the date of any conveyance of tax-forfeited land to a governmental subdivision for
         an 240.34authorized public use as provided in this section, regardless of when the deed for
         the 241.1authorized public use was executed, if the governmental subdivision has failed to
         put the 241.2land to that use, or abandons that use, the governing body of the subdivision must:
         (1) with 241.3the approval of the county board, purchase the property for an authorized public purpose
         241.4at the present market value as determined by the county board, or (2) authorize the
         proper 241.5officers to convey the land, or the part of the land not required for an authorized
         public use, 241.6to the state of Minnesota in trust for the taxing districts. If the governing body
         purchases 241.7the property under clause (1), the commissioner of revenue shall, upon proper application
         241.8submitted by the county auditor and upon the reconveyance of the land subject to the 241.9conditional use deed to the state, convey the property on behalf of the state by quitclaim 241.10deed to the subdivision free of a use restriction and the possibility of reversion
         or 241.11defeasement. If the governing body decides to reconvey the property to the state under
         this 241.12clause, the officers shall execute a deed of conveyance immediately. The conveyance
         is 241.13subject to the approval of the commissioner and its form must be approved by the attorney
         241.14general. For 15 years from the date of the conveyance, there is no failure to put
         the land to 241.15the authorized public use and no abandonment of that use if a formal plan of the governmental
         241.16subdivision, including, but not limited to, a comprehensive plan or land use plan,
         shows an 241.17intended future use of the land for the authorized public use.241.18(b) Property held by a governmental subdivision of the state under a conditional use
         241.19deed executed under this section by the commissioner of revenue on or after January
         1, 241.202007, may be acquired by that governmental subdivision after 15 years from the date
         of the 241.21conveyance if the commissioner determines upon written application from the subdivision
         241.22that the subdivision has in fact put the property to the authorized public use for
         which it 241.23was conveyed, and the subdivision has made a finding that it has no current plans
         to change 241.24the use of the lands. Prior to conveying the property, the commissioner shall inquire
         whether 241.25the county board where the land is located objects to a conveyance of the property
         to the 241.26subdivision without conditions and without further act by or obligation of the subdivision.
         241.27If the county does not object within 60 days, and the commissioner makes a favorable
         241.28determination, the commissioner shall issue a quitclaim deed on behalf of the state
         241.29unconditionally conveying the property to the governmental subdivision. For purposes
         of 241.30this paragraph, demonstration of an intended future use for the authorized public
         use in a 241.31formal plan of the governmental subdivision does not constitute use for that authorized
         241.32public use.241.33(c) Property held by a governmental subdivision of the state under a conditional use
         241.34deed executed under this section by the commissioner of revenue before January 1,
         2007, 241.35is released from the use restriction and possibility of reversion on January 1, 2022,
         if the 242.1county board records a resolution describing the land and citing this paragraph. The
         county 242.2board may authorize the county treasurer to deduct the amount of the recording fees
         from 242.3future settlements of property taxes to the subdivision.242.4(d) Except for tax-forfeited land conveyed to establish a school forest under section
         242.589.41
         , property conveyed under a conditional use deed executed under this section by the
         242.6commissioner of revenue, regardless of when the deed for the authorized public use
         was 242.7executed, is released from the use restriction and reverter, and any use restriction
         or reverter 242.8for which no declaration of reversion has been recorded with the county recorder or
         registrar 242.9of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2)
         30 years from 242.10the date the deed was acknowledged; or (3) final resolution of an appeal to district
         court 242.11under subdivision 1e, if a lis pendens related to the appeal is recorded in the office
         of the 242.12county recorder or registrar of titles, as appropriate, prior to January 1, 2015.242.13(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish
         a 242.14school forest under section 
         89.41 is subject to a perpetual conditional use deed and reverter. 242.15The property reverts to the state in trust for the taxing districts by operation of
         law if the 242.16commissioner of natural resources determines and reports to the commissioner of revenue
         242.17under section 
         89.41, subdivision 3, that the governmental subdivision has failed to use the 242.18land for school forest purposes for three consecutive years. The commissioner of revenue
         242.19shall record a declaration of reversion for land that has reverted under this paragraph.242.20EFFECTIVE DATE.This section is effective the day following final enactment.242.21    Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 242.22to read:242.23    Subd. 14.Communication by electronic mail.Prior to receiving aid pursuant to this 242.24section, a city must register an official electronic mail address with the commissioner,
         which 242.25the commissioner may use as an exclusive means to communicate with the city.242.26EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.242.27    Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 242.28to read:242.29    Subd. 3a.Certification.On or before June 1 of each year, the commissioner of natural 242.30resources shall certify to the commissioner of revenue the number of watercraft launches
         242.31and the number of watercraft trailer parking spaces in each county.242.32EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.243.1    Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 243.2to read:243.3    Subd. 3b.Certification.On or before June 1 of each year, the commissioner of natural 243.4resources shall certify to the commissioner of revenue the counties that complied
         with the 243.5requirements of subdivision 3 the prior year and are eligible to receive aid under
         this section.243.6EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.243.7    Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:243.8    Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if 243.9the purchaser is represented throughout the transaction by either:243.10(1) a person licensed to practice law in this state; or243.11(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
         243.12that the representation does not create a dual agency, as that term is defined in
         section 
         82.55, 243.13subdivision 6
         .243.14EFFECTIVE DATE.This section is effective for sales of tax-forfeited land occurring 243.15the day following final enactment and thereafter.243.16    Sec. 38. Laws 2014, chapter 308, article 9, section 94, is amended to read:243.17    Sec. 94. REPEALER.243.18(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 243.1919e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 243.20part 8007.0200, are repealed.243.21(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
         243.222; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67,
         72, and 243.2382; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 243.24273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
         243.258; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
         243.26subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
         243.27subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
         243.28subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision
         1i; 243.29469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 243.302013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 244.1Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7,
         are 244.2repealed.244.3(c) Minnesota Statutes 2012, section 469.1764, is repealed.244.4(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
         244.5469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
         244.6469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 244.7section 469.340, subdivision 4, are repealed.244.8(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.244.9EFFECTIVE DATE.This section is effective retroactively from May 20, 2014, and 244.10pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
         244.11subdivision 2, is revived and reenacted as of that date.244.12    Sec. 39.  REPEALER.244.13(a) Minnesota Statutes 2016, section 281.22, is repealed.244.14(b) Minnesota Rules, part 8100.0700, is repealed.244.15EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment. 244.16Paragraph (b) is effective for assessment year 2017 and thereafter.244.17ARTICLE 13244.18DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 244.19PROVISIONS; MISCELLANEOUS244.20    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:244.21    Subdivision 1. Annual report required. Every railroad company doing business in 244.22Minnesota shall annually file with the commissioner on or before March 31 a report
         under 244.23oath setting forth the information prescribed by the commissioner to enable the commissioner
         244.24to make the valuation and equalization required by sections 
         270.80 to 
         270.87. The 244.25commissioner shall prescribe the content, format, and manner of the report pursuant
         to 244.26section 270C.30, except that a "law administered by the commissioner" includes the
         property 244.27tax laws. If a report is made by electronic means, the taxpayer's signature is defined
         pursuant 244.28to section 270C.304, except that a "law administered by the commissioner" includes
         the 244.29property tax laws.244.30EFFECTIVE DATE.This section is effective the day following final enactment.245.1    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:245.2    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 245.3certain amount of money, which equals or exceeds $25 and which is due and payable
         to a 245.4claimant agency. The term includes criminal fines imposed under section 
         609.10 or 
         609.125, 245.5fines imposed for petty misdemeanors as defined in section 
         609.02, subdivision 4a, and 245.6restitution. A debt may arise under a contractual or statutory obligation, a court
         order, or 245.7other legal obligation, but need not have been reduced to judgment.245.8    A debt includes any legal obligation of a current recipient of assistance which is
         based 245.9on overpayment of an assistance grant where that payment is based on a client waiver
         or 245.10an administrative or judicial finding of an intentional program violation; or where
         the debt 245.11is owed to a program wherein the debtor is not a client at the time notification is
         provided 245.12to initiate recovery under this chapter and the debtor is not a current recipient
         of food support, 245.13transitional child care, or transitional medical assistance.245.14    (b) A debt does not include any legal obligation to pay a claimant agency for medical
         245.15care, including hospitalization if the income of the debtor at the time when the medical
         care 245.16was rendered does not exceed the following amount:245.17    (1) for an unmarried debtor, an income of $8,800 $12,560 or less;245.18    (2) for a debtor with one dependent, an income of $11,270 $16,080 or less;245.19    (3) for a debtor with two dependents, an income of $13,330 $19,020 or less;245.20    (4) for a debtor with three dependents, an income of $15,120 $21,580 or less;245.21    (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and245.22    (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.245.23For purposes of this paragraph, "debtor" means the individual whose income, together
         245.24with the income of the individual's spouse, other than a separated spouse, brings
         the 245.25individual within the income provisions of this paragraph. For purposes of this paragraph,
         245.26a spouse, other than a separated spouse, shall be considered a dependent.245.27    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
         245.28determined pursuant to the provisions of section 1(f) of the Internal Revenue Code,
         except 245.29that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." 245.30For 2001 2016, the commissioner shall then determine the percent change from the 12 245.31months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, 245.32and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the 246.112 months ending on August 31 of the year preceding the taxable year. The determination
         246.2of the commissioner pursuant to this subdivision shall not be considered a "rule"
         and shall 246.3not be subject to the Administrative Procedure Act contained in chapter 14. The income
         246.4amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
         $5, 246.5the amount is rounded up to the nearest $10 amount.246.6    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
         the 246.7dollar amount of the premium authorized under section 
         256L.15, subdivision 1a.246.8EFFECTIVE DATE.The section is effective retroactively for debts incurred after 246.9December 31, 2014.246.10    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:246.11    Subdivision 1. Disclosure to commissioner of human services. (a) On the request of 246.12the commissioner of human services, the commissioner shall disclose return information
         246.13regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A,
         to the 246.14extent provided in paragraph (b) and for the purposes set forth in paragraph (c).246.15    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
         246.16employment, income, and property of a person owing or alleged to be owing an obligation
         246.17of child support.246.18    (c) The commissioner of human services may request data only for the purposes of 246.19carrying out the child support enforcement program and to assist in the location of
         parents 246.20who have, or appear to have, deserted their children. Data received may be used only
         as set 246.21forth in section 
         256.978.246.22    (d) The commissioner shall provide the records and information necessary to administer
         246.23the supplemental housing allowance to the commissioner of human services.246.24    (e) At the request of the commissioner of human services, the commissioner of revenue
         246.25shall electronically match the Social Security numbers and names of participants in
         the 246.26telephone assistance plan operated under sections 
         237.69 to 
         237.71, with those of property 246.27tax refund filers, and determine whether each participant's household income is within
         the 246.28eligibility standards for the telephone assistance plan.246.29    (f) The commissioner may provide records and information collected under sections
         246.30295.50
          to 
         295.59 to the commissioner of human services for purposes of the Medicaid 246.31Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 246.32102-234. Upon the written agreement by the United States Department of Health and
         Human 246.33Services to maintain the confidentiality of the data, the commissioner may provide
         records 247.1and information collected under sections 
         295.50 to 
         295.59 to the Centers for Medicare and 247.2Medicaid Services section of the United States Department of Health and Human Services
         247.3for purposes of meeting federal reporting requirements.247.4    (g) The commissioner may provide records and information to the commissioner of 247.5human services as necessary to administer the early refund of refundable tax credits.247.6    (h) The commissioner may disclose information to the commissioner of human services
         247.7as necessary to verify income for income verification for eligibility and premium payment 247.8under the MinnesotaCare program, under section 
         256L.05, subdivision 2, as well as the 247.9medical assistance program under chapter 256B.247.10    (i) The commissioner may disclose information to the commissioner of human services
         247.11necessary to verify whether applicants or recipients for the Minnesota family investment
         247.12program, general assistance, food support, Minnesota supplemental aid program, and
         child 247.13care assistance have claimed refundable tax credits under chapter 290 and the property
         tax 247.14refund under chapter 290A, and the amounts of the credits.247.15    (j) The commissioner may disclose information to the commissioner of human services
         247.16necessary to verify income for purposes of calculating parental contribution amounts
         under 247.17section 
         252.27, subdivision 2a.247.18EFFECTIVE DATE.This section is effective the day following final enactment.247.19    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:247.20270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.247.21Except as otherwise provided by law, the commissioner shall prescribe the content and,247.22format, and manner of all returns and other forms required to be filed under a law 247.23administered by the commissioner, and may furnish them subject to charge on application.247.24EFFECTIVE DATE.This section is effective the day following final enactment.247.25    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:247.26    Subd. 5. Prohibition against collection during appeal period of an order. No collection 247.27action can be taken on an order of assessment, or any other order imposing a liability,
         247.28including the filing of liens under section 
         270C.63, and no late payment penalties may be 247.29imposed when a return has been filed for the tax type and period upon which the order
         is 247.30based, during the appeal period of an order. The appeal period of an order ends: (1)
         60 days 247.31after the order has been mailed to the taxpayer notice date designated by the commissioner248.1on the order; (2) if an administrative appeal is filed under section 
         270C.35, 60 days after248.2the notice date designated by the commissioner on the written determination of the 248.3administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
         the 248.4decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
         appeal 248.5is based upon a constitutional challenge to the tax, 60 days after final determination
         of the 248.6appeal. This subdivision does not apply to a jeopardy assessment under section 
         270C.36, 248.7or a jeopardy collection under section 
         270C.36.248.8EFFECTIVE DATE.This section is effective for orders dated after December 31, 248.92017.248.10    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:248.11    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent 248.12postage prepaid by United States mail to the taxpayer at the taxpayer's last known
         address, 248.13or sent by electronic mail to the taxpayer's last known electronic mailing address
         as provided 248.14for in section 
         325L.08, is sufficient even if the taxpayer is deceased or is under a legal 248.15disability, or, in the case of a corporation, has terminated its existence, unless
         the 248.16commissioner has been provided with a new address by a party authorized to receive
         notices 248.17of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date
         248.18designated by the commissioner on the assessment.248.19EFFECTIVE DATE.This section is effective for assessments dated after December 248.2031, 2017.248.21    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:248.22    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 248.23section 
         289A.60, subdivision 4, or a request for abatement of interest or additional tax 248.24charge, must be filed with the commissioner within 60 days of the notice date of the notice 248.25was mailed to the taxpayer's last known address, stating that a penalty has been imposedor 248.26additional tax charge. For purposes of this section, "notice date" means the notice
         date 248.27designated by the commissioner on the order or other notice that a penalty or additional
         tax 248.28charge has been imposed.248.29(b) If the commissioner issues an order denying a request for abatement of penalty,
         248.30interest, or additional tax charge, the taxpayer may file an administrative appeal
         as provided 248.31in section 
         270C.35 or appeal to Tax Court as provided in section 
         271.06.249.1(c) If the commissioner does not issue an order on the abatement request within 60
         days 249.2from the date the request is received, the taxpayer may appeal to Tax Court as provided
         in 249.3section 
         271.06.249.4EFFECTIVE DATE.This section is effective for orders and notices dated after 249.5December 31, 2017.249.6    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:249.7    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the249.8notice date of designated by the commissioner on the order adjusting the tax or order denying 249.9a request for abatement, or, in the case of a denied refund, the notice date of designated by 249.10the commissioner on the notice of denial.249.11EFFECTIVE DATE.This section is effective for orders and notices dated after 249.12December 31, 2017.249.13    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 249.14read:249.15    Subd. 11.Dismissal of administrative appeal.If a taxpayer files an administrative 249.16appeal for an order of the commissioner and also files an appeal to the Tax Court
         for that 249.17same order of the commissioner, the administrative appeal is dismissed and the commissioner
         249.18is no longer required to make a determination of appeal under subdivision 6.249.19EFFECTIVE DATE.This section is effective for all administrative appeals filed after 249.20June 30, 2017.249.21    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:249.22    Subdivision 1. Sufficient notice. (a) If no method of notification of a written 249.23determination or action of the commissioner is otherwise specifically provided for
         by law, 249.24notice of the determination or action sent postage prepaid by United States mail to
         the 249.25taxpayer or other person affected by the determination or action at the taxpayer's
         or person's 249.26last known address, is sufficient. If the taxpayer or person being notified is deceased
         or is 249.27under a legal disability, or, in the case of a corporation being notified that has
         terminated 249.28its existence, notice to the last known address of the taxpayer, person, or corporation
         is 249.29sufficient, unless the department has been provided with a new address by a party
         authorized 249.30to receive notices from the commissioner.250.1(b) If a taxpayer or other person agrees to accept notification by electronic means,
         notice 250.2of a determination or action of the commissioner sent by electronic mail to the taxpayer's
         250.3or person's last known electronic mailing address as provided for in section 
         325L.08 is 250.4sufficient.250.5(c) Notice of a determination or action of the commissioner is sufficient if it is
         sent on 250.6or before the notice date designated by the commissioner on the notice.250.7EFFECTIVE DATE.This section is effective for notices dated after December 31, 250.82017.250.9    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 250.10to read:250.11    Subd. 9.Enforcement; limitations.(a) Notwithstanding any other law, the imposition 250.12of a penalty or any other action against a tax preparer authorized by subdivision
         6 with 250.13respect to a return may be taken by the commissioner within the period provided by
         section 250.14289A.38 to assess tax on that return.250.15(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision
         250.166 other than with respect to a return must be taken by the commissioner within five
         years 250.17of the violation of statute.250.18EFFECTIVE DATE.This section is effective for tax preparation services provided 250.19after the day following final enactment.250.20    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:250.21    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 250.22from the list of tax preparers published under this section:250.23(1) when the commissioner determines that the name was included on the list in error;250.24(2) within 90 days three years after the preparer has demonstrated to the commissioner 250.25that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied 250.26any sentence imposed, successfully completed any probationary period imposed, and 250.27successfully completed any remedial actions required by the commissioner, the State
         Board 250.28of Accountancy, or the Lawyers Board of Professional Responsibility; or250.29(3) when the commissioner has been notified that the tax preparer is deceased.250.30EFFECTIVE DATE.This section is effective the day following final enactment.251.1    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:251.2    Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant 251.3to provide the applicant's Social Security number or individual taxpayer identification 251.4number and Minnesota business identification number, as applicable, on all license 251.5applications. Upon request of the commissioner, the licensing authority must provide
         the 251.6commissioner with a list of all applicants, including the name, address, business
         name and 251.7address, and Social Security number, or individual taxpayer identification number and 251.8business identification number, as applicable, of each applicant. The commissioner may 251.9request from a licensing authority a list of the applicants no more than once each
         calendar 251.10year.251.11EFFECTIVE DATE.This section is effective the day following final enactment.251.12    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:251.13    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60 251.14days after the notice of the making and filing date of an order of the commissioner of revenue, 251.15the appellant, or the appellant's attorney, shall serve a notice of appeal upon the
         commissioner 251.16and file the original, with proof of such service, with the Tax Court administrator
         or with 251.17the court administrator of district court acting as court administrator of the Tax
         Court; 251.18provided, that the Tax Court, for cause shown, may by written order extend the time
         for 251.19appealing for an additional period not exceeding 30 days. For purposes of this section, 251.20"notice date" means the notice date designated by the commissioner on the order. The notice 251.21of appeal shall be in the form prescribed by the Tax Court. Within five days after
         receipt, 251.22the commissioner shall transmit a copy of the notice of appeal to the attorney general.
         The 251.23attorney general shall represent the commissioner, if requested, upon all such appeals
         except 251.24in cases where the attorney general has appealed in behalf of the state, or in other
         cases 251.25where the attorney general deems it against the interests of the state to represent
         the 251.26commissioner, in which event the attorney general may intervene or be substituted
         as an 251.27appellant in behalf of the state at any stage of the proceedings.251.28Upon a final determination of any other matter over which the court is granted jurisdiction
         251.29under section 
         271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 251.30petition or notice of appeal as provided by law with the court administrator of district
         court, 251.31acting in the capacity of court administrator of the Tax Court, with proof of service
         of the 251.32petition or notice of appeal as required by law and within the time required by law.
