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

3.4 	ARTICLE 1
3.5 	INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

3.6 	Section 1. [116J.5491] WORKFORCE HOUSING TAX CREDIT.
3.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
3.8 	the meanings given.
3.9 	(b) "City" means a statutory or home rule charter city.
3.10 	(c) "Developer" means the individual or entity that is responsible for arranging financing 
3.11 	for and construction of a qualified workforce housing project.
3.12 	(d) "Eligible project site" means the site for the proposed qualified workforce housing 
3.13 	project that must be located in:
3.14 	(1) an area that does not require extension of public infrastructure, other than connections 
3.15 	to or access for the site, and that is located outside of the metropolitan area, as defined in 
3.16 	section 473.121, subdivision 2;
3.17 	(2) a city with at least 500 jobs, as measured in the QCEW, or within the jurisdiction of 
3.18 	an economic development authority, formed under Laws 1988, chapter 516, section 1, as a 
3.19 	joint partnership between a city and county and excluding those established by the county 
3.20 	only; and
3.21 	(3) an area, consisting of the city in which the site is located and any other city or town 
3.22 	located within 15 miles or less of the site, with an average vacancy rate for market rate 
3.23 	residential rental properties of four percent or less for any two of the last five years, based 
3.24 	on a market housing analysis that supports demand for the proposed qualified workforce 
3.25 	housing project.
3.26 	(e) "Market rate residential rental properties" means properties that are rented at market 
3.27 	value and excludes properties constructed with:
3.28 	(1) financial assistance requiring the property to be occupied by residents that meet 
3.29 	income limits under federal or state law of initial occupancy; and
3.30 	(2) federal, state, or local flood recovery assistance, regardless of whether that assistance 
3.31 	imposed income limits as a condition of receiving assistance.
4.1 	(f) "QCEW" means the Quarterly Census of Employment and Wages with the most 
4.2 	recent annual data published by the commissioner.
4.3 	(g) "Qualified investment" means a cash investment or the fair market value equivalent 
4.4 	for common stock, land, a partnership or membership interest, preferred stock, debt with 
4.5 	mandatory conversion to equity, or an equivalent ownership interest as determined by the 
4.6 	commissioner that is made in a qualified workforce housing project.
4.7 	(h) "Qualified project investor" means an investor who makes a qualified investment 
4.8 	and receives a tax credit certificate from the developer of the project.
4.9 	(i) "Qualified workforce housing project" means a project:
4.10 	(1) for market rate residential rental properties with a minimum of three dwelling units;
4.11 	(2) with an average construction cost per unit, excluding site preparation costs, of no 
4.12 	more than $250,000 and no less than $75,000;
4.13 	(3) located on an eligible project site;
4.14 	(4) that has more than 50 percent nonstate funding proposed to fund the project; and
4.15 	(5) that has been designated by the commissioner as a qualified workforce housing 
4.16 	project.
4.17 	(j) "Workforce Housing Undersupply Ratio" means the total number of full-time jobs 
4.18 	in the area, as defined in paragraph (d), clause (3), in which the proposed project is located, 
4.19 	as reported in the QCEW, divided by the total number of persons over the age of 16 who 
4.20 	are employed and living in that area, as reported by the United States Census 
4.21 	"EMPLOYMENT STATUS" data set or similar United States Census data set.
4.22 		Subd. 2.Qualified project investor tax credits. (a) A qualified project investor is 
4.23 	allowed a credit against the tax imposed under chapter 290 equal to 40 percent of the qualified 
4.24 	investment up to a maximum of $1,000,000.
4.25 	(b) The credit under this subdivision is allowed in the first taxable year in which the 
4.26 	qualified workforce housing project has housing units that are certified for occupancy by 
4.27 	the Department of Labor and Industry or a city inspector.
4.28 	(c) The commissioner may issue tax credit allocations to qualified workforce housing 
4.29 	projects for a taxable year, up to $2,500,000, based on applications made by developers and 
4.30 	as provided under paragraph (d). No more than $1,000,000 in tax credit allocations may be 
4.31 	issued for a qualified workforce housing project. Any portion of the permitted allocation 
5.1 	for a taxable year that is not issued by the commissioner does not cancel and carries forward 
5.2 	to the following taxable year.
5.3 	(d) A developer of a qualified workforce housing project may apply to the commissioner 
5.4 	for an allocation of tax credits under this section. The application must provide information 
5.5 	sufficient for the commissioner to determine:
5.6 	(1) that the project meets the requirements for a qualified workforce housing project 
5.7 	under this section;
5.8 	(2) that the developer has sufficient financing to acquire and construct the project;
5.9 	(3) the financial viability of the project;
5.10 	(4) the total amount of credits applied for;
5.11 	(5) each of the project's investors, the amounts each has or will invest in the project, and 
5.12 	the amount of tax credits the developer proposes to provide to each; and
5.13 	(6) any other information that the commissioner deems appropriate.
5.14 	The application must be made in the form and manner specified by the commissioner. 
5.15 	Applications for tax credits for a taxable year must be made available by the commissioner 
5.16 	by November 1 of the prior calendar year. The commissioner must make every effort to 
5.17 	provide applications and relevant data to applicants in a simple, concise manner using plain 
5.18 	language, and distribute relevant eligibility information on the Department of Employment 
5.19 	and Economic Development Web site. In allocating the credits, the commissioner must give 
5.20 	preference to projects with the highest Workforce Housing Undersupply Ratio, except where 
5.21 	the commissioner determines the investment is circumventing the spirit of the law or where 
5.22 	little or no local economic growth would occur as a result of the investment. The 
5.23 	commissioner must approve or reject a tax credit request application within 15 days of 
5.24 	receiving the application. The commissioner shall provide tax credit certificates to the 
5.25 	applicant developer of an approved qualified workforce housing project in the amount of 
5.26 	the credits allocated to the project. The developer shall provide the credit certificates to its 
5.27 	qualified project investors in return for their investments in the projects and notify the 
5.28 	commissioner of the amount provided to each investor within 15 days. If the project does 
5.29 	not have units certified for occupancy as provided in paragraph (b) within a two-year period 
5.30 	following issuance of the credit certificates to the developer, the tax credit allocation for 
5.31 	the project is canceled. The developer must notify the commissioner immediately of the 
5.32 	failure to obtain a certificate of occupancy no later than five business days after the expiration 
6.1 	of the two-year period. The commissioner must notify the commissioner of revenue of the 
6.2 	credit 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 
6.4 	the workforce housing tax credit administration account in the special revenue fund. Amounts 
6.5 	in the account are appropriated to the commissioner for the cost of administering the tax 
6.6 	credit under this section.
6.7 	(f) The commissioner of revenue shall prescribe the manner in which the credits are 
6.8 	issued and claimed.
6.9 		Subd. 3.Transfer and revocation of credits. (a) A qualified project investor who 
6.10 	receives a certificate may assign the certificate to another taxpayer, who is then allowed the 
6.11 	credit under this section and section 290.06, subdivision 37. An assignment is not valid 
6.12 	unless the assignee notifies the commissioner of revenue within 30 days of the date that the 
6.13 	assignment is made. The commissioner of revenue shall prescribe the forms necessary to 
6.14 	provide notification of the assignment and to claim a credit by assignment. Credits passed 
6.15 	through to partners, members, shareholders, or owners under section 290.06, subdivision 
6.16 	37, 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 
6.18 	eligibility requirements for the tax credits under this section after the credits have been 
6.19 	allocated and certificates issued, the commissioner may determine that credit certificate is 
6.20 	revoked and must be repaid by the investor. The commissioner must notify the commissioner 
6.21 	of 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 
6.23 	March 15 to the chairs and ranking minority members of the committees in the senate and 
6.24 	house of representatives with jurisdiction over taxes and economic development, in 
6.25 	compliance with sections 3.195 and 3.197, on tax credits issued under this section. The 
6.26 	report 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 
6.29 	or not workforce housing needs are being met;
6.30 	(3) which projects have been funded by the workforce housing tax credit and whether 
6.31 	previously 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 
7.3 	workforce housing projects funded under this section; and
7.4 	(8) any other relevant information needed to evaluate the effect of the workforce housing 
7.5 	tax credits.

7.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.7 	31, 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 
7.10 	admitted to a major program that is related to the intern experience as determined by the 
7.11 	eligible 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 
7.14 	at least eight weeks long and located in greater Minnesota; and
7.15 	(2) provide academic credit for the successful completion of the internship or ensure 
7.16 	that 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 
7.18 	with 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 
7.21 	agreement;
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 
7.26 	period of at least eight weeks; and
7.27 	(7) (6) will be supervised and evaluated by the employer.
7.28 	(d) The written agreement between the eligible institution and the eligible employer 
7.29 	must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 
8.1 	dollar amount of credits that an eligible institution certifies to eligible employers in a calendar 
8.2 	year 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 
8.4 	office. The report must include at least the following:
8.5 	(1) the number of interns hired;
8.6 	(2) the number of hours and weeks worked by interns; and
8.7 	(3) the compensation paid to interns.
8.8 	(f) An internship required to complete an academic program does not qualify for the 
8.9 	greater Minnesota internship program under this section.

8.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.11 	31, 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 
8.14 	property with a situs in Minnesota, the personal representative must submit a Minnesota 
8.15 	estate tax return to the commissioner, on a form prescribed by the commissioner, if:
8.16 	(1) a federal estate tax return is required to be filed; or
8.17 	(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 
8.18 	section 2001(b) of the Internal Revenue Code, made within three years of the date of the 
8.19 	decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for 
8.20 	estates 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 
8.22 	of decedents dying in 2018 and thereafter; $3,300,000 for estates of decedents dying in 
8.23 	2019; $3,700,000 for estates of decedents dying in 2020; $4,100,000 for estates of decedents 
8.24 	dying in 2021; and $5,000,000 for estates of decedents dying in 2022.
8.25 	The return must contain a computation of the Minnesota estate tax due. The return must 
8.26 	be signed by the personal representative(b) For estates of decedents dying in 2023 and 
8.27 	thereafter, in the case of a decedent who has an interest in property with a situs in Minnesota, 
8.28 	the personal representative must submit a Minnesota estate tax return to the commissioner, 
8.29 	on a form prescribed by the commissioner, if a federal estate tax return is required to be 
8.30 	filed.
8.31 	(c) The return must contain a computation of the Minnesota estate tax due. The return 
8.32 	must be signed by the personal representative.

9.1 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
9.2 	December 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, 
9.5 	except 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 
9.7 	qualified individual notifies the county within three months of moving out of the country 
9.8 	that homestead status be revoked for the Minnesota residence of the qualified individual, 
9.9 	and the property is not classified as a homestead while the individual remains a qualified 
9.10 	individual.
9.11 	(b) "Resident" also means any individual domiciled outside the state who maintains a 
9.12 	place of abode in the state and spends in the aggregate more than one-half of the tax year 
9.13 	in Minnesota, unless:
9.14 	(1) the individual or the spouse of the individual is in the armed forces of the United 
9.15 	States; or
9.16 	(2) the individual is covered under the reciprocity provisions in section 290.081.
9.17 	For purposes of this subdivision, presence within the state for any part of a calendar day 
9.18 	constitutes a day spent in the state. Individuals shall keep adequate records to substantiate 
9.19 	the days spent outside the state.
9.20 	The term "abode" means a dwelling maintained by an individual, whether or not owned 
9.21 	by the individual and whether or not occupied by the individual, and includes a dwelling 
9.22 	place owned or leased by the individual's spouse.
9.23 	(c) In determining where an individual is domiciled, neither the commissioner nor any 
9.24 	court shall consider:
9.25 	(1) charitable contributions made by an the individual within or without the state in 
9.26 	determining if the individual is domiciled in Minnesota;
9.27 	(2) the location of the individual's attorney, certified public accountant, or financial 
9.28 	adviser; or
9.29 	(3) the place of business of a financial institution at which the individual applies for any 
9.30 	new 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, 
10.3 	registered investment adviser, licensed insurance producer or agent, or registered securities 
10.4 	broker-dealer representative; or
10.5 	(ii) a financial institution providing services related to trust or estate administration, 
10.6 	investment management, or financial planning; and
10.7 	(2) "financial institution" means a financial institution as defined in section 47.015, 
10.8 	subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer 
10.9 	under the Securities and Exchange Act of 1934.

10.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.11 	31, 2016.

10.12 	Sec. 5. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws 
10.13 	2017, chapter 1, section 4, is amended to read:
10.14 		Subd. 10.Section 179 expensing. For taxable years beginning before January 1, 2018, 
10.15 	80 percent of the amount by which the deduction allowed under the dollar limits of section 
10.16 	179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 
10.17 	Internal Revenue Code, as amended through December 31, 2003, is an addition.

10.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.19 	31, 2017.

10.20 	Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 
10.21 	to read:
10.22 		Subd. 14.Equity and opportunity donations to qualified foundations. The amount 
10.23 	of the deduction under section 170 of the Internal Revenue Code that represents contributions 
10.24 	to a qualified foundation under section 290.0693 is an addition.

10.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.26 	31, 2017.

10.27 	Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 
10.28 	to read:
10.29 		Subd. 15.First-time home buyer savings account. The amount for a first-time home 
10.30 	buyer savings account required by section 462D.06, subdivision 2, is an addition.

11.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.2 	31, 2016.

11.3 	Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
11.4 	to read:
11.5 		Subd. 23.Social Security benefits. (a) A portion of Social Security benefits, as defined 
11.6 	under section 86(d)(1) of the Internal Revenue Code, is allowed as a subtraction, subject to 
11.7 	the limits under paragraphs (b), (c), and (d).
11.8 	(b) For married taxpayers filing a joint return, the subtraction equals the lesser of Social 
11.9 	Security benefits or $2,500. The subtraction is reduced by two and one-half percent for 
11.10 	every $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 
11.12 	Security benefits or $1,955. The subtraction is reduced by two and one-half percent for 
11.13 	every $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 
11.15 	Social Security benefits or $1,250. The subtraction is reduced by two and one-half percent 
11.16 	for every $480 of provisional income over $38,500. In no case is the subtraction less than 
11.17 	zero.
11.18 	(e) For purposes of this subdivision, "provisional income" has the meaning given in 
11.19 	section 86 of the Internal Revenue Code.
11.20 	(f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the 
11.21 	percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 
11.22 	Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016" shall 
11.23 	be substituted for the word "1992." For 2018, the commissioner shall then determine the 
11.24 	percent change from the 12 months ending on August 31, 2016, to the 12 months ending 
11.25 	on August 31, 2017, and in each subsequent year, from the 12 months ending on August 
11.26 	31, 2016, to the 12 months ending on August 31 of the year preceding the taxable year. The 
11.27 	determination of the commissioner pursuant to this subdivision must not be considered a 
11.28 	rule and is not subject to the Administrative Procedure Act contained in chapter 14. The 
11.29 	threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount 
11.30 	ends in $5, the amount is rounded up to the nearest $10 amount.

11.31 	EFFECTIVE DATE. Paragraphs (a) to (e) are effective for taxable years beginning 
11.32 	after December 31, 2016. Paragraph (f) is effective for taxable years beginning after 
11.33 	December 31, 2017.

12.1 	Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
12.2 	to read:
12.3 		Subd. 24.First-time home buyer savings account. (a) The amount for contributions 
12.4 	to and earnings on a first-time home buyer savings account allowed by section 462D.06, 
12.5 	subdivision 1, is a subtraction.
12.6 	(b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500, 
12.7 	or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined 
12.8 	in 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 
12.10 	adjusted gross income in excess of that threshold.
12.11 	(c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for 
12.12 	inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount 
12.13 	of the income thresholds at which the subtraction begins to be reduced under paragraph (b) 
12.14 	by the percentage determined under section 1(f) of the Internal Revenue Code, except that 
12.15 	in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the 
12.16 	commissioner shall then determine the percent change from the 12 months ending on August 
12.17 	31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from 
12.18 	the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the 
12.19 	year preceding the taxable year. The determination of the commissioner under this 
12.20 	subdivision is not a "rule" and is not subject to the Administrative Procedure Act in chapter 
12.21 	14. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the 
12.22 	amount ends in $50, the amount is rounded up to the nearest $100 amount.

12.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.24 	31, 2016.

12.25 	Sec. 10. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws 
12.26 	2017, chapter 1, section 5, is amended to read:
12.27 		Subd. 12.Section 179 expensing. For taxable years beginning before January 1, 2018, 
12.28 	80 percent of the amount by which the deduction allowed under the dollar limits of section 
12.29 	179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the 
12.30 	Internal Revenue Code, as amended through December 31, 2003, is an addition.

12.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.32 	31, 2017.

13.1 	Sec. 11. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision 
13.2 	to read:
13.3 		Subd. 15.Equity and opportunity donations to qualified foundations. The amount 
13.4 	of the deduction under section 170 of the Internal Revenue Code that represents contributions 
13.5 	to a qualified foundation under section 290.0693 is an addition.

13.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.7 	31, 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 
13.10 	beginning after December 21, 2017:
13.11 	(a) The income taxes imposed by this chapter upon married individuals filing joint returns 
13.12 	and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be 
13.13 	computed 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 
13.19 	tax by applying the above rates to their taxable income, except that the income brackets 
13.20 	will be one-half of the above amounts.
13.21 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
13.22 	computed 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 
13.28 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
13.29 	computed 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 
14.5 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
14.6 	amount determined by the commissioner must be computed in accordance with tables 
14.7 	prepared and issued by the commissioner of revenue based on income brackets of not more 
14.8 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
14.9 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
14.10 	unless 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 
14.12 	individual's Minnesota income tax as provided in this subdivision. After the application of 
14.13 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
14.14 	by a fraction in which:
14.15 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
14.16 	defined in section 62 of the Internal Revenue Code and increased by the additions required 
14.17 	under section 290.0131, subdivisions 2 and 6 to 11, and reduced by the Minnesota assignable 
14.18 	portion of the subtraction for United States government interest under section 290.0132, 
14.19 	subdivision 2, and the subtractions under section 290.0132, subdivisions 9, 10, 14, 15, 17, 
14.20 	and 18, after applying the allocation and assignability provisions of section 290.081, clause 
14.21 	(a), or 290.17; and
14.22 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
14.23 	62 of the Internal Revenue Code, increased by the amounts specified in section 290.0131, 
14.24 	subdivisions 2 and 6 to 11, and reduced by the amounts specified in section 290.0132, 
14.25 	subdivisions 2, 9, 10, 14, 15, 17, and 18.

14.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.27 	31, 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 
14.30 	December 31, 2013 2018, the minimum and maximum dollar amounts for each rate bracket 
14.31 	for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage 
14.32 	determined under paragraph (b). For the purpose of making the adjustment as provided in 
14.33 	this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets 
15.1 	as they existed for taxable years beginning after December 31, 2012 2017, and before 
15.2 	January 1, 2014 2019. The rate applicable to any rate bracket must not be changed. The 
15.3 	dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets. 
15.4 	The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket 
15.5 	ends 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 
15.7 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
15.8 	1(f)(3)(B) the word "2012" "2017" shall be substituted for the word "1992." For 2014 2019, 
15.9 	the commissioner shall then determine the percent change from the 12 months ending on 
15.10 	August 31, 2012 2017, to the 12 months ending on August 31, 2013 2018, and in each 
15.11 	subsequent year, from the 12 months ending on August 31, 2012 2017, to the 12 months 
15.12 	ending on August 31 of the year preceding the taxable year. The determination of the 
15.13 	commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be 
15.14 	subject to the Administrative Procedure Act contained in chapter 14.
15.15 	No later than December 15 of each year, the commissioner shall announce the specific 
15.16 	percentage that will be used to adjust the tax rate brackets.

15.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.18 	31, 2018.

15.19 	Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
15.20 	read:
15.21 		Subd. 2g.First-time home buyer savings account. In addition to the tax computed 
15.22 	under subdivision 2c, an additional amount of tax applies equal to the additional tax computed 
15.23 	for the taxable year for the account holder of a first-time home buyer account under section 
15.24 	462D.06, subdivision 3.

15.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.26 	31, 2016.

15.27 	Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
15.28 	read:
15.29 		Subd. 2h.Temporary schedule of rates for individuals, estates, and trusts. For taxable 
15.30 	years 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 
16.2 	and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be 
16.3 	computed 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 
16.9 	tax by applying the above rates to their taxable income, except that the income brackets 
16.10 	will be one-half of the above amounts.
16.11 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
16.12 	computed 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 
16.18 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
16.19 	computed 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.

16.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.26 	31, 2016, and before January 1, 2018.

17.1 	Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
17.2 	read:
17.3 		Subd. 37.Workforce housing credit. (a) A qualified project investor is allowed a credit 
17.4 	against the tax under this chapter equal to the amount certified by the commissioner of 
17.5 	employment and economic development under section 116J.5491 to the taxpayer as a 
17.6 	qualified 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, 
17.9 	S corporation, or multiple owners of property are passed through to the partners, members, 
17.10 	shareholders, or owners, respectively, pro rata to each based on the partner's, member's, 
17.11 	shareholder's, or owner's share of the entity's assets or as specially allocated in the 
17.12 	organizational documents or any other executed agreement, as of the last day of the taxable 
17.13 	year.
17.14 	(d) Notwithstanding the a tax credit certificate issued by the commissioner of employment 
17.15 	and economic development under section 116J.5491, the commissioner may utilize any 
17.16 	audit and examination powers under chapter 270C or 289A to the extent necessary to verify 
17.17 	that the taxpayer is eligible for the credit and to assess for the amount of any improperly 
17.18 	claimed credit.

17.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.20 	31, 2017, and before January 1, 2019.

17.21 	Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws 
17.22 	2017, chapter 1, section 6, is amended to read:
17.23 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
17.24 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
17.25 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
17.26 	Internal 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 
17.29 	gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than 
17.30 	zero.
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 
18.1 	gross income, whichever is greater, in excess of $21,190, but in no case is the credit less 
18.2 	than zero.
18.3 	(d) For individuals with two or more qualifying children, the credit equals 11 percent 
18.4 	of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 
18.5 	income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case 
18.6 	is the credit less than zero.
18.7 	(e) For a part-year resident, the credit must be allocated based on the percentage calculated 
18.8 	under 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 
18.10 	subject to tax under this chapter, including income excluded under section 290.0132, 
18.11 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
18.12 	income reduced by the earned income not subject to tax under this chapter over federal 
18.13 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
18.14 	considered "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, 
18.16 	are not considered "earned income not subject to tax under this chapter."For the purposes 
18.17 	of this paragraph,;
18.18 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not 
18.19 	considered "earned income not subject to tax under this chapter."; and
18.20 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
18.21 	while 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 
18.24 	under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 
18.25 	For tax years beginning after December 31, 2013, the commissioner shall annually adjust 
18.26 	the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the 
18.27 	Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted 
18.28 	for the word "1992." For 2014, the commissioner shall then determine the percent change 
18.29 	from the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 
18.30 	2013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the 
18.31 	12 months ending on August 31 of the year preceding the taxable year. The earned income 
18.32 	thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends 
18.33 	in $5, the amount is rounded up to the nearest $10. The determination of the commissioner 
18.34 	under 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 
19.2 	income levels and make them available to taxpayers. The tables shall follow the schedule 
19.3 	contained in this subdivision, except that the commissioner may graduate the transition 
19.4 	between income brackets.

19.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
19.6 	31, 2016.