         As used 251.33in this subdivision, "final determination" includes a notice of assessment and equalization
         252.1for the year in question received from the local assessor, an order of the local board
         of 252.2equalization, or an order of a county board of equalization.252.3The Tax Court shall prescribe a filing system so that the notice of appeal or petition
         filed 252.4with the district court administrator acting as court administrator of the Tax Court
         is 252.5forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
         252.6property valuation for which the assessor, a local board of equalization, a county
         board of 252.7equalization or the commissioner of revenue has issued an order, the officer issuing
         the 252.8order shall be notified of the filing of the appeal. The notice of appeal or petition
         shall be 252.9in the form prescribed by the Tax Court.252.10EFFECTIVE DATE.This section is effective for orders dated after December 31, 252.112017.252.12    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:252.13    Subd. 7. Rules. Except as provided in section 
         278.05, subdivision 6, the Rules of 252.14Evidence and Civil Procedure for the district court of Minnesota shall govern the
         procedures 252.15in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 252.1660-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court 252.17may adopt rules under chapter 14.252.18EFFECTIVE DATE.This section is effective for orders dated after December 31, 252.192017.252.20    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:252.21    Subd. 10. Personal property used for pollution control. Personal property used 252.22primarily for the abatement and control of air, water, or land pollution is exempt
         to the 252.23extent that it is so used, and real property is exempt if it is used primarily for
         abatement and 252.24control of air, water, or land pollution as part of an agricultural operation, as
         a part of a 252.25centralized treatment and recovery facility operating under a permit issued by the
         Minnesota 252.26Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
         252.277001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 252.28and for the treatment, recovery, and stabilization of metals, oils, chemicals, water,
         sludges, 252.29or inorganic materials from hazardous industrial wastes, or as part of an electric
         generation 252.30system. For purposes of this subdivision, personal property includes ponderous machinery
         252.31and equipment used in a business or production activity that at common law is considered
         252.32real property.253.1Any taxpayer requesting exemption of all or a portion of any real property or any
         253.2equipment or device, or part thereof, operated primarily for the control or abatement
         of air, 253.3water, or land pollution shall file an application with the commissioner of revenue.
         The 253.4commissioner shall develop an electronic means to notify interested parties when electric
         253.5power generation facilities have filed an application. The commissioner shall prescribe the 253.6content, format, and manner of the application pursuant to section 270C.30, except
         that a 253.7"law administered by the commissioner" includes the property tax laws, and if an application
         253.8is made by electronic means, the taxpayer's signature is defined pursuant to section
         270C.304, 253.9except that a "law administered by the commissioner" includes the property tax laws. The 253.10Minnesota Pollution Control Agency shall upon request of the commissioner furnish
         253.11information and advice to the commissioner.253.12The information and advice furnished by the Minnesota Pollution Control Agency must
         253.13include statements as to whether the equipment, device, or real property meets a standard,
         253.14rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency,
         and 253.15whether the equipment, device, or real property is installed or operated in accordance
         with 253.16it. On determining that property qualifies for exemption, the commissioner shall issue
         an 253.17order exempting the property from taxation. The commissioner shall develop an electronic
         253.18means to notify interested parties when the commissioner has issued an order exempting
         253.19property from taxation under this subdivision. The equipment, device, or real property
         shall 253.20continue to be exempt from taxation as long as the order issued by the commissioner
         remains 253.21in effect.253.22EFFECTIVE DATE.This section is effective the day following final enactment.253.23    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:253.24    Subdivision 1. Efficiency determination and certification. An owner or operator of a 253.25new or existing electric power generation facility, excluding wind energy conversion
         systems, 253.26may apply to the commissioner of revenue for a market value exclusion on the property
         as 253.27provided for in this section. This exclusion shall apply only to the market value
         of the 253.28equipment of the facility, and shall not apply to the structures and the land upon
         which the 253.29facility is located. The commissioner of revenue shall prescribe the formscontent, format, 253.30manner, and procedures for this application pursuant to section 270C.30, except that a "law 253.31administered by the commissioner" includes the property tax laws. If an application
         is made 253.32by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
         except 253.33that a "law administered by the commissioner" includes the property tax laws. Upon receiving 253.34the application, the commissioner of revenue shall: (1) request the commissioner of
         commerce 254.1to make a determination of the efficiency of the applicant's electric power generation
         facility; 254.2and (2) shall develop an electronic means to notify interested parties when electric
         power 254.3generation facilities have filed an application. The commissioner of commerce shall
         calculate 254.4efficiency as the ratio of useful energy outputs to energy inputs, expressed as a
         percentage, 254.5based on the performance of the facility's equipment during normal full load operation.
         The 254.6commissioner must include in this formula the energy used in any on-site preparation
         of 254.7materials necessary to convert the materials into the fuel used to generate electricity,
         such 254.8as a process to gasify petroleum coke. The commissioner shall use the Higher Heating
         Value 254.9(HHV) for all substances in the commissioner's efficiency calculations, except for
         wood 254.10for fuel in a biomass-eligible project under section 
         216B.2424; for these instances, the 254.11commissioner shall adjust the heating value to allow for energy consumed for evaporation
         254.12of the moisture in the wood. The applicant shall provide the commissioner of commerce
         254.13with whatever information the commissioner deems necessary to make the determination.
         254.14Within 30 days of the receipt of the necessary information, the commissioner of commerce
         254.15shall certify the findings of the efficiency determination to the commissioner of
         revenue 254.16and to the applicant. The commissioner of commerce shall determine the efficiency
         of the 254.17facility and certify the findings of that determination to the commissioner of revenue
         every 254.18two years thereafter from the date of the original certification.254.19EFFECTIVE DATE.This section is effective the day following final enactment.254.20    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:254.21    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 254.22the state of Minnesota or any political subdivision thereof, and property exempt from
         taxation 254.23under section 
         272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 254.24provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
         254.25described in section 
         272.02, subdivisions 2 to 33, must file a statement of exemption with 254.26the assessor of the assessment district in which the property is located.254.27(b) A taxpayer claiming an exemption from taxation on property described in section
         254.28272.02, subdivision 10
         , must file a statement of exemption with the commissioner of revenue, 254.29on or before February 15 of each year for which the taxpayer claims an exemption.254.30(c) In case of sickness, absence or other disability or for good cause, the assessor
         or the 254.31commissioner may extend the time for filing the statement of exemption for a period
         not to 254.32exceed 60 days.255.1(d) The commissioner of revenue shall prescribe the form and contents content, format, 255.2and manner of the statement of exemption pursuant to section 270C.30, except that a "law 255.3administered by the commissioner" includes the property tax laws.255.4(e) If a statement is made by electronic means, the taxpayer's signature is defined
         pursuant 255.5to section 270C.304, except that a "law administered by the commissioner" includes
         the 255.6property tax laws.255.7EFFECTIVE DATE.This section is effective the day following final enactment.255.8    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:255.9    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under 255.10subdivision 3 shall file a report with the commissioner of revenue annually on or
         before 255.11February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced 255.12by the wind energy conversion system for the previous calendar year. The commissioner
         255.13shall prescribe the form content, format, and manner of the report pursuant to section 255.14270C.30, except that a "law administered by the commissioner" includes the property
         tax 255.15laws. The report must contain the information required by the commissioner to determine
         255.16the tax due to each county under this section for the current year. If an owner of
         a wind 255.17energy conversion system subject to taxation under this section fails to file the
         report by 255.18the due date, the commissioner of revenue shall determine the tax based upon the nameplate
         255.19capacity of the system multiplied by a capacity factor of 60 percent.255.20(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
         255.21to section 270C.304, except that a "law administered by the commissioner" includes
         the 255.22property tax laws.255.23(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 255.24of the wind energy conversion systems of the tax due to each county for the current
         year 255.25and shall certify to the county auditor of each county in which the systems are located
         the 255.26tax due from each owner for the current year.255.27EFFECTIVE DATE.This section is effective the day following final enactment, except 255.28that the amendment in paragraph (a) moving the date to file the report is effective
         for reports 255.29filed in 2018 and thereafter.255.30    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:255.31    Subd. 4. Reports. An owner of a solar energy generating system subject to tax under 255.32this section shall file a report with the commissioner of revenue annually on or before
         256.1January 15 detailing the amount of electricity in megawatt-hours that was produced
         by the 256.2system in the previous calendar year. The commissioner shall prescribe the form content, 256.3format, and manner of the report pursuant to section 270C.30. The report must contain the 256.4information required by the commissioner to determine the tax due to each county under
         256.5this section for the current year. If an owner of a solar energy generating system
         subject to 256.6taxation under this section fails to file the report by the due date, the commissioner
         of 256.7revenue shall determine the tax based upon the nameplate capacity of the system multiplied
         256.8by a capacity factor of 30 percent.256.9EFFECTIVE DATE.This section is effective the day following final enactment.256.10    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:256.11    Subd. 2. Form; information required. The certificate of value shall require such facts 256.12and information as may be determined by the commissioner to be reasonably necessary
         in 256.13the administration of the state education aid formulas. The formcommissioner shall prescribe 256.14the content, format, and manner of the certificate of value shall be prescribed by the 256.15Department of Revenue which shall provide an adequate supply of forms to each county
         256.16auditor pursuant to section 270C.30, except that a "law administered by the commissioner"
         256.17includes the property tax laws.256.18EFFECTIVE DATE.This section is effective the day following final enactment.256.19    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:256.20    Subd. 13. Homestead application. (a) A person who meets the homestead requirements 256.21under subdivision 1 must file a homestead application with the county assessor to
         initially 256.22obtain homestead classification.256.23    (b) The format and contents of a uniform homestead application shall be prescribed by
         256.24the commissioner of revenue. The commissioner shall prescribe the content, format, and 256.25manner of the homestead application required to be filed under this chapter pursuant
         to 256.26section 270C.30. The application must clearly inform the taxpayer that this application must 256.27be signed by all owners who occupy the property or by the qualifying relative and
         returned 256.28to the county assessor in order for the property to receive homestead treatment.256.29    (c) Every property owner applying for homestead classification must furnish to the
         256.30county assessor the Social Security number of each occupant who is listed as an owner
         of 256.31the property on the deed of record, the name and address of each owner who does not
         occupy 256.32the property, and the name and Social Security number of each owner's spouse who occupies
         257.1the property. The application must be signed by each owner who occupies the property
         and 257.2by each owner's spouse who occupies the property, or, in the case of property that
         qualifies 257.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative.257.4    If a property owner occupies a homestead, the property owner's spouse may not claim
         257.5another property as a homestead unless the property owner and the property owner's
         spouse 257.6file with the assessor an affidavit or other proof required by the assessor stating
         that the 257.7property qualifies as a homestead under subdivision 1, paragraph (e).257.8    Owners or spouses occupying residences owned by their spouses and previously occupied
         257.9with the other spouse, either of whom fail to include the other spouse's name and
         Social 257.10Security number on the homestead application or provide the affidavits or other proof
         257.11requested, will be deemed to have elected to receive only partial homestead treatment
         of 257.12their residence. The remainder of the residence will be classified as nonhomestead
         residential. 257.13When an owner or spouse's name and Social Security number appear on homestead 257.14applications for two separate residences and only one application is signed, the owner
         or 257.15spouse will be deemed to have elected to homestead the residence for which the application
         257.16was signed.257.17    (d) If residential real estate is occupied and used for purposes of a homestead by
         a relative 257.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
         order for 257.19the property to receive homestead status, a homestead application must be filed with
         the 257.20assessor. The Social Security number of each relative and spouse of a relative occupying
         257.21the property shall be required on the homestead application filed under this subdivision.
         If 257.22a different relative of the owner subsequently occupies the property, the owner of
         the property 257.23must notify the assessor within 30 days of the change in occupancy. The Social Security
         257.24number of a relative or relative's spouse occupying the property is private data on
         individuals 257.25as defined by section 
         13.02, subdivision 12, but may be disclosed to the commissioner of 257.26revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
         257.27personal property taxes owing, to the county treasurer.257.28    (e) The homestead application shall also notify the property owners that if the property
         257.29is granted homestead status for any assessment year, that same property shall remain
         257.30classified as homestead until the property is sold or transferred to another person,
         or the 257.31owners, the spouse of the owner, or the relatives no longer use the property as their
         257.32homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must 257.33be timely filed with the county auditor as provided under section 
         272.115. Failure to notify 257.34the assessor within 30 days that the property has been sold, transferred, or that
         the owner, 257.35the spouse of the owner, or the relative is no longer occupying the property as a
         homestead, 258.1shall result in the penalty provided under this subdivision and the property will
         lose its 258.2current homestead status.258.3    (f) If a homestead application has not been filed with the county by December 15,
         the 258.4assessor shall classify the property as nonhomestead for the current assessment year
         for 258.5taxes payable in the following year, provided that the owner may be entitled to receive
         the 258.6homestead classification by proper application under section 
         375.192.258.7EFFECTIVE DATE.This section is effective the day following final enactment.258.8    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:258.9273.371 REPORTS OF UTILITY COMPANIES.258.10    Subdivision 1. Report required. Every electric light, power, gas, water, express, stage, 258.11and transportation company, and pipeline company doing business in Minnesota shall 258.12annually file with the commissioner on or before March 31 a report under oath setting
         forth 258.13the information prescribed by the commissioner to enable the commissioner to make
         258.14valuations, recommended valuations, and equalization required under sections 
         273.33, 258.15273.35
         , 
         273.36, 
         273.37, and 
         273.3711. The commissioner shall prescribe the content, format, 258.16and manner of the report pursuant to section 270C.30, except that a "law administered
         by 258.17the commissioner" includes the property tax laws. If all the required information is not 258.18available on March 31, the company or pipeline shall file the information that is
         available 258.19on or before March 31, and the balance of the information as soon as it becomes available.258.20If a report is made by electronic means, the taxpayer's signature is defined pursuant
         to section 258.21270C.304, except that a "law administered by the commissioner" includes the property
         tax 258.22laws.258.23    Subd. 2. Extension. The commissioner for good cause may extend the time for filing 258.24the report required by subdivision 1. The extension may must not exceed 15 days.258.25    Subd. 3.Reports filed by the commissioner.If a company fails to file a report required 258.26by subdivision 1, the commissioner may, from information in the commissioner's possession
         258.27or obtainable by the commissioner, make and file a report for the company or make
         the 258.28valuations, recommended valuations, and equalizations required under sections 273.33,
         258.29273.35 to 273.37, and 273.3711.258.30EFFECTIVE DATE.This section is effective the day following final enactment.258.31    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:258.32287.2205 TAX-FORFEITED LAND.259.1    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
         by 259.2the purchaser of tax-forfeited land whether the purchase is the result of a public
         auction or 259.3private sale or a repurchase of tax-forfeited land. State agencies and local units
         of government 259.4that acquire tax-forfeited land by purchase or any other means are subject to this
         section. 259.5The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
         259.6for an authorized public use under section 
         282.01, subdivision 1a, for a school forest under 259.7section 282.01, subdivision 1a, or for redevelopment purposes under section 
         282.01, 259.8subdivision 1b
         .259.9EFFECTIVE DATE.This section is effective the day following final enactment.259.10    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 259.11to read:259.12    Subd. 17.Format.The commissioner shall prescribe the content, format, and manner 259.13of the returns and other documents pursuant to section 270C.30. This does not authorize
         259.14the commissioner to require individual income taxpayers to file individual income
         tax returns 259.15electronically.259.16EFFECTIVE DATE.This section is effective the day following final enactment.259.17    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:259.18    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax 259.19under section 
         290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 259.20under section 
         290.923, subdivision 2, must file a return with the commissioner for each 259.21quarterly period unless otherwise prescribed by the commissioner.259.22(b) A person or corporation required to make deposits under section 
         290.9201, subdivision 259.238
         , must file an entertainer withholding tax return with the commissioner.259.24(c) A person required to withhold an amount under section 
         290.9705, subdivision 1, 259.25must file a return.259.26(d) A partnership required to deduct and withhold tax under section 
         290.92, subdivision 259.274b
         , must file a return.259.28(e) An S corporation required to deduct and withhold tax under section 
         290.92, 259.29subdivision 4c
         , must also file a return.259.30(f) Returns must be filed in the form and manner, and contain the information prescribed
         259.31by the commissioner. The commissioner shall prescribe the content, format, and manner 260.1of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed 260.2by the employer, entertainment entity, contract payor, partnership, or S corporation,
         or a 260.3designee.260.4EFFECTIVE DATE.This section is effective the day following final enactment.260.5    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:260.6    Subdivision 1. Return required. (a) Except as provided in section 
         289A.18, subdivision 260.74
         , for the month in which taxes imposed by chapter 297A are payable, or for which a
         return 260.8is due, a return for the preceding reporting period must be filed with the commissioner
         in 260.9the form and manner the commissioner prescribes. The commissioner shall prescribe the 260.10content, format, and manner of the returns pursuant to section 270C.30. A person making 260.11sales at retail at two or more places of business may file a consolidated return subject
         to 260.12rules prescribed by the commissioner. In computing the dollar amount of items on the
         return, 260.13the amounts are rounded off to the nearest whole dollar, disregarding amounts less
         than 50 260.14cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.260.15(b) Notwithstanding this subdivision, a person who is not required to hold a sales
         tax 260.16permit under chapter 297A and who makes annual purchases, for use in a trade or business,
         260.17of less than $18,500, or a person who is not required to hold a sales tax permit and
         who 260.18makes purchases for personal use, that are subject to the use tax imposed by section
         
         297A.63, 260.19may file an annual use tax return on a form prescribed by the commissioner. The 260.20commissioner shall prescribe the content, format, and manner of the return pursuant
         to 260.21section 270C.30. If a person who qualifies for an annual use tax reporting period is required 260.22to obtain a sales tax permit or makes use tax purchases, for use in a trade or business,
         in 260.23excess of $18,500 during the calendar year, the reporting period must be considered
         ended 260.24at the end of the month in which the permit is applied for or the purchase in excess
         of 260.25$18,500 is made and a return must be filed for the preceding reporting period.260.26(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's 260.27religious beliefs from using electronics shall be allowed to file by mail, without
         any additional 260.28fees. The filer must notify the commissioner of revenue of the intent to file by mail
         on a 260.29form prescribed by the commissioner. A return filed under this paragraph must be postmarked
         260.30no later than the day the return is due in order to be considered filed on a timely
         basis.260.31EFFECTIVE DATE.This section is effective the day following final enactment.261.1    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:261.2    Subdivision 1. Individual income, fiduciary income, corporate franchise, and 261.3entertainment taxes; partnership and S corporation returns; information returns; 261.4mining company returns. The returns required to be made under sections 
         289A.08 and 261.5289A.12
          must be filed at the following times:261.6    (1) returns made on the basis of the calendar year must be filed on April 15 following
         261.7the close of the calendar year, except that returns of corporations and partnerships must be 261.8filed on the due date for filing the federal income tax return;261.9    (2) returns made on the basis of the fiscal year must be filed on the 15th day of
         the fourth 261.10month following the close of the fiscal year, except that returns of corporations and 261.11partnerships must be filed on the due date for filing the federal income tax return;261.12    (3) returns for a fractional part of a year must be filed on the due date for filing
         the 261.13federal income tax return;261.14    (4) in the case of a final return of a decedent for a fractional part of a year, the
         return 261.15must be filed on the 15th day of the fourth month following the close of the 12-month
         period 261.16that began with the first day of that fractional part of a year;261.17    (5) in the case of the return of a cooperative association, returns must be filed
         on or 261.18before the 15th day of the ninth month following the close of the taxable year;261.19    (6) if a corporation has been divested from a unitary group and files a return for
         a 261.20fractional part of a year in which it was a member of a unitary business that files
         a combined 261.21report under section 
         290.17, subdivision 4, the divested corporation's return must be filed 261.22on the 15th day of the third month following the close of the common accounting period
         261.23that includes the fractional year;261.24    (7) returns of entertainment entities must be filed on April 15 following the close
         of the 261.25calendar year;261.26    (8) returns required to be filed under section 
         289A.08, subdivision 4, must be filed on 261.27the 15th day of the fifth month following the close of the taxable year;261.28    (9) returns of mining companies must be filed on May 1 following the close of the
         261.29calendar year; and261.30    (10) returns required to be filed with the commissioner under section 
         289A.12, 261.31subdivision 2
         , 4 to 10, or 16 must be filed within 30 days after being demanded by the 261.32commissioner.262.1EFFECTIVE DATE.This section is effective the day following final enactment.262.2    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:262.3    Subd. 2. Erroneous refunds.An erroneous refund is considered an underpayment of 262.4tax on the date made. An assessment of a deficiency arising out of an erroneous refund
         may 262.5be made at any time within two years from the making of the refund. If part of the
         refund 262.6was induced by fraud or misrepresentation of a material fact, the assessment may be
         made 262.7at any time (a) Except as provided in paragraph (b), an erroneous refund occurs when the 262.8commissioner issues a payment to a person that exceeds the amount the person is entitled
         262.9to receive under law. An erroneous refund is considered an underpayment of tax on
         the date 262.10issued.262.11(b) To the extent that the amount paid does not exceed the amount claimed by the 262.12taxpayer, an erroneous refund does not include the following:262.13(1) any amount of a refund or credit paid pursuant to a claim for refund filed by
         a 262.14taxpayer, including but not limited to refunds of claims made under section 290.06,
         262.15subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
         262.16290.0681; or 290.0692; or chapter 290A; or262.17(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed
         by a 262.18taxpayer.262.19(c) The commissioner may make an assessment to recover an erroneous refund at any
         262.20time within two years from the issuance of the erroneous refund. If all or part of
         the erroneous 262.21refund was induced by fraud or misrepresentation of a material fact, the assessment
         may 262.22be made at any time.262.23(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must
         be 262.24conducted under section 289A.38.262.25EFFECTIVE DATE.This section is effective July 1, 2017.262.26    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:262.27    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund 262.28claim is denied in whole or in part, the taxpayer may:262.29(1) file an administrative appeal as provided in section 
         270C.35, or an appeal with the 262.30Tax Court, within 60 days after issuance the notice date of the commissioner's notice of 262.31denial; or263.1(2) file an action in the district court to recover the refund.263.2(b) An action in the district court on a denied claim for refund must be brought within
         263.318 months of the notice date of the denial of the claim by the commissioner. For the purposes 263.4of this section, "notice date" has the meaning given in section 270C.35, subdivision
         3.263.5(c) No action in the district court or the Tax Court shall be brought within six months
         263.6of the filing of the refund claim unless the commissioner denies the claim within
         that period.263.7(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
         263.8of the claim, the taxpayer may bring an action in the district court or the Tax Court
         at any 263.9time after the expiration of six months from the time the claim was filed.263.10(e) The commissioner and the taxpayer may agree to extend the period for bringing
         an 263.11action in the district court.263.12(f) An action for refund of tax by the taxpayer must be brought in the district court
         of 263.13the district in which lies the county of the taxpayer's residence or principal place
         of business. 263.14In the case of an estate or trust, the action must be brought at the principal place
         of its 263.15administration. Any action may be brought in the district court for Ramsey County.263.16EFFECTIVE DATE.This section is effective for claims for refund denied after 263.17December 31, 2017.263.18    Sec. 31. [290B.11] FORMS.263.19The commissioner shall prescribe the content, format, and manner of all forms and
         other 263.20documents required to be filed under this chapter pursuant to section 270C.30.263.21EFFECTIVE DATE.This section is effective the day following final enactment.263.22    Sec. 32. [293.15] FORMS.263.23The commissioner shall prescribe the content, format, and manner of all forms and
         other 263.24documents required to be filed under this chapter pursuant to section 270C.30.263.25EFFECTIVE DATE.This section is effective the day following final enactment.263.26    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:263.27    Subd. 6. Form of returns.The estimated payments and annual return must contain the 263.28information and be in the form prescribed by the commissioner The commissioner shall 263.29prescribe the content, format, and manner of the estimated payment forms and annual
         return 263.30pursuant to section 270C.30.264.1EFFECTIVE DATE.This section is effective the day following final enactment.264.2    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 264.3to read:264.4    Subd. 5.Forms. The commissioner shall prescribe the content, format, and manner of 264.5all forms and other documents required to be filed under this chapter pursuant to
         section 264.6270C.30.264.7EFFECTIVE DATE.This section is effective the day following final enactment.264.8    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:264.9    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any 264.10penalty imposed under this section, if in the commissioner's opinion there is reasonable
         264.11cause to do so.264.12(b) A request for abatement of penalty must be filed with the commissioner within
         60 264.13days of the notice date of the notice stating that a penalty has been imposed was mailed to 264.14the taxpayer's last known address. For purposes of this section, "notice date" means the 264.15notice date designated by the commissioner on the order or other notice that a penalty
         has 264.16been imposed.264.17(c) If the commissioner issues an order denying a request for abatement of penalty,
         the 264.18taxpayer may file an administrative appeal as provided in section 270C.35 or appeal
         to Tax 264.19Court as provided in section 
         271.06. If the commissioner does not issue an order on the 264.20abatement request within 60 days from the date the request is received, the taxpayer
         may 264.21appeal to Tax Court as provided in section 
         271.06.264.22EFFECTIVE DATE.This section is effective for orders and notices dated after 264.23December 31, 2017.264.24    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:264.25296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.264.26In lieu of an administrative appeal under section 
         270C.35, any person aggrieved by an 264.27order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within 264.2860 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 264.29provided under section 
         271.06. For purposes of this section, "notice date" means the notice 264.30date designated by the commissioner on the order fixing a tax, penalty, or interest.265.1EFFECTIVE DATE.This section is effective for orders dated after December 31, 265.22017.265.3    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:265.4297D.02 ADMINISTRATION.265.5The commissioner of revenue shall administer this chapter. The commissioner shall 265.6prescribe the content, format, and manner of all forms and other documents required
         to be 265.7filed under this chapter pursuant to section 270C.30. Payments required by this chapter 265.8must be made to the commissioner on the form provided by the commissioner. Tax obligors
         265.9are not required to give their name, address, Social Security number, or other identifying
         265.10information on the form. The commissioner shall collect all taxes under this chapter.265.11EFFECTIVE DATE.This section is effective the day following final enactment.265.12    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:265.13    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable 265.14to the commissioner when the gambling tax return is required to be filed. Distributors
         must 265.15file their monthly sales figures with the commissioner on a form prescribed by the
         265.16commissioner. Returns covering the taxes imposed under this section must be filed
         with 265.17the commissioner on or before the 20th day of the month following the close of the
         previous 265.18calendar month. The commissioner may require that the returns be filed via magnetic media 265.19or electronic data transfer. The commissioner shall prescribe the content, format, and manner 265.20of returns or other documents pursuant to section 270C.30. The proceeds, along with the 265.21revenue received from all license fees and other fees under sections 
         349.11 to 
         349.191, 265.22349.211
         , and 
         349.213, must be paid to the commissioner of management and budget for 265.23deposit in the general fund.265.24(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
         the 265.25distributor is imposed on the retail sales price. The retail sale of pull-tabs or
         tipboards by 265.26the organization is exempt from taxes imposed by chapter 297A and is exempt from all
         265.27local taxes and license fees except a fee authorized under section 
         349.16, subdivision 8.265.28(c) One-half of one percent of the revenue deposited in the general fund under paragraph
         265.29(a), is appropriated to the commissioner of human services for the compulsive gambling
         265.30treatment program established under section 
         245.98. One-half of one percent of the revenue 265.31deposited in the general fund under paragraph (a), is appropriated to the commissioner
         of 265.32human services for a grant to the state affiliate recognized by the National Council
         on 266.1Problem Gambling to increase public awareness of problem gambling, education and training
         266.2for individuals and organizations providing effective treatment services to problem
         gamblers 266.3and their families, and research relating to problem gambling. Money appropriated
         by this 266.4paragraph must supplement and must not replace existing state funding for these programs.266.5EFFECTIVE DATE.This section is effective the day following final enactment.266.6    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:266.7    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or 266.8resale in this state, or for receipt by a person or entity in this state, shall file
         with the 266.9commissioner, on a form prescribed by the commissioner, a report of gambling product
         266.10sold to any person in the state, including the established governing body of an Indian
         tribe 266.11recognized by the United States Department of the Interior. The report must be filed
         monthly 266.12on or before the 20th day of the month succeeding the month in which the sale was
         made. 266.13The commissioner may require that the report be submitted via magnetic media or electronic
         266.14data transfer. The commissioner shall prescribe the content, format, and manner of returns 266.15or other documents pursuant to section 270C.30. The commissioner may inspect the premises, 266.16books, records, and inventory of a manufacturer without notice during the normal business
         266.17hours of the manufacturer. A person violating this section is guilty of a misdemeanor.266.18EFFECTIVE DATE.This section is effective the day following final enactment.266.19    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:266.20    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the 266.21commissioner prescribes, its sales of each type of gambling product. This report must
         be 266.22filed monthly on or before the 20th day of the month succeeding the month in which
         the 266.23sale was made. The commissioner may require that a distributor submit the monthly report 266.24and invoices required in this subdivision via magnetic media or electronic data transfer.266.25The commissioner shall prescribe the content, format, and manner of returns or other
         266.26documents pursuant to section 270C.30.266.27EFFECTIVE DATE.This section is effective the day following final enactment.266.28    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:266.29    Subdivision 1. Reports. An organization must file with the commissioner, on a form 266.30prescribed by the commissioner, a report showing all gambling activity conducted by
         that 266.31organization for each month. Gambling activity includes all gross receipts, prizes,
         all 266.32gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
         267.1purpose and board-approved expenditures. The report must be filed with the commissioner
         267.2on or before the 20th day of the month following the month in which the gambling activity
         267.3takes place. The commissioner may require that the reports be filed via magnetic media or 267.4electronic data transfer. The commissioner shall prescribe the content, format, and manner 267.5of returns or other documents pursuant to section 270C.30.267.6EFFECTIVE DATE.This section is effective the day following final enactment.267.7    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:267.8    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of 267.9each calendar month, a distributor with a place of business in this state shall file
         a return 267.10with the commissioner showing the quantity of cigarettes manufactured or brought in
         from 267.11outside the state or purchased during the preceding calendar month and the quantity
         of 267.12cigarettes sold or otherwise disposed of in this state and outside this state during
         that month. 267.13A licensed distributor outside this state shall in like manner file a return showing
         the quantity 267.14of cigarettes shipped or transported into this state during the preceding calendar
         month. 267.15Returns must be made in the form and manner prescribed by The commissioner shall 267.16prescribe the content, format, and manner of returns pursuant to section 270C.30,
         and the 267.17returns must contain any other information required by the commissioner. The return must 267.18be accompanied by a remittance for the full unpaid tax liability shown by it. For
         distributors 267.19subject to the accelerated tax payment requirements in subdivision 10, the return
         for the 267.20May liability is due two business days before June 30th of the year and the return
         for the 267.21June liability is due on or before August 18th of the year.267.22EFFECTIVE DATE.This section is effective the day following final enactment.267.23    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:267.24297F.23 JUDICIAL REVIEW.267.25In lieu of an administrative appeal under section 
         270C.35, a person aggrieved by an 267.26order of the commissioner fixing a tax, penalty, or interest under this chapter may,
         within 267.2760 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 267.28provided under section 
         271.06. For purposes of this section, "notice date" means the notice 267.29date designated by the commissioner on the order fixing a tax, penalty, or interest.267.30EFFECTIVE DATE.This section is effective for orders dated after December 31, 267.312017.268.1    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:268.2    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers.268.3On or before the 18th day of each calendar month following the month in which a licensed
         268.4manufacturer or wholesaler first sells wine and distilled spirits within the state,
         or a brewer 268.5or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
         268.6acquires title to or possession of untaxed fermented malt beverages, the licensed
         268.7manufacturer, wholesaler, brewer, or importer liable for the excise tax must file
         a return 268.8with the commissioner, and in addition must keep records and render reports as required
         268.9by the commissioner. Returns must be made in a form and manner prescribed by the 268.10commissioner, and  The commissioner shall prescribe the content, format, and manner of 268.11returns pursuant to section 270C.30. The returns must contain any other information required 268.12by the commissioner. Returns must be accompanied by a remittance for the full unpaid
         tax 268.13liability. Returns must be filed regardless of whether a tax is due.268.14EFFECTIVE DATE.This section is effective the day following final enactment.268.15    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:268.16297G.22 JUDICIAL REVIEW.268.17In lieu of an administrative appeal under this chapter, a person aggrieved by an order
         of 268.18the commissioner fixing a tax, penalty, or interest under this chapter may, within
         60 days 268.19from the date of the notice date of the order, appeal to the Tax Court in the manner provided 268.20under section 
         271.06. For purposes of this section, "notice date" means the notice date 268.21designated by the commissioner on the order fixing a tax, penalty, or interest.268.22EFFECTIVE DATE.This section is effective for orders dated after December 31, 268.232017.268.24    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 268.25to read:268.26    Subd. 11.Format. The commissioner shall prescribe the content, format, and manner 268.27of returns or other documents pursuant to section 270C.30.268.28EFFECTIVE DATE.This section is effective the day following final enactment.268.29    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:268.30    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 268.31or in part, the taxpayer may contest the denial by:269.1(1) filing an administrative appeal with the commissioner under section 
         270C.35;269.2(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; 269.3or269.4(3) filing an action in the district court to recover the refund.269.5(b) An action in the district court must be brought within 18 months following of the 269.6notice date of the notice of denial. For purposes of this section, "notice date" has the meaning 269.7given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be 269.8brought in the district court of the district in which lies the taxpayer's principal
         place of 269.9business or in the District Court for Ramsey County. If a taxpayer files a claim for
         refund 269.10and the commissioner has not issued a denial of the claim, the taxpayer may bring
         an action 269.11in the district court or the Tax Court at any time after the expiration of six months
         from the 269.12time the claim was filed.269.13EFFECTIVE DATE.This section is effective for claims for refund denied after 269.14December 31, 2017.269.15    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:269.16    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment 269.17required under subdivision 1, if the commissioner, in consultation with the commissioner
         269.18of employment and economic development and appropriate officials from the local 269.19government units in which the qualified business is located, determines that requiring
         269.20repayment of the tax is not in the best interest of the state or the local government
         units and 269.21the business ceased operating as a result of circumstances beyond its control including,
         but 269.22not limited to:269.23    (1) a natural disaster;269.24    (2) unforeseen industry trends; or269.25    (3) loss of a major supplier or customer.269.26    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the
         269.27commissioner has waived repayment by the operating business under subdivision 1, unless
         269.28the person that received benefits without having to operate a business in the zone
         was a 269.29contributing factor in the qualified business becoming subject to repayment under
         subdivision 269.301;269.31    (2) the commissioner shall waive the repayment required under subdivision 1a, even
         if 269.32the repayment has not been waived for the operating business if:270.1    (i) the person that received benefits without having to operate a business in the
         zone and 270.2the business that operated in the zone are not related parties as defined in section
         267(b) of 270.3the Internal Revenue Code of 1986, as amended through December 31, 2007; and270.4    (ii) actions of the person were not a contributing factor in the qualified business
         becoming 270.5subject to repayment under subdivision 1.270.6(c) Requests for waiver must be made no later than 60 days after the earlier of the
         notice 270.7date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
         270.8issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means 270.9the notice date designated by the commissioner on the order.270.10EFFECTIVE DATE.This section is effective for orders of the commissioner of revenue 270.11dated after December 31, 2017.270.12    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:270.13EFFECTIVE DATE.This section is effective for orders and notices dated after 270.14September 30, 2015 December 31, 2017.270.15EFFECTIVE DATE.This section is effective retroactively from September 30, 2015.270.16ARTICLE 14270.17DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE 270.18ACT PROVISIONS270.19    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:270.20290C.03 ELIGIBILITY REQUIREMENTS.270.21(a) Land may be enrolled in the sustainable forest incentive program under this chapter
         270.22if all of the following conditions are met:270.23(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
         land 270.24must meet the definition of forest land in section 
         88.01, subdivision 7, during the enrollment;270.25(2) a forest management plan for the land must be (i) prepared by an approved plan 270.26writer and implemented during the period in which the land is enrolled, and (ii) registered 270.27with the Department of Natural Resources;270.28(3) timber harvesting and forest management guidelines must be used in conjunction
         270.29with any timber harvesting or forest management activities conducted on the land during
         270.30the period in which the land is enrolled;270.31(4) the land must be enrolled for a minimum of eight years;271.1(5) there are no delinquent property taxes on the land; and271.2(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
         program 271.3must allow year-round, nonmotorized access to fish and wildlife resources and motorized
         271.4access on established and maintained roads and trails, unless the road or trail is
         temporarily 271.5closed for safety, natural resource, or road damage reasons on enrolled land except
         within 271.6one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
         271.7by the commissioner of natural resources; and271.8(7) the land is not classified as 2c managed forest land.271.9(b) Claimants required to allow access under paragraph (a), clause (6), do not by
         that 271.10action:271.11(1) extend any assurance that the land is safe for any purpose;271.12(2) confer upon the person the legal status of an invitee or licensee to whom a duty
         of 271.13care is owed; or271.14(3) assume responsibility for or incur liability for any injury to the person or property
         271.15caused by an act or omission of the person.271.16(c) A minimum of three acres must be excluded from enrolled land when the land is
         271.17improved with a structure that is not a minor, ancillary, or nonresidential structure.