19.7 	Sec. 18. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 
19.8 	to read:
19.9 		Subd. 6.Inflation adjustment. The credit amount and the income threshold at which 
19.10 	the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation. 
19.11 	The commissioner shall adjust the credit amount and income threshold by the percentage 
19.12 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
19.13 	that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992." For 
19.14 	2019, the commissioner shall then determine the percent change from the 12 months ending 
19.15 	on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent 
19.16 	year, from the 12 months ending August 31, 2017, to the 12 months ending on August 31 
19.17 	of the year preceding the taxable year. The credit amount and income threshold as adjusted 
19.18 	for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
19.19 	is rounded up to the nearest $10 amount. The determination of the commissioner under this 
19.20 	subdivision is not a rule subject to the Administrative Procedure Act in chapter 14, including 
19.21 	section 14.386.

19.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
19.23 	31, 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 
19.26 	given.
19.27 	(a) "Qualified research expenses" means (i) qualified research expenses and basic research 
19.28 	payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 
19.29 	not include expenses incurred for qualified research or basic research conducted outside 
19.30 	the 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 
19.32 	provisions of chapter 317A for the purpose of promoting the establishment and expansion 
19.33 	of business in this state, provided the contributions are invested by the nonprofit corporation 
20.1 	for the purpose of providing funds for small, technologically innovative enterprises in 
20.2 	Minnesota during the early stages of their development.
20.3 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
20.4 	Internal Revenue Code, except that the term does not include qualified research conducted 
20.5 	outside 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) 
20.8 	of the Internal Revenue Code, except that the average annual gross receipts must be calculated 
20.9 	using Minnesota sales or receipts under section 290.191 and the definitions contained in 
20.10 	clauses paragraphs (a) and (b) shall apply; or
20.11 	(2) for a taxpayer with an alternative simplified credit election in place under subdivision 
20.12 	2a for the taxable year, 50 percent of the average qualified research expenses for the three 
20.13 	taxable years preceding the taxable year for which the credit is being determined.

20.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.15 	31, 2017.

20.16 	Sec. 20. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision 
20.17 	to read:
20.18 		Subd. 2a.Alternative simplified credit election. (a) A corporation, partnership, or other 
20.19 	taxpayer qualifying for a credit under this section may elect on an original return, including 
20.20 	all extensions, to calculate its base amount under subdivision 2, paragraph (c), clause (2), 
20.21 	for the taxable year. A taxpayer may revoke the election without approval of the 
20.22 	commissioner.
20.23 	(b) For a partnership, the election must be made by the partnership on the partnership 
20.24 	return or other form, as required by the commissioner, and applies to all of its partners.

20.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.26 	31, 2017.

20.27 	Sec. 21. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN 
20.28 	TEACHER'S LICENSURE FIELD.
20.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
20.30 	the meanings given them.
21.1 	(b) "Master's degree program" means a graduate-level program at an accredited university 
21.2 	leading to a master of arts or science degree in a core content area directly related to a 
21.3 	qualified teacher's licensure field. The master's degree program may not include pedagogy 
21.4 	or a pedagogy component. To be eligible under this credit, a licensed elementary school 
21.5 	teacher must pursue and complete a master's degree program in a core content area in which 
21.6 	the 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 
21.9 	Education on behalf of the Minnesota Board of Teaching both when the teacher begins the 
21.10 	master'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; and
21.12 	(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, 
21.14 	mathematics, science, foreign languages, civics and government, economics, arts, history, 
21.15 	or geography.
21.16 		Subd. 2.Credit allowed. (a) An individual who is a qualified teacher is allowed a credit 
21.17 	against 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 
21.19 	allocated 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 
21.22 	degree program completed in a core content area.

21.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.24 	31, 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 
21.27 	the 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 
21.31 	initial receipt of a qualified scholarship or qualified transportation scholarship, without 
22.1 	consideration of the benefits under this program, that does not exceed an amount equal to 
22.2 	two times the income standard used to qualify for a reduced-price meal under the National 
22.3 	School Lunch Program; and
22.4 	(3) meets one of the following criteria:
22.5 	(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester 
22.6 	preceding 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 
22.8 	semester preceding initial receipt of a qualified scholarship;
22.9 	(iii) previously received a qualified scholarship or qualified transportation scholarship 
22.10 	under this section; or
22.11 	(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified 
22.12 	scholarship.
22.13 	(c) "Equity and opportunity in education donation" means a donation to a qualified 
22.14 	foundation that awards qualified scholarships or qualified transportation scholarships.
22.15 	(d) "Household" means household as used to determine eligibility under the National 
22.16 	School Lunch Program.
22.17 	(e) "National School Lunch Program" means the program in United States Code, title 
22.18 	42, section 1758.
22.19 	(f) "Qualified school" means a school operated in Minnesota that is a nonpublic 
22.20 	elementary or secondary school in Minnesota wherein a resident may legally fulfill the 
22.21 	state's compulsory attendance laws that is not operated for profit, and that adheres to the 
22.22 	provisions of United States Code, title 42, section 1981, and chapter 363A.
22.23 	(g) "Qualified foundation" means a nonprofit organization granted an exemption from 
22.24 	the federal income tax under section 501(c)(3) of the Internal Revenue Code that has been 
22.25 	approved as a qualified foundation by the commissioner of revenue under subdivision 5.
22.26 	(h) "Qualified scholarship" means a payment from a qualified foundation to or on behalf 
22.27 	of the parent or guardian of an eligible student for payment of tuition for enrollment in 
22.28 	grades kindergarten through 12 at a qualified school. A qualified scholarship must not 
22.29 	exceed an amount greater than 70 percent of the state average general education revenue 
22.30 	under section 126C.10, subdivision 1, per pupil unit.
22.31 	(i) "Total annual income" means the income measure used to determine eligibility under 
22.32 	the National School Lunch Program in United States Code, title 42, section 1758.
23.1 	(j) "Qualified transportation scholarship" means a payment from a qualified foundation 
23.2 	to or on behalf of a parent or guardian of an eligible student for payment of transportation 
23.3 	to a school, as defined in section 120A.22, subdivision 4. A qualified transportation 
23.4 	scholarship must not exceed an amount greater than 70 percent of the state average general 
23.5 	education revenue under section 126C.10, subdivision 1, per pupil unit.
23.6 		Subd. 2.Credit allowed. (a) An individual or corporate taxpayer who has been issued 
23.7 	a credit certificate under subdivision 3 is allowed a credit against the tax due under this 
23.8 	chapter equal to 70 percent of the amount donated during the taxable year to the qualified 
23.9 	foundation designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer 
23.10 	designates a specific child as the beneficiary of the contribution. No credit is allowed to a 
23.11 	taxpayer for an equity and opportunity in education donation made before the taxpayer was 
23.12 	issued a credit certificate as provided in subdivision 3.
23.13 	(b) The maximum annual credit allowed is:
23.14 	(1) $21,000 for married joint filers for a one-year donation of $30,000;
23.15 	(2) $10,500 for other individual filers for a one-year donation of $15,000; and
23.16 	(3) $105,000 for corporate filers for a one-year donation of $150,000.
23.17 	(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation 
23.18 	when claiming the credit for the donation if requested by the commissioner.
23.19 	(d) The credit is limited to the liability for tax under this chapter, including the tax 
23.20 	imposed by sections 290.0921 and 290.0922.
23.21 	(e) If the amount of the credit under this subdivision for any taxable year exceeds the 
23.22 	limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding 
23.23 	taxable years. The entire amount of the excess unused credit for the taxable year must be 
23.24 	carried first to the earliest of the taxable years to which the credit may be carried. The 
23.25 	amount of the unused credit that may be added under this paragraph may not exceed the 
23.26 	taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to 
23.27 	a taxable year more than five years after the taxable year in which the credit was earned.
23.28 		Subd. 3.Application for credit certificate. (a) The commissioner must make applications 
23.29 	for tax credits for 2018 available on the department's Web site by January 1, 2018. 
23.30 	Applications for subsequent years must be made available by January 1 of the taxable year.
23.31 	(b) A taxpayer must apply to the commissioner for an equity and opportunity in education 
23.32 	tax credit certificate. The application must be in the form and manner specified by the 
23.33 	commissioner and must designate the qualified foundation to which the taxpayer intends 
24.1 	to make a donation. The commissioner must begin accepting applications for a taxable year 
24.2 	on January 1. The commissioner must issue tax credit certificates under this section on a 
24.3 	first-come, first-served basis until the maximum statewide credit amount has been reached. 
24.4 	The certificates must list the qualified foundation the taxpayer designated on the application. 
24.5 	The maximum statewide credit amount is $35,000,000 per taxable year for taxable years 
24.6 	beginning after December 31, 2017.
24.7 	(c) The commissioner must not issue a tax credit certificate for an amount greater than 
24.8 	the limits in subdivision 2.
24.9 	(d) The commissioner must not issue a credit certificate for an application that designates 
24.10 	a qualified foundation that the commissioner has barred from participation as provided in 
24.11 	subdivision 5.
24.12 		Subd. 4.Responsibilities of qualified foundations. (a) A qualified foundation must:
24.13 	(1) award qualified scholarships and qualified transportation scholarships to eligible 
24.14 	students;
24.15 	(2) not restrict the availability of scholarships to students of one qualified schoolÍ¾
24.16 	(3) not charge a fee of any kind for a child to be considered for a scholarshipÍ¾ and
24.17 	(4) require a qualified school receiving payment of tuition through a scholarship funded 
24.18 	by contributions qualifying for the tax credit under this section to sign an agreement that it 
24.19 	will not use different admissions standards for a student with a qualified scholarship or 
24.20 	qualified transportation scholarship.
24.21 	(b) An entity that is eligible to be a qualified foundation must apply to the commissioner 
24.22 	by September 15 of the year preceding the year in which it will first receive equity and 
24.23 	opportunity in education donations. The application must be in the form and manner 
24.24 	prescribed by the commissioner. The application must:
24.25 	(1) demonstrate to the commissioner that the entity, if it is a nonprofit organization, has 
24.26 	been granted an exemption from the federal income tax as an organization described in 
24.27 	section 501(c)(3) of the Internal Revenue Code; and
24.28 	(2) demonstrate the entity's financial accountability by submitting its most recent audited 
24.29 	financial statement prepared by a certified public accountant firm licensed under chapter 
24.30 	326A using the Statements on Auditing Standards issued by the Audit Standards Board of 
24.31 	the American Institute of Certified Public Accountants.
25.1 	(c) A qualified foundation must provide to taxpayers who make donations or 
25.2 	commitments to donate a receipt or verification on a form approved by the commissioner.
25.3 	(d) A qualified foundation in each year it awards qualified scholarships or qualified 
25.4 	transportation scholarships to eligible students to enroll in a qualified school must obtain 
25.5 	from the qualified school documentation that the school:
25.6 	(i) complies with all health and safety laws or codes that apply to nonpublic schools;
25.7 	(ii) holds a valid occupancy permit if required by its municipality;
25.8 	(iii) certifies that it adheres to the provisions of chapter 363A and United States Code, 
25.9 	title 42, section 1981; and
25.10 	(iv) provides academic accountability to parents of students in the program by regularly 
25.11 	reporting to the parents on the student's progress.
25.12 	A qualified foundation must make the documentation available to the commissioner on 
25.13 	request.
25.14 	(e) A qualified foundation must, by June 1 of each year following a year in which it 
25.15 	receives donations and awards scholarships, provide the following information to the 
25.16 	commissioner:
25.17 	(1) financial information that demonstrates the financial viability of the qualified 
25.18 	foundation, if it is to receive donations of $150,000 or more during the year;
25.19 	(2) documentation that it has conducted criminal background checks on all of its 
25.20 	employees and board members and has excluded from employment or governance any 
25.21 	individuals who might reasonably pose a risk to the appropriate use of contributed funds;
25.22 	(3) consistent with paragraph (f), document that it has used amounts received as donations 
25.23 	to provide qualified scholarships within one calendar year of the calendar year in which it 
25.24 	received the donation;
25.25 	(4) a listing of qualified schools that enrolled eligible students to whom the qualified 
25.26 	foundation awarded qualified scholarships; and
25.27 	(5) the following information prepared by a certified public accountant regarding 
25.28 	donations received and scholarships awarded in the previous calendar year:
25.29 	(i) the total number and total dollar amount of donations received from taxpayers;
25.30 	(ii) the total number and total dollar amount of qualified scholarships and qualified 
25.31 	transportation scholarships awarded; and
26.1 	(iii) the dollar amount of donations used for administrative expenses, as allowed by 
26.2 	paragraph (f).
26.3 	(f) The foundation may use up to five percent of the amounts received as donations for 
26.4 	reasonable administrative expenses, including but not limited to fund-raising, scholarship 
26.5 	tracking, and reporting requirements.
26.6 		Subd. 5.Responsibilities of commissioner. (a) The commissioner must make 
26.7 	applications for an entity to be approved as a qualified foundation for a taxable year available 
26.8 	on the department's Web site by August 1 of the year preceding the taxable year. The 
26.9 	commissioner must approve an application that provides the documentation required in 
26.10 	subdivision 4, paragraph (b), clauses (1) and (2), within 60 days of receiving the application. 
26.11 	The commissioner must notify a foundation that provides incomplete documentation and 
26.12 	the foundation may resubmit its application within 30 days.
26.13 	(b) By November 15 of each year, the commissioner must post on the department's Web 
26.14 	site the names and addresses of qualified foundations for the next taxable year. The 
26.15 	commissioner must regularly update the names and addresses of any qualified foundations 
26.16 	that have been barred from participating in the program.
26.17 	(c) The commissioner must prescribe a standardized format for a receipt to be issued by 
26.18 	a qualified foundation to a taxpayer to indicate the value of a donation received and of a 
26.19 	commitment to make a donation.
26.20 	(d) The commissioner must prescribe a standardized format for qualified foundations 
26.21 	to report the information required under subdivision 4, paragraph (e).
26.22 	(e) The commissioner may conduct either a financial review or audit of a qualified 
26.23 	foundation upon finding evidence of fraud or intentional misreporting. If the commissioner 
26.24 	determines that the qualified foundation committed fraud or intentionally misreported 
26.25 	information, the qualified foundation is barred from further program participation.
26.26 	(f) If a qualified foundation fails to submit the documentation required under subdivision 
26.27 	4, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July 
26.28 	1. A qualified foundation that fails to submit the required information by August 1 is barred 
26.29 	from participation for the next taxable year.
26.30 	(g) If a qualified foundation fails to comply with the requirements of subdivision 4, 
26.31 	paragraph (e), the commissioner must by September 1 notify the qualified foundation that 
26.32 	it has until November 1 to document that it has remedied its noncompliance. A qualified 
27.1 	foundation that fails to document that it has remedied its noncompliance by November 1 is 
27.2 	barred from participation for the next taxable year.
27.3 	(h) A qualified foundation barred under paragraph (f) or (g) may become eligible to 
27.4 	participate by submitting the required information in future years.

27.5 	EFFECTIVE DATE. This section is effective the day following final enactment for 
27.6 	donations made and credits allowed in taxable years beginning after December 31, 2017.

27.7 	Sec. 23. Minnesota Statutes 2016, section 290.081, is amended to read:
27.8 	290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
27.9 	(a) The compensation received for the performance of personal or professional services 
27.10 	within this state by an individual whose residence, place of abode, and place customarily 
27.11 	returned to at least once a month is in another state, shall be excluded from gross income 
27.12 	to the extent such compensation is subject to an income tax imposed by the state of residence; 
27.13 	provided that such state allows a similar exclusion of compensation received by residents 
27.14 	of Minnesota for services performed therein.
27.15 	(b) When it is deemed to be in the best interests of the people of this state, the 
27.16 	commissioner may determine that the provisions of paragraph (a) shall not apply. As long 
27.17 	as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions 
27.18 	of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
27.19 	(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents 
27.20 	which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax 
27.21 	on Wisconsin residents which would have been paid Minnesota without paragraph (a), or 
27.22 	vice versa, then the state with the net revenue loss resulting from calculated under paragraph 
27.23 	(a) (e) shall receive from the other state the amount of such loss. This provision shall be 
27.24 	effective for all years beginning after December 31, 1972. The data used for computing the 
27.25 	loss to either state shall be determined on or before September 30 of the year following the 
27.26 	close of the previous calendar year.
27.27 	(d) (1) Interest is payable on all amounts calculated under paragraph (c) relating to 
27.28 	taxable years beginning after December 31, 2000. Interest accrues from July 1 of the taxable 
27.29 	year Payments for amounts calculated under paragraph (c) must equal one-quarter of the 
27.30 	estimated annual amount and must be paid at the midpoint of each quarter, on February 15, 
27.31 	May 15, August 15, and November 15.
28.1 	(2)(e)(1)The commissioner of revenue is authorized to enter into agreements with the 
28.2 	state of Wisconsin specifying the reciprocity payment due dates, conditions constituting 
28.3 	delinquency, interest rates, and a method for computing interest due.
28.4 	(3) (2) For agreements entered into before October 1, 2014 2017, the annual compensation 
28.5 	required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 up 
28.6 	to $3,000,000 per fiscal year.
28.7 	(4) For agreements entered into after September 30, 2014, the annual compensation 
28.8 	required under paragraph (c) must equal the net revenue loss per fiscal year.
28.9 	(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the 
28.10 	difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing 
28.11 	Wisconsin residents on income subject to reciprocity and the credit Minnesota would have 
28.12 	been required to give under section 290.06, subdivision 22, to Minnesota residents working 
28.13 	in Wisconsin had there not been reciprocity.
28.14 	(4) All agreements must include provisions:
28.15 	(i) providing for a suspension of the agreement if one party to the agreement does not 
28.16 	pay in full by a time proscribed in the agreement;
28.17 	(ii) setting the interest rate that will be applied, and that interest shall run from the date 
28.18 	the payment is due until the day the payment is made, except that interest from the 
28.19 	reconciliation payments runs from July 1 of the tax year until paid;
28.20 	(iii) stating a time for annual reconciliation must be completed by October 31 of the 
28.21 	year following the tax year, and the time for payment of any amounts to be completed by 
28.22 	no later than December 1 of the year following the tax year;
28.23 	(iv) requiring the parties to jointly conduct updated benchmark studies every five years 
28.24 	beginning tax year 2018;
28.25 	(v) requiring each party to the agreement to require taxpayers who request exemption 
28.26 	from withholding in the state where they work to make an annual application and that a list 
28.27 	of participants will be exchanged annually; and
28.28 	(vi) the sum of the amount of the quarterly payments must be a reasonable estimate of 
28.29 	the revenue loss as defined in item (iii).
28.30 	(e)(f) If an agreement cannot be reached as to the amount of the loss, the commissioner 
28.31 	of revenue and the taxing official of the state of Wisconsin shall each appoint a member of 
28.32 	a board of arbitration and these members shall appoint the third member of the board. The 
29.1 	board shall select one of its members as chair. Such board may administer oaths, take 
29.2 	testimony, subpoena witnesses, and require their attendance, require the production of books, 
29.3 	papers and documents, and hold hearings at such places as are deemed necessary. The board 
29.4 	shall then make a determination as to the amount to be paid the other state which 
29.5 	determination shall be final and conclusive.
29.6 	(f) (g) The commissioner may furnish copies of returns, reports, or other information to 
29.7 	the taxing official of the state of Wisconsin, a member of the board of arbitration, or a 
29.8 	consultant under joint contract with the states of Minnesota and Wisconsin for the purpose 
29.9 	of making a determination as to the amount to be paid the other state under the provisions 
29.10 	of this section. Prior to the release of any information under the provisions of this section, 
29.11 	the person to whom the information is to be released shall sign an agreement which provides 
29.12 	that the person will protect the confidentiality of the returns and information revealed thereby 
29.13 	to the extent that it is protected under the laws of the state of Minnesota.

29.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
29.15 	31, 2017.

29.16 	Sec. 24. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
29.17 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
29.18 	terms have the meanings given:
29.19 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
29.20 	year:
29.21 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
29.22 	55(b)(2) of the Internal Revenue Code;
29.23 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
29.24 	taxable income, but excluding:
29.25 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
29.26 	(ii) the medical expense deduction;
29.27 	(iii) the casualty, theft, and disaster loss deduction; and
29.28 	(iv) the impairment-related work expenses of a disabled person;
29.29 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
29.30 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
29.31 	to the extent not included in federal alternative minimum taxable income, the excess of the 
29.32 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
30.1 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
30.2 	without regard to the depletion deduction for the taxable year);
30.3 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
30.4 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
30.5 	Code determined without regard to subparagraph (E);
30.6 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
30.7 	of interest income as provided by section 290.0131, subdivision 2; and
30.8 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
30.9 	less the sum of the amounts determined under the following:
30.10 	(1) interest income as defined in section 290.0132, subdivision 2;
30.11 	(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3, 
30.12 	to the extent included in federal alternative minimum taxable income;
30.13 	(3) the amount of investment interest paid or accrued within the taxable year on 
30.14 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
30.15 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
30.16 	in computing federal adjusted gross income;
30.17 	(4) amounts subtracted from federal taxable income as provided by section 290.0132, 
30.18 	subdivisions 7, 9 to 15, 17, and 21, 23, and 24; and
30.19 	(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
30.20 	paragraph (c).
30.21 	In the case of an estate or trust, alternative minimum taxable income must be computed 
30.22 	as provided in section 59(c) of the Internal Revenue Code.
30.23 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
30.24 	the Internal Revenue Code.
30.25 	(c) "Net minimum tax" means the minimum tax imposed by this section.
30.26 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
30.27 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
30.28 	under this chapter.
30.29 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
30.30 	after subtracting the exemption amount determined under subdivision 3.

31.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
31.2 	31, 2016.

31.3 	Sec. 25. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws 
31.4 	2017, chapter 1, section 8, is amended to read:
31.5 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
31.6 	used in this chapter shall have the following meanings:
31.7 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
31.8 	commissioner has delegated functions under this chapter.
31.9 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
31.10 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
31.11 	increased by the value of any property in which the decedent had a qualifying income interest 
31.12 	for life and for which an election was made under section 291.03, subdivision 1d, for 
31.13 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
31.14 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
31.15 	as amended through December 16, 2016.
31.16 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
31.17 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
31.18 	and (b) including any property omitted from the federal gross estate which is includable in 
31.19 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
31.20 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
31.21 	was not in Minnesota.
31.22 	(6) "Personal representative" means the executor, administrator or other person appointed 
31.23 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
31.24 	administrator or other person appointed, qualified, and acting within this state, then any 
31.25 	person in actual or constructive possession of any property having a situs in this state which 
31.26 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
31.27 	representative to the extent of the property and the Minnesota estate tax due with respect 
31.28 	to the property.
31.29 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
31.30 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraph (c), apply to 
31.31 	determinations of domicile under this chapter.
31.32 	(8) "Situs of property" means, with respect to:
32.1 	(i) real property, the state or country in which it is located;
32.2 	(ii) tangible personal property, the state or country in which it was normally kept or 
32.3 	located at the time of the decedent's death or for a gift of tangible personal property within 
32.4 	three years of death, the state or country in which it was normally kept or located when the 
32.5 	gift was executed;
32.6 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
32.7 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
32.8 	because it is on loan to an organization, qualifying as exempt from taxation under section 
32.9 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
32.10 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
32.11 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
32.12 	at death or for a gift of intangible personal property within three years of death, the state or 
32.13 	country in which the decedent was domiciled when the gift was executed.
32.14 	For a nonresident decedent with an ownership interest in a pass-through entity with 
32.15 	assets that include real or tangible personal property, situs of the real or tangible personal 
32.16 	property, including qualified works of art, is determined as if the pass-through entity does 
32.17 	not exist and the real or tangible personal property is personally owned by the decedent. If 
32.18 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
32.19 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
32.20 	share of the pass-through entity.
32.21 	(9) "Pass-through entity" includes the following:
32.22 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
32.23 	Code;
32.24 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
32.25 	(iii) a single-member limited liability company or similar entity, regardless of whether 
32.26 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
32.27 	of Federal Regulations, title 26, section 301.7701-3; or
32.28 	(iv) a trust to the extent the property is includible in the decedent's federal gross estate; 
32.29 	but excludes
32.30 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
32.31 	by the Securities and Exchange Commission as a national securities exchange under section 
32.32 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

33.1 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
33.2 	dying after December 31, 2016.

33.3 	Sec. 26. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
33.4 		Subd. 3.Subtraction. (a) For estates of decedents dying in 2017, the value of qualified 
33.5 	small business property under section 291.03, subdivision 9, and the value of qualified farm 
33.6 	property under section 291.03, subdivision 10, or the result of $5,000,000 minus $1,800,000, 
33.7 	whichever is less, may be subtracted in computing the Minnesota taxable estate but must 
33.8 	not reduce the Minnesota taxable estate to less than zero.
33.9 	(b) For estates of decedents dying after December 31, 2017, and before January 1, 2022, 
33.10 	the subtraction equals the sum of the applicable amount for the year of death under paragraphs 
33.11 	(c) and (d).
33.12 	(c) The value of qualified small business property under section 291.03, subdivision 9, 
33.13 	and the value of qualified farm property under section 291.03, subdivision 10, or the result 
33.14 	of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5), whichever 
33.15 	is less, up to the amounts listed in clauses (1) to (4), may be subtracted included in computing 
33.16 	the Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than 
33.17 	zero:
33.18 	(1) $1,200,000 for estates of decedents dying in 2014;
33.19 	(2) $1,400,000 $2,100,000 for estates of decedents dying in 2015 2018;
33.20 	(3) $1,600,000 (2) $1,700,000 for estates of decedents dying in 2016 2019;
33.21 	(4) $1,800,000 (3) $1,300,000 for estates of decedents dying in 2017; and 2020
33.22 	(5) $2,000,000 (4) $900,000 for estates of decedents dying in 2018 and thereafter 2021.
33.23 	(d) In addition to the amounts under paragraph (b), the following amount for the year 
33.24 	of death listed in clauses (1) to (4) may be included in computing the Minnesota taxable 
33.25 	estate:
33.26 	(1) $2,900,000 for estates of decedents dying in 2018;
33.27 	(2) $3,300,000 for estates of decedents dying in 2019;
33.28 	(3) $3,700,000 for estates of decedents dying in 2020; and
33.29 	(4) $4,100,000 for estates of decedents dying in 2021.
33.30 	(e) For estates of decedents dying in 2022, the subtraction equals $5,000,000.
34.1 	(f) For estates of decedents dying in 2023 and thereafter, the subtraction equals the 
34.2 	decedent's applicable federal exclusion amount under section 2010(c)(2) of the Internal 
34.3 	Revenue Code, but must not reduce the Minnesota taxable estate to less than zero.

34.4 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
34.5 	dying after December 31, 2016.

34.6 	Sec. 27. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:
34.7 		Subdivision 1.Tax amount. The tax imposed must be computed by applying to the 
34.8 	Minnesota taxable estate the following schedule of rates and then the resulting amount 
34.9 	multiplied by a fraction, not greater than one, the numerator of which is the value of the 
34.10 	Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause 
34.11 	(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus 
34.12 	the value of gifts under section 291.016, subdivision 2, clause (3):
34.13 	(a) For estates of decedents dying in 2014:

34.14	Amount of Minnesota Taxable Estate
	Rate of Tax
	
34.15	Not over $1,200,000
	None
	
34.16	Over $1,200,000 but not over $1,400,000
	nine percent of the excess over $1,200,000
	
34.1734.18	Over $1,400,000 but not over $3,600,000
	$18,000 plus ten percent of the excess over 
$1,400,000
	
34.1934.20	Over $3,600,000 but not over $4,100,000
	$238,000 plus 10.4 percent of the excess over 
$3,600,000
	
34.2134.22	Over $4,100,000 but not over $5,100,000
	$290,000 plus 11.2 percent of the excess over 
$4,100,000
	
34.2334.24	Over $5,100,000 but not over $6,100,000
	$402,000 plus 12 percent of the excess over 
$5,100,000
	
34.2534.26	Over $6,100,000 but not over $7,100,000
	$522,000 plus 12.8 percent of the excess over 
$6,100,000
	
34.2734.28	Over $7,100,000 but not over $8,100,000
	$650,000 plus 13.6 percent of the excess over 
$7,100,000
	
34.2934.30	Over $8,100,000 but not over $9,100,000
	$786,000 plus 14.4 percent of the excess over 
$8,100,000
	
34.3134.32	Over $9,100,000 but not over $10,100,000
	$930,000 plus 15.2 percent of the excess over 
$9,100,000
	
34.3334.34	Over $10,100,000
	$1,082,000 plus 16 percent of the excess over 
$10,100,000
	
34.35 	(b) For estates of decedents dying in 2015:

34.36	Amount of Minnesota Taxable Estate
	Rate of Tax
	
34.37	Not over $1,400,000
	None
	
34.38	Over $1,400,000 but not over $3,600,000
	ten percent of the excess over $1,400,000
	
34.3934.40	Over $3,600,000 but not over $6,100,000
	$220,000 plus 12 percent of the excess over 
$3,600,000
	
35.135.2	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess over 
$6,100,000
	
35.335.4	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess over 
$7,100,000
	
35.535.6	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess over 
$8,100,000
	
35.735.8	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess over 
$9,100,000
	
35.935.10
	Over $10,100,000
	$1,080,000 plus 16 percent of the excess over 
$10,100,000
	
35.11 	(c) For estates of decedents dying in 2016:

35.12	Amount of Minnesota Taxable Estate
	Rate of Tax
	
35.13	Not over $1,600,000
	None
	
35.14	Over $1,600,000 but not over $2,600,000
	ten percent of the excess over $1,600,000
	
35.1535.16	Over $2,600,000 but not over $6,100,000
	$100,000 plus 12 percent of the excess over 
$2,600,000
	
35.1735.18	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess over 
$6,100,000
	
35.1935.20	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess over 
$7,100,000
	
35.2135.22	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess over 
$8,100,000
	
35.2335.24	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess over 
$9,100,000
	
35.2535.26	Over $10,100,000
	$1,080,000 plus 16 percent of the excess over 
$10,100,000
	
35.27 	(d) (a) For estates of decedents dying in 2017:

35.28	Amount of Minnesota Taxable Estate
	Rate of Tax
	
35.29	Not over $1,800,000
	None
	
35.30	Over $1,800,000 but not over $2,100,000
	ten percent of the excess over $1,800,000
	
35.3135.32	Over $2,100,000 but not over $5,100,000
	$30,000 plus 12 percent of the excess over 
$2,100,000
	
35.3335.34	Over $5,100,000 but not over $7,100,000
	$390,000 plus 12.8 percent of the excess over 
$5,100,000
	
35.3535.36	Over $7,100,000 but not over $8,100,000
	$646,000 plus 13.6 percent of the excess over 
$7,100,000
	
35.3735.38	Over $8,100,000 but not over $9,100,000
	$782,000 plus 14.4 percent of the excess over 
$8,100,000
	
35.3935.40	Over $9,100,000 but not over $10,100,000
	$926,000 plus 15.2 percent of the excess over 
$9,100,000
	
35.4135.42	Over $10,100,000
	$1,078,000 plus 16 percent of the excess over 
$10,100,000
	
35.43 	(e)(b) For estates of decedents dying in 2018 and thereafter:

35.44	Amount of Minnesota Taxable Estate
	Rate of Tax
	
35.45	Not over $2,000,000 $7,100,000
	None 13 percent
	
35.46	Over $2,000,000 but not over $2,600,000
	ten percent of the excess over $2,000,000
	
36.136.2	Over $2,600,000 but not over $7,100,000
	$60,000 plus 13 percent of the excess over 
$2,600,000
	
36.336.4	Over $7,100,000 but not over $8,100,000
	$645,000 $923,000 plus 13.6 percent of the 
excess over $7,100,000
	
36.536.6	Over $8,100,000 but not over $9,100,000
	$781,000 $1,059,000 plus 14.4 percent of the 
excess over $8,100,000
	
36.736.8	Over $9,100,000 but not over $10,100,000
	$925,000 $1,203,000 plus 15.2 percent of the 
excess over $9,100,000
	
36.936.10
	Over $10,100,000
	$1,077,000 $1,355,000 plus 16 percent of the 
excess over $10,100,000

36.11 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
36.12 	dying after December 31, 2016.

36.13 	Sec. 28. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
36.14 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and before 
36.15 	the death of the qualified heir, the qualified heir disposes of any interest in the qualified 
36.16 	property, other than by a disposition to a family member, or a family member ceases to 
36.17 	satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 
36.18 	tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 
36.19 	qualified small business property excluded under subdivision 9 with similar property, then 
36.20 	the qualified heir will not be treated as having disposed of an interest in the qualified property.
36.21 	(b) The amount of the additional tax equals the amount of the exclusion claimed by the 
36.22 	estate under subdivision 8, paragraph (d), multiplied by 16 percent.
36.23 	(c) The additional tax under this subdivision is due on the day which is six months after 
36.24 	the date of the disposition or cessation in paragraph (a).
36.25 	(d) The tax under this subdivision does not apply to the following: acquisition of title 
36.26 	or possession of the qualified property by a federal, state, or local government unit, or any 
36.27 	other entity with the power of eminent domain for a public purpose, as defined in section 
36.28 	117.025, subdivision 11, within the three-year holding period.

36.29 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
36.30 	dying after June 30, 2011.

36.31 	Sec. 29. [462D.01] CITATION.
36.32 	This chapter may be cited as the "First-Time Home Buyer Savings Account Act."

36.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

37.1 	Sec. 30. [462D.02] DEFINITIONS.
37.2 		Subdivision 1.Definitions. For purposes of this chapter, the following terms have the 
37.3 	meanings given.
37.4 		Subd. 2.Account holder. "Account holder" means an individual who establishes, 
37.5 	individually or jointly with one or more other individuals, a first-time home buyer savings 
37.6 	account.
37.7 		Subd. 3.Allowable closing costs. "Allowable closing costs" means a disbursement listed 
37.8 	on a settlement statement for the purchase of a single-family residence in Minnesota by a 
37.9 	qualified beneficiary.
37.10 		Subd. 4.Commissioner. "Commissioner" means the commissioner of revenue.
37.11 		Subd. 5.Eligible costs. "Eligible costs" means the down payment and allowable closing 
37.12 	costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary. 
37.13 	Eligible costs include paying for the cost of construction of or financing the construction 
37.14 	of a single-family residence.
37.15 		Subd. 6.Financial institution. "Financial institution" means a bank, bank and trust, 
37.16 	trust company with banking powers, savings bank, savings association, or credit union, 
37.17 	organized under the laws of this state, any other state, or the United States; an industrial 
37.18 	loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits; 
37.19 	or a money market mutual fund registered under the federal Investment Company Act of 
37.20 	1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission 
37.21 	under that act.
37.22 		Subd. 7.First-time home buyer. "First-time home buyer" means an individual, and if 
37.23 	married, the individual's spouse, who has no present ownership interest in a principal 
37.24 	residence during the three-year period ending on the earlier of:
37.25 	(1) the date of the purchase of the single-family residence funded, in part, with proceeds 
37.26 	from the first-time home buyer savings account; or
37.27 	(2) the close of the taxable year for which a subtraction is claimed under sections 
37.28 	290.0132 and 462D.06.
37.29 		Subd. 8.First-time home buyer savings account. "First-time home buyer savings 
37.30 	account" or "account" means an account with a financial institution that an account holder 
37.31 	designates as a first-time home buyer savings account, as provided in section 462D.03, to 
37.32 	pay or reimburse eligible costs for the purchase of a single-family residence by a qualified 
37.33 	beneficiary.
38.1 		Subd. 9.Internal Revenue Code. "Internal Revenue Code" has the meaning given in 
38.2 	section 290.01.
38.3 		Subd. 10.Principal residence. "Principal residence" has the meaning given in section 
38.4 	121 of the Internal Revenue Code.
38.5 		Subd. 11.Qualified beneficiary. "Qualified beneficiary" means a first-time home buyer 
38.6 	who is a Minnesota resident and is designated as the qualified beneficiary of a first-time 
38.7 	home buyer savings account by the account holder.
38.8 		Subd. 12.Single-family residence. "Single-family residence" means a single-family 
38.9 	residence located in this state and owned and occupied by or to be occupied by a qualified 
38.10 	beneficiary as the qualified beneficiary's principal residence, which may include a 
38.11 	manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.

38.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.13 	Sec. 31. [462D.03] ESTABLISHMENT OF ACCOUNTS.
38.14 		Subdivision 1.Accounts established. An individual may open an account with a financial 
38.15 	institution and designate the account as a first-time home buyer savings account to be used 
38.16 	to pay or reimburse the designated qualified beneficiary's eligible costs.
38.17 		Subd. 2.Designation of qualified beneficiary. (a) The account holder must designate  
38.18 	a first-time home buyer as the qualified beneficiary of the account by April 15 of the year 
38.19 	following the taxable year in which the account was established. The account holder may 
38.20 	be the qualified beneficiary. The account holder may change the designated qualified 
38.21 	beneficiary at any time, but no more than one qualified beneficiary may be designated for 
38.22 	an account at any one time. For purposes of the one beneficiary restriction, a married couple 
38.23 	qualifies as one beneficiary. Changing the designated qualified beneficiary of an account 
38.24 	does not affect computation of the ten-year period under section 462D.06, subdivision 2.
38.25 	(b) The commissioner shall establish a process for account holders to notify the state 
38.26 	that permits recording of the account, the account holder or holders, any transfers under 
38.27 	section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 
38.28 	This may be done upon filing the account holder's income tax return or in any other way 
38.29 	the commissioner determines to be appropriate.
38.30 		Subd. 3.Joint account holders. An individual may jointly own a first-time home buyer 
38.31 	account with another person if the joint account holders file a married joint income tax 
38.32 	return.
39.1 		Subd. 4.Multiple accounts. (a) An individual may be the account holder of more than 
39.2 	one first-time home buyer savings account, but must not hold or own multiple accounts that 
39.3 	designate the same qualified beneficiary.
39.4 	(b) An individual may be designated as the qualified beneficiary on more than one 
39.5 	first-time home buyer savings account.
39.6 		Subd. 5.Contributions. Only cash may be contributed to a first-time home buyer savings 
39.7 	account. Individuals other than the account holder may contribute to an account. No limitation 
39.8 	applies to the amount of contributions that may be made to or retained in a first-time home 
39.9 	buyer savings account.

39.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.11 	Sec. 32. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
39.12 		Subdivision 1.Expenses; reporting. The account holder must:
39.13 	(1) not use funds in a first-time home buyer savings account to pay expenses of 
39.14 	administering the account, except that a service fee may be deducted from the account by 
39.15 	the financial institution in which the account is held; and
39.16 	(2) submit to the commissioner, in the form and manner required by the commissioner:
39.17 	(i) detailed information regarding the first-time home buyer savings account, including 
39.18 	a list of transactions for the account during the taxable year and the Form 1099 issued by 
39.19 	the financial institution for the account for the taxable year; and
39.20 	(ii) upon withdrawal of funds from the account, a detailed account of the eligible costs 
39.21 	for which the account funds were expended and a statement of the amount of funds remaining 
39.22 	in the account, if any.
39.23 		Subd. 2.Transfers. An account holder may withdraw funds, in whole or part, from a 
39.24 	first-time home buyer savings account and deposit the funds in another first-time home 
39.25 	buyer savings account held by a different financial institution or the same financial institution.

39.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.27 	Sec. 33. [462D.05] FINANCIAL INSTITUTIONS.
39.28 	(a) A financial institution is not required to take any action to ensure compliance with 
39.29 	this chapter, including to:
40.1 	(1) designate an account, designate qualified beneficiaries, or modify the financial 
40.2 	institution's account contracts or systems in any way;
40.3 	(2) track the use of money withdrawn from a first-time home buyer savings account;
40.4 	(3) allocate funds in a first-time home buyer savings account among joint account holders 
40.5 	or multiple qualified beneficiaries; or
40.6 	(4) report any information to the commissioner or any other government that is not 
40.7 	otherwise required by law.
40.8 	(b) A financial institution is not responsible or liable for:
40.9 	(1)  determining or ensuring that an account satisfies the requirements of this chapter or 
40.10 	that its funds are used for eligible costs; or
40.11 	(2) reporting or remitting taxes or penalties related to the use of a first-time home buyer 
40.12 	savings account.

40.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.14 	Sec. 34. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
40.15 		Subdivision 1.Subtraction. (a) An account holder is allowed a subtraction from federal 
40.16 	taxable income equal to the sum of:
40.17 	(1) the amount the individual contributed to a first-time home buyer savings account 
40.18 	during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint 
40.19 	return; and
40.20 	(2) interest or dividends earned on the first-time home buyer savings account during the 
40.21 	taxable year.
40.22 	(b) The subtraction under paragraph (a) is allowed each year in which a contribution is 
40.23 	made for the ten taxable years including and following the taxable year in which the account 
40.24 	was established. The total subtraction for all taxable years and for all first-time home buyer 
40.25 	accounts established by the individual for a qualified beneficiary is limited to $50,000. No 
40.26 	person other than the account holder who deposits funds in a first-time home buyer savings 
40.27 	account is allowed a subtraction under this section.
40.28 		Subd. 2.Addition. (a) An account holder must add to federal taxable income the sum 
40.29 	of the following amounts:
41.1 	(1) any amount withdrawn from a first-time home buyer savings account during the 
41.2 	taxable year and used neither to pay eligible costs nor for a transfer permitted under section 
41.3 	462D.04, subdivision 2; and
41.4 	(2) any amount remaining in the first-time home buyer savings account at the close of 
41.5 	the tenth taxable year after the taxable year in which the account was established.
41.6 	(b) For an account that received a transfer under section 462D.04, subdivision 2, the 
41.7 	ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year 
41.8 	that applies to either account under that clause.
41.9 		Subd. 3.Additional tax. The account holder is liable for an additional tax equal to ten 
41.10 	percent of the addition under subdivision 2 for the taxable year. This amount must be added 
41.11 	to the amount due under section 290.06. The tax under this subdivision does not apply to:
41.12 	(1) a withdrawal because of the account holder's or designated qualified beneficiary's 
41.13 	death or disability; and
41.14 	(2) a disbursement of assets of the account under federal bankruptcy law.

41.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
41.16 	31, 2016.

41.17 	Sec. 35. INCOME TAX RECIPROCITY BENCHMARK STUDY.
 41.18 	(a) The Department of Revenue, in conjunction with the Wisconsin Department of 
41.19 	Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to 
41.20 	determine at least the following:
41.21 	(1) the number of residents of each state who earn income from personal services in the 
41.22 	other state;
41.23 	(2) the total amount of income earned by residents of each state who earn income from 
41.24 	personal services in the other state; and
41.25 	(3) the change in tax revenue in each state if an income tax reciprocity arrangement were 
41.26 	resumed between the two states under which the taxpayers were required to pay income 
41.27 	taxes on the income only in their state of residence.
41.28 	(b) The study must use information obtained from each state's income tax returns for 
41.29 	tax year 2017, and from any other source of information the departments determine is 
41.30 	necessary to complete the study.
42.1 	(c) No later than March 1, 2019, the Department of Revenue must submit a report 
42.2 	containing the results of the study to the governor and to the chairs and ranking minority 
42.3 	members of the legislative committees having jurisdiction over taxes, in compliance with 
42.4 	Minnesota Statutes, sections 3.195 and 3.197.
42.5 	(d) The department shall conduct the study only if the commissioner of revenue receives 
42.6 	notice from the secretary of revenue that the Wisconsin Department of Revenue will fully 
42.7 	participate in the study.

42.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.9 	Sec. 36. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL INCOME 
42.10 	TAX RETURNS.
 42.11 	(a) By March 16, 2018, the commissioner of revenue must provide a written report to 
42.12 	the chairs and ranking minority members of the legislative committees with jurisdiction 
42.13 	over taxes regarding free electronic filing options for individual income tax filing, including 
42.14 	a vendor-based solution. The report must include responses from a commissioner's request 
42.15 	for information to consumer-based tax filing software vendors. The request for information 
42.16 	may include, but is not limited to, seeking information on the following aspects of a free 
42.17 	electronic filing solution:
42.18 	(1) costs, on a per return basis, that would be charged to the state of Minnesota to provide 
42.19 	an electronic individual income tax return preparation, submission, and payment remittance 
42.20 	process;
42.21 	(2) vendor capability to provide customer service and issue resolution to taxpayers using 
42.22 	the software;
42.23 	(3) vendor capability to provide and maintain an appropriate link between the Department 
42.24 	of Revenue and the Internal Revenue Service Modernized Electronic Filing Program;
42.25 	(4) vendor security capabilities to ensure that taxpayer return information is maintained 
42.26 	and protected as required by Minnesota Statutes, chapters 13 and 270B, Internal Revenue 
42.27 	Service Publication 1075, and any other applicable requirements;
42.28 	(5) products for the free filing and submitting of both Minnesota and federal returns 
42.29 	offered to customers and the thresholds for using those products; and
42.30 	(6) add-on products offered to customers and their costs.
42.31 	(b) The report required under paragraph (a) must comply with Minnesota Statutes, 
42.32 	sections 3.195 and 3.197.

43.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.2 	Sec. 37. STUDENT LOAN CREDIT.
 43.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
43.4 	the meanings given.
43.5 	(b) "Adjusted gross income" means federal adjusted gross income as defined in section 
43.6 	62 of the Internal Revenue Code. In the case of a married couple filing jointly, adjusted 
43.7 	gross income means the adjusted gross income of the taxpayer and spouse.
43.8 	(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue 
43.9 	Code, except that earned income includes combat pay excluded from federal taxable income 
43.10 	under section 112 of the Internal Revenue Code.
43.11 	(d) "Education profession" means:
43.12 	(1) a full-time job in public education; early childhood education, including licensed or 
43.13 	regulated child care, Head Start, and state-funded prekindergarten; school-based library 
43.14 	sciences; and other school-based services; or
43.15 	(2) a full-time job as a faculty member at a tribal college or university as defined in 
43.16 	section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs 
43.17 	subject areas or areas of shortage, including nursing faculty, foreign language faculty, and 
43.18 	part-time faculty at community colleges, as determined by the United States Secretary of 
43.19 	Education.
43.20 	(e) "Eligible individual" means an individual who has one or more qualified education 
43.21 	loans related to an undergraduate or graduate degree program at a postsecondary educational 
43.22 	institution.
43.23 	(f) "Eligible loan payments" means the amount the eligible individual paid in principal 
43.24 	and interest on qualified education loans during the taxable year.
43.25 	(g) "Postsecondary educational institution" means a postsecondary institution eligible 
43.26 	for state student aid under Minnesota Statutes, section 136A.103 or, if the institution is not 
43.27 	located in this state, a postsecondary institution participating in the federal Pell Grant program 
43.28 	under title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
43.29 	(h) "Public service job" means a full-time job in emergency management; government, 
43.30 	excluding time served as a member of Congress; military service; public safety; law 
43.31 	enforcement; public health, including nurses, nurse practitioners, nurses in a clinical setting, 
43.32 	and full-time professionals engaged in health care practitioner occupations and health care 
44.1 	support occupations, as such terms are defined by the Bureau of Labor Statistics; social 
44.2 	work in a public child or family services agency; public interest law services including 
44.3 	prosecution or public defense or legal advocacy on behalf of low-income communities at 
44.4 	a nonprofit organization; public service for individuals with disabilities or public service 
44.5 	for the elderly; public library sciences; or at an organization that is described in section 
44.6 	501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of 
44.7 	the Internal Revenue Code.
44.8 	(i) "Qualified education loan" has the meaning given in section 221 of the Internal 
44.9 	Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
44.10 		Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the tax 
44.11 	due under Minnesota Statutes, chapter 290. The credit equals a percentage of eligible loan 
44.12 	payments in excess of ten percent of adjusted gross income, up to $700, as follows:
44.13 	(1) for eligible individuals, 50 percent;
44.14 	(2) for eligible individuals in a public service job, 65 percent; and
44.15 	(3) for eligible individuals in an education profession, 75 percent.
44.16 	(b) The credit must not exceed the eligible individual's earned income for the taxable 
44.17 	year.
44.18 	(c) In the case of a married couple filing a joint return, each spouse is eligible for the 
44.19 	credit in this section.
44.20 	(d) For a nonresident or part-year resident, the credit must be allocated based on the 
44.21 	percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
44.22 	(e).
44.23 	(e) An eligible individual may receive the credit under this section without regard to the 
44.24 	individual's eligibility for the public service loan forgiveness program under United States 
44.25 	Code, title 20, section 1087e(m).