         If land 271.18does not meet the definition of forest land in section 290C.02, subdivision 6, because
         the 271.19land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state
         or federal 271.20conservation reserve or easement program under sections 103F.501 to 103F.531, (3)
         subject 271.21to the Minnesota agricultural property tax under section 273.111, or (4) subject to
         agricultural 271.22land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
         271.23Agricultural Preserves Act under chapter 473H, the entire parcel that contains the
         land is 271.24not eligible to be enrolled in the program.271.25EFFECTIVE DATE.The amendment to paragraph (a), clause (2), is effective for 271.26certifications filed after July 1, 2018. The amendment adding paragraph (a), clause
         (7), is 271.27effective for certifications and applications due in 2017 and thereafter. The amendment
         271.28adding paragraph (c) is effective the day following final enactment.271.29    Sec. 2. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.271.30On request of the commissioner, the commissioner of natural resources must annually
         271.31provide verification that the claimant has a current forest management plan on file
         with the 271.32Department of Natural Resources.272.1EFFECTIVE DATE.This section is effective for certifications filed after July 1, 2018.272.2    Sec. 3.  REPEALER.272.3Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are 272.4repealed.272.5EFFECTIVE DATE.This section is effective the day following final enactment.272.6ARTICLE 15272.7DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 272.8PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES272.9    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:272.10    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for 272.11apportionment, before the addition of the minimum fire state aid allocation amount
         under 272.12subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the
         state upon 272.13the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
         the 272.14commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
         272.15be reduced by the amount required to pay the state auditor's costs and expenses of
         the audits 272.16or exams of the firefighters relief associations.272.17The total amount for apportionment in respect to fire state aid must not be less than
         two 272.18percent of the premiums reported to the commissioner by insurers on the Minnesota
         Firetown 272.19Premium Report after subtracting the following amounts:272.20(1) the amount required to pay the state auditor's costs and expenses of the audits
         or 272.21exams of the firefighters relief associations; and272.22(2) one percent of the premiums reported by town and farmers' township mutual insurance 272.23companies and mutual property and casualty companies with total assets of $5,000,000
         or 272.24less.272.25(b) The total amount for apportionment as police state aid is equal to 104 percent
         of the 272.26amount of premium taxes paid to the state on the premiums reported to the commissioner
         272.27by insurers on the Minnesota Aid to Police Premium Report. The total amount for 272.28apportionment in respect to the police state aid program must not be less than two
         percent 272.29of the amount of premiums reported to the commissioner by insurers on the Minnesota
         Aid 272.30to Police Premium Report.273.1(c) The commissioner shall calculate the percentage of increase or decrease reflected
         in 273.2the apportionment over or under the previous year's available state aid using the
         same 273.3premiums as a basis for comparison.273.4(d) In addition to the amount for apportionment of police state aid under paragraph
         (b), 273.5each year $100,000 must be apportioned for police state aid. An amount sufficient
         to pay 273.6this increase is annually appropriated from the general fund.273.7EFFECTIVE DATE.This section is effective the day following final enactment.273.8    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:273.9    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 273.106-1/2 years after the due date of the return or the date the return was filed, whichever
         is 273.11later, if:273.12(1) the taxpayer omits from gross income an amount properly includable in it that
         is in 273.13excess of 25 percent of the amount of gross income stated in the return;273.14(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax 273.15imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes 273.16reported in the return; or273.17(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
         gross 273.18estate reported in the return.273.19EFFECTIVE DATE.This section is effective the day following final enactment.273.20    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:273.21    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this 273.22section:273.23(1) corporations exempt from tax under section 
         290.05;273.24(2) real estate investment trusts;273.25(3) regulated investment companies or a fund thereof; and273.26(4) entities having a valid election in effect under section 860D(b) of the Internal
         Revenue 273.27Code;273.28(5) town and farmers' township mutual insurance companies;274.1(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
         274.2to persons age 55 and over and are classified as homesteads under section 
         273.124, 274.3subdivision 3
         ; and274.4(7) a qualified business as defined under section 
         469.310, subdivision 11, if for the 274.5taxable year all of its property is located in a job opportunity building zone designated
         under 274.6section 
         469.314 and all of its payroll is a job opportunity building zone payroll under section 274.7469.310
         .274.8Entities not specifically exempted by this subdivision are subject to tax under this
         section, 274.9notwithstanding section 
         290.05.274.10EFFECTIVE DATE.This section is effective the day following final enactment.274.11    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:274.12    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total 274.13amount of tax, if any, the pharmacy owes during that calendar year under section 
         295.52, 274.14subdivision
          4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 274.15distributor subject to tax under section 
         295.52, subdivision 3, for legend drugs delivered by 274.16the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
         274.17295.52
         , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
         274.18under section 
         295.52, subdivision 4, the commissioner shall provide the pharmacy with a 274.19refund equal to the excess amount. Each qualifying pharmacy must apply for the refund
         on 274.20the annual return as provided under section 295.55, subdivision 5 prescribed by the 274.21commissioner, on or before March 15 of the year following the calendar year the legend
         274.22drugs were delivered outside Minnesota. The refund must be claimed within 18 months 274.23from the date the drugs were delivered outside of Minnesota shall not be allowed if the 274.24initial claim for refund is filed more than one year after the original due date of
         the return. 274.25Interest on refunds paid under this subdivision will begin to accrue 60 days after
         the date a 274.26claim for refund is filed. For purposes of this subdivision, the date a claim is filed
         is the due 274.27date of the return if a return is due or the date of the actual claim for refund,
         whichever is 274.28later.274.29EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered 274.30outside Minnesota after December 31, 2017.275.1    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 275.2read:275.3    Subd. 9a.Bulk storage or bulk storage facility."Bulk storage" or "bulk storage facility" 275.4means a single property, or contiguous or adjacent properties used for a common purpose
         275.5and owned or operated by the same person, on or in which are located one or more stationary
         275.6tanks that are used singularly or in combination for the storage or containment of
         more than 275.71,100 gallons of petroleum.275.8EFFECTIVE DATE.This section is effective the day following final enactment.275.9    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:275.10    Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless 275.11of its composition or properties, used to propel a motor vehicle.275.12EFFECTIVE DATE.This section is effective the day following final enactment.275.13    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:275.14    Subd. 42. Petroleum products. "Petroleum products" means all of the products defined 275.15in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.275.16EFFECTIVE DATE.This section is effective the day following final enactment.275.17    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:275.18    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline 275.19blended with ethanol, and agricultural alcohol gasoline used in producing and generating
         275.20power for propelling motor vehicles used on the public highways of this state. The
         tax is 275.21imposed on the first licensed distributor who received the product in Minnesota. For
         purposes 275.22of this section, gasoline is defined in section 
         296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 275.2325, 32, and 34
         . The tax is payable at the time and in the form and manner prescribed by the 275.24commissioner. The tax is payable at the rates specified in subdivision 3, subject
         to the 275.25exceptions and reductions specified in section 
         296A.17.275.26EFFECTIVE DATE.This section is effective the day following final enactment.275.27    Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:275.28    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed 275.29in this chapter to the extent provided.276.1(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
         276.2or partnership is exempt if the transfer constitutes a transfer within the meaning
         of section 276.3351 or 721 of the Internal Revenue Code.276.4(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
         of 276.5an aircraft for which a commercial use permit has been issued pursuant to section
         
         360.654276.6is exempt, if the aircraft is resold while the permit is in effect.276.7(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by
         airline 276.8companies, as defined in section 
         270.071, subdivision 4, is exempt. For purposes of this 276.9subdivision, "air flight equipment" includes airplanes and parts necessary for the
         repair and 276.10maintenance of such air flight equipment, and flight simulators, but does not include
         airplanes276.11aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on 276.12intermittent or irregularly timed flights.276.13(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
         in 276.14section 
         360.511 and approved by the Federal Aviation Administration, and which the seller 276.15delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped
         or 276.16transported outside Minnesota by the purchaser are exempt, but only if the purchaser
         is not 276.17a resident of Minnesota and provided that the aircraft is not thereafter returned
         to a point 276.18within Minnesota, except in the course of interstate commerce or isolated and occasional
         276.19use, and will be registered in another state or country upon its removal from Minnesota.
         276.20This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
         276.21and uses the aircraft in the state exclusively for training purposes for a period
         not to exceed 276.22ten days prior to removing the aircraft from this state.276.23(f) The sale or purchase of the following items that relate to aircraft operated under
         276.24Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
         276.25equipment and parts necessary for repair and maintenance of aircraft; and equipment
         and 276.26parts to upgrade and improve aircraft.276.27EFFECTIVE DATE.This section is effective for sales and purchases made after 276.28December 31, 2017.276.29    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:276.30    Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and penalties,276.31collected from the sale or purchase of an aircraft taxable under this chapter must
         be deposited 276.32in the state airports fund established in section 
         360.017. For purposes of this subdivision, 276.33"revenue" does not include the revenue, including interest and penalties, generated
            by the 277.1sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
            277.2provided under article XI, section 15, of the Minnesota Constitution.277.3EFFECTIVE DATE.This section is effective the day following final enactment.277.4    Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:277.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions 277.6imposed by this chapter, a person, organization, or business entity possessing or
         selling a 277.7pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed
         by 277.8this chapter has not been paid is liable for a tax of six percent of the ideal gross
         of each 277.9pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial
         deal must 277.10be assessed as if it were a full deal.277.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1)277.12not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
         raffles, 277.13or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 277.14609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six 277.15percent of the gross receipts from that activity.277.16(c) The tax must may be assessed by the commissioner. An assessment must be considered 277.17a jeopardy assessment or jeopardy collection as provided in section 
         270C.36. The 277.18commissioner shall assess the tax based on personal knowledge or information available
         to 277.19the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last
         known 277.20address, or serve in person, a written notice of the amount of tax, demand its immediate
         277.21payment, and, if payment is not immediately made, collect the tax by any method described
         277.22in chapter 270C, except that the commissioner need not await the expiration of the
         times 277.23specified in chapter 270C. The tax assessed by the commissioner is presumed to be
         valid 277.24and correctly determined and assessed. The burden is upon the taxpayer to show its
         277.25incorrectness or invalidity. The tax imposed under this subdivision does not apply
         to gambling 277.26that is exempt from taxation under subdivision 2.277.27(d) A person, organization, or business entity conducting gambling activity under
         this 277.28subdivision must file monthly tax returns with the commissioner, in the form required
         by 277.29the commissioner. The returns must be filed on or before the 20th day of the month
         following 277.30the month in which the gambling activity occurred. The tax imposed by this section
         is due 277.31and payable at the time when the returns are required to be filed.277.32(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
         277.33employee may reveal facts contained in a tax return filed with the commissioner of
         revenue 278.1as required by this subdivision, nor can any information contained in the report or
         return 278.2be used against the tax obligor in any criminal proceeding, unless independently obtained,
         278.3except in connection with a proceeding involving taxes due under this section, or
         as provided 278.4in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
         278.5commissioner from publishing statistics that do not disclose the identity of tax obligors
         or 278.6the contents of particular returns or reports. Any person violating this paragraph
         is guilty 278.7of a gross misdemeanor.278.8EFFECTIVE DATE.This section is effective for games played or purchased after June 278.930, 2017.278.10    Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:278.11    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal 278.12solid waste or upon the volume of nonmixed municipal solid waste for waste management
         278.13services to manage the following materials:278.14(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
         278.15of Minnesota;278.16(2) recyclable materials that are separated for recycling by the generator, collected
         278.17separately from other waste, and recycled, to the extent the price of the service
         for handling 278.18recyclable material is separately itemized on a bill to the generator;278.19(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
         278.20generator, collected separately from other waste, delivered to a waste facility for
         the purpose 278.21of recycling, and recycled;278.22(4) industrial waste, when it is transported to a facility owned and operated by the
         same 278.23person that generated it;278.24(5) mixed municipal solid waste from a recycling facility that separates or processes
         278.25recyclable materials and reduces the volume of the waste by at least 85 percent, provided
         278.26that the exempted waste is managed separately from other waste;278.27(6) recyclable materials that are separated from mixed municipal solid waste by the
         278.28generator, collected and delivered to a waste facility that recycles at least 85 percent
         of its 278.29waste, and are collected with mixed municipal solid waste that is segregated in leakproof
         278.30bags, provided that the mixed municipal solid waste does not exceed five percent of
         the 278.31total weight of the materials delivered to the facility and is ultimately delivered
         to a waste 278.32facility identified as a preferred waste management facility in county solid waste
         plans 278.33under section 
         115A.46;279.1(7) source-separated compostable waste materials, if the waste is materials are delivered 279.2to a facility exempted as described in this clause. To initially qualify for an exemption,
         a 279.3facility must apply for an exemption in its application for a new or amended solid
         waste 279.4permit to the Pollution Control Agency. The first time a facility applies to the agency
         it 279.5must certify in its application that it will comply with the criteria in items (i)
         to (v) and the 279.6commissioner of the agency shall so certify to the commissioner of revenue who must
         grant 279.7the exemption. The facility must annually apply to the agency for certification to
         renew its 279.8exemption for the following year. The application must be filed according to the procedures
         279.9of, and contain the information required by, the agency. The commissioner of revenue
         shall 279.10grant the exemption if the commissioner of the Pollution Control Agency finds and
         certifies 279.11to the commissioner of revenue that based on an evaluation of the composition of incoming
         279.12waste and residuals and the quality and use of the product:279.13(i) generators separate materials at the source;279.14(ii) the separation is performed in a manner appropriate to the technology specific
         to the 279.15facility that:279.16(A) maximizes the quality of the product;279.17(B) minimizes the toxicity and quantity of residuals rejects; and279.18(C) provides an opportunity for significant improvement in the environmental efficiency
         279.19of the operation;279.20(iii) the operator of the facility educates generators, in coordination with each
         county 279.21using the facility, about separating the waste to maximize the quality of the waste
         stream 279.22for technology specific to the facility;279.23(iv) process residuals rejects do not exceed 15 percent of the weight of the total material 279.24delivered to the facility; and279.25(v) the final product is accepted for use;279.26(8) waste and waste by-products for which the tax has been paid; and279.27(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
         279.28Control Agency.279.29EFFECTIVE DATE.This section is effective the day following final enactment.280.1    Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:280.2    Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on town 280.3and farmers' township mutual insurance companies. The rate of tax is equal to one percent 280.4of gross premiums less return premiums on all direct business received by the insurer
         or 280.5agents of the insurer in Minnesota, in cash or otherwise, during the year.280.6EFFECTIVE DATE.This section is effective the day following final enactment.280.7    Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:280.8    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a 280.9surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage
         gross 280.10premiums, less return premiums, on all direct business received by any licensed foreign
         or 280.11domestic fire insurance company on property in a city of the first class, or by its
         agents for 280.12it, in cash or otherwise.280.13(b) By July 31 and December 31 of each year, the commissioner of management and 280.14budget shall pay to each city of the first class a warrant for an amount equal to the total
         280.15amount of the surcharge on the premiums collected within that city since the previous
         280.16payment.280.17(c) The treasurer of the city shall place the money received under this subdivision
         in a 280.18special account or fund to defray all or a portion of the employer contribution requirement
         280.19of public employees police and fire plan coverage for city firefighters.280.20EFFECTIVE DATE.This section is effective the day following final enactment.280.21    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:280.22    Subd. 3. Appropriation. The amount necessary to make the payments required under 280.23this section is appropriated to the commissioner of management and budget from the general 280.24fund.280.25EFFECTIVE DATE.This section is effective the day following final enactment.280.26    Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:280.27    Subd. 4c. Special deductions; net operating loss.(a) For purposes of determining 280.28taxable income under subdivision 4, the provisions of sections 
         290.0133, subdivisions 7280.29and 9, and 
         290.0134, subdivisions 7 and 9, are not used to determine taxable income.281.1(b) The amount of net operating loss incurred in a taxable year beginning before January
         281.21, 1990, that may be carried over to a taxable year beginning after December 31, 1989,
         is 281.3the amount of net operating loss carryover determined in the calculation of the hypothetical
         281.4corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.281.5EFFECTIVE DATE.This section is effective the day following final enactment.281.6ARTICLE 16281.7DEPARTMENT 2017 TECHNICAL PROVISIONS: INCOME, CORPORATE 281.8FRANCHISE, AND ESTATE TAXES281.9    Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:281.10    Subd. 21. Military service pension; retirement pay.  To the extent included in federal 281.11taxable income, compensation received from a pension or other retirement pay from
         the 281.12federal government for service in the military, as computed under United States Code,
         title 281.1310, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction
         must 281.14not include any amount used to claim the credit allowed under section 290.0677 is limited 281.15to individuals who do not claim the credit under section 290.0677.281.16EFFECTIVE DATE.This section is effective retroactively for taxable years beginning 281.17after December 31, 2015.281.18    Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:281.19    Subd. 3. Income. (a) "Income" means the sum of the following:281.20    (1) federal adjusted gross income as defined in the Internal Revenue Code; and281.21    (2) the sum of the following amounts to the extent not included in clause (1):281.22    (i) all nontaxable income;281.23    (ii) the amount of a passive activity loss that is not disallowed as a result of section
         469, 281.24paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
         loss 281.25carryover allowed under section 469(b) of the Internal Revenue Code;281.26    (iii) an amount equal to the total of any discharge of qualified farm indebtedness
         of a 281.27solvent individual excluded from gross income under section 108(g) of the Internal
         Revenue 281.28Code;281.29    (iv) cash public assistance and relief;281.30    (v) any pension or annuity (including railroad retirement benefits, all payments received
         281.31under the federal Social Security Act, Supplemental Security Income, and veterans
         benefits), 282.1which was not exclusively funded by the claimant or spouse, or which was funded exclusively
         282.2by the claimant or spouse and which funding payments were excluded from federal adjusted
         282.3gross income in the years when the payments were made;282.4    (vi) interest received from the federal or a state government or any instrumentality
         or 282.5political subdivision thereof;282.6    (vii) workers' compensation;282.7    (viii) nontaxable strike benefits;282.8    (ix) the gross amounts of payments received in the nature of disability income or
         sick 282.9pay as a result of accident, sickness, or other disability, whether funded through
         insurance 282.10or otherwise;282.11    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
         282.121986, as amended through December 31, 1995;282.13    (xi) contributions made by the claimant to an individual retirement account, including
         282.14a qualified voluntary employee contribution; simplified employee pension plan; 282.15self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
         of 282.16the Internal Revenue Code; or deferred compensation plan under section 457 of the
         Internal 282.17Revenue Code, to the extent the sum of amounts exceeds the retirement base amount
         for 282.18the claimant and spouse;282.19    (xii) to the extent not included in federal adjusted gross income, distributions received
         282.20by the claimant or spouse from a traditional or Roth style retirement account or plan;282.21    (xiii) nontaxable scholarship or fellowship grants;282.22    (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;282.23    (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
         282.24Code;282.25    (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
         282.26Code; and282.27    (xvii) the amount deducted for certain expenses of elementary and secondary school
         282.28teachers under section 62(a)(2)(D) of the Internal Revenue Code.282.29    In the case of an individual who files an income tax return on a fiscal year basis,
         the 282.30term "federal adjusted gross income" shall mean federal adjusted gross income reflected
         in 282.31the fiscal year ending in the calendar year. Federal adjusted gross income shall not
         be reduced 283.1by the amount of a net operating loss carryback or carryforward or a capital loss
         carryback 283.2or carryforward allowed for the year.283.3    (b) "Income" does not include:283.4    (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;283.5    (2) amounts of any pension or annuity which was exclusively funded by the claimant
         283.6or spouse and which funding payments were not excluded from federal adjusted gross
         283.7income in the years when the payments were made;283.8    (3) to the extent included in federal adjusted gross income, amounts contributed by
         the 283.9claimant or spouse to a traditional or Roth style retirement account or plan, but
         not to exceed 283.10the retirement base amount reduced by the amount of contributions excluded from federal
         283.11adjusted gross income, but not less than zero;283.12    (4) surplus food or other relief in kind supplied by a governmental agency;283.13    (5) relief granted under this chapter;283.14    (6) child support payments received under a temporary or final decree of dissolution
         or 283.15legal separation; or283.16    (7) restitution payments received by eligible individuals and excludable interest
         as 283.17defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
         2001, 283.18Public Law 107-16.283.19    (c) The sum of the following amounts may be subtracted from income:283.20    (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;283.21    (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;283.22    (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;283.23    (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;283.24    (5) for the claimant's fifth dependent, the exemption amount; and283.25    (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on
         or 283.26before December 31 of the year for which the taxes were levied or rent paid, the exemption
         283.27amount.283.28    (d) For purposes of this subdivision, the "exemption amount" means the exemption 283.29amount under section 151(d) of the Internal Revenue Code for the taxable year for
         which 283.30the income is reported; "retirement base amount" means the deductible amount for the
         283.31taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal
         Revenue 284.1Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue 284.2Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
         284.3or Roth style retirement account or plan" means retirement plans under sections 401,
         403, 284.4408, 408A, and 457 of the Internal Revenue Code.284.5EFFECTIVE DATE.This section is effective the day following final enactment.284.6    Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:284.7290A.10 PROOF OF TAXES PAID.284.8Every If requested by the commissioner of revenue, a claimant who files a claim for 284.9relief for property taxes payable shall include with the claim provide a property tax statement 284.10or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue
         284.11indicating that there are no delinquent property taxes on the homestead. Indication
         on the 284.12property tax statement from the county treasurer that there are no delinquent taxes
         on the 284.13homestead shall be sufficient proof. Taxes included in a confession of judgment under
         284.14section 
         277.23 or 
         279.37 shall not constitute delinquent taxes as long as the claimant is 284.15current on the payments required to be made under section 
         277.23 or 
         279.37.284.16EFFECTIVE DATE.This section is effective for refunds based on rent paid after 284.17December 31, 2015, and property taxes payable after December 31, 2016.284.18    Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:284.19291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.284.20If, after the final determination of the tax imposed by this chapter, the property
         valued 284.21pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to
         qualify 284.22and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit 284.23for state death taxes federal gross or taxable estate shall be reported to the commissioner 284.24within 90 days after final determination of the increased credit of the federal adjustment. 284.25Upon notification the commissioner may assess an additional tax in accordance with
         section 284.26291.03, subdivision 1
         .284.27EFFECTIVE DATE.This section is effective the day following final enactment.284.28    Sec. 5.  REPEALER.284.29Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.284.30EFFECTIVE DATE.This section is effective the day following final enactment.285.1ARTICLE 17285.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: SALES AND 285.3USE, AND SPECIAL TAXES285.4    Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:285.5    Subd. 10. Proof of sales tax payment; collection and refund.(a) A person applying 285.6for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, 285.7showing a complete description of the snowmobile, the seller's name and address, the
         full 285.8purchase price of the snowmobile, and the trade-in allowance, if any. The certificate
         must 285.9include information showing either receipt, invoice, or other document to prove that:285.10(1) that the sales and use tax under chapter 297A was paid or;285.11(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 285.12safety, in consultation with the commissioner and the commissioner of revenue, shall
         285.13prescribe the form of the certificate.The certificate is not required if the applicant
         provides 285.14a receipt, invoice, or other document that shows; or285.15(3) the snowmobile was purchased from a retailer that is maintaining a place of business 285.16in this state as defined in section 
         297A.66, subdivision 1, and is a dealer.285.17(b) The commissioner or authorized deputy registrars, acting as agents of the 285.18commissioner of revenue under an agreement between the commissioner and the 285.19commissioner of revenue, as provided in section 297A.825:285.20(1) must collect use tax from the applicant if the applicant does not provide the
         proof 285.21required under paragraph (a); and285.22(2) are authorized to issue refunds of use tax paid to them in error.285.23(c) Subdivision 11 does not apply to refunds under this subdivision.285.24EFFECTIVE DATE.This section is effective for snowmobiles registered after June 285.2530, 2017.285.26    Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:285.27    Subd. 11. Proof of sales tax payment; collection and refund.(a) A person applying 285.28for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's 285.29certificate showing a complete description of the all-terrain vehicle, the seller's
         name and 285.30address, the full purchase price of the all-terrain vehicle, and the trade-in allowance,
         if any. 286.1The certificate also must include information showing either receipt, invoice, or other 286.2document to prove that:286.3(1) the sales and use tax under chapter 297A was paid, or;286.4(2) the purchase was exempt from tax under chapter 297A. The certificate is not required 286.5if the applicant provides a receipt, invoice, or other document that shows; or286.6(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of 286.7business in this state as defined in section 
         297A.66, subdivision 1, and is a dealer.286.8(b) The commissioner or authorized deputy registrars, acting as agents of the 286.9commissioner of revenue under an agreement between the commissioner and the 286.10commissioner of revenue, as provided in section 297A.825:286.11(1) must collect use tax from the applicant if the applicant does not provide the
         proof 286.12required under paragraph (a); and286.13(2) are authorized to issue refunds of use tax paid to them in error.286.14(c) Subdivision 12 does not apply to refunds under this subdivision.286.15EFFECTIVE DATE.This section is effective for all-terrain vehicles registered after 286.16June 30, 2017.286.17    Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:286.18    Subd. 12. Proof of sales tax payment; collection and refund.(a) A person applying 286.19for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing 286.20a complete description of the watercraft, the seller's name and address, the full
         purchase 286.21price of the watercraft, and the trade-in allowance, if any. The certificate must
         include 286.22information showing either receipt, invoice, or other document to prove that:286.23(1) that the sales and use tax under chapter 297A was paid or;286.24(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 286.25safety, in consultation with the commissioner and the commissioner of revenue, shall
         286.26prescribe the form of the certificate.The certificate is not required if the applicant
         provides 286.27a receipt, invoice, or other document that shows; or286.28(3) the watercraft was purchased from a retailer that is maintaining a place of business 286.29in this state as defined in section 
         297A.66, subdivision 1, and is a dealer.287.1(b) The commissioner or authorized deputy registrars, acting as agents of the 287.2commissioner of revenue under an agreement between the commissioner and the 287.3commissioner of revenue, as provided in section 297A.825:287.4(1) must collect use tax from the applicant if the applicant does not provide the
         proof 287.5required under paragraph (a); and287.6(2) are authorized to issue refunds of use tax paid to them in error.287.7(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.287.8EFFECTIVE DATE.This section is effective for watercraft licensed after June 30, 287.92017.287.10    Sec. 4. Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read:287.11    Subdivision 1. Registration fee. (a) Each manufacturer who registers under section 287.12115A.1312
          must, by August 15 each year, pay to the commissioner of revenue an annual 287.13registration fee, on a form and in a manner prescribed by the commissioner of revenue.