44.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
44.27 	31, 2016, and before January 1, 2019.

44.28 	Sec. 38. TAXPAYER ASSISTANCE GRANTS APPROPRIATION.
 44.29 	(a) $200,000 in fiscal year 2018 only and $200,000 in fiscal year 2019 only are 
44.30 	appropriated from the general fund to the commissioner of revenue for the provision of 
44.31 	taxpayer assistance grants under Minnesota Statutes, section 270C.21. Of the amounts 
44.32 	appropriated under this paragraph, up to five percent may be used for the administration of 
45.1 	the taxpayer assistance grants program. The unencumbered balance in the first year does 
45.2 	not cancel but is available for the second year.
45.3 	(b) For purposes of this section, "taxpayer assistance services" means accounting and 
45.4 	tax preparation services provided by volunteers to low-income, elderly, and disadvantaged 
45.5 	Minnesota residents to help them file federal and state income tax returns and Minnesota 
45.6 	property tax refund claims and to provide personal representation before the Department 
45.7 	of Revenue and the Internal Revenue Service.

45.8 	Sec. 39.  REPEALER.
 45.9 	Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 18; 
45.10 	289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10, and 
45.11 	11, are repealed.

45.12 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
45.13 	December 31, 2021.

45.14 	ARTICLE 2
45.15 	PROPERTY TAX

45.16 	Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:
45.17 		Subd. 2.Allowed commercial and industrial operations. (a) Commercial and industrial 
45.18 	operations are not allowed on land within an agricultural preserve except:
45.19 	(1) small on-farm commercial or industrial operations normally associated with and 
45.20 	important to farming in the agricultural preserve area;
45.21 	(2) storage use of existing farm buildings that does not disrupt the integrity of the 
45.22 	agricultural preserve; and
45.23 	(3) small commercial use of existing farm buildings for trades not disruptive to the 
45.24 	integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 
45.25 	and similar activities that a farm operator might conduct; and
45.26 	(4) wireless communication installments and related equipment and structure capable 
45.27 	of providing technology potentially beneficial to farming activities.
45.28 	(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)
45.29 	means existing on August 1, 1989.

45.30 	EFFECTIVE DATE. This section is effective the day following enactment.

46.1 	Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read:
46.2 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
46.3 	The governing body of any home rule charter or statutory city or town may annually 
46.4 	appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 
46.5 	market value, derived from ad valorem taxes on property or other revenues, to be paid to 
46.6 	the historical society of its respective city, town, or county to be used for the promotion of 
46.7 	historical work and to aid in defraying the expenses of carrying on the historical work in 
46.8 	the county. No city or town may appropriate any funds for the benefit of any historical 
46.9 	society unless the society is affiliated with and approved by the Minnesota Historical Society.

46.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.11 	Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read:
46.12 	270C.9901 ASSESSOR ACCREDITATION; WAIVER.
46.13 		Subdivision 1.Accreditation. Every individual who appraises or physically inspects 
46.14 	real property for the purpose of determining its valuation or classification for property tax 
46.15 	purposes must obtain licensure as an accredited Minnesota assessor from the State Board 
46.16 	of Assessors by July 1, 2019 2022, or within four five years of that person having become 
46.17 	licensed as a certified Minnesota assessor, whichever is later.
46.18 		Subd. 2.Waiver. (a) An individual may apply to the State Board of Assessors for a 
46.19 	waiver from licensure as an accredited Minnesota assessor as required by subdivision 1 if 
46.20 	the individual:
46.21 	(1) was first licensed as a certified Minnesota assessor before July 1, 2004;
46.22 	(2) has maintained an assessor license in good standing since July 1, 2004;
46.23 	(3) has successfully passed a comprehensive examination substantially equivalent to the 
46.24 	requirements by the State Board of Assessors for the accredited Minnesota assessor license 
46.25 	designation before May 1, 2020; and
46.26 	(4) submits an application to the State Board of Assessors no later than July 1, 2022.
46.27 	The examination can only be taken once to fulfill the requirements of the waiver.
46.28 	(b) The commissioner of revenue, in consultation with the State Board of Assessors and 
46.29 	the Minnesota Association of Assessing Officers, must determine the contents of the waiver 
46.30 	application and the comprehensive examination.
47.1 	(c) A county assessor in any jurisdiction assessed by an applicant may submit additional 
47.2 	information to the State Board of Assessors to be considered as part of the waiver review 
47.3 	proceedings.
47.4 	(d) The State Board of Assessors must not grant a waiver unless the applicant has met 
47.5 	the requirements in paragraph (a) and has the ability to perform the duties of assessment 
47.6 	required in each jurisdiction in which the applicant appraises or physically inspects real 
47.7 	property for the purposes of determining its valuation or classification for property tax 
47.8 	purposes.
47.9 	(e) An individual granted a waiver under this subdivision is allowed to continue 
47.10 	assessment duties at the individual's licensure level, provided the individual maintains 
47.11 	licensure in good standing and complies with the continuing education requirements for the 
47.12 	accredited Minnesota assessor designation as prescribed by the State Board of Assessors.
47.13 	(f) An individual granted a waiver under this section:
47.14 	(1) is not considered to have achieved the designation as an accredited Minnesota assessor 
47.15 	and may not represent himself or herself as an accredited Minnesota assessor; and
47.16 	(2) is not authorized to value income-producing property as defined in section 273.11, 
47.17 	subdivision 13, unless the individual meets the requirements of that section.
47.18 	(g) A waiver granted by the State Board of Assessors under this section remains in effect 
47.19 	unless the individual's licensure lapses or is revoked. If the individual's licensure lapses or 
47.20 	is revoked, the waiver is void and the individual is subject to the requirements of subdivision 
47.21 	1.
47.22 	(h) A decision of the State Board of Assessors to grant or deny a waiver under this 
47.23 	subdivision is final and is not subject to appeal.
47.24 	(i) Waivers granted under this subdivision expire on June 30, 2032.
47.25 	(j) This subdivision expires July 1, 2032.

47.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.27 	Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:
47.28 		Subd. 86.Apprenticeship training facilities. All or a portion of a building used 
47.29 	exclusively for a state-approved apprenticeship program through the Department of Labor 
47.30 	and Industry is exempt if:
48.1 	(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit 
48.2 	organization or a nonprofit trust;
48.3 	(2) the program participants receive no compensation; and
48.4 	(3) it is located:
48.5 	(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined 
48.6 	by the 2000 federal census;
48.7 	(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area 
48.8 	that has a population of 7,400 or greater according to the most recent federal census; or
48.9 	(iii) in a township that has a population greater than 2,0001,400 but less than 3,000 
48.10 	determined by the 2000 federal census and the building was previously used by a school 
48.11 	and was exempt for taxes payable in 2010.
48.12 	Use of the property for advanced skills training of incumbent workers does not disqualify 
48.13 	the property for the exemption under this subdivision. This exemption includes up to five 
48.14 	acres of the land on which the building is located and associated parking areas on that land, 
48.15 	except that if the building meets the requirements of clause (3), item (iii), then the exemption 
48.16 	includes up to ten acres of land on which the building is located and associated parking 
48.17 	areas on that land. If a parking area associated with the facility is used for the purposes of 
48.18 	the facility and for other purposes, a portion of the parking area shall be exempt in proportion 
48.19 	to the square footage of the facility used for purposes of apprenticeship training.

48.20 	Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 
48.21 	read:
48.22 		Subd. 100.Certain property owned by an Indian tribe. (a) Property is exempt that:
48.23 	(1) is located in a city of the first class with a population less than 100,000 as of the 
48.24 	2010 federal census;
48.25 	(2) was on January 1, 2016, and is for the current assessment, owned by a federally 
48.26 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
48.27 	and
48.28 	(3) is used exclusively as a medical clinic.
48.29 	(b) Property that qualifies for the exemption under this subdivision is limited to no more 
48.30 	than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000 
48.31 	square feet. Property acquired for single-family housing, market-rate apartments, agriculture, 
49.1 	or forestry does not qualify for this exemption. The exemption created by this subdivision 
49.2 	expires with taxes payable in 2028.

49.3 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2017.

49.4 	Sec. 6. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
49.5 		Subd. 2.Definitions. (a) For the purposes of this section, the term:
49.6 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
49.7 	subdivision 19, and also includes a substation that is used and owned by one or more wind 
49.8 	energy conversion facilities;
49.9 	(2) "large scale wind energy conversion system" means a wind energy conversion system 
49.10 	of more than 12 megawatts, as measured by the nameplate capacity of the system or as 
49.11 	combined with other systems as provided in paragraph (b);
49.12 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
49.13 	system of over two and not more than 12 megawatts, as measured by the nameplate capacity 
49.14 	of the system or as combined with other systems as provided in paragraph (b); and
49.15 	(4) "small scale wind energy conversion system" means a wind energy conversion system 
49.16 	of two megawatts and under, as measured by the nameplate capacity of the system or as 
49.17 	combined with other systems as provided in paragraph (b).
49.18 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
49.19 	wind energy conversion system under this subdivision shall be determined according to this 
49.20 	paragraph. Unless the systems are interconnected with different distribution systems, the 
49.21 	nameplate capacity of one wind energy conversion system shall be combined with the 
49.22 	nameplate capacity of any other wind energy conversion system that is:
49.23 	(1) located within five miles of the wind energy conversion system;
49.24 	(2) constructed within the same calendar year as the wind energy conversion system; 
49.25 	and
49.26 	(3) under common ownership.
49.27 	In the case of a dispute, the commissioner of commerce shall determine the total size of 
49.28 	the system, and shall draw all reasonable inferences in favor of combining the systems.
49.29 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
49.30 	determine that two wind energy conversion systems are under common ownership when 
49.31 	the underlying ownership structure contains similarthe same persons or entities, even if the 
50.1 	ownership shares differ between the two systems. Wind energy conversion systems are not 
50.2 	under common ownership solely because the same person or entity provided equity financing 
50.3 	for the systems. Wind energy conversion systems that were determined by the commissioner 
50.4 	of commerce to be eligible for a renewable energy production incentive under section 
50.5 	216C.41 are not under common ownership unless a change in the qualifying owner was 
50.6 	made to an owner of another wind energy conversion system subsequent to the determination 
50.7 	by the commissioner of commerce.

50.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.9 	Sec. 7. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:
50.10 		Subd. 8.Manufactured homes; sectional structures. (a) In this section, "manufactured 
50.11 	home" means a structure transportable in one or more sections, which is built on a permanent 
50.12 	chassis, and designed to be used as a dwelling with or without a permanent foundation when 
50.13 	connected to the required utilities, and contains the plumbing, heating, air conditioning, and 
50.14 	electrical systems in it. Manufactured home includes any accessory structure that is an 
50.15 	addition or supplement to the manufactured home and, when installed, becomes a part of 
50.16 	the manufactured home.
50.17 	(b) Except as provided in paragraph (c), a manufactured home that meets each of the 
50.18 	following criteria must be valued and assessed as an improvement to real property, the 
50.19 	appropriate real property classification applies, and the valuation is subject to review and 
50.20 	the taxes payable in the manner provided for real property:
50.21 	(1) the owner of the unit holds title to the land on which it is situated;
50.22 	(2) the unit is affixed to the land by a permanent foundation or is installed at its location 
50.23 	in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, 
50.24 	and rules adopted under those sections, or is affixed to the land like other real property in 
50.25 	the taxing district; and
50.26 	(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 
50.27 	by water and sewer facilities comparable to other real property in the taxing district.
50.28 	(c) A manufactured home that meets each of the following criteria must be assessed at 
50.29 	the rate provided by the appropriate real property classification but must be treated as 
50.30 	personal property, and the valuation is subject to review and the taxes payable in the manner 
50.31 	provided in this section:
50.32 	(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is 
50.33 	located in a manufactured home park but is not the homestead of the park owner;
51.1 	(2) the unit is affixed to the land by a permanent foundation or is installed at its location 
51.2 	in accordance with the Manufactured Home Building Code contained in sections 327.31 to 
51.3 	327.34, and the rules adopted under those sections, or is affixed to the land like other real 
51.4 	property in the taxing district; and
51.5 	(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 
51.6 	by water and sewer facilities comparable to other real property in the taxing district.
51.7 	(d) Sectional structures must be valued and assessed as an improvement to real property 
51.8 	if the owner of the structure holds title to the land on which it is located or is a qualifying 
51.9 	lessee of the land under section 273.19. In this paragraph "sectional structure" means a 
51.10 	building or structural unit that has been in whole or substantial part manufactured or 
51.11 	constructed at an off-site location to be wholly or partially assembled on site alone or with 
51.12 	other units and attached to a permanent foundation.
51.13 	(e) The commissioner of revenue may adopt rules under the Administrative Procedure 
51.14 	Act to establish additional criteria for the classification of manufactured homes and sectional 
51.15 	structures under this subdivision.
51.16 	(f) A storage shed, deck, or similar improvement constructed on property that is leased 
51.17 	or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer 
51.18 	is taxable as provided in this section. In the case of property that is leased or rented as a site 
51.19 	for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered 
51.20 	personal property under this paragraph is taxable only if its total estimated market value is 
51.21 	over $1,000 $10,000. The property is taxable as personal property to the lessee of the site 
51.22 	if it is not owned by the owner of the site. The property is taxable as real estate if it is owned 
51.23 	by the owner of the site. As a condition of permitting the owner of the manufactured home, 
51.24 	sectional structure, park trailer, or travel trailer to construct improvements on the leased or 
51.25 	rented site, the owner of the site must obtain the permanent home address of the lessee or 
51.26 	user of the site. The site owner must provide the name and address to the assessor upon 
51.27 	request.

51.28 	Sec. 8. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:
51.29 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
51.30 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
51.31 	2a land under the same ownership. The market value of the house and garage and immediately 
51.32 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
51.33 	under subdivision 22. The value of the remaining land including improvements up to the 
51.34 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
52.1 	percent of market value. The remaining property over the first tier has a classification rate 
52.2 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
52.3 	limit of agricultural homestead property" and "first tier" means the limit certified under 
52.4 	section 273.11, subdivision 23.
52.5 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
52.6 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
52.7 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
52.8 	property must also include any property that would otherwise be classified as 2b, but is 
52.9 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
52.10 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
52.11 	and other similar land that is impractical for the assessor to value separately from the rest 
52.12 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
52.13 	An assessor may classify the part of a parcel described in this subdivision that is used 
52.14 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
52.15 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
52.16 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
52.17 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
52.18 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
52.19 	defined by the commissioner of revenue does not disqualify the property from classification 
52.20 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
52.21 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
52.22 	assigned to the split parcel containing the structure. Class 2b property has a classification 
52.23 	rate of one percent of market value unless it is part of an agricultural homestead under 
52.24 	paragraph (a), or qualifies as class 2c under paragraph (d).
52.25 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
52.26 	acres statewide per taxpayer that is being managed under a forest management plan that 
52.27 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
52.28 	management incentive program. It has a classification rate of .65 percent, provided that the 
52.29 	owner of the property must apply to the assessor in order for the property to initially qualify 
52.30 	for the reduced rate and provide the information required by the assessor to verify that the 
52.31 	property qualifies for the reduced rate. If the assessor receives the application and information 
52.32 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
52.33 	year. If the assessor receives the application and information after April 30 in an assessment 
52.34 	year, the property may not qualify until the next assessment year. The commissioner of 
52.35 	natural resources must concur that the land is qualified. The commissioner of natural 
53.1 	resources shall annually provide county assessors verification information on a timely basis. 
53.2 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
53.3 	of revenue does not disqualify the property from classification under this paragraph.
53.4 	(e) Agricultural land as used in this section means:
53.5 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
53.6 	agricultural purposes; or
53.7 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
53.8 	poultry confinement operation, provided that land used only for pasturing or grazing does 
53.9 	not qualify under this clause.
53.10 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
53.11 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
53.12 	support of agricultural production by the same farm entity. For a property to be classified 
53.13 	as agricultural based only on the drying or storage of agricultural products, the products 
53.14 	being dried or stored must have been produced by the same farm entity as the entity operating 
53.15 	the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest 
53.16 	in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation 
53.17 	Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal 
53.18 	conservation program if the property was classified as agricultural (i) under this subdivision 
53.19 	for taxes payable in 2003 because of its enrollment in a qualifying program and the land 
53.20 	remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a 
53.21 	local conservation program means a program administered by a town, statutory or home 
53.22 	rule charter city, or county, including a watershed district, water management organization, 
53.23 	or soil and water conservation district, in which landowners voluntarily enroll land and 
53.24 	receive incentive payments in exchange for use or other restrictions placed on the land. 
53.25 	Agricultural classification shall not be based upon the market value of any residential 
53.26 	structures on the parcel or contiguous parcels under the same ownership.
53.27 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
53.28 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
53.29 	of, a set of contiguous tax parcels under that section that are owned by the same person.
53.30 	(f) Agricultural land under this section also includes:
53.31 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
53.32 	preceding year for raising or cultivating agricultural products; or
54.1 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
54.2 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
54.3 	used in the preceding year for one or more of the following three uses:
54.4 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
54.5 	equipment storage activities used to support agricultural activities on other parcels of property 
54.6 	operated by the same farming entity;
54.7 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
54.8 	are considered agricultural land; or
54.9 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
54.10 	means the cultivation of one or more fruits or vegetables or production of animal or other 
54.11 	agricultural products for sale to local markets by the farmer or an organization with which 
54.12 	the farmer is affiliated.
54.13 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
54.14 	described in section 272.193, or all of a set of contiguous tax parcels under that section that 
54.15 	are owned by the same person.
54.16 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
54.17 	of that property is the leasing to, or use by another person for agricultural purposes.
54.18 	Classification under this subdivision is not determinative for qualifying under section 
54.19 	273.111.
54.20 	(h) The property classification under this section supersedes, for property tax purposes 
54.21 	only, any locally administered agricultural policies or land use restrictions that define 
54.22 	minimum or maximum farm acreage.
54.23 	(i) The term "agricultural products" as used in this subdivision includes production for 
54.24 	sale of:
54.25 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
54.26 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 
54.27 	and apiary products by the owner;
54.28 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned for 
54.29 	agricultural use;
54.30 	(3) the commercial boarding of horses, which may include related horse training and 
54.31 	riding instruction, if the boarding is done on property that is also used for raising pasture 
54.32 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
55.1 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
55.2 	activities, excluding racing;
55.3 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
55.4 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
55.5 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
55.6 	birds were raised or used for breeding stock on the property during the preceding year and 
55.7 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
55.8 	shooting preserve licensed under section 97A.115;
55.9 	(6) insects primarily bred to be used as food for animals;
55.10 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
55.11 	for timber, lumber, wood, or wood products; and
55.12 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
55.13 	Department of Agriculture under chapter 28A as a food processor.
55.14 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
55.15 	purposes, including but not limited to:
55.16 	(1) wholesale and retail sales;
55.17 	(2) processing of raw agricultural products or other goods;
55.18 	(3) warehousing or storage of processed goods; and
55.19 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
55.20 	(3),
55.21 	the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 
55.22 	2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
55.23 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
55.24 	an agricultural purpose. A greenhouse or other building where horticultural or nursery 
55.25 	products are grown that is also used for the conduct of retail sales must be classified as 
55.26 	agricultural if it is primarily used for the growing of horticultural or nursery products from 
55.27 	seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 
55.28 	Use of a greenhouse or building only for the display of already grown horticultural or nursery 
55.29 	products does not qualify as an agricultural purpose.
55.30 	(k) The assessor shall determine and list separately on the records the market value of 
55.31 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
56.1 	farm buildings or structures are located on this homesteaded acre of land, their market value 
56.2 	shall not be included in this separate determination.
56.3 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
56.4 	privately owned public use airport. It has a classification rate of one percent of market value. 
56.5 	To qualify for classification under this paragraph, a privately owned public use airport must 
56.6 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
56.7 	area" means that part of a privately owned public use airport properly cleared, regularly 
56.8 	maintained, and made available to the public for use by aircraft and includes runways, 
56.9 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
56.10 	area also includes land underlying both the primary surface and the approach surfaces that 
56.11 	comply with all of the following:
56.12 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
56.13 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
56.14 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
56.15 	(ii) the land is part of the airport property; and
56.16 	(iii) the land is not used for commercial or residential purposes.
56.17 	The land contained in a landing area under this paragraph must be described and certified 
56.18 	by the commissioner of transportation. The certification is effective until it is modified, or 
56.19 	until the airport or landing area no longer meets the requirements of this paragraph. For 
56.20 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
56.21 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
56.22 	airport.
56.23 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
56.24 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
56.25 	located in a county that has elected to opt-out of the aggregate preservation program as 
56.26 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
56.27 	market value. To qualify for classification under this paragraph, the property must be at 
56.28 	least ten contiguous acres in size and the owner of the property must record with the county 
56.29 	recorder of the county in which the property is located an affidavit containing:
56.30 	(1) a legal description of the property;
56.31 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
56.32 	actively being mined but is present on the entire parcel enrolled;
57.1 	(3) documentation that the conditional use under the county or local zoning ordinance 
57.2 	of this property is for mining; and
57.3 	(4) documentation that a permit has been issued by the local unit of government or the 
57.4 	mining activity is allowed under local ordinance. The disclosure must include a statement 
57.5 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
57.6 	and certifying that it is a commercial aggregate deposit.
57.7 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
57.8 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
57.9 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
57.10 	in preparation for excavation or excavation of a commercial deposit.
57.11 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
57.12 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
57.13 	day any aggregate is removed stating the number of acres of the property that is actively 
57.14 	being mined. The acres actively being mined must be (1) valued and classified under 
57.15 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
57.16 	resource preservation property tax program under section 273.1115, if the land was enrolled 
57.17 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
57.18 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
57.19 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
57.20 	time a subsequent portion of the property is actively mined, provided that the minimum 
57.21 	acreage change is five acres, even if the actual mining activity constitutes less than five 
57.22 	acres.
57.23 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
57.24 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
57.25 	section 14.386 concerning exempt rules do not apply.

57.26 	EFFECTIVE DATE. This section is effective beginning with assessment year 2017.

57.27 	Sec. 9. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:
57.28 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
57.29 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
57.30 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
57.31 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
57.32 	under section 272.02, and contiguous property used for hospital purposes, without regard 
58.1 	to whether the property has been platted or subdivided. The market value of class 4a property 
58.2 	has a classification rate of 1.25 percent.
58.3 	(b) Class 4b includes:
58.4 	(1) residential real estate containing less than four units that does not qualify as class 
58.5 	4bb, other than seasonal residential recreational property;
58.6 	(2) manufactured homes not classified under any other provision;
58.7 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
58.8 	classified under subdivision 23, paragraph (b) containing two or three units; and
58.9 	(4) unimproved property that is classified residential as determined under subdivision 
58.10 	33.
58.11 	The market value of class 4b property has a classification rate of 1.25 percent.
58.12 	(c) Class 4bb includes nonhomestead residential real estate containing one unit, other 
58.13 	than seasonal residential recreational property, and a single family dwelling, garage, and 
58.14 	surrounding one acre of property on a nonhomestead farm classified under subdivision 23, 
58.15 	paragraph (b).
58.16 	Class 4bb property has the same classification rates as class 1a property under subdivision 
58.17 	22.
58.18 	Property that has been classified as seasonal residential recreational property at any time 
58.19 	during which it has been owned by the current owner or spouse of the current owner does 
58.20 	not qualify for class 4bb.
58.21 	(d) Class 4c property includes:
58.22 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
58.23 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
58.24 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
58.25 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
58.26 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
58.27 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
58.28 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
58.29 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
58.30 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
58.31 	under this clause regardless of the term of the rental agreement, as long as the use of the 
58.32 	camping pad does not exceed 250 days. In order for a property to be classified under this 
59.1 	clause, either (i) the business located on the property must provide recreational activities, 
59.2 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
59.3 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
59.4 	bookings by lodging guests during the year must be for periods of at least two consecutive 
59.5 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
59.6 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
59.7 	and must be located in a township or a city with a population of 2,500 or less located outside 
59.8 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
59.9 	of a state trail administered by the Department of Natural Resources. For purposes of item 
59.10 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
59.11 	property also includes commercial use real property used exclusively for recreational 
59.12 	purposes in conjunction with other class 4c property classified under this clause and devoted 
59.13 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
59.14 	two acres, provided the property is not devoted to commercial recreational use for more 
59.15 	than 250 days in the year preceding the year of assessment and is located within two miles 
59.16 	of the class 4c property with which it is used. In order for a property to qualify for 
59.17 	classification under this clause, the owner must submit a declaration to the assessor 
59.18 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
59.19 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
59.20 	share of the land on which they are located must be designated class 4c under this clause 
59.21 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
59.22 	the land on which they are located will be designated as class 3a. The owner of property 
59.23 	desiring designation as class 4c property under this clause must provide guest registers or 
59.24 	other records demonstrating that the units for which class 4c designation is sought were not 
59.25 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
59.26 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
59.27 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
59.28 	directly related to temporary and seasonal residential occupancy for recreation purposes 
59.29 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
59.30 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
59.31 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
59.32 	and fishing tackle;
59.33 	(2) qualified property used as a golf course if:
59.34 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
59.35 	but a membership fee may not be required in order to use the property for golfing, and its 
60.1 	green fees for golfing must be comparable to green fees typically charged by municipal 
60.2 	courses; and
60.3 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
60.4 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
60.5 	the golf course is classified as class 3a property;
60.6 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
60.7 	community service oriented organization and not used for residential purposes on either a 
60.8 	temporary or permanent basis, provided that:
60.9 	(i) the property is not used for a revenue-producing activity for more than six days in 
60.10 	the calendar year preceding the year of assessment; or
60.11 	(ii) the organization makes annual charitable contributions and donations at least equal 
60.12 	to the property's previous year's property taxes and the property is allowed to be used for 
60.13 	public and community meetings or events for no charge, as appropriate to the size of the 
60.14 	facility.
60.15 	For purposes of this clause:
60.16 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
60.17 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
60.18 	payment of taxes, assessments, fees, auditing costs, and utility payments;
60.19 	(B) "property taxes" excludes the state general tax;
60.20 	(C) a "nonprofit community service oriented organization" means any corporation, 
60.21 	society, association, foundation, or institution organized and operated exclusively for 
60.22 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
60.23 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
60.24 	Revenue Code; and
60.25 	(D) "revenue-producing activities" shall include but not be limited to property or that 
60.26 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
60.27 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
60.28 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
60.29 	insurance business, or office or other space leased or rented to a lessee who conducts a 
60.30 	for-profit enterprise on the premises.
60.31 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
60.32 	use of the property for social events open exclusively to members and their guests for periods 
61.1 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
61.2 	the organization shall not be considered a revenue-producing activity.
61.3 	The organization shall maintain records of its charitable contributions and donations 
61.4 	and of public meetings and events held on the property and make them available upon 
61.5 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
61.6 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
61.7 	current year's assessment. The commissioner shall prescribe a uniform application form 
61.8 	and instructions;
61.9 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
61.10 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
61.11 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
61.12 	miles of the border of a college campus;
61.13 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
61.14 	manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii), 
61.15 	and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are 
61.16 	described in section 273.124, subdivision 3a, and (iii) class I manufactured home parks as 
61.17 	defined  in section 327C.01, subdivision 13;
61.18 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
61.19 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
61.20 	located within the metropolitan area as defined in section 473.121, subdivision 2;
61.21 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
61.22 	section 272.01, subdivision 2, and the land on which it is located, provided that:
61.23 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
61.24 	Airports Commission, or group thereof; and
61.25 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
61.26 	premise, prohibits commercial activity performed at the hangar.
61.27 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
61.28 	filed by the new owner with the assessor of the county where the property is located within 
61.29 	60 days of the sale;
61.30 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
61.31 	272.01, subdivision 2, and the land on which it is located, provided that:
61.32 	(i) the land abuts a public airport; and
62.1 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
62.2 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
62.3 	hangar; and
62.4 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
62.5 	and that is also a place of lodging, if all of the following criteria are met:
62.6 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
62.7 	or fewer days;
62.8 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
62.9 	the basic room rate;
62.10 	(iii) meals are not provided to the general public except for special events on fewer than 
62.11 	seven days in the calendar year preceding the year of the assessment; and
62.12 	(iv) the owner is the operator of the property.
62.13 	The market value subject to the 4c classification under this clause is limited to five rental 
62.14 	units. Any rental units on the property in excess of five, must be valued and assessed as 
62.15 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
62.16 	be classified as class 1a property under subdivision 22;
62.17 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
62.18 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
62.19 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
62.20 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
62.21 	of its annual gross receipts from business conducted during four consecutive months. Gross 
62.22 	receipts from the sale of alcoholic beverages must be included in determining the property's 
62.23 	qualification under item (ii). The property's primary business must be as a restaurant and 
62.24 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
62.25 	Owners of real property desiring 4c classification under this clause must submit an annual 
62.26 	declaration to the assessor by February 1 of the current assessment year, based on the 
62.27 	property's relevant information for the preceding assessment year;
62.28 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
62.29 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
62.30 	and devoted to recreational use for marina services. The marina owner must annually provide 
62.31 	evidence to the assessor that it provides services, including lake or river access to the public 
62.32 	by means of an access ramp or other facility that is either located on the property of the 
62.33 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
63.1 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
63.2 	a marina for marina services, including but not limited to buildings used to provide food 
63.3 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
63.4 	as class 3a property; and
63.5 	(12) real and personal property devoted to noncommercial temporary and seasonal 
63.6 	residential occupancy for recreation purposes.
63.7 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
63.8 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
63.9 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
63.10 	under clause (5), item (i), have the same classification rate as class 4b property, and the 
63.11 	market value of manufactured home parks assessed under clause (5), item (ii), has have a 
63.12 	classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied 
63.13 	by shareholders in the cooperative corporation or association and a classification rate of 
63.14 	one percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
63.15 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, 
63.16 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
63.17 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
63.18 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
63.19 	property described in clause (4) has a classification rate of one percent, (v) the market value 
63.20 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
63.21 	and (vi) that portion of the market value of property in clause (9) qualifying for class 4c 
63.22 	property has a classification rate of 1.25 percent.
63.23 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
63.24 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
63.25 	the units in the building qualify as low-income rental housing units as certified under section 
63.26 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
63.27 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
63.28 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
63.29 	the qualifying low-income rental housing units are to the total units in the building. For all 
63.30 	properties qualifying as class 4d, the market value determined by the assessor must be based 
63.31 	on the normal approach to value using normal unrestricted rents.
63.32 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
63.33 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
63.34 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
63.35 	the market value of each housing unit up to the first tier limit. For the purposes of this 
64.1 	paragraph, all class 4d property value must be assigned to individual housing units. The 
64.2 	first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 
64.3 	adjusted each year by the average statewide change in estimated market value of property 
64.4 	classified as class 4a and 4d under this section for the previous assessment year, excluding 
64.5 	valuation change due to new construction, rounded to the nearest $1,000, provided, however, 
64.6 	that the limit may never be less than $100,000. Beginning with assessment year 2015, the 
64.7 	commissioner of revenue must certify the limit for each assessment year by November 1 
64.8 	of the previous year.

64.9 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

64.10 	Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
64.11 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a portion of 
64.12 	the market value of property owned by a veteran and serving as the veteran's homestead 
64.13 	under this section is excluded in determining the property's taxable market value if the 
64.14 	veteran has a service-connected disability of 70 percent or more as certified by the United 
64.15 	States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 
64.16 	veteran must have been honorably discharged from the United States armed forces, as 
64.17 	indicated by United States Government Form DD214 or other official military discharge 
64.18 	papers.
64.19 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
64.20 	except as provided in clause (2); and
64.21 	(2) for a total (100 percent) and permanent 100 percent disability rating, $300,000 of 
64.22 	market value is excluded.
64.23 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 
64.24 	(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 
64.25 	the legal or beneficial title to the homestead and permanently resides there, the exclusion 
64.26 	shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 
64.27 	for eight additional taxes payable years or until such time as the spouse remarries, or sells, 
64.28 	transfers, or otherwise disposes of the property, whichever comes first. Qualification under 
64.29 	this paragraph requires an annual application under paragraph (h).
64.30 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
64.31 	who dies due to a service-connected cause while serving honorably in active service, as 
64.32 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
64.33 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
65.1 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
65.2 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
65.3 	whichever comes first.
65.4 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
65.5 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
65.6 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
65.7 	for under paragraph (b).
65.8 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
65.9 	of the house and garage and immediately surrounding one acre of land qualifies for the 
65.10 	valuation exclusion under this subdivision.
65.11 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
65.12 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
65.13 	paragraph (b).
65.14 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
65.15 	apply to the assessor by July 1 of each assessment year, except that an annual reapplication 
65.16 	is not required once a property has been accepted for a valuation exclusion under paragraph 
65.17 	(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 
65.18 	continues to qualify until there is a change in ownership. For an application received after 
65.19 	July 1 of any calendar year, the exclusion shall become effective for the following assessment 
65.20 	year.
65.21 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
65.22 	paragraph (d) must be made any time within two years of the death of the service member.
65.23 	(j) For purposes of this subdivision:
65.24 	(1) "active service" has the meaning given in section 190.05;
65.25 	(2) "own" means that the person's name is present as an owner on the property deed;
65.26 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
65.27 	United States Department of Veterans Affairs for assistance as the primary provider of 
65.28 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
65.29 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
65.30 	(4) "veteran" has the meaning given the term in section 197.447.
66.1 	(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause 
66.2 	(2), before dying, the veteran's spouse is entitled to the benefit under paragraph (b), clause 
66.3 	(2), until the spouse remarries or sells, transfers, or otherwise disposes of the property if:
66.4 	(1) the spouse files a first-time application within two years of the death of the service 
66.5 	member or by June 1, 2019, whichever is later;
66.6 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
66.7 	homestead and permanently resides there;
66.8 	(3) the veteran met the honorable discharge requirements of paragraph (a);
66.9 	(4) the spouse complies with the annual application requirement under paragraph (h); 
66.10 	and
66.11 	(5) the United States Department of Veterans Affairs certifies that:
66.12 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
66.13 	paragraph (b), clause (2); or
66.14 	(ii) the spouse has been awarded dependency and indemnity compensation.
66.15 	(l) The purpose of this provision of law providing a level of homestead property tax 
66.16 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
66.17 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
66.18 	those burdens most heavily.

66.19 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

66.20 	Sec. 11. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
66.21 		Subdivision 1.Levy amount. The state general levy is levied against 
66.22 	commercial-industrial property and seasonal residential recreational property, as defined 
66.23 	in this section. The state general levy base amount for commercial-industrial property is 
66.24 	$592,000,000$784,594,000 for taxes payable in 2002 2018 and thereafter. For taxes payable 
66.25 	in subsequent years, the levy base amount is increased each year by multiplying the levy 
66.26 	base amount for the prior year by the sum of one plus the rate of increase, if any, in the 
66.27 	implicit price deflator for government consumption expenditures and gross investment for 
66.28 	state and local governments prepared by the Bureau of Economic Analysts of the United 
66.29 	States Department of Commerce for the 12-month period ending March 31 of the year prior 
66.30 	to the year the taxes are payable The state general levy base amount for seasonal 
66.31 	residential-recreational property is $44,190,000 for taxes payable in 2018 and thereafter. 
67.1 	The tax under this section is not treated as a local tax rate under section 469.177 and is not 
67.2 	the levy of a governmental unit under chapters 276A and 473F.
67.3 	The commissioner shall increase or decrease the preliminary or final raterates for a year 
67.4 	as necessary to account for errors and tax base changes that affected a preliminary or final 
67.5 	rate for either of the two preceding years. Adjustments are allowed to the extent that the 
67.6 	necessary information is available to the commissioner at the time the rates for a year must 
67.7 	be certified, and for the following reasons:
67.8 	(1) an erroneous report of taxable value by a local official;
67.9 	(2) an erroneous calculation by the commissioner; and
67.10 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
67.11 	residential recreational property reported on the abstracts of tax lists submitted under section 
67.12 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
67.13 	for the same year.
67.14 	The commissioner may, but need not, make adjustments if the total difference in the tax 
67.15 	levied for the year would be less than $100,000.

67.16 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

67.17 	Sec. 12. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
67.18 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
67.19 	"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 
67.20 	as class 3 or class 5(1) under section 273.13, except for excluding: (1) the first $100,000 of 
67.21 	market value of each parcel of commercial-industrial net tax capacity as defined under 
67.22 	section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation attached machinery 
67.23 	under class 3; and (3) property described in section 473.625. County commercial-industrial 
67.24 	tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment 
67.25 	financing district under section 469.177, subdivision 2, the net tax capacity of transmission 
67.26 	lines deducted from a local government's total net tax capacity under section 273.425, or 
67.27 	fiscal disparities contribution and distribution net tax capacities under chapter 276A or 473F. 
67.28 	For purposes of this subdivision, the procedures for determining eligibility for tier 1under 
67.29 	section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the portion 
67.30 	of a property eligible to be considered within the first $100,000 of market value.

67.31 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

68.1 	Sec. 13. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
68.2 		Subd. 4.Apportionment and levy of state general tax. Ninety-five percent of The 
68.3 	state general tax must be levied by applying a uniform rate to all commercial-industrial tax 
68.4 	capacity and five percent of the state general tax must be levied by applying a uniform rate 
68.5 	to all seasonal residential recreational tax capacity. On or before October 1 each year, the 
68.6 	commissioner of revenue shall certify the preliminary state general levy rates to each county 
68.7 	auditor that must be used to prepare the notices of proposed property taxes for taxes payable 
68.8 	in the following year. By January 1 of each year, the commissioner shall certify the final 
68.9 	state general levy raterates to each county auditor that shall be used in spreading taxes.

68.10 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

68.11 	Sec. 14. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
68.12 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
68.13 	on or before September 30, each county and each, home rule charter or statutory city, town, 
68.14 	and special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito 
68.15 	Control Commission, shall certify to the county auditor the proposed property tax levy for 
68.16 	taxes payable in the following year. For towns, the final certified levy shall also be considered 
68.17 	the proposed levy.
68.18 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
68.19 	town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito 
68.20 	Control Commission shall adopt and certify to the county auditor a proposed property tax 
68.21 	levy for taxes payable in the following year. For towns, the final certified levy shall also be 
68.22 	considered the proposed levy.
68.23 	(c) On or before September 30, each school district that has not mutually agreed with 
68.24 	its home county to extend this date shall certify to the county auditor the proposed property 
68.25 	tax levy for taxes payable in the following year. Each school district that has agreed with 
68.26 	its home county to delay the certification of its proposed property tax levy must certify its 
68.27 	proposed property tax levy for the following year no later than October 7. The school district 
68.28 	shall certify the proposed levy as:
68.29 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
68.30 	and non-voter-approved levies and between referendum market value and tax capacity 
68.31 	levies; or
68.32 	(2) the maximum levy limitation certified by the commissioner of education according 
68.33 	to section 126C.48, subdivision 1.
69.1 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
69.2 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
69.3 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
69.4 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
69.5 	jurisdictions.
69.6 	(e) For purposes of this section, "special taxing district" means a special taxing district 
69.7 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
69.8 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
69.9 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
69.10 	taxing districts for purposes of this section.
69.11 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
69.12 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
69.13 	its subsequent regularly scheduled meetings at which the budget and levy will be discussed 
69.14 	and at which the public will be allowed to speak. The time and place of those meetings must 
69.15 	be included in the proceedings or summary of proceedings published in the official newspaper 
69.16 	of the taxing authority under section 123B.09, 375.12, or 412.191.

69.17 	EFFECTIVE DATE. This section is effective beginning with proposed levy 
69.18 	certifications for taxes payable in 2018.

69.19 	Sec. 15. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
69.20 		Subdivision 1.Certification of levy. (a) Except as provided under paragraph (b), the 
69.21 	taxes voted by cities, counties, school districts, and special districts shall be certified by the 
69.22 	proper authorities to the county auditor on or before five working days after December 20 
69.23 	in each year. A town must certify the levy adopted by the town board to the county auditor 
69.24 	by September 1530 each year. If the town board modifies the levy at a special town meeting 
69.25 	after September 15 30, the town board must recertify its levy to the county auditor on or 
69.26 	before five working days after December 20. If a city, town, county, school district, or 
69.27 	special district fails to certify its levy by that date, its levy shall be the amount levied by it 
69.28 	for the preceding year.
69.29 	(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
69.30 	shall be separately certified by the county to the county auditor on or before five working 
69.31 	days after December 20 in each year. The taxes certified shall not be reduced by the county 
69.32 	auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify 
69.33 	its levy by that date, its levy shall be the amount levied by it for the preceding year.
70.1 	(ii) For purposes of the proposed property tax notice under section 275.065 and the 
70.2 	property tax statement under section 276.04, for the first year in which the county implements 
70.3 	the provisions of this paragraph, the county auditor shall reduce the county's levy for the 
70.4 	preceding year to reflect any amount levied for water management purposes under clause 
70.5 	(i) included in the county's levy.

70.6 	EFFECTIVE DATE. This section is effective beginning with proposed levy 
70.7 	certifications for taxes payable in 2018.

70.8 	Sec. 16. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
70.9 		Subd. 2.Abatement of penalty. (a) The county board may, with the concurrence of the 
70.10 	county treasurer, delegate to the county treasurer the power to abate the penalty provided 
70.11 	for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 
70.12 	board so elects, the county treasurer may abate the penalty on finding that the imposition 
70.13 	of the penalty would be unjust and unreasonable.
70.14 	(b) The county treasurer shall abate the penalty provided for late payment of taxes in 
70.15 	the current year if the property tax payment is delivered by mail to the county treasurer and 
70.16 	the envelope containing the payment is postmarked by the United States Postal Service 
70.17 	within one business day of the due date prescribed under this section, but only if the property 
70.18 	owner requesting the abatement has not previously received an abatement of penalty for 
70.19 	late payment of tax under this paragraph.

70.20 	EFFECTIVE DATE. This section is effective for property taxes payable in 2018 and 
70.21 	thereafter.

70.22 	Sec. 17. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:
70.23 		Subd. 6.Forest land. "Forest land" means land containing a minimum of 20 contiguous 
70.24 	acres for which the owner has implemented a forest management plan that was prepared or 
70.25 	updated within the past ten years by an approved plan writer. For purposes of this subdivision, 
70.26 	acres are considered to be contiguous even if they are separated by a road, waterway, railroad 
70.27 	track, or other similar intervening property. At least 50 percent of the contiguous acreage 
70.28 	must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of 
70.29 	sections 290C.01 to 290C.11 290C.13, forest land does not include (i) land used for 
70.30 	residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program, 
70.31 	a state or federal conservation reserve or easement reserve program under sections 103F.501
70.32 	to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land 
70.33 	subject to agricultural land preservation controls or restrictions as defined in section 40A.02
71.1 	or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land exceeding 
71.2 	60,000 acres that is subject to a single conservation easement funded under section 97A.056
71.3 	or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv) 
71.4 	any land that becomes subject to a conservation easement funded under section 97A.056
71.5 	or a comparable permanent easement conveyed to a governmental or nonprofit entity after 
71.6 	May 30, 2013; or (v) land improved with a structure,; pavement, other than a paved trail 
71.7 	under easement, lease, or terminable license to the state of Minnesota or a political 
71.8 	subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes 
71.9 	not prescribed in the forest management plan.

71.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

71.11 	Sec. 18. Minnesota Statutes 2016, section 290C.07, is amended to read:
71.12 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
71.13 	An approved claimant under the sustainable forest incentive program is eligible to receive 
71.14 	an annual payment for each acre of enrolled land, excluding any acre improved with a paved 
71.15 	trail under easement, lease, or terminable license to the state of Minnesota or a political 
71.16 	subdivision. The payment shall equal $7 per acre for each acre enrolled in the sustainable 
71.17 	forest incentive program.

71.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

71.19 	Sec. 19. Minnesota Statutes 2016, section 290C.10, is amended to read:
71.20 	290C.10 WITHDRAWAL PROCEDURES.
71.21 	(a) An approved claimant under the sustainable forest incentive program for a minimum 
71.22 	of four years may notify the commissioner of the intent to terminate enrollment. Within 90 
71.23 	days of receipt of notice to terminate enrollment, the commissioner shall inform the claimant 
71.24 	in writing, acknowledging receipt of this notice and indicating the effective date of 
71.25 	termination from the sustainable forest incentive program. Termination of enrollment in 
71.26 	the sustainable forest incentive program occurs on January 1 of the fifth calendar year that 
71.27 	begins after receipt by the commissioner of the termination notice. After the commissioner 
71.28 	issues an effective date of termination, a claimant wishing to continue the land's enrollment 
71.29 	in the sustainable forest incentive program beyond the termination date must apply for 
71.30 	enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land 
71.31 	from this program may not reenroll the parcel for a period of three years. Within 90 days 
71.32 	after the termination date, the commissioner shall execute and acknowledge a document 
72.1 	releasing the land from the covenant required under this chapter. The document must be 
72.2 	mailed to the claimant and is entitled to be recorded.
72.3 	(b) Notwithstanding paragraph (a), the commissioner may allow early withdrawal from 
72.4 	the Sustainable Forest Incentive Act without penalty when the state of Minnesota, any local 
72.5 	government unit, or any other entity which has the power of eminent domain acquires title 
72.6 	or possession to the land for a public purpose notwithstanding the provisions of this section. 
72.7 	In the case of suchan eligible acquisition under this paragraph, the commissioner shall 
72.8 	execute and acknowledge a document releasing the land acquired by the state, local 
72.9 	government unit, or other entity from the covenant. All other enrolled land must remain in 
72.10 	the program.
72.11 	(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
72.12 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land 
72.13 	that is subject to fee or easement acquisition or lease to the state of Minnesota or a political 
72.14 	subdivision of the state for the public purpose of a paved trail. The commissioner of natural 
72.15 	resources must notify the commissioner of lands acquired under this paragraph that are 
72.16 	eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under 
72.17 	this paragraph, the commissioner shall execute and acknowledge a document releasing the 
72.18 	land subject to fee or easement acquisition or lease by the state or political subdivision of 
72.19 	the state.