         The 287.14commissioner of revenue must deposit the fee in the state treasury and credit the
         fee to the 287.15environmental fund.287.16    (b) The registration fee for manufacturers that sell 100 or more video display devices
         287.17to households in the state during the previous calendar year is $2,500, plus a variable
         287.18recycling fee. The registration fee for manufacturers that sell fewer than 100 video display 287.19devices to households in the state during the previous calendar year is a variable
         recycling 287.20fee. The variable recycling fee is calculated according to the formula:287.21    [A - (B + C)] x D, where:287.22    A = the manufacturer's recycling obligation as determined under section 
         115A.1320;287.23    B = the number of pounds of covered electronic devices recycled by a manufacturer
         287.24from households during the immediately preceding program year, as reported under section
         287.25115A.1316, subdivision 1
         ;287.26    C = the number of phase I or phase II recycling credits a manufacturer elects to use
         to 287.27calculate the variable recycling fee; and287.28    D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
         287.29manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation;
         287.30$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90
         percent 287.31of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who
         recycle 287.32at least 90 percent but less than 100 percent of the manufacturer's recycling obligation;
         and 288.1$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's
         288.2recycling obligation.288.3    (c) A manufacturer may petition the agency to waive the per-pound cost of recycling
         288.4fee, element D in the formula in paragraph (b), required under this section. The agency
         shall 288.5direct the commissioner of revenue to waive the per-pound cost of recycling fee if
         the 288.6manufacturer demonstrates to the agency's satisfaction a good faith effort to meet
         its recycling 288.7obligation as determined under section 
         115A.1320. The petition must include:288.8    (1) documentation that the manufacturer has met at least 75 percent of its recycling
         288.9obligation as determined under section 
         115A.1320;288.10    (2) a list of political subdivisions and public and private collectors with whom the
         288.11manufacturer had a formal contract or agreement in effect during the previous program
         year 288.12to recycle or collect covered electronic devices;288.13    (3) the total amounts of covered electronic devices collected from both within and
         outside 288.14of the 11-county metropolitan area, as defined in subdivision 2;288.15    (4) a description of the manufacturer's best efforts to meet its recycling obligation
         as 288.16determined under section 
         115A.1320; and288.17    (5) any other information requested by the agency.288.18    (d) A manufacturer may retain phase I and phase II recycling credits to be added,
         in 288.19whole or in part, to the actual value of C, as reported under section 
         115A.1316, subdivision 288.202
         , during any succeeding program year, provided that no more than 25 percent of a 288.21manufacturer's recycling obligation (A x B) for any program year may be met with phase
         288.22I and phase II recycling credits, separately or in combination, generated in a prior
         program 288.23year. A manufacturer may sell any portion or all of its phase I and phase II recycling
         credits 288.24to another manufacturer, at a price negotiated by the parties, who may use the credits
         in the 288.25same manner.288.26    (e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph
         288.27(b), starting with the program year beginning July 1, 2019, and continuing each year
         288.28thereafter, the weight of covered electronic devices collected from households located
         288.29outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b),
         is 288.30calculated at 1.5 times their actual weight.288.31EFFECTIVE DATE.This section is effective for registration fees due after June 30, 288.322017.289.1    Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 289.2read:289.3    Subd. 20.Department of Natural Resources; authorized deputy registrars of motor 289.4vehicles.The commissioner may disclose return information related to the taxes imposed 289.5by chapter 297A to the Department of Natural Resources or an authorized deputy registrar
         289.6of motor vehicles only:289.7(1) if the commissioner has an agreement with the commissioner of natural resources
         289.8under section 297A.825, subdivision 1; and289.9(2) to the extent necessary for the Department of Natural Resources or an authorized
         289.10deputy registrar of motor vehicles, as agents for the commissioner, to verify that
         the 289.11applicable sales or use tax has been paid or that a sales tax exemption applies on
         the purchase 289.12of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82,
         289.13subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding
         289.14either their collection of use tax or their issuance of refunds to applicants of use
         tax paid to 289.15them in error.289.16EFFECTIVE DATE.This section is effective the day following final enactment.289.17    Sec. 6. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:289.18    Subdivision 1. Definitions. (a) If a special law grants a local government unit or group 289.19of units the authority to impose a local tax other than sales tax, including but not
         limited to 289.20taxes such as lodging, entertainment, admissions, or food and beverage taxes, and
         the 289.21Department of Revenue either has agreed to or is required to administer the tax, such
         that 289.22the tax is reported and paid with the chapter 297A taxes, then the local government unit or 289.23group of units must adopt each definition term used in the special law is defined as follows:289.24(1) the definition must be identical to the definition found as defined in chapter 297A 289.25or in Minnesota Rules, chapter 8130; or289.26(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
         289.27chapter 8130, then the definition must be defined consistent with the position of the 289.28Department of Revenue as to the extent of the tax base.289.29(b) This subdivision does not apply to terms that are defined by the authorizing special
         289.30law.289.31(c) This subdivision applies notwithstanding whether a local government unit or group
         289.32of units adopts consistent definitions into local law.290.1EFFECTIVE DATE.This section is effective the day following final enactment.290.2    Sec. 7. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:290.3    Subd. 2a. Refund of sales tax to purchasers. (a) If a vendor has collected from a 290.4purchaser a tax on a transaction that is not subject to the tax imposed by chapter
         297A, the 290.5purchaser may apply directly to the commissioner for a refund under this section if:290.6(1) the purchaser is currently registered or was registered during the period of the
         claim, 290.7to collect and remit the sales tax or to remit the use tax; and290.8(2) either290.9(i) the amount of the refund to be applied for exceeds $500, or290.10(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
         290.11also applies for a capital equipment claim at the same time, and the total of the
         two refunds 290.12exceeds $500.290.13(b) The purchaser may not file more than two applications for refund under this 290.14subdivision in a calendar year.290.15(c) Refunds shall not be issued for sales for resale where the vendor has a published
         no 290.16resale policy.290.17EFFECTIVE DATE.This section is effective the day following final enactment.290.18    Sec. 8. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; 290.19PAYMENT OF TAXES; REFUNDS.290.20    Subdivision 1.Agreement with commissioners of natural resources and public 290.21safety; collection and refunds.The commissioner may enter into an agreement with the 290.22commissioner of natural resources, in consultation with the commissioner of public
         safety, 290.23that provides that:290.24(1) the commissioner of natural resources and authorized deputy registrars of motor
         290.25vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft
         from 290.26persons applying for initial registration or license of the item unless the applicant
         provides 290.27a receipt, invoice, or other document to prove that:290.28(i) sales tax was paid on the purchase;290.29(ii) the purchase was exempt under this chapter;290.30(iii) use tax was paid to the commissioner in a form prescribed by the commissioner;
         or291.1(iv) the item was purchased from a retailer that is maintaining a place of business
         in this 291.2state as defined in section 297A.66, subdivision 1, and is a dealer as defined in
         section 291.384.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and291.4(2) the commissioner of natural resources and authorized deputy registrars of motor
         291.5vehicles are authorized to issue refunds of use tax paid to them in error, meaning
         that either 291.6the sales or use tax had already been paid or that the purchase was exempt from tax
         under 291.7this chapter.291.8    Subd. 2.Agents.For the purposes of collecting or refunding the tax under this section, 291.9the commissioner of natural resources and authorized deputy registrars of motor vehicles
         291.10are the agents of the commissioner and are subject to, and must strictly comply with,
         all 291.11rules consistent with this chapter prescribed by the commissioner.291.12EFFECTIVE DATE.This section is effective the day following final enactment.291.13    Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:291.14    Subd. 7. Surcharge.(a) By April 30 of each year, every company required to pay the 291.15surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period 291.16ending March 31 in the form prescribed by the commissioner.291.17(b) (a) By June 30 of each year, every company required to pay the surcharge under 291.18section 
         297I.10, subdivision 1, shall file a return for the two-month seven-month period 291.19ending May 31 in the form prescribed by the commissioner.291.20(c) (b) By November 30 of each year, every company required to pay the surcharge 291.21under section 
         297I.10, subdivision 1, shall file a return for the five-month period ending 291.22October 31 in the form prescribed by the commissioner.291.23EFFECTIVE DATE.This section is effective for returns due after October 31, 2017.291.24    Sec. 10. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:291.25    Subd. 3. Occupation tax; other ores.  Every person engaged in the business of mining, 291.26refining, or producing ores, metals, or minerals in this state, except iron ore or
         taconite 291.27concentrates, shall pay an occupation tax to the state of Minnesota as provided in
         this 291.28subdivision. For purposes of this subdivision, mining includes the application of
         291.29hydrometallurgical processes. Hydrometallurgical processes are processes that extract
         the 291.30ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and
         recover 291.31the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed
         by 291.32section 
         290.02, except that sections 
         290.05, subdivision 1, clause (a), 
         290.17, subdivision 292.14
         , and 
         290.191, subdivision 2, do not apply, and the occupation tax must be computed by 292.2applying to taxable income the rate of 2.45 percent. A person subject to occupation tax 292.3under this section shall apportion its net income on the basis of the percentage obtained
         by 292.4taking the sum of:292.5    (1) 75 percent of the percentage which the sales made within this state in connection
         292.6with the trade or business during the tax period are of the total sales wherever made
         in 292.7connection with the trade or business during the tax period;292.8    (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
         292.9in this state in connection with the trade or business during the tax period is of
         the total 292.10tangible property, wherever located, used by the taxpayer in connection with the trade
         or 292.11business during the tax period; and292.12    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
         292.13in this state or paid in respect to labor performed in this state in connection with
         the trade 292.14or business during the tax period are of the taxpayer's total payrolls paid or incurred
         in 292.15connection with the trade or business during the tax period.292.16    The tax is in addition to all other taxes.292.17EFFECTIVE DATE.This section is effective the day following final enactment.292.18    Sec. 11. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:292.19    Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the 292.20business of mining or producing of iron ore, taconite concentrates or direct reduced
         ore in 292.21this state shall pay an occupation tax to the state of Minnesota. The tax is determined
         in the 292.22same manner as the tax imposed by section 
         290.02, except that sections 
         290.05, subdivision 292.231
         , clause (a), 
         290.17, subdivision 4, and 
         290.191, subdivision 2, do not apply, and the 292.24occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.
         292.25A person subject to occupation tax under this section shall apportion its net income
         on the 292.26basis of the percentage obtained by taking the sum of:292.27(1) 75 percent of the percentage which the sales made within this state in connection
         292.28with the trade or business during the tax period are of the total sales wherever made
         in 292.29connection with the trade or business during the tax period;292.30(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
         292.31in this state in connection with the trade or business during the tax period is of
         the total 292.32tangible property, wherever located, used by the taxpayer in connection with the trade
         or 292.33business during the tax period; and293.1(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
         293.2in this state or paid in respect to labor performed in this state in connection with
         the trade 293.3or business during the tax period are of the taxpayer's total payrolls paid or incurred
         in 293.4connection with the trade or business during the tax period.293.5The tax is in addition to all other taxes.293.6EFFECTIVE DATE.This section is effective the day following final enactment.293.7    Sec. 12. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:293.8    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is 293.9imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof,
         and 293.10upon the production of iron ore concentrate therefrom, and upon the concentrate so
         produced, 293.11a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom.
         The 293.12tax is also imposed upon other iron-bearing material.293.13    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be
         equal 293.14to the preceding year's tax rate plus an amount equal to the preceding year's tax
         rate multiplied 293.15by the percentage increase in the implicit price deflator from the fourth quarter
         of the second 293.16preceding year to the fourth quarter of the preceding year. "Implicit price deflator"
         means 293.17the implicit price deflator for the gross domestic product prepared by the Bureau
         of Economic 293.18Analysis of the United States Department of Commerce.293.19    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
         iron 293.20ore concentrate for each one percent that the iron content of the product exceeds
         72 percent, 293.21when dried at 212 degrees Fahrenheit.293.22    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
         293.23production for the current year and the previous two years. The rate of the tax imposed
         will 293.24be the current year's tax rate. This clause shall not apply in the case of the closing
         of a 293.25taconite facility if the property taxes on the facility would be higher if this clause
         and section 293.26298.25
          were not applicable. The tax on other iron-bearing material shall be imposed on the 293.27current year production.293.28    (e) The tax under paragraph (a) is also imposed upon other iron-bearing material.
         The 293.29tax on other iron-bearing material shall be imposed on the current year production.