72.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

72.21 	Sec. 20. Minnesota Statutes 2016, section 473H.09, is amended to read:
72.22 	473H.09 EARLY TERMINATION.
72.23 		Subdivision 1.Public emergency. Termination of an agricultural preserve earlier than 
72.24 	a date derived through application of section 473H.08 may be permitted only in the event 
72.25 	of a public emergency upon petition from the owner or authority to the governor. The 
72.26 	determination of a public emergency shall be by the governor through executive order 
72.27 	pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 
72.28 	the reasons requiring the action and the date of termination.
72.29 		Subd. 2.Death of owner. (a) Within 365 days of the death of an owner, an owner's 
72.30 	spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural 
72.31 	preserve and the covenant allowing the land to be enrolled as an agricultural preserve by 
72.32 	notifying the authority on a form provided by the commissioner of agriculture. Termination 
73.1 	of a covenant under this subdivision must be executed and acknowledged in the manner 
73.2 	required by law to execute and acknowledge a deed.
73.3 	(b) For purposes of this subdivision, the following definitions apply:
73.4 	(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent 
73.5 	was the settlor or a beneficiary of, or member of an entity permitted to own agricultural 
73.6 	land and engage in farming under section 500.24 that owned the agricultural preserve; and
73.7 	(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a 
73.8 	trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm 
73.9 	land under section 500.24 of which the decedent was a partner, shareholder, or member.
73.10 	(c) When an agricultural preserve is terminated under this subdivision, the property is 
73.11 	subject to additional taxes in an amount equal to 50 percent of the taxes actually levied 
73.12 	against the property for the current taxes payable year. The additional taxes are extended 
73.13 	against the property on the tax list for taxes payable in the current year. The additional taxes 
73.14 	must be distributed among the jurisdictions levying taxes on the property in proportion to 
73.15 	the current year's taxes.

73.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

73.17 	Sec. 21. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:
73.18 		Subd. 1a.Allowed commercial and industrial operations. (a) Commercial and industrial 
73.19 	operations are not allowed on land within an agricultural preserve except:
73.20 	(1) small on-farm commercial or industrial operations normally associated with and 
73.21 	important to farming in the agricultural preserve area;
73.22 	(2) storage use of existing farm buildings that does not disrupt the integrity of the 
73.23 	agricultural preserve; and
73.24 	(3) small commercial use of existing farm buildings for trades not disruptive to the 
73.25 	integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 
73.26 	and similar activities that a farm operator might conduct.; and
73.27 	(4) wireless communication installments and related equipment and structure capable 
73.28 	of providing technology potentially beneficial to farming activities.
73.29 	(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses 
73.30 	(2) and (3), means existing on August 1, 1987.

73.31 	EFFECTIVE DATE. This section is effective the day following enactment.

74.1 	Sec. 22. Laws 1996, chapter 471, article 3, section 51, is amended to read:
74.2 	Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
 74.3 		Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the Carlton 
74.4 	county board of commissioners may levy in and for the unorganized township of Sawyer 
74.5 	an amount up to $1,500 $2,000 annually for recreational purposes, beginning with taxes 
74.6 	payable in 1997 and ending with taxes payable in 2006.
74.7 		Subd. 2.Effective date. This section is effective June 1, 1996, without local approval.

74.8 	EFFECTIVE DATE. This section applies to taxes payable in 2018 and thereafter, and 
74.9 	is effective the day after the Carlton County Board of Commissioners and its chief clerical 
74.10 	officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

74.11 	Sec. 23. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL 
74.12 	ASSESSMENT.
 74.13 	Any real or personal property acquired, owned, leased, controlled, used, or occupied by 
74.14 	the city of St. Paul for the primary purpose of providing a stadium for a Major League 
74.15 	Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for 
74.16 	public, governmental, and municipal purposes, and is exempt from ad valorem taxation by 
74.17 	the state or any political subdivision of the state, provided that the properties are subject to 
74.18 	special assessments levied by a political subdivision for a local improvement in amounts 
74.19 	proportionate to and not exceeding the special benefit received by the properties from the 
74.20 	improvement. In determining the special benefit received by the properties, no possible use 
74.21 	of any of the properties in any manner different from their intended use for providing a 
74.22 	Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota 
74.23 	Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a 
74.24 	lease or use agreement between the city and another person for uses related to the purposes 
74.25 	of the operation of the stadium and related parking facilities is exempt from taxation 
74.26 	regardless of the length of the lease or use agreement. This section, insofar as it provides 
74.27 	an exemption or special treatment, does not apply to any real property that is leased for 
74.28 	residential, business, or commercial development or other purposes different from those 
74.29 	necessary to the provision and operation of the stadium.

74.30 	EFFECTIVE DATE. This section is effective upon approval by the St. Paul City 
74.31 	Council and compliance with Minnesota Statutes, section 645.021.

75.1 	ARTICLE 3
75.2 	SALES AND USE

75.3 	Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read:
75.4 	128C.24 LEAGUE FUNDS TRANSFER.
75.5 	(a) Beginning July 1, 2007, the Minnesota State High School League shall annually 
75.6 	determine the sales tax savings attributable to section 297A.70, subdivision 11 11a, and 
75.7 	annually transfer that amount to a nonprofit charitable foundation created for the purpose 
75.8 	of promoting high school extracurricular activities. The funds must be used by the foundation 
75.9 	to make grants to fund, assist, recognize, or promote high school students' participation in 
75.10 	extracurricular activities. The first priority for funding will be grants for scholarships to 
75.11 	individuals to offset athletic fees. The foundation must equitably award grants based on 
75.12 	considerations of gender balance, school size, and geographic location, to the extent feasible.
75.13 	(b) By February 1 of each year, the Minnesota State High School League must report 
75.14 	to the chairs and ranking minority members of the legislative committees and divisions with 
75.15 	jurisdiction over E-12 education on activities funded by the transfer under this section. The 
75.16 	report must include the following information for the previous fiscal year beginning July 
75.17 	1:
75.18 	(1) the number of high schools receiving grants;
75.19 	(2) the amount of grants made to high schools;
75.20 	(3) the number of students benefiting from financial assistance to offset athletic fees;
75.21 	(4) the regional breakdown of grants by school; and
75.22 	(5) any other information helpful in assessing the success of the program.

75.23 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
75.24 	30, 2017, and before July 1, 2027.

75.25 	Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:
75.26 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 
75.27 	each of the transactions listed in this subdivision. In applying the provisions of this chapter, 
75.28 	the terms "tangible personal property" and "retail sale" include the taxable services listed 
75.29 	in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 
75.30 	services, unless specifically provided otherwise. Services performed by an employee for 
75.31 	an employer are not taxable. Services performed by a partnership or association for another 
76.1 	partnership or association are not taxable if one of the entities owns or controls more than 
76.2 	80 percent of the voting power of the equity interest in the other entity. Services performed 
76.3 	between members of an affiliated group of corporations are not taxable. For purposes of 
76.4 	the preceding sentence, "affiliated group of corporations" means those entities that would 
76.5 	be classified as members of an affiliated group as defined under United States Code, title 
76.6 	26, section 1504, disregarding the exclusions in section 1504(b).
76.7 	(b) Sale and purchase include:
76.8 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
76.9 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
76.10 	(2) the leasing of or the granting of a license to use or consume, for a consideration in 
76.11 	money or by exchange or barter, tangible personal property, other than a manufactured 
76.12 	home used for residential purposes for a continuous period of 30 days or more.
76.13 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
76.14 	tangible personal property for a consideration for consumers who furnish either directly or 
76.15 	indirectly the materials used in the production, fabrication, printing, or processing.
76.16 	(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 
76.17 	section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
76.18 	(1) prepared food sold by the retailer;
76.19 	(2) soft drinks;
76.20 	(3) candy; and
76.21 	(4) dietary supplements; and.
76.22 	(5) all food sold through vending machines.
76.23 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 
76.24 	water, or steam for use or consumption within this state.
76.25 	(f) A sale and a purchase includes the transfer for a consideration of prewritten computer 
76.26 	software whether delivered electronically, by load and leave, or otherwise.
76.27 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
76.28 	services:
76.29 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
76.30 	events, and the making available of amusement devices, tanning facilities, reducing salons, 
76.31 	steam baths, health clubs, and spas or athletic facilities;
77.1 	(2) lodging and related services by a hotel, rooming house, resort, campground, motel, 
77.2 	or trailer camp, including furnishing the guest of the facility with access to telecommunication 
77.3 	services, and the granting of any similar license to use real property in a specific facility, 
77.4 	other than the renting or leasing of it for a continuous period of 30 days or more under an 
77.5 	enforceable written agreement that may not be terminated without prior notice and including 
77.6 	accommodations intermediary services provided in connection with other services provided 
77.7 	under this clause;
77.8 	(3) nonresidential parking services, whether on a contractual, hourly, or other periodic 
77.9 	basis, except for parking at a meter;
77.10 	(4) the granting of membership in a club, association, or other organization if:
77.11 	(i) the club, association, or other organization makes available for the use of its members 
77.12 	sports and athletic facilities, without regard to whether a separate charge is assessed for use 
77.13 	of the facilities; and
77.14 	(ii) use of the sports and athletic facility is not made available to the general public on 
77.15 	the same basis as it is made available to members.
77.16 	Granting of membership means both onetime initiation fees and periodic membership dues. 
77.17 	Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 
77.18 	courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 
77.19 	pools; and other similar athletic or sports facilities;
77.20 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
77.21 	material used in road construction; and delivery of concrete block by a third party if the 
77.22 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
77.23 	For purposes of this clause, "road construction" means construction of:
77.24 	(i) public roads;
77.25 	(ii) cartways; and
77.26 	(iii) private roads in townships located outside of the seven-county metropolitan area 
77.27 	up to the point of the emergency response location sign; and
77.28 	(6) services as provided in this clause:
77.29 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
77.30 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
77.31 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
77.32 	include services provided by coin operated facilities operated by the customer;
78.1 	(ii) motor vehicle washing, waxing, and cleaning services, including services provided 
78.2 	by coin operated facilities operated by the customer, and rustproofing, undercoating, and 
78.3 	towing of motor vehicles;
78.4 	(iii) building and residential cleaning, maintenance, and disinfecting services and pest 
78.5 	control and exterminating services;
78.6 	(iv) detective, security, burglar, fire alarm, and armored car services; but not including 
78.7 	services performed within the jurisdiction they serve by off-duty licensed peace officers as 
78.8 	defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 
78.9 	or any organization at the direction of a county for monitoring and electronic surveillance 
78.10 	of persons placed on in-home detention pursuant to court order or under the direction of the 
78.11 	Minnesota Department of Corrections;
78.12 	(v) pet grooming services;
78.13 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
78.14 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 
78.15 	care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 
78.16 	contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 
78.17 	lines. Services performed under a construction contract for the installation of shrubbery, 
78.18 	plants, sod, trees, bushes, and similar items are not taxable;
78.19 	(vii) massages, except when provided by a licensed health care facility or professional 
78.20 	or upon written referral from a licensed health care facility or professional for treatment of 
78.21 	illness, injury, or disease; and
78.22 	(viii) the furnishing of lodging, board, and care services for animals in kennels and other 
78.23 	similar arrangements, but excluding veterinary and horse boarding services.
78.24 	(h) A sale and a purchase includes the furnishing for a consideration of tangible personal 
78.25 	property or taxable services by the United States or any of its agencies or instrumentalities, 
78.26 	or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
78.27 	(i) A sale and a purchase includes the furnishing for a consideration of 
78.28 	telecommunications services, ancillary services associated with telecommunication services, 
78.29 	and pay television services. Telecommunication services include, but are not limited to, the 
78.30 	following services, as defined in section 297A.669: air-to-ground radiotelephone service, 
78.31 	mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 
78.32 	wireless calling service, and private communication services. The services in this paragraph 
78.33 	are taxed to the extent allowed under federal law.
79.1 	(j) A sale and a purchase includes the furnishing for a consideration of installation if the 
79.2 	installation charges would be subject to the sales tax if the installation were provided by 
79.3 	the seller of the item being installed.
79.4 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 
79.5 	customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 
79.6 	vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 
79.7 	subdivision 11.
79.8 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
79.9 	products or other digital products or granting the right for a consideration to use specified 
79.10 	digital products or other digital products on a temporary or permanent basis and regardless 
79.11 	of whether the purchaser is required to make continued payments for such right. Wherever 
79.12 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
79.13 	and 38, the provisions also apply to specified digital products, or other digital products, 
79.14 	unless specifically provided otherwise or the context indicates otherwise.

79.15 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
79.16 	30, 2017.

79.17 	Sec. 3. Minnesota Statutes 2016, section 297A.61, subdivision 4, is amended to read:
79.18 		Subd. 4.Retail sale. (a) A "retail sale" means:
79.19 	(1) any sale, lease, or rental of tangible personal property for any purpose, other than 
79.20 	resale, sublease, or subrent of items by the purchaser in the normal course of business as 
79.21 	defined in subdivision 21; and
79.22 	(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale 
79.23 	by the purchaser in the normal course of business as defined in subdivision 21.
79.24 	(b) A sale of property used by the owner only by leasing it to others or by holding it in 
79.25 	an effort to lease it, and put to no use by the owner other than resale after the lease or effort 
79.26 	to lease, is a sale of property for resale.
79.27 	(c) A sale of master computer software that is purchased and used to make copies for 
79.28 	sale or lease is a sale of property for resale.
79.29 	(d) A sale of building materials, supplies, and equipment to owners, contractors, 
79.30 	subcontractors, or builders for the erection of buildings or the alteration, repair, or 
79.31 	improvement of real property is a retail sale in whatever quantity sold, whether the sale is 
79.32 	for purposes of resale in the form of real property or otherwise.
80.1 	(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for 
80.2 	installation of the floor covering is a retail sale and not a sale for resale since a sale of floor 
80.3 	covering which includes installation is a contract for the improvement of real property.
80.4 	(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 
80.5 	for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, 
80.6 	plants, sod, trees, and similar items that includes installation is a contract for the improvement 
80.7 	of real property.
80.8 	(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is 
80.9 	not considered a sale of property for resale.
80.10 	(h) A sale of tangible personal property utilized or employed in the furnishing or 
80.11 	providing of services under subdivision 3, paragraph (g), clause (1), including, but not 
80.12 	limited to, property given as promotional items, is a retail sale and is not considered a sale 
80.13 	of property for resale.
80.14 	(i) A sale of tangible personal property used in conducting lawful gambling under chapter 
80.15 	349 or the State Lottery under chapter 349A, including, but not limited to, property given 
80.16 	as promotional items, is a retail sale and is not considered a sale of property for resale.
80.17 	(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense 
80.18 	goods or services, including, but not limited to, coin-operated devices, is a retail sale and 
80.19 	is not considered a sale of property for resale.
80.20 	(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 
80.21 	payment becomes due under the terms of the agreement or the trade practices of the lessor 
80.22 	or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 
80.23 	11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 
80.24 	10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is 
80.25 	executed.
80.26 	(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 
80.27 	title or possession of the tangible personal property.
80.28 	(m) A sale of a bundled transaction in which one or more of the products included in 
80.29 	the bundle is a taxable product is a retail sale, except that if one of the products is a 
80.30 	telecommunication service, ancillary service, Internet access, or audio or video programming 
80.31 	service, and the seller has maintained books and records identifying through reasonable and 
80.32 	verifiable standards the portions of the price that are attributable to the distinct and separately 
81.1 	identifiable products, then the products are not considered part of a bundled transaction. 
81.2 	For purposes of this paragraph:
81.3 	(1) the books and records maintained by the seller must be maintained in the regular 
81.4 	course of business, and do not include books and records created and maintained by the 
81.5 	seller primarily for tax purposes;
81.6 	(2) books and records maintained in the regular course of business include, but are not 
81.7 	limited to, financial statements, general ledgers, invoicing and billing systems and reports, 
81.8 	and reports for regulatory tariffs and other regulatory matters; and
81.9 	(3) books and records are maintained primarily for tax purposes when the books and 
81.10 	records identify taxable and nontaxable portions of the price, but the seller maintains other 
81.11 	books and records that identify different prices attributable to the distinct products included 
81.12 	in the same bundled transaction.
81.13 	(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body 
81.14 	shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail 
81.15 	sale of the paint and materials. The motor vehicle repair or body shop that purchases motor 
81.16 	vehicle repair paint and motor vehicle repair materials for resale must either:
81.17 	(1) separately state each item of paint and each item of materials, and the sales price of 
81.18 	each, on the invoice to the purchaser; or
81.19 	(2) in order to calculate the sales price of the paint and materials, use a method which 
81.20 	estimates the amount and monetary value of the paint and materials used in the repair of 
81.21 	the motor vehicle by multiplying the number of labor hours by a rate of consideration for 
81.22 	the paint and materials used in the repair of the motor vehicle following industry standard 
81.23 	practices that fairly calculate the gross receipts from the retail sale of the motor vehicle 
81.24 	repair paint and motor vehicle repair materials. An industry standard practice fairly calculates 
81.25 	the gross receipts if the sales price of the paint and materials used or consumed in the repair 
81.26 	of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or 
81.27 	body shop business. Under this clause, the invoice must either separately state the "paint 
81.28 	and materials" as a single taxable item, or separately state "paint" as a taxable item and 
81.29 	"materials" as a taxable item. This clause does not apply to wholesale transactions at an 
81.30 	auto auction facility.
81.31 	(o) A sale of specified digital products or other digital products to an end user with or 
81.32 	without rights of permanent use and regardless of whether rights of use are conditioned 
81.33 	upon payment by the purchaser is a retail sale. When a digital code has been purchased that 
81.34 	relates to specified digital products or other digital products, the subsequent receipt of or 
82.1 	access to the related specified digital products or other digital products is not a retail sale.
82.2 	For purposes of this paragraph, "end user" does not include a person, including the owner 
82.3 	or operator of a jukebox or similar device that charges customers for access to specified 
82.4 	digital products or other digital products, who receives by contract a product transferred 
82.5 	electronically for further commercial broadcast, rebroadcast, transmission, retransmission, 
82.6 	licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or 
82.7 	in part, to another person or persons.
82.8 	(p) A payment made to a cooperative electric association or public utility as a contribution 
82.9 	in aid of construction is a contract for improvement to real property and is not a retail sale.

82.10 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
82.11 	30, 2017.

82.12 	Sec. 4. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read:
82.13 		Subd. 34.Taxable food sold through vending machines. "Taxable food sold through 
82.14 	vending machines" means food prepared food, soft drinks, or candy dispensed from a 
82.15 	machine or other device that accepts payment including honor payments.

82.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
82.17 	30, 2017.

82.18 	Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
82.19 		Subdivision 1.Definitions. (a) To the extent allowed by the United States Constitution 
82.20 	and the laws of the United States, "retailer maintaining a place of business in this state," or 
82.21 	a similar term, means a retailer:
82.22 	(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 
82.23 	office, place of distribution, sales or sample room or place, storage, warehouse, or other 
82.24 	place of business, including the employment of a resident of this state who works from a 
82.25 	home office in this state; or
82.26 	(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 
82.27 	canvasser, or marketplace provider, solicitor, or other third party operating in this state 
82.28 	under the authority of the retailer or its subsidiary, for any purpose, including the repairing, 
82.29 	selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for 
82.30 	the retailer's goods or services, or the leasing of tangible personal property located in this 
82.31 	state, whether the place of business or agent, representative, affiliate, salesperson, canvasser, 
82.32 	or solicitor is located in the state permanently or temporarily, or whether or not the retailer, 
83.1 	subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by 
83.2 	a marketplace provider in this state if the retailer makes sales in this state facilitated by a 
83.3 	marketplace provider that maintains a place of business in this state.
83.4 	(b) "Destination of a sale" means the location to which the retailer makes delivery of 
83.5 	the property sold, or causes the property to be delivered, to the purchaser of the property, 
83.6 	or to the agent or designee of the purchaser. The delivery may be made by any means, 
83.7 	including the United States Postal Service or a for-hire carrier.
83.8 	(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer 
83.9 	by:
83.10 	(1) listing or advertising for sale by the retailer in any forum tangible personal property, 
83.11 	services, or digital goods that are subject to tax under this chapter; and
83.12 	(2) either directly or indirectly through agreements or arrangements with third parties 
83.13 	collecting payment from the customer and transmitting that payment to the retailer regardless 
83.14 	of whether the marketplace provider receives compensation or other consideration in 
83.15 	exchange for its services.
83.16 	(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible 
83.17 	goods, services, and digital goods subject to sales and use tax under this chapter.

83.18 	Sec. 6. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:
83.19 		Subd. 2.Retailer maintaining place of business in this state. (a) Except as provided 
83.20 	in paragraph (b), a retailer maintaining a place of business in this state who makes retail 
83.21 	sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and 
83.22 	remit them to the commissioner under section 297A.77.
83.23 	(b) A retailer with total taxable retail sales to customers in this state of less than $10,000 
83.24 	in the 12-month period ending on the last day of the most recently completed calendar 
83.25 	quarter is not required to collect and remit sales tax if it is determined to be a retailer 
83.26 	maintaining a place of business in the state solely because it made sales through one or more 
83.27 	marketplace providers. The provisions of this paragraph do not apply to a retailer that is or 
83.28 	was registered to collect sales and use tax in this state.

83.29 	Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
83.30 		Subd. 4.Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 
83.31 	subdivision 1, paragraph (a), if the entity:
84.1 	(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate 
84.2 	the establishment or maintenance of a market for sales of items by the retailer to purchasers 
84.3 	in this state or for the provision of services to the retailer's purchasers in this state, such as 
84.4 	accepting returns of purchases for the retailer, providing assistance in resolving customer 
84.5 	complaints of the retailer, or providing other services; and
84.6 	(2) the retailer and the entity are related parties has the same or a similar business name 
84.7 	to the retailer and sells, from a location or locations in this state, tangible personal property, 
84.8 	digital goods, or services, taxable under this chapter, that are similar to that sold by the 
84.9 	retailer;
84.10 	(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or 
84.11 	other similar place of business in this state to facilitate the delivery of tangible personal 
84.12 	property, digital goods, or services sold by the retailer to its customers in this state;
84.13 	(4) maintains a place of business in this state and uses trademarks, service marks, or 
84.14 	trade names in this state that are the same or substantially similar to those used by the retailer, 
84.15 	and that use is done with the express or implied consent of the holder of the marks or names;
84.16 	(5) delivers, installs, or assembles tangible personal property in this state, or performs 
84.17 	maintenance or repair services on tangible personal property in this state, for tangible 
84.18 	personal property sold by the retailer;
84.19 	(6) facilitates the delivery of tangible personal property to customers of the retailer by 
84.20 	allowing the customers to pick up tangible personal property sold by the retailer at a place 
84.21 	of business the entity maintains in this state; or
84.22 	(7) shares management, business systems, business practices, or employees with the 
84.23 	retailer, or engages in intercompany transactions with the retailer related to the activities 
84.24 	that establish or maintain the market in this state of the retailer.
84.25 	(b) Two entities are related parties under this section if one of the entities meets at least 
84.26 	one of the following tests with respect to the other entity:
84.27 	(1) one or both entities is a corporation, and one entity and any party related to that entity 
84.28 	in a manner that would require an attribution of stock from the corporation to the party or 
84.29 	from the party to the corporation under the attribution rules of section 318 of the Internal 
84.30 	Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent 
84.31 	of the value of the corporation's outstanding stock;
84.32 	(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 
84.33 	and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 
85.1 	beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 
85.2 	stock, or value of the other entity or both entities; or
85.3 	(3) an individual stockholder and the members of the stockholder's family (as defined 
85.4 	in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or 
85.5 	constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding 
85.6 	stock;
85.7 	(4) the entities are related within the meaning of subsections (b) and (c) of section 267 
85.8 	or 707(b)(1) of the Internal Revenue Code; or
85.9 	(5) the entities have one or more ownership relationships and the relationships were 
85.10 	designed with a principal purpose of avoiding the application of this section.
85.11 	(c) An entity is an affiliate under the provisions of this subdivision if the requirements 
85.12 	of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first 
85.13 	day of the month before the month in which the sale was made.