         The rate 293.30of the tax imposed is the current year's tax rate.293.31    (e) (f) If the tax or any part of the tax imposed by this subdivision is held to be 293.32unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate
         produced 293.33shall be imposed.294.1    (f) (g) Consistent with the intent of this subdivision to impose a tax based upon the 294.2weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
         294.3determine the weight of merchantable iron ore concentrate included in fluxed pellets
         by 294.4subtracting the weight of the limestone, dolomite, or olivine derivatives or other
         basic flux 294.5additives included in the pellets from the weight of the pellets. For purposes of
         this paragraph, 294.6"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine,
         or 294.7other basic flux additives are combined with merchantable iron ore concentrate. No
         294.8subtraction from the weight of the pellets shall be allowed for binders, mineral and
         chemical 294.9additives other than basic flux additives, or moisture.294.10    (g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years
         294.11of a plant's commercial production of direct reduced ore from ore mined in this state,
         no 294.12tax is imposed under this section. As used in this paragraph, "commercial production"
         is 294.13production of more than 50,000 tons of direct reduced ore in the current year or in
         any prior 294.14year, "noncommercial production" is production of 50,000 tons or less of direct reduced
         294.15ore in any year, and "direct reduced ore" is ore that results in a product that has
         an iron 294.16content of at least 75 percent. For the third year of a plant's commercial production
         of direct 294.17reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
         otherwise 294.18determined under this subdivision. For the fourth commercial production year, the
         rate is 294.1950 percent of the rate otherwise determined under this subdivision; for the fifth
         commercial 294.20production year, the rate is 75 percent of the rate otherwise determined under this
         subdivision; 294.21and for all subsequent commercial production years, the full rate is imposed.294.22    (2) Subject to clause (1), production of direct reduced ore in this state is subject
         to the 294.23tax imposed by this section, but if that production is not produced by a producer
         of taconite, 294.24iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides,
         or 294.25other iron-bearing material, that is consumed in the production of direct reduced
         iron ore294.26in this state is not subject to the tax imposed by this section on taconite, iron
         sulfides, or 294.27other iron-bearing material.294.28    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on
         direct 294.29reduced ore under this section during the facility's noncommercial production of direct
         294.30reduced ore. The taconite or iron sulphides consumed in the noncommercial production
         of 294.31direct reduced ore is subject to the tax imposed by this section on taconite and iron
         sulphides. 294.32Three-year average production of direct reduced ore does not include production of
         direct 294.33reduced ore in any noncommercial year. Three-year average production for a direct
         reduced 294.34ore facility that has noncommercial production is the average of the commercial production
         294.35of direct reduced ore for the current year and the previous two commercial years.295.1    (4) This paragraph applies only to plants for which all environmental permits have
         been 295.2obtained and construction has begun before July 1, 2008.295.3EFFECTIVE DATE.This section is effective the day following final enactment.295.4    Sec. 13. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:295.5    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of 295.6merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus
         the amount 295.7provided in paragraph (c), must be allocated to the city or town in the county in
         which the 295.8lands from which taconite was mined or quarried were located or within which the 295.9concentrate was produced. If the mining, quarrying, and concentration, or different
         steps 295.10in either thereof are carried on in more than one taxing district, the commissioner
         shall 295.11apportion equitably the proceeds of the part of the tax going to cities and towns
         among such 295.12subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
         the operation 295.13of mining or quarrying the taconite, and the remainder to the concentrating plant
         and to the 295.14processes of concentration, and with respect to each thereof giving due consideration
         to the 295.15relative extent of such operations performed in each such taxing district. The commissioner's
         295.16order making such apportionment shall be subject to review by the Tax Court at the
         instance 295.17of any of the interested taxing districts, in the same manner as other orders of the
         295.18commissioner.295.19(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships 295.20affected by mining because their boundaries are within three miles of a taconite mine
         pit 295.21that:295.22(i) was actively mined by LTV Steel Mining Company in 1999; or295.23(ii) has been actively mined in at least one of the prior three years.295.24(2) If a city or town is located near more than one mine meeting these the criteria under 295.25this paragraph, the city or town is eligible to receive aid calculated from only the mine 295.26producing the largest taxable tonnage. When more than one municipality qualifies for
         aid 295.27based on one company's production, the aid must be apportioned among the municipalities
         295.28in proportion to their populations. The amounts distributed under this paragraph to
         each 295.29municipality must be used for infrastructure improvement projects.295.30(c) The amount that would have been computed for the current year under Minnesota
         295.31Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed
         to 295.32the cities and townships within the school district in the proportion that their taxable
         net tax 296.1capacity within the school district bears to the taxable net tax capacity of the school
         district 296.2for property taxes payable in the year prior to distribution.296.3EFFECTIVE DATE.This section is effective the day following final enactment.296.4    Sec. 14. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:296.5    Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 296.6and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated
         to counties 296.7to be distributed, based upon certification by the commissioner of revenue, under
         paragraphs 296.8(b) to (d).296.9    (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
         296.10is mined or quarried or in which the concentrate is produced, less any amount which
         is to 296.11be distributed pursuant to paragraph (c). The apportionment formula prescribed in
         subdivision 296.122 is the basis for the distribution.296.13    (c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
         296.14shall be paid to a county that received a distribution under this section in 2000
         because there 296.15was located in the county an electric power plant owned by and providing the primary source 296.16of power for a taxpayer mining and concentrating taconite is located in a different county 296.17other than the county in which the mining and the concentrating processes are conducted,
         296.18one cent per taxable ton of the tax distributed to the counties pursuant to paragraph
         (b) and 296.19imposed on and collected from such taxpayer shall be paid to the county in which the
         power 296.20plant is located.296.21    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525
         cents 296.22per taxable ton for distributions beginning in 2024, shall be paid to the county from
         which 296.23the taconite was mined, quarried or concentrated to be deposited in the county road
         and 296.24bridge fund. If the mining, quarrying and concentrating, or separate steps in any
         of those 296.25processes are carried on in more than one county, the commissioner shall follow the
         296.26apportionment formula prescribed in subdivision 2.296.27EFFECTIVE DATE.This section is effective the day following final enactment.296.28    Sec. 15. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:296.29    Subdivision 1. Authorization; tax base.(a) Notwithstanding section 
         477A.016 or any 296.30other law, a statutory or home rule charter city may by ordinance, and a town may
         by the 296.31affirmative vote of the electors at the annual town meeting, or at a special town
         meeting, 296.32impose a tax of up to three percent on the gross receipts from the furnishing for
         consideration 297.1of lodging at a hotel, motel, rooming house, tourist court, or resort, other than
         the renting 297.2or leasing of it for a continuous period of 30 days or more. A statutory or home rule
         charter 297.3city may by ordinance impose the tax authorized under this subdivision on the camping
         site 297.4receipts of a municipal campground.297.5(b) Regardless of whether the tax is collected locally or by the state, the tax imposed
         297.6under this subdivision or under a special law applies to the entire consideration
         paid to 297.7obtain access to lodging, including ancillary or related services, such as services
         provided 297.8by an accommodations intermediary as defined in section 297A.61, and similar services.297.9EFFECTIVE DATE; APPLICATION.This section is effective the day following 297.10final enactment. In enacting this section, the legislature confirms that Minnesota
         Statutes, 297.11section 469.190, its predecessor provisions, and any special laws authorizing political
         297.12subdivisions to impose local lodging taxes, were and are intended to apply to the
         entire 297.13consideration paid to obtain access to transient lodging, including ancillary or related
         services, 297.14such as services provided by an accommodations intermediary as defined in Minnesota
         297.15Statutes, section 297A.61, and similar services. The provisions of this section must
         not be 297.16interpreted to imply a narrower construction of the tax base under the lodging tax
         provisions 297.17of Minnesota law prior to the enactment of this section.297.18    Sec. 16. Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read:297.19    Subd. 7. Collection.(a) The statutory or home rule charter city may agree with the 297.20commissioner of revenue that a tax imposed pursuant to this section shall be collected
         by 297.21the commissioner together with the tax imposed by chapter 297A, and subject to the
         same 297.22interest, penalties, and other rules and that its proceeds, less the cost of collection,
         shall be 297.23remitted to the city.297.24(b) If a tax under this section or a special law is not collected by the commissioner
         of 297.25revenue, the local government imposing the tax may by ordinance limit the required
         filing 297.26and remittance of the tax by an accommodations intermediary as defined in section
         297A.61, 297.27subdivision 47, to once every calendar year. The local government must inform the
         297.28accommodations intermediary of the date when the return or remittance is due and the
         date 297.29must coincide with one of the monthly dates for filing and remitting state sales tax
         under 297.30chapter 297A. The local government must also electronically provide an accommodations
         297.31intermediary with geographic and zip code information necessary to collect the tax.297.32EFFECTIVE DATE.This section is effective the day following final enactment.298.1ARTICLE 18298.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: PROPERTY 298.3TAX AND LOCAL GOVERNMENT AID298.4    Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:298.5    Subdivision 1. Valuation. The commissioner shall determine the market valuation of 298.6all flight property operated or used by every airline company in air commerce in this
         state. 298.7The valuation apportioned to this state of such flight property shall be the proportion
         of the 298.8total valuation thereof determined on the basis of the total of the following percentages:298.9(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express
         and 298.10freight first received by the airline company in this state during the preceding calendar
         year 298.11plus the total tonnage of passengers, express and freight finally discharged by it
         within this 298.12state during the preceding calendar year is of the total of such tonnage first received
         by the 298.13airline company or finally discharged by it, within and without this state during
         the preceding 298.14calendar year.298.15(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time
         of all 298.16aircraft of the airline company in flight in this state during the preceding calendar
         year, is 298.17of the total of such time in flight within and without this state during the preceding
         calendar 298.18year.298.19(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of 298.20passengers, mail, express and freight flown by the airline company within this state
         during 298.21the preceding calendar year is of the total number of such miles flown by it within
         and 298.22without this state during the preceding calendar year.298.23(2) 50 percent of the percentage that the total departures performed by the airline
         company 298.24within this state during the preceding calendar year is of the total departures performed
         298.25within and without this state during the preceding calendar year.298.26EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.298.27    Sec. 2. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:298.28    Subdivision 1. Conformance to federal law. If any provision of sections 
         270.071 to 298.29270.079
          is contrary to any provision of any law of the United States of America, hereinafter
         298.30enacted, providing for or relating to the ad valorem taxation by a state of aircraft
         or flying 298.31equipment of an airline company, such provision shall be of no effect and the commissioner
         298.32is authorized and directed to prescribe by rule such provisions as may be necessary
         to make 299.1sections 
         270.071 to 
         270.079 conform to the federal act and to effectuate the purposes of 299.2sections 
         270.071 to 
         270.079, provided such rules do not prescribe a rate of taxation higher 299.3than that provided in section 
         270.075 or a net tax capacity based on a percentage higher 299.4than that provided in section 
         270.074, subdivision 2 3.299.5EFFECTIVE DATE.This section is effective the day following final enactment.299.6    Sec. 3. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:299.7    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by 299.8the state of Minnesota or any political subdivision thereof, and property exempt from taxation 299.9under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 299.10provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 299.11described in section 
         272.02, subdivisions 2 to 33, must file a statement of exemption with 299.12the assessor of the assessment district in which the property is located. By February 1, 2018, 299.13and by February 1 of each third year thereafter, the commissioner of revenue shall
         publish 299.14on its Web site a list of the exemptions for which a taxpayer claiming an exemption
         must 299.15file a statement of exemption. The commissioner's requirement that a taxpayer file
         a statement 299.16of exemption pursuant to this subdivision shall not be considered a rule and is not
         subject 299.17to the Administrative Procedure Act, chapter 14.299.18(b) A taxpayer claiming an exemption from taxation on property described in section
         299.19272.02, subdivision 10
         , must file a statement of exemption with the commissioner of revenue, 299.20on or before February 15 of each year for which the taxpayer claims an exemption.299.21(c) In case of sickness, absence or other disability or for good cause, the assessor
         or the 299.22commissioner may extend the time for filing the statement of exemption for a period
         not to 299.23exceed 60 days.299.24(d) The commissioner of revenue shall prescribe the form and contents of the statement
         299.25of exemption.299.26EFFECTIVE DATE.This section is effective for applications for exemption submitted 299.27in 2018 and thereafter.299.28    Sec. 4. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision 299.29to read:299.30    Subd. 8.Extension.The commissioner may, for good cause, extend the time for filing 299.31the report required by subdivision 4. The extension must not exceed 15 days.299.32EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.300.1    Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:300.2    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5 or 6, 300.3whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by 300.4warranty deed, quitclaim deed, contract for deed or any other method of sale, the
         grantor, 300.5grantee or the legal agent of either shall file a certificate of value with the county
         auditor 300.6in the county in which the property is located when the deed or other document is
         presented 300.7for recording. Contract for deeds are subject to recording under section 
         507.235, subdivision 300.81
         . Value shall, in the case of any deed not a gift, be the amount of the full actual
         consideration 300.9thereof, paid or to be paid, including the amount of any lien or liens assumed. The
         items 300.10and value of personal property transferred with the real property must be listed and
         deducted 300.11from the sale price. The certificate of value shall include the classification to
         which the 300.12property belongs for the purpose of determining the fair market value of the property,
         and 300.13shall include any proposed change in use of the property known to the person filing
         the 300.14certificate that could change the classification of the property. The certificate
         shall include 300.15financing terms and conditions of the sale which are necessary to determine the actual,
         300.16present value of the sale price for purposes of the sales ratio study. If the property
         is being 300.17acquired as part of a like-kind exchange under section 1031 of the Internal Revenue
         Code 300.18of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
         300.19The commissioner of revenue shall promulgate administrative rules specifying the financing
         300.20terms and conditions which must be included on the certificate. The certificate of
         value 300.21must include the Social Security number or the federal employer identification number
         of 300.22the grantors and grantees. However, a married person who is not an owner of record
         and 300.23who is signing a conveyance instrument along with the person's spouse solely to release
         300.24and convey their marital interest, if any, in the real property being conveyed is
         not a grantor 300.25for the purpose of the preceding sentence. A statement in the deed that is substantially
         in 300.26the following form is sufficient to allow the county auditor to accept a certificate
         for filing 300.27without the Social Security number of the named spouse: "(Name) claims no ownership
         300.28interest in the real property being conveyed and is executing this instrument solely
         to release 300.29and convey a marital interest, if any, in that real property." The identification
         numbers of 300.30the grantors and grantees are private data on individuals or nonpublic data as defined
         in 300.31section 
         13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or 300.32nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
         300.33administration. The information required to be shown on the certificate of value is
         limited 300.34to the information required as of the date of the acknowledgment on the deed or other
         300.35document to be recorded. The commissioner's determination of the amount for which a 301.1certificate of value is required pursuant to this subdivision shall not be considered
         a rule 301.2and is not subject to the Administrative Procedure Act, chapter 14.301.3EFFECTIVE DATE.This section is effective for certificates of value filed after 301.4December 31, 2017.301.5    Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:301.6    Subd. 2. Form; information required. The certificate of value shall require such facts 301.7and information as may be determined by the commissioner to be reasonably necessary
         in 301.8the administration of the state education aid formulas. The form of the certificate
         of value 301.9shall be prescribed by the Department of Revenue which shall provide an adequate supply 301.10of forms to each county auditor.301.11EFFECTIVE DATE.This section is effective the day following final enactment.301.12    Sec. 7. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:301.13    Subd. 3. Copies transmitted; homestead status. The county auditor shall transmit two 301.14true copies of the certificate of value to the assessor who shall insert into the certificate of 301.15value the most recent market value and when available, the year of original construction
         of 301.16each parcel of property on both copies, and shall transmit one copythe certificate of value 301.17to the Department of Revenue. Upon the request of a city council located within the
         county, 301.18a copy of each certificate of value for property located in that city shall be made
         available 301.19to the governing body of the city. The assessor shall remove the homestead classification
         301.20for the following assessment year from a property which is sold or transferred, unless
         the 301.21grantee or the person to whom the property is transferred completes a homestead application
         301.22under section 
         273.124, subdivision 13, and qualifies for homestead status.301.23EFFECTIVE DATE.This section is effective for certificates of value filed after 301.24December 31, 2017.301.25    Sec. 8. Minnesota Statutes 2016, section 273.0755, is amended to read:301.26273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.301.27(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
         301.28by the state Board of Assessors at the Accredited Minnesota Assessor level or higher,
         shall 301.29successfully complete a weeklong Minnesota laws course sponsored by the Department
         of 301.30Revenue at least once in every four-year period. An assessor need not attend the course
         if 301.31they successfully pass the test for the course.302.1(b) The commissioner of revenue may require that each county, and each city for which
         302.2the city assessor performs the duties of county assessor, have (i) a person on the
         assessor's 302.3staff who is certified by the Department of Revenue in sales ratio calculations, (ii)
         an officer 302.4or employee who is certified by the Department of Revenue in tax calculations, and
         (iii) an 302.5officer or employee who is certified by the Department of Revenue in the proper preparation
         302.6of abstracts of assessment. The commissioner of revenue may require that each county
         have 302.7an officer or employee who is certified by the Department of Revenue in the proper
         302.8preparation of abstracts of tax lists.  Certifications under this paragraph expire after four 302.9years.302.10(c) Beginning with the four-year educational licensing period starting on July 1,
         2004, 302.11every Minnesota assessor licensed by the State Board of Assessors must attend and
         participate 302.12in a seminar that focuses on ethics, professional conduct and the need for standardized
         302.13assessment practices developed and presented by the commissioner of revenue. This
         302.14requirement must be met at least once in every subsequent four-year period. This requirement
         302.15applies to all assessors licensed for one year or more in the four-year period.302.16(d) The commissioner of revenue may require that at least one employee of any county
         302.17or city that performs functions related to property tax administration complete additional
         302.18training that the commissioner deems necessary to promote uniform and equitable 302.19implementation of the property tax laws, as defined in section 270C.01, subdivision
         7.302.20EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.302.21    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:302.22    Subd. 13. Homestead application. (a) A person who meets the homestead requirements 302.23under subdivision 1 must file a homestead application with the county assessor to
         initially 302.24obtain homestead classification.302.25    (b) The format and contents of a uniform homestead application shall be prescribed
         by 302.26the commissioner of revenue. The application must clearly inform the taxpayer that
         this 302.27application must be signed by all owners who occupy the property or by the qualifying
         302.28relative and returned to the county assessor in order for the property to receive
         homestead 302.29treatment.302.30    (c) Every property owner applying for homestead classification must furnish to the
         302.31county assessor the Social Security number of each occupant who is listed as an owner
         of 302.32the property on the deed of record, the name and address of each owner who does not
         occupy 302.33the property, and the name and Social Security number of each owner's spouse who occupies 303.1the property. The application must be signed by each owner who occupies the property and 303.2by each owner's spouse who occupies the property, or, in the case of property that
         qualifies 303.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative.303.4    If a property owner occupies a homestead, the property owner's spouse may not claim
         303.5another property as a homestead unless the property owner and the property owner's
         spouse 303.6file with the assessor an affidavit or other proof required by the assessor stating
         that the 303.7property qualifies as a homestead under subdivision 1, paragraph (e).303.8    Owners or spouses occupying residences owned by their spouses and previously occupied
         303.9with the other spouse, either of whom fail to include the other spouse's name and
         Social 303.10Security number on the homestead application or provide the affidavits or other proof
         303.11requested, will be deemed to have elected to receive only partial homestead treatment
         of 303.12their residence. The remainder of the residence will be classified as nonhomestead
         residential. 303.13When an owner or spouse's name and Social Security number appear on homestead 303.14applications for two separate residences and only one application is signed, the owner
         or 303.15spouse will be deemed to have elected to homestead the residence for which the application
         303.16was signed.303.17    (d) If residential real estate is occupied and used for purposes of a homestead by
         a relative 303.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
         order for 303.19the property to receive homestead status, a homestead application must be filed with
         the 303.20assessor. The Social Security number of each relative occupying the property and the name 303.21and Social Security number of the spouse of a relative occupying the property shall be 303.22required on the homestead application filed under this subdivision. If a different
         relative of 303.23the owner subsequently occupies the property, the owner of the property must notify
         the 303.24assessor within 30 days of the change in occupancy. The Social Security number of
         a relative 303.25occupying the property or relative's the spouse of a relative occupying the property is private 303.26data on individuals as defined by section 