85.14 	Sec. 8. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to 
85.15 	read:
85.16 		Subd. 4b.Collection and remittance requirements for marketplace providers and 
85.17 	marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and 
85.18 	remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, 
85.19 	and is subject to audit on the retail sales it facilitates unless either:
85.20 	(1) the retailer provides a copy of the retailer's registration to collect sales and use tax 
85.21 	in this state to the marketplace provider before the marketplace provider facilitates a sale; 
85.22 	or
85.23 	(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses 
85.24 	that the retailer is registered to collect sales and use taxes in this state.
85.25 	(b) Nothing in this subdivision shall be construed to interfere with the ability of a 
85.26 	marketplace provider and a retailer to enter into an agreement regarding fulfillment of the 
85.27 	requirements of this chapter.
85.28 	(c) A marketplace provider is not liable under this subdivision for failure to file and 
85.29 	collect and remit sales and use taxes if the marketplace provider demonstrates that the error 
85.30 	was due to incorrect or insufficient information given to the marketplace provider by the 
85.31 	retailer. This paragraph does not apply if the marketplace provider and the marketplace 
85.32 	retailer are related as defined in subdivision 4, paragraph (b).

86.1 	Sec. 9. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read:
86.2 		Subd. 2.Food and food ingredients. Except as otherwise provided in this subdivision, 
86.3 	food and food ingredients are exempt. For purposes of this subdivision, "food" and "food 
86.4 	ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or 
86.5 	dehydrated form, that are sold for ingestion or chewing by humans and are consumed for 
86.6 	their taste or nutritional value. Food and food ingredients exempt under this subdivision do 
86.7 	not include candy, soft drinks, food sold through vending machines, dietary supplements, 
86.8 	and prepared foods. Food and food ingredients do not include alcoholic beverages and 
86.9 	tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that are 
86.10 	suitable for human consumption and contain one-half of one percent or more of alcohol by 
86.11 	volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing or 
86.12 	pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision, 
86.13 	"dietary supplements" means any product, other than tobacco, intended to supplement the 
86.14 	diet that:
86.15 	(1) contains one or more of the following dietary ingredients:
86.16 	(i) a vitamin;
86.17 	(ii) a mineral;
86.18 	(iii) an herb or other botanical;
86.19 	(iv) an amino acid;
86.20 	(v) a dietary substance for use by humans to supplement the diet by increasing the total 
86.21 	dietary intake; and
86.22 	(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient 
86.23 	described in items (i) to (v);
86.24 	(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, 
86.25 	or if not intended for ingestion in such form, is not represented as conventional food and is 
86.26 	not represented for use as a sole item of a meal or of the diet; and
86.27 	(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts 
86.28 	box found on the label and as required pursuant to Code of Federal Regulations, title 21, 
86.29 	section 101.36.

86.30 	Sec. 10. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read:
86.31 		Subd. 4.Exempt meals at residential facilities.  Prepared food, candy, and soft drinks 
86.32 	served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, 
87.1 	senior citizen homes, and correctional, detention, and detoxification facilities are exempt. 
87.2 	Taxable food sold through vending machines is not exempt.

87.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
87.4 	30, 2017.

87.5 	Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read:
87.6 		Subd. 5.Exempt meals at schools. Prepared food, candy, and soft drinks served at 
87.7 	public and private elementary, middle, or secondary schools as defined in section 120A.05
87.8 	are exempt. Prepared food, candy, and soft drinks served to students at a college, university, 
87.9 	or private career school under a board contract are exempt. Taxable food sold through 
87.10 	vending machines is not exempt.

87.11 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
87.12 	30, 2017.

87.13 	Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read:
87.14 		Subd. 6.Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 
87.15 	and served exclusively to individuals who are 60 years of age or over and their spouses or 
87.16 	to disabled persons and their spouses by governmental agencies, nonprofit organizations, 
87.17 	or churches, or pursuant to any program funded in whole or in part through United States 
87.18 	Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are 
87.19 	exempt. Taxable food sold through vending machines is not exempt.
87.20 	(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 
87.21 	who are less than 14 years of age or disabled children who are less than 16 years of age and 
87.22 	who are attending a child care or early childhood education program, are exempt if they 
87.23 	are:
87.24 	(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 
87.25 	subdivision 4, and that primarily serves families with income of 250 percent or less of 
87.26 	federal poverty guidelines; and
87.27 	(2) prepared at the site of the child care facility.

87.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
87.29 	30, 2017.

88.1 	Sec. 13. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 
88.2 	to read:
88.3 		Subd. 34.Precious metal bullion and bullion coin. (a) Precious metal bullion and 
88.4 	bullion coin is exempt. For purposes of this subdivision, "precious metal bullion" means 
88.5 	bars or rounds that consist of 99.9 percent or more by weight of either gold, silver platinum, 
88.6 	or palladium and are marked with weight, purity, and content. For purposes of this 
88.7 	subdivision, "bullion coin" means only the following coins:
88.8 	(1) gold, silver, or platinum American eagle;
88.9 	(2) gold American buffalo;
88.10 	(3) silver Australian koala;
88.11 	(4) silver Australian kookaburra;
88.12 	(5) gold or silver Austrian philharmonic;
88.13 	(6) gold or silver British britannia;
88.14 	(7) gold British sovereign;
88.15 	(8) gold, silver, platinum, or palladium Canadian maple leaf;
88.16 	(9) palladium Isle of Man noble;
88.17 	(10) gold or silver Chinese panda;
88.18 	(11) gold or silver Mexican libertad or peso;
88.19 	(12) gold South African krugerrand;
88.20 	(13) gold French, Swiss, or Belgian 20 francs; and
88.21 	(14) junk United States silver coins issued before 1965 that are at least 90 percent silver.
88.22 	(b) The intent of this subdivision is to eliminate the difference in tax treatment between 
88.23 	the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other 
88.24 	investment instruments.

88.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
88.26 	30, 2017.

89.1 	Sec. 14. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 
89.2 	to read:
89.3 		Subd. 11a.Minnesota State High School League tickets and admissions. Tickets and 
89.4 	admissions to games, events, and activities sponsored by the Minnesota State High School 
89.5 	League under chapter 128C are exempt.

89.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
89.7 	30, 2017, and before July 1, 2027.

89.8 	Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
89.9 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 
89.10 	personal property or services at, and admission charges for fund-raising events sponsored 
89.11 	by, a nonprofit organization are exempt if:
89.12 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
89.13 	accounting practices, on the books of the nonprofit organization; and
89.14 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
89.15 	and exclusively for charitable, religious, or educational purposes. Exempt sales include the 
89.16 	sale of prepared food, candy, and soft drinks at the fund-raising event.
89.17 	(b) This exemption is limited in the following manner:
89.18 	(1) it does not apply to admission charges for events involving bingo or other gambling 
89.19 	activities or to charges for use of amusement devices involving bingo or other gambling 
89.20 	activities;
89.21 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
89.22 	charitable, religious, or educational purposes;
89.23 	(3) it does not apply unless the organization keeps a separate accounting record, including 
89.24 	receipts and disbursements from each fund-raising event that documents all deductions from 
89.25 	gross receipts with receipts and other records;
89.26 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
89.27 	the active or passive agent of a person that is not a nonprofit corporation;
89.28 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; and
89.29 	(6) it does not apply to fund-raising events conducted on premises leased for more than 
89.30 	five days but less than 30 days; and
90.1 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
90.2 	and the benefit to the nonprofit organization is less than the total amount of the state and 
90.3 	local tax revenues forgone by this exemption.
90.4 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
90.5 	government, corporation, society, association, foundation, or institution organized and 
90.6 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' 
90.7 	purposes, no part of the net earnings of which inures to the benefit of a private individual.
90.8 	(d) For purposes of this subdivision, "fund-raising events" means activities of limited 
90.9 	duration, not regularly carried out in the normal course of business, that attract patrons for 
90.10 	community, social, and entertainment purposes, such as auctions, bake sales, ice cream 
90.11 	socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, 
90.12 	bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, 
90.13 	galas, special event workshops, sporting activities such as marathons and tournaments, and 
90.14 	similar events. Fund-raising events do not include the operation of a regular place of business 
90.15 	in which services are provided or sales are made during regular hours such as bookstores, 
90.16 	thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or 
90.17 	other activities carried out in the normal course of business.

90.18 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
90.19 	30, 2017.

90.20 	Sec. 16. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:
90.21 		Subd. 44.Building materials, capital projects. (a) Materials and supplies used or 
90.22 	consumed in and equipment incorporated into the construction or improvement of a capital 
90.23 	project funded partially or wholly under section 297A.9905 are exempt, provided that the 
90.24 	project has a total construction cost of at least $40,000,000 within a 24-month period.
90.25 	(b) Materials and supplies used or consumed in and equipment incorporated into the 
90.26 	construction, remodeling, expansion, or improvement of an ice arena or other buildings or 
90.27 	facilities owned and operated by the city of Plymouth are exempt. For purposes of this 
90.28 	subdivision, "facilities" include municipal streets and facilities associated with streets 
90.29 	including but not limited to lighting, curbs and gutters, and sidewalks. The total amount of 
90.30 	refund on all building materials, supplies, and equipment that the city may apply for under 
90.31 	this paragraph is $2,500,000.
91.1 	(c) The tax on purchases exempt under this provision must be imposed and collected as 
91.2 	if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner 
91.3 	provided in section 297A.75.

91.4 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
91.5 	made after January 1, 2015.

91.6 	Sec. 17. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
91.7 	to read:
91.8 		Subd. 49.Properties destroyed by fire. Building materials and supplies used in, and 
91.9 	equipment incorporated into, the construction or replacement of real property that is located 
91.10 	in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed 
91.11 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
91.12 	in the manner provided in section 297A.75.

91.13 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
91.14 	made after December 31, 2015, and before July 1, 2018.

91.15 	Sec. 18. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
91.16 	to read:
91.17 		Subd. 50.Properties destroyed by fire. (a) Building materials and supplies used in, 
91.18 	and equipment incorporated into, the construction or replacement of real property that is 
91.19 	located in Melrose affected by the fire on September 8, 2016, are exempt.
91.20 	(b) For sales and purchases made after September 30, 2016, and before July 1, 2017, 
91.21 	the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, 
91.22 	applied and then refunded in the manner provided in section 297A.75.

91.23 	EFFECTIVE DATE. Paragraph (a) is effective retroactively for sales and purchases 
91.24 	made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective for 
91.25 	sales and purchases made after September 30, 2016, and before July 1, 2017.

91.26 	Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
91.27 	to read:
91.28 		Subd. 51.Building materials; Major League Soccer stadium. Materials and supplies 
91.29 	used or consumed in, and equipment incorporated into, the construction of a Major League 
91.30 	Soccer stadium and related infrastructure constructed in the city of St. Paul are exempt. 
92.1 	This subdivision expires one year after the date that the first Major League Soccer game is 
92.2 	played in the stadium.

92.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after the 
92.4 	day following final enactment.

92.5 	Sec. 20. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
92.6 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
92.7 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
92.8 	section 297A.62, subdivision 1, applied. The exempt items include:
92.9 	(1) building materials for an agricultural processing facility exempt under section 
92.10 	297A.71, subdivision 13;
92.11 	(2) building materials for mineral production facilities exempt under section 297A.71, 
92.12 	subdivision 14;
92.13 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
92.14 	(4) building materials used in a residence for disabled veterans exempt under section 
92.15 	297A.71, subdivision 11;
92.16 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
92.17 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
92.18 	subdivision 23;
92.19 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
92.20 	section 297A.71, subdivision 35;
92.21 	(8) equipment and materials used for the generation, transmission, and distribution of 
92.22 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
92.23 	37;
92.24 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
92.25 	(a), clause (10);
92.26 	(10) materials, supplies, and equipment for construction or improvement of projects and 
92.27 	facilities under section 297A.71, subdivision 40;
92.28 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
92.29 	of:
92.30 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
92.31 	subdivision 42;
93.1 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
93.2 	45;
93.3 	(iii) a research and development facility exempt under section 297A.71, subdivision 46; 
93.4 	and
93.5 	(iv) an industrial measurement manufacturing and controls facility exempt under section 
93.6 	297A.71, subdivision 47;
93.7 	(12) enterprise information technology equipment and computer software for use in a 
93.8 	qualified data center exempt under section 297A.68, subdivision 42;
93.9 	(13) materials, supplies, and equipment for qualifying capital projects under section 
93.10 	297A.71, subdivision 44;
93.11 	(14) items purchased for use in providing critical access dental services exempt under 
93.12 	section 297A.70, subdivision 7, paragraph (c); and
93.13 	(15) items and services purchased under a business subsidy agreement for use or 
93.14 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
93.15 	44;
93.16 	(16) building materials, equipment, and supplies for constructing or replacing real 
93.17 	property exempt under section 297A.71, subdivision 49; and
93.18 	(17) building materials, equipment, and supplies for constructing or replacing real 
93.19 	property exempt under section 297A.71, subdivision 50.

93.20 	EFFECTIVE DATE. (a) Clause (16) is effective retroactively for sales and purchases 
93.21 	made after December 31, 2015.
93.22 	(b) Clause (17) is effective retroactively for sales and purchases made after September 
93.23 	30, 2016.

93.24 	Sec. 21. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
93.25 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
93.26 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
93.27 	be paid to the applicant. Only the following persons may apply for the refund:
93.28 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
93.29 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
93.30 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
93.31 	provided in United States Code, title 38, chapter 21;
94.1 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
94.2 	property;
94.3 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
94.4 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
94.5 	joint venture of municipal electric utilities;
94.6 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
94.7 	business; and
94.8 	(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental 
94.9 	entity that owns or contracts for the project or facility;
94.10 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
94.11 	building or project; and
94.12 	(10) for subdivision 1, clause (17), the applicant must be the owner or developer of the 
94.13 	building or project..

94.14 	EFFECTIVE DATE. (a) Clause (9) is effective retroactively for sales and purchases 
94.15 	made after December 31, 2015.
94.16 	(b) Clause (10) is effective retroactively for sales and purchases made after September 
94.17 	30, 2016.

94.18 	Sec. 22. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
94.19 		Subd. 3.Application. (a) The application must include sufficient information to permit 
94.20 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
94.21 	or builder, under subdivision 1, clauses (3) to (13), or (15), (16), and (17), the contractor, 
94.22 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
94.23 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
94.24 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
94.25 	this section.
94.26 	(b) An applicant may not file more than two applications per calendar year for refunds 
94.27 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

94.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.1 	Sec. 23. EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.
 95.2 	(a) Notwithstanding the seven-year certification period under Minnesota Statutes, section 
95.3 	116J.8738, subdivision 3, the certification period for an eligible wholesale electronic 
95.4 	component distribution center investing a minimum of $200,000,000 and constructing a 
95.5 	facility at least 700,000 square feet in size is effective for the ten-year period beginning on 
95.6 	the first day of the calendar month immediately following the date that the commissioner 
95.7 	informs the business of the award of the benefit.
95.8 	(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section 
95.9 	116J.8738, subdivision 4, the sales tax exemption for an eligible electronic wholesale 
95.10 	component distribution center investing a minimum of $200,000,000 and constructing a 
95.11 	facility at least 700,000 square feet in size may be authorized up to $5,000,000 annually 
95.12 	and up to $40,000,000 during the total period of the agreement.

95.13 	Sec. 24. SEVERABILITY.
 95.14 	If any provision of sections 5 to 8 or the application thereof is held invalid, such invalidity 
95.15 	shall not affect the provisions or applications of the sections that can be given effect without 
95.16 	the invalid provisions or applications.

95.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.18 	Sec. 25. EFFECTIVE DATE.
 95.19 	(a) The provisions of sections 5 to 8 are effective at the earlier of:
95.20 	(1) a decision by the United States Supreme Court modifying its decision in Quill Corp. 
95.21 	v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical 
95.22 	presence in the state to collect and remit sales tax; or
95.23 	(2) July 1, 2018.
95.24 	(b) Notwithstanding paragraph (a) or the provisions of sections 5 to 8, if a federal law 
95.25 	is enacted authorizing a state to impose a requirement to collect and remit sales tax on 
95.26 	retailers without a physical presence in the state, the commissioner must enforce the 
95.27 	provisions of this section and sections 5 to 8 to the extent allowed under federal law.
95.28 	(c) The commissioner of revenue shall notify the revisor of statutes when either of the 
95.29 	provisions in paragraph (a) or (b) apply.

96.1 	ARTICLE 4
96.2 	PROPERTY TAX: AIDS AND CREDITS

96.3 	Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read:
96.4 		Subd. 4.Debt service equalization revenue. (a) The debt service equalization revenue 
96.5 	of a district equals the sum of the first tier debt service equalization revenue and the second 
96.6 	tier debt service equalization revenue.
96.7 	(b) The first tier debt service equalization revenue of a district equals the greater of zero 
96.8 	or the eligible debt service revenue minus the amount raised by a levy of 15.74 percentthe 
96.9 	first tier initial effort rate times the adjusted net tax capacity of the district minus the second 
96.10 	tier debt service equalization revenue of the district.
96.11 	(c) The second tier debt service equalization revenue of a district equals the greater of 
96.12 	zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24 percent 
96.13 	times the adjusted net tax capacity of the district.
96.14 	(d) The first tier initial effort rate for taxes payable in 2018 is ten percent. The initial 
96.15 	effort rate for taxes payable in 2019 and later is 15.74 percent.

96.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

96.17 	Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:
96.18 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a district 
96.19 	equals the sum of the first tier equalized debt service levy and the second tier equalized debt 
96.20 	service levy.
96.21 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
96.22 	service equalization revenue times the lesser of one or the ratio of:
96.23 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 
96.24 	year before the year the levy is certified by the adjusted pupil units in the district for the 
96.25 	school year ending in the year prior to the year the levy is certified; to
96.26 	(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or 
96.27 	55.33 percent of the initial equalizing factor in fiscal year 2018 and later, 75 percent of the 
96.28 	initial equalizing factor in fiscal year 2019, and 55.33 percent of the initial equalizing factor 
96.29 	in fiscal year 2020 and later.
96.30 	(c) A district's second tier equalized debt service levy equals the district's second tier 
96.31 	debt service equalization revenue times the lesser of one or the ratio of:
97.1 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for the 
97.2 	year before the year the levy is certified by the adjusted pupil units in the district for the 
97.3 	school year ending in the year prior to the year the levy is certified; to
97.4 	(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of 
97.5 	the initial equalizing factor in fiscal year 2018 and later.
97.6 	(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient 
97.7 	derived by dividing the total adjusted net tax capacity of all school districts in the state for 
97.8 	the year before the year the levy is certified by the total number of adjusted pupil units in 
97.9 	all school districts in the state in the year before the year the levy is certified.

97.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

97.11 	Sec. 3. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
97.12 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general fund 
97.13 	payments for a district nonoperating fund must be made at the current year aid payment 
97.14 	percentage of the estimated entitlement during the fiscal year of the entitlement. This amount 
97.15 	shall be paid in 12 six equal monthly installments beginning in July. The amount of the 
97.16 	actual entitlement, after adjustment for actual data, minus the payments made during the 
97.17 	fiscal year of the entitlement must be paid prior to October 31 of the following school year. 
97.18 	The commissioner may make advance payments of debt service equalization aid and 
97.19 	state-paid tax credits for a district's debt service fund earlier than would occur under the 
97.20 	preceding schedule if the district submits evidence showing a serious cash flow problem in 
97.21 	the fund. The commissioner may make earlier payments during the year and, if necessary, 
97.22 	increase the percent of the entitlement paid to reduce the cash flow problem.

97.23 	EFFECTIVE DATE. This section is effective beginning with fiscal year 2019.

97.24 	Sec. 4. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
97.25 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a, 
97.26 	and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 
97.27 	120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392, 
97.28 	shall be paid at the current year aid payment percentage of the estimated entitlement during 
97.29 	the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 
97.30 	entitlement for special education aid under section 125A.76 for fiscal year 2014 and later 
97.31 	equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment 
98.1 	payment, according to subdivision 9, must be the amount of the actual entitlement, after 
98.2 	adjustment for actual data, minus the payments made during the fiscal year of the entitlement.

98.3 	EFFECTIVE DATE. This section is effective beginning with fiscal year 2019.

98.4 	Sec. 5. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
98.5 		Subdivision 1.Eligibility. All class 2a, 2b, and 2c property under section 273.13, 
98.6 	subdivision 23, other than property consisting of the house, garage, and immediately 
98.7 	surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 
98.8 	under this section.
98.9 		Subd. 2.Credit amount. For each qualifying property, the school building bond 
98.10 	agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied 
98.11 	by the school debt tax rate determined under section 275.08, subdivision 1b.
98.12 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
98.13 	allowed under this section within the county for each taxes payable year and shall certify 
98.14 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
98.15 	under section 275.29. Any prior year adjustments shall also be certified on the abstracts of 
98.16 	tax lists. The commissioner shall review the certifications for accuracy, and may make such 
98.17 	changes as are deemed necessary, or return the certification to the county auditor for 
98.18 	correction. The credit under this section must be used to reduce the school district net tax 
98.19 	capacity-based property tax as provided in section 273.1393.
98.20 		Subd. 4.Payment. The commissioner of revenue shall certify the total of the tax 
98.21 	reductions granted under this section for each taxes payable year within each school district 
98.22 	to the commissioner of education who shall pay the reimbursement amounts to each school 
98.23 	district as provided in section 273.1392.
98.24 		Subd. 5.Appropriation. An amount sufficient to make the payments required by this 
98.25 	section is annually appropriated from the general fund to the commissioner of education.

98.26 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

98.27 	Sec. 6. Minnesota Statutes 2016, section 273.1392, is amended to read:
98.28 	273.1392 PAYMENT; SCHOOL DISTRICTS.
98.29 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
98.30 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
98.31 	sections 273.1231 to 273.1235; homestead and agricultural credits under section sections
99.1 	273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property 
99.2 	credit payments under section 469.171; and metropolitan agricultural preserve reduction 
99.3 	under section 473H.10 for school districts, shall be certified to the Department of Education 
99.4 	by the Department of Revenue. The amounts so certified shall be paid according to section 
99.5 	127A.45, subdivisions 9, 10, and 13.

99.6 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

99.7 	Sec. 7. Minnesota Statutes 2016, section 273.1393, is amended to read:
99.8 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
99.9 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
99.10 	by subtracting the credits in the order listed from the gross tax:
99.11 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
99.12 	(2) powerline credit as provided in section 273.42;
99.13 	(3) agricultural preserves credit as provided in section 473H.10;
99.14 	(4) enterprise zone credit as provided in section 469.171;
99.15 	(5) disparity reduction credit;
99.16 	(6) conservation tax credit as provided in section 273.119;
99.17 	(7) the school bond credit as provided in section 273.1387;
99.18 	(8) agricultural credit as provided in section 273.1384;
99.19 	(8) (9) taconite homestead credit as provided in section 273.135;
99.20 	(9) (10) supplemental homestead credit as provided in section 273.1391; and
99.21 	(10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
99.22 	The combination of all property tax credits must not exceed the gross tax amount.