         13.02, subdivision 12, but may be disclosed to the 303.27commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
         303.28Act to recover personal property taxes owing, to the county treasurer.303.29    (e) The homestead application shall also notify the property owners that if the property
         303.30is granted homestead status for any assessment year, that same property shall remain
         303.31classified as homestead until the property is sold or transferred to another person,
         or the 303.32owners, the spouse of the owner, or the relatives no longer use the property as their
         303.33homestead. Upon the sale or transfer of the homestead property, a certificate of value
         must 303.34be timely filed with the county auditor as provided under section 
         272.115. Failure to notify 303.35the assessor within 30 days that the property has been sold, transferred, or that
         the owner, 304.1the spouse of the owner, or the relative is no longer occupying the property as a
         homestead, 304.2shall result in the penalty provided under this subdivision and the property will
         lose its 304.3current homestead status.304.4    (f) If a homestead application has not been filed with the county by December 15,
         the 304.5assessor shall classify the property as nonhomestead for the current assessment year
         for 304.6taxes payable in the following year, provided that the owner may be entitled to receive
         the 304.7homestead classification by proper application under section 
         375.192.304.8EFFECTIVE DATE.This section is effective for applications for homestead filed in 304.92018 and thereafter.304.10    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:304.11    Subd. 13d. Homestead data.  On or before April 30 each year beginning in 2007, each 304.12county must provide the commissioner with the following data for each parcel of homestead
         304.13property by electronic means as defined in section 
         289A.02, subdivision 8:304.14    (1) the property identification number assigned to the parcel for purposes of taxes
         payable 304.15in the current year;304.16    (2) the name and Social Security number of each occupant of homestead property who
         304.17is the property owner, property owner's spouse,or qualifying relative of a property owner,304.18and the spouse of the property owner who occupies homestead property or spouse of a 304.19qualifying relative of a property owner who occupies homestead property;304.20    (3) the classification of the property under section 
         273.13 for taxes payable in the current 304.21year and in the prior year;304.22    (4) an indication of whether the property was classified as a homestead for taxes
         payable 304.23in the current year because of occupancy by a relative of the owner or by a spouse
         of a 304.24relative;304.25    (5) the property taxes payable as defined in section 
         290A.03, subdivision 13, for the 304.26current year and the prior year;304.27    (6) the market value of improvements to the property first assessed for tax purposes
         for 304.28taxes payable in the current year;304.29    (7) the assessor's estimated market value assigned to the property for taxes payable
         in 304.30the current year and the prior year;304.31    (8) the taxable market value assigned to the property for taxes payable in the current
         304.32year and the prior year;305.1    (9) whether there are delinquent property taxes owing on the homestead;305.2    (10) the unique taxing district in which the property is located; and305.3    (11) such other information as the commissioner decides is necessary.305.4    The commissioner shall use the information provided on the lists as appropriate under
         305.5the law, including for the detection of improper claims by owners, or relatives of
         owners, 305.6under chapter 290A.305.7EFFECTIVE DATE.This section is effective for applications for homestead filed in 305.82018 and thereafter.305.9    Sec. 11. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:305.10    Subdivision 1. Reduction in tax; tax relief area. The property tax to be paid in respect 305.11to property taxable within a tax relief area as defined in section 
         273.134, paragraph (b), on 305.12homestead property, as otherwise determined by law and regardless of the market value
         of 305.13the property, and on nonhomestead portions of property classified as both homestead and 305.14nonhomestead property as provided in section 273.124, subdivision 11, for all purposes 305.15shall be reduced in the amount prescribed by subdivision 2, subject to the limitations
         305.16contained therein.305.17EFFECTIVE DATE.This section is effective the day following final enactment.305.18    Sec. 12. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:305.19    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts 305.20local boards of appeal and equalization meetings must provide proof to the county assessor 305.21by February 1 that it is in compliance comply with the training requirements of subdivision 305.222 by February 1, by having at least one member who has attended an appeals and equalization
         305.23course described in subdivision 2 within the last four years. This notice must also verify 305.24that there was a quorum of voting members at each meeting of the board of appeal and
         305.25equalization in the previous year. A city or town that does not comply with these requirements 305.26is deemed to have transferred its board of appeal and equalization powers to the county
         for 305.27a minimum of two assessment years, beginning with the current year's assessment and 305.28continuing thereafter unless the powers are reinstated under paragraph (c).305.29    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for 305.30a city or town has been transferred to the county under this subdivision and, prior
         to the 305.31meeting time of the county board of equalization, the county shall make available
         to those 306.1taxpayers a procedure for a review of the assessments, including, but not limited
         to, open 306.2book meetings. This alternate review process shall take place in April and May.306.3    (c) A local board whose powers are transferred to the county under this subdivision
         may 306.4be reinstated by resolution of the governing body of the city or town and upon proof
         of 306.5compliance with the requirements of subdivision 2. The resolution and proofs must
         be 306.6provided to the county assessor by February 1 in order to be effective for the following
         306.7year's assessment.306.8    (d) A local board whose powers are transferred to the county under this subdivision
         may 306.9continue to employ a local assessor and is not deemed to have transferred its powers
         to 306.10make assessments.306.11EFFECTIVE DATE.This section is effective for board of appeal and equalization 306.12meetings held in 2018 and thereafter.306.13    Sec. 13. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:306.14    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county 306.15boards of appeal and equalization meetings must provide proof to the commissioner by 306.16December 1, 2009, and each year thereafter, that it is in compliance comply with the training 306.17requirements of subdivision 2 by February 1, by having at least one member who has attended 306.18an appeals and equalization course described in subdivision 2 within the last four
         years. 306.19Beginning in 2009, this notice must also verify that there was a quorum of voting
         members 306.20at each meeting of the board of appeal and equalization in the current year. A county that 306.21does not comply with these requirements is deemed to have transferred its board of
         appeal 306.22and equalization powers to the special board of equalization appointed pursuant to
         section 306.23274.13, subdivision 2
         , for a minimum of two assessment years, beginning with the following 306.24year's assessment and continuing thereafter unless the powers are reinstated under paragraph 306.25(c). A county that does not comply with the requirements of subdivision 2 and has
         not 306.26appointed a special board of equalization shall appoint a special board of equalization
         before 306.27the following year's assessment.306.28    (b) The county shall notify the taxpayers when the board of appeal and equalization
         for 306.29a county has been transferred to the special board of equalization under this subdivision
         306.30and, prior to the meeting time of the special board of equalization, the county shall
         make 306.31available to those taxpayers a procedure for a review of the assessments, including,
         but not 306.32limited to, open book meetings. This alternate review process must take place in April
         and 306.33May.307.1    (c) A county board whose powers are transferred to the special board of equalization
         307.2under this subdivision may be reinstated by resolution of the county board and upon
         proof 307.3of compliance with the requirements of subdivision 2. The resolution and proofs must
         be 307.4provided to the commissioner by December 1 in order to be effective for the following
         307.5year's assessment.307.6(d) If a person who was entitled to appeal to the county board of appeal and equalization
         307.7or to the county special board of equalization is not able to do so in a particular
         year because 307.8the county board or special board did not meet the quorum and training requirements
         in this 307.9section and section 
         274.13, or because the special board was not appointed, that person may 307.10instead appeal to the commissioner of revenue, provided that the appeal is received
         by the 307.11commissioner prior to August 1. The appeal is not subject to either chapter 14 or
         section 307.12270C.92
         . The commissioner must issue an appropriate order to the county assessor in 307.13response to each timely appeal, either upholding or changing the valuation or classification
         307.14of the property. Prior to October 1 of each year, the commissioner must charge and
         bill the 307.15county where the property is located $500 for each tax parcel covered by an order
         issued 307.16under this paragraph in that year. Amounts received by the commissioner under this
         paragraph 307.17must be deposited in the state's general fund. If payment of a billed amount is not
         received 307.18by the commissioner before December 1 of the year when billed, the commissioner must
         307.19deduct that unpaid amount from any state aid the commissioner would otherwise pay
         to the 307.20county under chapter 477A in the next year. Late payments may either be returned to
         the 307.21county uncashed and undeposited or may be accepted. If a late payment is accepted,
         the 307.22state aid paid to the county under chapter 477A must be adjusted within 12 months
         to 307.23eliminate any reduction that occurred because the payment was late. Amounts needed
         to 307.24make these adjustments are included in the appropriation under section 
         477A.03, subdivision 307.252
         .307.26EFFECTIVE DATE.This section is effective for board of appeal and equalization 307.27meetings held in 2018 and thereafter.307.28    Sec. 14. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:307.29    Subd. 2. Transmittal of order. The chief administrative law judge shall see that copies 307.30of the order are mailed to all parties entitled to mailed notice of hearing under
         subdivision 307.311, the secretary of state, the Department of Revenue, the state demographer, individual 307.32property owners if initiated in that manner, affected county auditor, and any other
         party of 307.33record. The affected county auditor shall record the order against the affected property.307.34EFFECTIVE DATE.This section is effective the day following final enactment.308.1    Sec. 15. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:308.2    Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the 308.3meanings given them.308.4    (b) "County program aid" means the sum of "county need aid," "county tax base 308.5equalization aid," and "county transition aid."308.6    (c) "Age-adjusted population" means a county's population multiplied by the county
         age 308.7index.308.8    (d) "County age index" means the percentage of the population over age 65 and over 308.9within the county divided by the percentage of the population over age 65 and over within 308.10the state, except that the age index for any county may not be greater than 1.8 nor
         less than 308.110.8.308.12    (e) "Population over age 65 and over" means the population over age 65 and over 308.13established as of July 15 in an aid calculation year by the most recent federal census,
         by a 308.14special census conducted under contract with the United States Bureau of the Census,
         by a 308.15population estimate made by the Metropolitan Council, or by a population estimate
         of the 308.16state demographer made pursuant to section 
         4A.02, whichever is the most recent as to the 308.17stated date of the count or estimate for the preceding calendar year and which has
         been 308.18certified to the commissioner of revenue on or before July 15 of the aid calculation
         year. A 308.19revision to an estimate or count is effective for these purposes only if certified
         to the 308.20commissioner on or before July 15 of the aid calculation year. Clerical errors in
         the 308.21certification or use of estimates and counts established as of July 15 in the aid
         calculation 308.22year are subject to correction within the time periods allowed under section 
         477A.014.308.23    (f) "Part I crimes" means the three-year average annual number of Part I crimes reported
         308.24for each county by the Department of Public Safety for the most recent years available.
         By 308.25July 1 of each year, the commissioner of public safety shall certify to the commissioner
         of 308.26revenue the number of Part I crimes reported for each county for the three most recent
         308.27calendar years available.308.28    (g) "Households receiving food stamps" means the average monthly number of 308.29households receiving food stamps for the three most recent years for which data is
         available. 308.30By July 1 of each year, the commissioner of human services must certify to the commissioner
         308.31of revenue the average monthly number of households in the state and in each county
         that 308.32receive food stamps, for the three most recent calendar years available.309.1    (h) "County net tax capacity" means the county's adjusted net tax capacity under section
         309.2273.1325
         .309.3EFFECTIVE DATE.This section is effective the day following final enactment.309.4    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:309.5    Subdivision 1. Towns.(a) In 2014 and thereafter, each town is eligible for a distribution 309.6under this subdivision equal to the product of (i) its agricultural property factor,
         (ii) its town 309.7area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision,
         the 309.8following terms have the meanings given them:309.9(1) "agricultural property factor" means the ratio of the adjusted net tax capacity
         of 309.10agricultural property located in a town, divided by to the adjusted net tax capacity of all 309.11other property located in the town. The agricultural property factor cannot exceed
         eight;309.12(2) "agricultural property" means property classified under section 
         273.13, as homestead 309.13and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
         309.14recreational property;309.15(3) "town area factor" means the most recent estimate of total acreage, not to exceed
         309.1650,000 acres, located in the township available as of July 1 in the aid calculation
         year, 309.17estimated or established by:309.18(i) the United States Bureau of the Census;309.19(ii) the State Land Management Information Center; or309.20(iii) the secretary of state; and309.21(4) "population factor" means the square root of the towns' population.309.22(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
         309.23under section 
         477A.03, subdivision 2c, the distribution to each town must be reduced 309.24proportionately so that the total amount of aids distributed under this section does
         not exceed 309.25the limit in section 
         477A.03, subdivision 2c.309.26(c) Data used in calculating aids to towns under this subdivision, other than acreage,
         309.27shall be the most recently available data as of January 1 in the year in which the
         aid is 309.28calculated.309.29EFFECTIVE DATE.This section is effective the day following final enactment.310.1    Sec. 17.  REPEALER.310.2Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.310.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.310.4ARTICLE 19310.5DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS310.6    Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:310.7    Subd. 2. Definitions. (a) For purposes of this section and sections 270C.4451 to 310.8270C.447, the following terms have the meanings given.310.9(b) "Advertise" means to solicit business through any means or medium.310.10(c) "Client" means an individual a person for whom a tax preparer performs or agrees 310.11to perform tax preparation services.310.12(d) "Facilitate" means to individually or in conjunction or cooperation with another
         310.13person:310.14(1) accept an application for a refund anticipation loan;310.15(2) pay to a client the proceeds, through direct deposit, a negotiable instrument,
         or any 310.16other means, of a refund anticipation loan; or310.17(3) offer, arrange, process, provide, or in any other manner act to allow the making
         of, 310.18a refund anticipation loan.310.19(e) "Person" means an individual, corporation, partnership, limited liability company,
         310.20association, trustee, or other legal entity.310.21(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client 310.22by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
         310.23federal or state income tax refund or both and represents the net of the refund minus
         the tax 310.24preparation fee and any other fees. A refund anticipation check includes a refund
         transfer.310.25(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether
         310.26provided by the tax preparer or another entity such as a financial institution, in
         anticipation 310.27of, and whose payment is secured by, a client's federal or state income tax refund
         or both.310.28(h) (g) "Tax preparation services" means services provided for a fee or other consideration310.29compensation to a client to:310.30(1) assist with preparing or filing state or federal individual income tax returns a return;311.1(2) assume final responsibility for completed work on an individual income tax a return 311.2on which preliminary work has been done by another; or311.3(3) sign or include on a return the preparer tax identification number required under
         311.4section 6109(a)(4) of the Internal Revenue Code; or311.5(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund 311.6anticipation checks check.311.7(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services 311.8subject to this section. except:311.9(1) an employee who prepares their employer's return;311.10(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf
         of the 311.11fiduciary estate, testator, trustor, grantor, or beneficiaries of them;311.12(3) nonprofit organizations providing tax preparation services under the Internal
         Revenue 311.13Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
         311.14Program;311.15(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;311.16(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is
         currently 311.17registered with the commissioner; and311.18(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
         311.19(c), that provides all of the sales tax functions for a retailer not maintaining a
         place of 311.20business in this state as described in section 297A.66.311.21(i) Except as otherwise provided, "return" means:311.22(1) a return as defined in section 270C.01, subdivision 8;311.23(2) a claim for refund of an overpayment;311.24(3) a claim filed pursuant to chapter 290A; and311.25(4) a claim for a credit filed under section 290.0677, subdivision 1.311.26EFFECTIVE DATE.This section is effective for claims and returns filed after December 311.2731, 2017.311.28    Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:311.29    Subd. 3. Standards of conduct. No tax preparer shall:312.1(1) without good cause fail to promptly, diligently, and without unreasonable delay
         312.2complete a client's tax return;312.3(2) obtain the signature of a client to a tax return or authorizing document that contains 312.4blank spaces to be filled in after it has been signed;312.5(3) fail to sign a client's tax return when payment compensation for services rendered 312.6has been made;312.7(4) fail to provide on a client's return the preparer tax identification number when
         required 312.8under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision
         28;312.9(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature
         312.10within a reasonable time after the client signs the document;312.11(5) (6) fail to retain for at least four years a copy of individual income tax a client's312.12returns;312.13(6) (7) fail to maintain a confidential relationship with clients or former clients;312.14(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic 312.15personal information;312.16(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly
         312.17or indirectly, any false, deceptive, or misleading statement or representation relating
         to or 312.18in connection with the offering or provision of tax preparation services;312.19(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's312.20return;312.21(10) (11) claim credits or deductions on a client's tax return for which the tax preparer 312.22knows or reasonably should know the client does not qualify;312.23(12) report a household income on a client's claim filed under chapter 290A that the
         tax 312.24preparer knows or reasonably should know is not accurate;312.25(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
         312.2613, 20, 20a, 26, or 28;312.27(14) whether or not acting as a taxpayer representative, fail to conform to the standards
         312.28of conduct required by Minnesota Rules, part 8052.0300, subpart 4;312.29(15) whether or not acting as a taxpayer representative, engage in any conduct that
         is 312.30incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;313.1(16) whether or not acting as a taxpayer representative, engage in any conduct that
         is 313.2disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;313.3(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
         313.4refund for tax preparation services;313.5(12) (18) under any circumstances, withhold or fail to return to a client a document 313.6provided by the client for use in preparing the client's tax return;313.7(13) (19) establish an account in the preparer's name to receive a client's refund through
         313.8a direct deposit or any other instrument unless the client's name is also on the account,
         313.9except that a taxpayer may assign the portion of a refund representing the Minnesota
         313.10education credit available under section 
         290.0674 to a bank account without the client's 313.11name, as provided under section 
         290.0679;313.12(14) (20) fail to act in the best interests of the client;313.13(15) (21) fail to safeguard and account for any money handled for the client;313.14(16) (22) fail to disclose all material facts of which the preparer has knowledge which 313.15might reasonably affect the client's rights and interests;313.16(17) (23) violate any provision of section 
         332.37;313.17(18) (24) include any of the following in any document provided or signed in connection 313.18with the provision of tax preparation services:313.19(i) a hold harmless clause;313.20(ii) a confession of judgment or a power of attorney to confess judgment against the
         313.21client or appear as the client in any judicial proceeding;313.22(iii) a waiver of the right to a jury trial, if applicable, in any action brought
         by or against 313.23a debtor;313.24(iv) an assignment of or an order for payment of wages or other compensation for 313.25services;313.26(v) a provision in which the client agrees not to assert any claim or defense otherwise
         313.27available;313.28(vi) a waiver of any provision of this section or a release of any obligation required
         to 313.29be performed on the part of the tax preparer; or313.30(vii) a waiver of the right to injunctive, declaratory, or other equitable relief
         or relief on 313.31a class basis; or314.1(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide
         314.2all disclosures required by the federal Truth in Lending Act, United States Code,
         title 15, 314.3in a form that may be retained by the client.314.4EFFECTIVE DATE.This section is effective for claims and returns filed after December 314.531, 2017.314.6    Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:314.7    Subd. 5a. Nongame wildlife checkoff. A tax preparer must give written notice of the 314.8option to contribute to the nongame wildlife management account in section 
         290.431 to 314.9corporate clients that file an income tax return and to individual clients who file
         an income 314.10tax return or property tax refund claim form under chapter 290A. This notification must be 314.11included with information sent to the client at the same time as the preliminary worksheets
         314.12or other documents used in preparing the client's return and must include a line for
         displaying 314.13contributions.314.14EFFECTIVE DATE.This section is effective for claims and returns filed after December 314.1531, 2017.314.16    Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:314.17    Subd. 6. Enforcement; administrative order; penalties; cease and desist.(a) The 314.18commissioner may impose an administrative penalty of not more than $1,000 per violation
         314.19of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not 314.20be imposed for any conduct that is also subject to the for which a tax return preparer penalties 314.21inpenalty is imposed under section 
         289A.60, subdivision 13. The commissioner may 314.22terminate a tax preparer's authority to transmit returns electronically to the state,
         if the 314.23commissioner determines the tax preparer engaged in a pattern and practice of violating
         314.24this section. Imposition of a penalty under this subdivision paragraph is subject to the 314.25contested case procedure under chapter 14. The commissioner shall collect the penalty
         in 314.26the same manner as the income tax. There is no right to make a claim for refund under 314.27section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this 314.28subdivision paragraph are public data.314.29(b) In addition to the penalty under paragraph (a), if the commissioner determines
         that 314.30a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner
         may 314.31issue an administrative order to the tax preparer requiring the tax preparer to cease
         and 314.32desist from committing the violation. The administrative order may include an administrative
         314.33penalty provided in paragraph (a).315.1(c) If the commissioner issues an administrative order under paragraph (b), the 315.2commissioner must send the order to the tax preparer addressed to the last known address
         315.3of the tax preparer.315.4(d) A cease and desist order under paragraph (b) must:315.5(1) describe the act, conduct, or practice committed and include a reference to the
         law 315.6that the act, conduct, or practice violates; and315.7(2) provide notice that the tax preparer may request a hearing as provided in this
         315.8subdivision.315.9(e) Within 30 days after the commissioner issues an administrative order under paragraph
         315.10(b), the tax preparer may request a hearing to review the commissioner's action. The
         request 315.11for hearing must be made in writing and must be served on the commissioner at the
         address 315.12specified in the order. The hearing request must specifically state the reasons for
         seeking 315.13review of the order. The date on which a request for hearing is served by mail is
         the postmark 315.14date on the envelope in which the request for hearing is mailed.315.15(f) If a tax preparer does not timely request a hearing regarding an administrative
         order 315.16issued under paragraph (b), the order becomes a final order of the commissioner and
         is not 315.17subject to review by any court or agency.315.18(g) If a tax preparer timely requests a hearing regarding an administrative order
         issued 315.19under paragraph (b), the hearing must be commenced within ten days after the commissioner
         315.20receives the request for a hearing.315.21(h) A hearing timely requested under paragraph (e) is subject to the contested case
         315.22procedure under chapter 14, as modified by this subdivision. The administrative law
         judge 315.23must issue a report containing findings of fact, conclusions of law, and a recommended
         315.24order within ten days after the completion of the hearing, the receipt of late-filed
         exhibits, 315.25or the submission of written arguments, whichever is later.315.26(i) Within five days of the date of the administrative law judge's report issued under
         315.27paragraph (h), any party aggrieved by the administrative law judge's report may submit
         315.28written exceptions and arguments to the commissioner. Within 15 days after receiving
         the 315.29administrative law judge's report, the commissioner must issue an order vacating,
         modifying, 315.30or making final the administrative order.315.31(j) The commissioner and the tax preparer requesting a hearing may by agreement 315.32lengthen any time periods prescribed in paragraphs (g) to (i).316.1(k) An administrative order issued under paragraph (b) is in effect until it is modified
         316.2or vacated by the commissioner or an appellate court. The administrative hearing provided
         316.3by paragraphs (e) to (i) and any appellate judicial review as provided in chapter
         14 constitute 316.4the exclusive remedy for a tax preparer aggrieved by the order.316.5(l) The commissioner may impose an administrative penalty, in addition to the penalty
         316.6under paragraph (a), up to $5,000 per violation of a cease and desist order issued
         under 316.7paragraph (b). Imposition of a penalty under this paragraph is subject to the contested
         case 316.8procedure under chapter 14. Within 30 days after the commissioner imposes a penalty
         under 316.9this paragraph, the tax preparer assessed the penalty may request a hearing to review
         the 316.10penalty order. The request for hearing must be made in writing and must be served
         on the 316.11commissioner at the address specified in the order. The hearing request must specifically
         316.12state the reasons for seeking review of the order. The cease and desist order issued
         under 316.13paragraph (b) is not subject to review in a proceeding to challenge the penalty order
         under 316.14this paragraph. The date on which a request for hearing is served by mail is the postmark
         316.15date on the envelope in which the request for hearing is mailed. If the tax preparer
         does not 316.16timely request a hearing, the penalty order becomes a final order of the commissioner
         and 316.17is not subject to review by any court or agency. A penalty imposed by the commissioner
         316.18under this paragraph may be collected and enforced by the commissioner as an income
         tax 316.19liability. There is no right to make a claim for refund under section 289A.50 of the
         penalty 316.20imposed under this paragraph. A penalty imposed under this paragraph is public data.316.21(m) If a tax preparer violates a cease and desist order issued under paragraph (b),
         the 316.22commissioner may terminate the tax preparer's authority to transmit returns electronically
         316.23to the state. Termination under this paragraph is public data.316.24(n) A cease and desist order issued under paragraph (b) is public data when it is
         a final 316.25order.316.26(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
         316.27action under this subdivision against a tax preparer, with respect to a return, within
         the 316.28period to assess tax on that return as provided by section 289A.38.316.29(p) Notwithstanding any other law, the imposition of a penalty or any other action
         against 316.30a tax preparer under this subdivision, other than with respect to a return, must be
         taken by 316.31the commissioner within five years of the violation of statute.316.32EFFECTIVE DATE.This section is effective for claims and returns filed after December 316.3331, 2017.317.1    Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:317.2    Subd. 6a. Exchange of data; State Board of Accountancy. The State Board of 317.3Accountancy shall refer to the commissioner complaints it receives about tax preparers
         who 317.4are not subject to the jurisdiction of the State Board of Accountancy and who are
         alleged 317.5to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 317.6subdivision 5a, or section 270C.4451.317.7EFFECTIVE DATE.This section is effective for claims and returns filed after December 317.831, 2017.317.9    Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:317.10    Subd. 6b. Exchange of data; Lawyers Board of Professional Responsibility. The 317.11Lawyers Board of Professional Responsibility may refer to the commissioner complaints
         317.12it receives about tax preparers who are not subject to its jurisdiction and who are
         alleged to 317.13have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 317.14subdivision 5a, or section 270C.4451.317.15EFFECTIVE DATE.This section is effective for claims and returns filed after December 317.1631, 2017.317.17    Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:317.18    Subd. 6c. Exchange of data; commissioner. The commissioner shall refer information 317.19and complaints about tax preparers who are alleged to have violated the provisions of
         317.20subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section 317.21270C.4451, to:317.22(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction;
         and317.23(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under
         its 317.24jurisdiction.317.25EFFECTIVE DATE.This section is effective for claims and returns filed after December 317.2631, 2017.317.27    Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:317.28    Subd. 7. Enforcement; civil actions. (a) Any violation of this section or section 317.29270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section
         317.308.31
         . An action taken under this section is in the public interest.318.1(b) A client may bring a civil action seeking redress for a violation of this section
         in the 318.2conciliation or the district court of the county in which unlawful action is alleged
         to have 318.3been committed or where the respondent resides or has a principal place of business.318.4(c) A court finding for the plaintiff must award:318.5(1) actual damages;318.6(2) incidental and consequential damages;318.7(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii)
         if the 318.8plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all 318.9interest and fees for a refund anticipation loan;318.10(4) reasonable attorney fees;318.11(5) court costs; and318.12(6) any other equitable relief as the court considers appropriate.318.13EFFECTIVE DATE.This section is effective for claims and returns filed after December 318.1431, 2017.318.15    Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:318.16    Subd. 8. Limited exemptions.(a) Except as provided in paragraph (b), the provisions 318.17of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs 318.18(a) to (n); and 7, do not apply to:318.19(1) an attorney admitted to practice under section 
         481.01;318.20(2) a registered accounting practitioner, a registered accounting practitioner firm, a 318.21certified public accountant, or other person who is subject to the jurisdiction of the State 318.22Board of Accountancy a certified public accountant firm, licensed in accordance with chapter 318.23326A;318.24(3) an enrolled agent who has passed the special enrollment examination administered
         318.25by the Internal Revenue Service; or318.26(4) anyone a person who provides, or assists in providing, tax preparation services within 318.27the scope of duties as an employee or supervisor under the direction or supervision of a 318.28person who is exempt under this subdivision; or318.29(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.319.1(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a
         tax 319.2preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:319.3(1) had a professional license suspended or revoked for cause, not including a failure
         to 319.4pay a professional licensing fee, by any authority of any state, territory, or possession
         of 319.5the United States, including a commonwealth, or the District of Columbia, any federal
         court 319.6of record, or any federal agency, body, or board;319.7(2) irrespective of whether an appeal has been taken, been convicted of any crime
         319.8involving dishonesty or breach of trust;319.9(3) been censured, suspended, or disbarred under United States Treasury Department
         319.10Circular 230;319.11(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal
         319.12proceeding, including suits for injunctive relief, relating to any taxpayer's tax
         liability or 319.13the tax preparer's own tax liability, for:319.14(i) instituting or maintaining proceedings primarily for delay;319.15(ii) advancing frivolous or groundless arguments; or319.16(iii) failing to pursue available administrative remedies; or319.17(5) demonstrated a pattern of willful disreputable conduct by:319.18(i) failing to file a return that the tax preparer was required to file annually for
         two of 319.19the three immediately preceding tax periods; or319.20(ii) failing to file a return that the tax preparer was required to file more frequently
         than 319.21annually for three of the six immediately preceding tax periods.319.22EFFECTIVE DATE.This section is effective for claims and returns filed after December 319.2331, 2017.319.24    Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 319.25to read:319.26    Subd. 9.Powers additional.The powers and authority granted in this section are in 319.27addition to all other powers of the commissioner. The use of the powers granted in
         this 319.28section does not preclude the use of any other power or authority of the commissioner.319.29EFFECTIVE DATE.This section is effective for claims and returns filed after December 319.3031, 2017.320.1    Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:320.2    Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of 320.3paragraph (b), the commissioner must publish lists of tax preparers as defined in
         section 320.4289A.60, subdivision 13, paragraph (f) 270C.445, subdivision 2, paragraph (h), who have 320.5been:320.6    (1) convicted under section 
         289A.63for returns or claims prepared as a tax preparer or;320.7    (2) assessed penalties in excess of $1,000 under section 
         289A.60, subdivision 13, 320.8paragraph (a);320.9    (3) convicted for identity theft under section 609.527, or a similar statute, for
         a return 320.10filed with the commissioner, the Internal Revenue Service, or another state;320.11    (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
         320.12of $1,000;320.13    (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
         320.14(b), that has become a final order; or320.15    (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
         320.16a cease and desist order.320.17    (b) For the purposes of this section, tax preparers are not subject to publication
         if:320.18    (1) an administrative or court action contesting the or appealing a penalty described in 320.19paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time 320.20when notice would be given under subdivision 3;320.21    (2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4), 320.22or (6), has not expired; or320.23    (3) the commissioner has been notified that the tax preparer is deceased;320.24    (4) an appeal period to contest a cease and desist order issued under section 270C.445,
         320.25subdivision 6, paragraph (b), has not expired;320.26    (5) an administrative or court action contesting or appealing a cease and desist order
         320.27issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served
         and 320.28is unresolved at the time when notice would be given under subdivision 3;320.29(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3),
         has been 320.30filed or served and is unresolved at the time when the notice would be given under
         320.31subdivision 3; or321.1    (7) an appeal period to contest a conviction described in paragraph (a), clause (1)
         or (3), 321.2has not expired.321.3EFFECTIVE DATE.This section is effective for claims and returns filed after December 321.431, 2017.321.5    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:321.6    Subd. 3. Notice to tax preparer. (a) At least 30 days before publishing the name of a 321.7tax preparer subject to penalty publication under this section, the commissioner shall mail 321.8a written notice to the tax preparer, detailing the amount and nature of each penalty basis 321.9for the publication and the intended publication of the information listed in subdivision 4 321.10related to the penalty. The notice must be mailed by first class and certified mail sent to the 321.11tax preparer addressed to the last known address of the tax preparer. The notice must include
         321.12information regarding the exceptions listed in subdivision 2, paragraph (b), and must
         state 321.13that the tax preparer's information will not be published if the tax preparer provides
         321.14information establishing that subdivision 2, paragraph (b), prohibits publication
         of the tax 321.15preparer's name.321.16(b) Thirty days after the notice is mailed and if the tax preparer has not proved
         to the 321.17commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner
         321.18may publish in a list of tax preparers subject to penalty the information about the
         tax preparer 321.19that is listed in subdivision 4.321.20EFFECTIVE DATE.This section is effective for claims and returns filed after December 321.2131, 2017.321.22    Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:321.23    Subd. 4. Form of list. The list may be published by any medium or method. The list 321.24must contain the name, associated business name or names, address or addresses, and
         321.25violation or violations for which a penalty was imposed of that make each tax preparer 321.26subject to penalty publication.321.27EFFECTIVE DATE.This section is effective for claims and returns filed after December 321.2831, 2017.321.29    Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:321.30    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer 321.31from the list of tax preparers published under this section:322.1(1) when the commissioner determines that the name was included on the list in error;322.2(2) within 90 days three years after the preparer has demonstrated to the commissioner 322.3that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied 322.4any sentence imposed, successfully completed any probationary period imposed, and 322.5successfully completed any remedial actions required by the commissioner, the State
         Board 322.6of Accountancy, or the Lawyers Board of Professional Responsibility; or322.7(3) when the commissioner has been notified that the tax preparer is deceased.322.8EFFECTIVE DATE.This section is effective for claims and returns filed after December 322.931, 2017.322.10    Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:322.11    Subdivision 1. Commencement of action.(a) Whenever it appears to the commissioner 322.12that a tax preparer doing business in Minnesota has engaged in any conduct described
         in 322.13subdivision 2, a civil action in the name of the state of Minnesota may be commenced to 322.14enjoin any person who is a tax return preparer doing business in this state from further
         322.15engaging in any conduct described in subdivision 2 the conduct and enforce compliance.322.16(b) An action under this subdivision must be brought by the attorney general in:322.17(1) the district court for the judicial district of the tax return preparer's residence or 322.18principal place of business, or in which the;322.19(2) the district court for the judicial district of the residence of any taxpayer with respect 322.20to whose tax return the action is brought resides; or322.21(3) Ramsey County District Court.322.22(c) The court may exercise its jurisdiction over the action separate and apart from any
         322.23other action brought by the state of Minnesota against the tax return preparer or any taxpayer.322.24The court must grant a permanent injunction or other appropriate relief if the commissioner
         322.25shows that the person has engaged in conduct constituting a violation of a law administered
         322.26by the commissioner or a cease and desist order issued by the commissioner. The 322.27commissioner shall not be required to show irreparable harm.322.28EFFECTIVE DATE.This section is effective for claims and returns filed after December 322.2931, 2017.323.1    Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:323.2    Subd. 2. Injunction prohibiting specific conduct. In an action under subdivision 1,323.3the court may enjoin the person from further engaging in that conduct if the court finds that 323.4a tax return preparer has:323.5(1) engaged in any conduct subject to a civil penalty under section 
         289A.60or, a criminal 323.6penalty under section 
         289A.63, or a criminal penalty under section 609.527 or a similar 323.7statute for a return filed with the commissioner, the Internal Revenue Service, or
         another 323.8state;323.9(2) misrepresented the preparer's eligibility to practice before the Department of
         Revenue, 323.10or otherwise misrepresented the preparer's experience or education as a tax return preparer;323.11(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or323.12(4) violated a cease and desist order issued by the commissioner; or323.13(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes
         323.14with the proper administration of a law administered by the commissioner, and injunctive
         323.15relief is appropriate to prevent the recurrence of that conduct,.323.16the court may enjoin the person from further engaging in that conduct.323.17EFFECTIVE DATE.This section is effective for claims and returns filed after December 323.1831, 2017.323.19    Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:323.20    Subd. 3. Injunction prohibiting all business activities. If the court finds that a tax 323.21return preparer has continually or repeatedly engaged in conduct described in subdivision
         323.222, and that an injunction prohibiting that conduct would not be sufficient to prevent
         the 323.23person's interference with the proper administration of a law administered by the
         323.24commissioner, the court may enjoin the person from acting as a tax return preparer. The 323.25court may not enjoin the employer of a tax return preparer for conduct described in 323.26subdivision 2 engaged in by one or more of the employer's employees unless the employer
         323.27was also actively involved in that conduct.323.28EFFECTIVE DATE.This section is effective for claims and returns filed after December 323.2931, 2017.324.1    Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision 324.2to read:324.3    Subd. 3a.Enforcement of cease and desist orders.(a) Whenever the commissioner 324.4under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order,
         the court 324.5must consider the allegations in the cease and desist order conclusively established
         if the 324.6order is a final order.324.7(b) If the court finds the tax preparer was not in compliance with a cease and desist
         order, 324.8the court may impose a further civil penalty against the tax preparer for contempt
         in an 324.9amount up to $10,000 for each violation and may grant any other relief the court determines
         324.10is just and proper in the circumstances. A civil penalty imposed by a court under
         this section 324.11may be collected and enforced by the commissioner as an income tax liability.324.12(c) The court may not require the commissioner to post a bond in an action or proceeding
         324.13under this section.324.14EFFECTIVE DATE.This section is effective for claims and returns filed after December 324.1531, 2017.324.16    Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:324.17    Subd. 13. Penalties for tax return preparers. (a) If an understatement of liability with 324.18respect to a return or claim for refund is due to a reckless disregard of laws and
         rules or 324.19willful attempt in any manner to understate the liability for a tax by a person who
         is a tax 324.20return preparer with respect to the return or claim, the person shall pay to the commissioner
         324.21a penalty of $500. If a part of a property tax refund claim filed under section 290.0677, 324.22subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt 324.23in any manner to overstate the claim for relief allowed under chapter 290A by a person who 324.24is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a 324.25penalty of $500 with respect to the claim. These penalties may not be assessed against
         the 324.26employer of a tax return preparer unless the employer was actively involved in the reckless 324.27disregard or willful attempt to understate the liability for a tax or to overstate
         the claim for 324.28refund. These penalties are income tax liabilities and may be assessed at any time
         as provided 324.29in section 
         289A.38, subdivision 5.324.30(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
         324.31any person who is a tax return preparer doing business in this state as provided in section 324.32270C.447
         .325.1(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
         325.2returns electronically to the state, if the commissioner determines that the tax preparer
         has 325.3engaged in a pattern and practice of conduct in violation of paragraph (a) of this
         subdivision 325.4or has been convicted under section 
         289A.63.325.5(d) For purposes of this subdivision, the term "understatement of liability" means
         an 325.6understatement of the net amount payable with respect to a tax imposed by state tax
         law, 325.7or an overstatement of the net amount creditable or refundable with respect to a tax.
         The 325.8determination of whether or not there is an understatement of liability must be made
         without 325.9regard to any administrative or judicial action involving the taxpayer. For purposes
         of this 325.10subdivision, the amount determined for underpayment of estimated tax under either
         section 325.11289A.25
          or 
         289A.26 is not considered an understatement of liability.325.12(e) For purposes of this subdivision, the term "overstatement of claim" means an 325.13overstatement of the net amount refundable with respect to a claim for property tax relief 325.14provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination 325.15of whether or not there is an overstatement of a claim must be made without regard
         to 325.16administrative or judicial action involving the claimant.325.17(f) For purposes of this section, the term "tax refund or return preparer"means an 325.18individual who prepares for compensation, or who employs one or more individuals to
         325.19prepare for compensation, a return of tax, or a claim for refund of tax. The preparation
         of 325.20a substantial part of a return or claim for refund is treated as if it were the preparation
         of 325.21the entire return or claim for refund. An individual is not considered a tax return
         preparer 325.22merely because the individual:325.23(1) gives typing, reproducing, or other mechanical assistance;325.24(2) prepares a return or claim for refund of the employer, or an officer or employee
         of 325.25the employer, by whom the individual is regularly and continuously employed;325.26(3) prepares a return or claim for refund of any person as a fiduciary for that person;
         or325.27(4) prepares a claim for refund for a taxpayer in response to a tax order issued to
         the 325.28taxpayer "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision
         325.292, paragraph (h).325.30EFFECTIVE DATE.This section is effective for claims and returns filed after December 325.3131, 2017.326.1    Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:326.2    Subd. 28. Preparer identification number.Any Minnesota individual income tax return 326.3or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
         326.413, paragraph (f), shall bear the identification number the preparer is required to
         use federally 326.5under section 6109(a)(4) of the Internal Revenue Code (a) Each of the following that is 326.6prepared by a tax preparer must include the tax preparer's tax identification number:326.7(1) a tax return required to be filed under this chapter;326.8(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and326.9    (3) a claim for refund of an overpayment.326.10(b) A tax preparer is not required to include their preparer tax identification number
         on 326.11a filing if the number is not required in the forms or filing requirements provided
         by the 326.12commissioner.326.13    (c) A tax refund or return preparer who prepares a Minnesota individual income tax 326.14return or claim for refund and fails to include the requiredpreparer tax identification number 326.15on the return or claim as required by this section is subject to a penalty of $50 for each 326.16failure.326.17(d) A tax preparer who fails to include the preparer tax identification number as
         required 326.18by this section, and who is required to have a valid preparer tax identification number
         issued 326.19under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject
         to 326.20a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph
         is 326.21not subject to the penalty in paragraph (c).326.22(e) For the purposes of this subdivision, "tax preparer" has the meaning given in
         section 326.23270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
         326.24the number the tax preparer is required to use federally under section 6109(a)(4)
         of the 326.25Internal Revenue Code.326.26EFFECTIVE DATE.This section is effective for claims and returns filed after December 326.2731, 2017.326.28    Sec. 21. REVISOR'S INSTRUCTION.326.29(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
         in 326.30column A to the references listed in column B.

326.31Column AColumn B326.32270C.445, subdivision 3a270C.4451, subdivision 1327.1270C.445, subdivision 4270C.4451, subdivision 2327.2270C.445, subdivision 4a270C.4451, subdivision 3327.3270C.445, subdivision 4b270C.4451, subdivision 4327.4270C.445, subdivision 5b270C.4451, subdivision 5

327.5(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes
         and 327.6Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445,
         327.7subdivisions 3a, 4, 4a, 4b, and 5b.327.8(c) The revisor shall publish the statutory derivations of the laws renumbered in
         this act 327.9in Laws of Minnesota and report the derivations in Minnesota Statutes.327.10(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are
         further 327.11amended in the 2017 legislative session, the revisor shall codify the amendments in
         a manner 327.12consistent with this act. The revisor may make necessary changes to sentence structure
         to 327.13preserve the meaning of the text.327.14EFFECTIVE DATE.This section is effective the day following final enactment.327.15    Sec. 22.  REPEALER.327.16Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision
         327.174, are repealed.327.18EFFECTIVE DATE.This section is effective for claims and returns filed after December 327.1931, 2017.