99.23 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

99.24 	Sec. 8. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
99.25 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
99.26 	the county treasurer shall deliver after November 10 and on or before November 24 each 
99.27 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
99.28 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
100.1 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
100.2 	or by ordinary mail.
100.3 	(b) The commissioner of revenue shall prescribe the form of the notice.
100.4 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
100.5 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
100.6 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
100.7 	The notice must clearly state for each city that has a population over 500, county, school 
100.8 	district, regional library authority established under section 134.201, and metropolitan taxing 
100.9 	districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 
100.10 	in which the budget and levy will be discussed and public input allowed, prior to the final 
100.11 	budget and levy determination. The taxing authorities must provide the county auditor with 
100.12 	the information to be included in the notice on or before the time it certifies its proposed 
100.13 	levy under subdivision 1. The public must be allowed to speak at that meeting, which must 
100.14 	occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 
100.15 	number for the taxing authority that taxpayers may call if they have questions related to the 
100.16 	notice and an address where comments will be received by mail, except that no notice 
100.17 	required under this section shall be interpreted as requiring the printing of a personal 
100.18 	telephone number or address as the contact information for a taxing authority. If a taxing 
100.19 	authority does not maintain public offices where telephone calls can be received by the 
100.20 	authority, the authority may inform the county of the lack of a public telephone number and 
100.21 	the county shall not list a telephone number for that taxing authority.
100.22 	(d) The notice must state for each parcel:
100.23 	(1) the market value of the property as determined under section 273.11, and used for 
100.24 	computing property taxes payable in the following year and for taxes payable in the current 
100.25 	year as each appears in the records of the county assessor on November 1 of the current 
100.26 	year; and, in the case of residential property, whether the property is classified as homestead 
100.27 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
100.28 	values apply and that the values are final values;
100.29 	(2) the items listed below, shown separately by county, city or town, and state general 
100.30 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
100.31 	credit under section 273.1387, voter approved school levy, other local school levy, and the 
100.32 	sum of the special taxing districts, and as a total of all taxing authorities:
100.33 	(i) the actual tax for taxes payable in the current year; and
100.34 	(ii) the proposed tax amount.
101.1 	If the county levy under clause (2) includes an amount for a lake improvement district 
101.2 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
101.3 	must be separately stated from the remaining county levy amount.
101.4 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
101.5 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
101.6 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
101.7 	in the school district at the November general election, the county auditor must note next 
101.8 	to the school district's proposed amount that a referendum is pending and that, if approved 
101.9 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
101.10 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
101.11 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
101.12 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
101.13 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
101.14 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
101.15 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
101.16 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
101.17 	capacity subject to the areawide tax must each be stated separately and not included in the 
101.18 	sum of the special taxing districts; and
101.19 	(3) the increase or decrease between the total taxes payable in the current year and the 
101.20 	total proposed taxes, expressed as a percentage.
101.21 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
101.22 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
101.23 	property tax before subtraction of the deferred property tax amount.
101.24 	(e) The notice must clearly state that the proposed or final taxes do not include the 
101.25 	following:
101.26 	(1) special assessments;
101.27 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
101.28 	bond referenda and school district levy referenda;
101.29 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
101.30 	in November of the levy year as provided under section 275.73;
101.31 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
101.32 	after the date the proposed taxes are certified;
102.1 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
102.2 	final after the date the proposed taxes are certified; and
102.3 	(6) the contamination tax imposed on properties which received market value reductions 
102.4 	for contamination.
102.5 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
102.6 	county treasurer to deliver the notice as required in this section does not invalidate the 
102.7 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
102.8 	(g) If the notice the taxpayer receives under this section lists the property as 
102.9 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
102.10 	applicable deadline, and the property qualifies for the homestead classification in that 
102.11 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
102.12 	in the following year.
102.13 	(h) In the case of class 4 residential property used as a residence for lease or rental 
102.14 	periods of 30 days or more, the taxpayer must either:
102.15 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
102.16 	or lessee; or
102.17 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
102.18 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
102.19 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
102.20 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
102.21 	notice must be mailed in order to fulfill the requirements of this paragraph.
102.22 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
102.23 	districts" means the following taxing districts in the seven-county metropolitan area that 
102.24 	levy a property tax for any of the specified purposes listed below:
102.25 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
102.26 	473.521, 473.547, or 473.834;
102.27 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
102.28 	(3) Metropolitan Mosquito Control Commission under section 473.711.
102.29 	For purposes of this section, any levies made by the regional rail authorities in the county 
102.30 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
102.31 	shall be included with the appropriate county's levy.
103.1 	(j) The governing body of a county, city, or school district may, with the consent of the 
103.2 	county board, include supplemental information with the statement of proposed property 
103.3 	taxes about the impact of state aid increases or decreases on property tax increases or 
103.4 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
103.5 	information may include information for the following year, the current year, and for as 
103.6 	many consecutive preceding years as deemed appropriate by the governing body of the 
103.7 	county, city, or school district. It may include only information regarding:
103.8 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
103.9 	government purchases;
103.10 	(2) population growth and decline;
103.11 	(3) state or federal government action; and
103.12 	(4) other financial factors that affect the level of property taxation and local services 
103.13 	that the governing body of the county, city, or school district may deem appropriate to 
103.14 	include.
103.15 	The information may be presented using tables, written narrative, and graphic 
103.16 	representations and may contain instruction toward further sources of information or 
103.17 	opportunity for comment.

103.18 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

103.19 	Sec. 9. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
103.20 		Subd. 2.School district in more than one county levies; special requirements. (a) In 
103.21 	school districts lying in more than one county, the clerk shall certify the tax levied to the 
103.22 	auditor of the county in which the administrative offices of the school district are located.
103.23 	(b) The district must identify the portion of the school district levy that is levied for debt 
103.24 	service at the time the levy is certified under this section. For the purposes of this paragraph, 
103.25 	"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and 
103.26 	123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions 
103.27 	under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment 
103.28 	of other postemployment benefits under section 475.52, subdivision 6.

103.29 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

104.1 	Sec. 10. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
104.2 		Subd. 1b.Computation of tax rates. (a) The amounts certified to be levied against net 
104.3 	tax capacity under section 275.07 by an individual local government unit shall be divided 
104.4 	by the total net tax capacity of all taxable properties within the local government unit's 
104.5 	taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 
104.6 	each property's net tax capacity shall be each property's net tax capacity tax for that local 
104.7 	government unit before reduction by any credits.
104.8 	(b) The auditor must also determine the school debt tax rate for each school district equal 
104.9 	to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by 
104.10 	(2) the total net tax capacity of all taxable property within the district.
104.11 	(c) Any amount certified to the county auditor to be levied against market value shall 
104.12 	be divided by the total referendum market value of all taxable properties within the taxing 
104.13 	district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 
104.14 	property's referendum market value shall be each property's new referendum tax before 
104.15 	reduction by any credits. For the purposes of this subdivision, "referendum market value" 
104.16 	means the market value as defined in section 126C.01, subdivision 3.

104.17 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

104.18 	Sec. 11. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
104.19 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
104.20 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
104.21 	tax statement and its contents. The tax statement must not state or imply that property tax 
104.22 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
104.23 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
104.24 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
104.25 	attributable to the county, the state tax, the voter approved school tax, the other local school 
104.26 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
104.27 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
104.28 	amounts due all other special taxing districts, if any, may be aggregated except that any 
104.29 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
104.30 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
104.31 	under the appropriate county's levy. If the county levy under this paragraph includes an 
104.32 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
104.33 	the amount attributable for that purpose must be separately stated from the remaining county 
104.34 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
105.1 	an amount for public library service under section 134.07, the amount attributable for that 
105.2 	purpose may be separated from the remaining county levy amount. The amount of the tax 
105.3 	on homesteads qualifying under the senior citizens' property tax deferral program under 
105.4 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
105.5 	tax amount. The amount of the tax on contamination value imposed under sections 270.91
105.6 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
105.7 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
105.8 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
105.9 	even-numbered dollar. The amount of market value excluded under section 273.11, 
105.10 	subdivision 16, if any, must also be listed on the tax statement.
105.11 	(b) The property tax statements for manufactured homes and sectional structures taxed 
105.12 	as personal property shall contain the same information that is required on the tax statements 
105.13 	for real property.
105.14 	(c) Real and personal property tax statements must contain the following information 
105.15 	in the order given in this paragraph. The information must contain the current year tax 
105.16 	information in the right column with the corresponding information for the previous year 
105.17 	in a column on the left:
105.18 	(1) the property's estimated market value under section 273.11, subdivision 1;
105.19 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
105.20 	35;
105.21 	(3) the property's taxable market value under section 272.03, subdivision 15;
105.22 	(4) the property's gross tax, before credits;
105.23 	(5) for homestead agricultural properties, the credit credits under section sections
105.24 	273.1384 and 273.1387;
105.25 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
105.26 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 
105.27 	received under section 273.135 must be separately stated and identified as "taconite tax 
105.28 	relief"; and
105.29 	(7) the net tax payable in the manner required in paragraph (a).
105.30 	(d) If the county uses envelopes for mailing property tax statements and if the county 
105.31 	agrees, a taxing district may include a notice with the property tax statement notifying 
105.32 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
105.33 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
106.1 	in the envelope containing the property tax statement, and if more than one taxing district 
106.2 	relative to a given property decides to include a notice with the tax statement, the county 
106.3 	treasurer or auditor must coordinate the process and may combine the information on a 
106.4 	single announcement.

106.5 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

106.6 	Sec. 12. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:
106.7 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater than 
106.8 	10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing 
106.9 	percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus 
106.10 	(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
106.11 	(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 
106.12 	revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing 
106.13 	percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population 
106.14 	decline.
106.15 	(c) For a city with a population less than 2,500, "city revenue need" is the sum of 410 
106.16 	plus 0.367 times the city's population over 100. The city revenue need under this paragraph 
106.17 	shall not exceed 630.
106.18 	(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 
106.19 	need" equals (1) the transition factor times the city's revenue need calculated in paragraph 
106.20 	(b); plus (2) 630 times the difference between one and the transition factor. For a city with 
106.21 	a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals 
106.22 	(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2) 
106.23 	the city's revenue need calculated under the formula in paragraph (b) times the difference 
106.24 	between one and the transition factor. For purposes of the first sentence of this paragraph,
106.25 	"transition factor" is 0.2 percent times the amount that the city's population exceeds the 
106.26 	minimum threshold in either of the first two sentences. For purposes of the second sentence 
106.27 	of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population 
106.28 	exceeds the minimum threshold.
106.29 	(e) The city revenue need cannot be less than zero.
106.30 	(f) For calendar year 2015 and subsequent years, the city revenue need for a city, as 
106.31 	determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 
106.32 	deflator for government consumption expenditures and gross investment for state and local 
106.33 	governments as prepared by the United States Department of Commerce, for the most 
107.1 	recently available year to the 2013 implicit price deflator for state and local government 
107.2 	purchases.

107.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
107.4 	and thereafter.

107.5 	Sec. 13. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 
107.6 	CERTAIN OUT-OF-HOME PLACEMENT.
107.7 		Subdivision 1.Definition. For purposes of this section, "out-of-home placement" means 
107.8 	24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21, 
107.9 	placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's 
107.10 	parent or guardian and for whom the county social services agency or county correctional 
107.11 	agency has been assigned responsibility for the child's placement and care, which includes 
107.12 	placement in foster care under section 260C.007, subdivision 18, and a correctional facility 
107.13 	pursuant to a court order.
107.14 		Subd. 2.Determination of nonfederal share of costs. (a) By July 1, 2017, each county 
107.15 	shall report the following information to the commissioners of human services and 
107.16 	corrections: (1) the separate amounts paid out of the county's social service agency and its 
107.17 	corrections budget for out-of-home placement of children under the ICWA in calendar years 
107.18 	2013, 2014, and 2015; and (2) the number of case days associated with the expenditures 
107.19 	from each budget. The commissioner of human services shall prescribe the format of the 
107.20 	report. By July 15, 2017, the commissioner of human services, in consultation with the 
107.21 	commissioner of corrections, shall certify to the commissioner of revenue and to the 
107.22 	legislative committees with jurisdiction over local government aids and out-of-home 
107.23 	placement funding whether the data reported under this subdivision accurately reflect total 
107.24 	expenditures by counties for out-of-home placement costs of children under the ICWA.
107.25 	(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the 
107.26 	commissioners of human services and corrections the separate amounts paid out of the 
107.27 	county's social service agency and its corrections budget for out-of-home placement of 
107.28 	children under the ICWA in the calendar years two years before the current calendar year 
107.29 	along with the number of case days associated with the expenditures from each budget. The 
107.30 	commissioner of human services shall prescribe the format of the report.
107.31 	(c) Until the commissioner of human services develops another mechanism for collecting 
107.32 	and verifying data on out-of-home placements of children under the ICWA, and the 
107.33 	legislature authorizes the use of that data, the data collected under this subdivision must be 
107.34 	used to calculate payments under subdivision 3. The commissioner of human services shall 
108.1 	certify the nonfederal out-of-home placement costs for the three prior calendar years for 
108.2 	each county and the amount of any federal reimbursement received by a tribe under the 
108.3 	ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the 
108.4 	year before the aid payment.
108.5 		Subd. 3.Aid for counties. For aids payable in calendar year 2018 and thereafter, the 
108.6 	amount of reimbursement to each county is a county's proportionate share of the appropriation 
108.7 	in subdivision 6 that remains after the aid for tribes has been paid. Each county's 
108.8 	proportionate share is based on the county's average nonfederal share of the cost for 
108.9 	out-of-home placement of children under the ICWA for the three calendar years that were 
108.10 	certified by the commissioner of human services by June 1 of the prior year, provided that 
108.11 	the commissioner of human services, in consultation with the commissioner of corrections, 
108.12 	certifies to the commissioner of revenue that accurate data are available to make the aid 
108.13 	determination under this section. For aids payable in calendar year 2018, each county's 
108.14 	proportionate share is based on the county's nonfederal share of the cost for out-of-home 
108.15 	placement of children under the ICWA that was certified by the commissioner of human 
108.16 	services by July 15, 2017.
108.17 		Subd. 4.Aid for tribes. For aids payable in 2018 and thereafter, the amount of 
108.18 	reimbursement to each tribe shall be the greater of (1) five percent of the average 
108.19 	reimbursement amount received from the federal government for out-of-home placement 
108.20 	costs for the three calendar years that were certified by June 1 of the prior year, or (2) 
108.21 	$200,000.
108.22 		Subd. 5.Payments. The commissioner of revenue must compute the amount of the 
108.23 	reimbursement aid payable to each county and tribe under this section. On or before August 
108.24 	1 of each year, the commissioner shall certify the amount to be paid to each county and 
108.25 	tribe in the following year. The commissioner shall pay reimbursement aid annually at the 
108.26 	times provided in section 477A.015.
108.27 		Subd. 6.Appropriation. $2,000,000 is annually appropriated to the commissioner of 
108.28 	revenue from the general fund to pay aid under this section.

108.29 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2018.

108.30 	Sec. 14. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
108.31 		Subd. 8.City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula 
108.32 	aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 
109.1 	of (i) (1) the difference between its unmet need and its formula certified aid in the previous 
109.2 	year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage.
109.3 	(b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 
109.4 	year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 
109.5 	its formula aid is adjusted to equal its unmet need.
109.6 	(c) No city may have a formula aid amount less than zero. The aid gap percentage must 
109.7 	be the same for all cities subject to paragraph (a).
109.8 	(d) (b) The applicable aid gap percentage must be calculated by the Department of 
109.9 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
109.10 	for aid under section 477A.03. The aid gap percentage must be the same for all cities subject 
109.11 	to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
109.12 	shall be the most recently available data as of January 1 in the year in which the aid is 
109.13 	calculated.

109.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
109.15 	and thereafter.

109.16 	Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:
109.17 		Subd. 9.City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city
109.18 	if a city's certified aid before any aid adjustment under subdivision 13 for the previous year 
109.19 	is less than its current unmet need, the city shall receive an aid distribution equal to the sum 
109.20 	of (1) its certified aid in the previous year before any aid adjustment under subdivision 13, 
109.21 	(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision 
109.22 	13.
109.23 	(b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid 
109.24 	adjustment under subdivision 13 for the previous year is equal to or greater than its current 
109.25 	unmet need, the total aid for a city must not be less than is equal to the greater of (1) its 
109.26 	unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified 
109.27 	to receive in the previous year minus the lesser of $10 multiplied by its population, or five 
109.28 	percent of its net levy in the year prior to the aid distribution. No city may have a total aid 
109.29 	amount less than $0.

109.30 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
109.31 	and thereafter.

110.1 	Sec. 16. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
110.2 		Subd. 2a.Cities. The total aid paid under section 477A.013, subdivision 9, is 
110.3 	$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the 
110.4 	total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 
110.5 	2018, the total aid paid under section 477A.013, subdivision 9, is $531,398,012. For aids 
110.6 	payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision 9, is 
110.7 	$519,398,012.

110.8 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
110.9 	and thereafter.

110.10 	Sec. 17. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
110.11 		Subd. 2b.Counties. (a) For aids payable in 2014 and thereafter through 2017, the total 
110.12 	aid payable under section 477A.0124, subdivision 3, is $100,795,000. For aids payable in 
110.13 	2018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000, of 
110.14 	which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, 
110.15 	section 6. For aids payable in 2019 through 2024, the total aid payable under section 
110.16 	477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as required 
110.17 	under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, 
110.18 	the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar 
110.19 	year, $500,000 of this appropriation shall be retained by the commissioner of revenue to 
110.20 	make reimbursements to the commissioner of management and budget for payments made 
110.21 	under section 611.27. The reimbursements shall be to defray the additional costs associated 
110.22 	with court-ordered counsel under section 611.27. Any retained amounts not used for 
110.23 	reimbursement in a year shall be included in the next distribution of county need aid that 
110.24 	is certified to the county auditors for the purpose of property tax reduction for the next taxes 
110.25 	payable year.
110.26 	(b) For aids payable in 2014 and thereafter 2017, the total aid under section 477A.0124, 
110.27 	subdivision 4, is $104,909,575. For aids payable in 2018, the total aid payable under section 
110.28 	477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter, the 
110.29 	total aid payable under section 477A.0124, subdivision 4, is $104,909,575. The commissioner 
110.30 	of revenue shall transfer to the commissioner of management and budget $207,000 annually 
110.31 	for the cost of preparation of local impact notes as required by section 3.987, and other local 
110.32 	government activities. The commissioner of revenue shall transfer to the commissioner of 
110.33 	education $7,000 annually for the cost of preparation of local impact notes for school districts 
110.34 	as required by section 3.987. The commissioner of revenue shall deduct the amounts 
111.1 	transferred under this paragraph from the appropriation under this paragraph. The amounts 
111.2 	transferred are appropriated to the commissioner of management and budget and the 
111.3 	commissioner of education respectively.

111.4 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

111.5 	Sec. 18. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read:
111.6 		Subdivision 1.Types of land; payments.  The following amounts are annually 
111.7 	appropriated to the commissioner of natural resources from the general fund for transfer to 
111.8 	the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 
111.9 	to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 
111.10 	as of July 1 of each year prior to the payment year, are:
111.11 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 
111.12 	at the county's option three-fourths of one percent of the appraised value of all acquired 
111.13 	natural resources land in the county, whichever is greater;
111.14 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 
111.15 	county's option, three-fourths of one percent of the appraised value of all transportation 
111.16 	wetland in the county, whichever is greater;
111.17 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 
111.18 	the county's option, three-fourths of one percent of the appraised value of all wildlife 
111.19 	management land in the county, whichever is greater;
111.20 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the 
111.21 	number of acres of military refuge land in the county;
111.22 	(5) $1.50 $2, multiplied by the number of acres of county-administered other natural 
111.23 	resources land in the county;
111.24 	(6) $5.133, multiplied by the total number of acres of land utilization project land in the 
111.25 	county;
111.26 	(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other 
111.27 	natural resources land in the county; and
111.28 	(8) without regard to acreage, and notwithstanding the rules adopted under section 
111.29 	84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 
111.30 	divided and distributed to the counties containing state-owned lands within a conservation 
111.31 	area in proportion to each county's percentage of the total annual ditch assessments.

112.1 	EFFECTIVE DATE. This section is effective for payments made in calendar year 2018 
112.2 	and later.

112.3 	Sec. 19. Minnesota Statutes 2016, section 477A.17, is amended to read:
112.4 	477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 
112.5 	ANNUAL PAYMENTS.
112.6 	(a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause 
112.7 	(1), the county shall receive an annual payment for state-owned land within the boundary 
112.8 	of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012, 
112.9 	subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.
112.10 	(b) For the purposes of this section, the appraised value of the land acquired for Lake 
112.11 	Vermilion-Soudan Underground Mine State Park for the first five years after acquisition 
112.12 	shall be the purchase price of the land, plus the value of any portion of the land that is 
112.13 	acquired by donation. Thereafter, the appraised value of the state-owned land shall be as 
112.14 	determined under section 477A.12, subdivision 3, except that the appraised value of the 
112.15 	state-owned land within the park shall not be reduced below the 2010 appraised value of 
112.16 	the land.
112.17 	(c) The annual payments under this section shall be distributed to the taxing jurisdictions 
112.18 	containing the property as follows: one-third to the school districts; one-third to the town; 
112.19 	and one-third to the county. The payment to school districts is not a county apportionment 
112.20 	under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 
112.21 	may use the payments for their general purposes.
112.22 	(d) Except as provided in this section, the payments shall be made as provided in sections 
112.23 	477A.11 to 477A.13.

112.24 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017.

112.25 	Sec. 20. 2014 AID PENALTY FORGIVENESS.
 112.26 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of 
112.27 	Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment 
112.28 	that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that 
112.29 	the state auditor certifies to the commissioner of revenue that the city complied with all 
112.30 	reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for 
112.31 	calendar years 2013 and 2014 by June 1, 2015.
113.1 	(b) The commissioner of revenue shall make payment to each city no later than July 20, 
113.2 	2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the 
113.3 	commissioner of revenue to make the payments under this section.

113.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.5 	Sec. 21. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
 113.6 	For a city that incorporated on October 13, 2015, and first qualifies for aid under 
113.7 	Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's formula aid 
113.8 	for 2016, used in calculating aid payable in 2017, shall be deemed to equal $115 multiplied 
113.9 	by its population.

113.10 	EFFECTIVE DATE. This section is effective for aids payable in 2017. The 2017 aid 
113.11 	payment under section 477A.013, subdivision 9, for a city that qualifies under this section 
113.12 	shall be recalculated based on this section. The increase shall be treated as an aid correction 
113.13 	under Minnesota Statutes, section 477A.014, subdivision 3.

113.14 	Sec. 22. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
 113.15 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo 
113.16 	shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, 
113.17 	section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 
113.18 	3, provided that the state auditor certifies to the commissioner of revenue that it received 
113.19 	audited financial statements from the city for calendar year 2012 by December 31, 2013. 
113.20 	The commissioner of revenue shall make a payment of $37,473.50 with the first payment 
113.21 	of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the 
113.22 	general fund to the commissioner of revenue in fiscal year 2018 to make this payment.

113.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

113.24 	Sec. 23. APPROPRIATION; DEBT SERVICE EQUALIZATION AID.
 113.25 	For fiscal year 2019 only, $14,182,000 is appropriated from the general fund to the 
113.26 	Department of Education for debt service aid under Minnesota Statutes, section 123B.53. 
113.27 	This amount is in addition to other appropriations for the same purpose.

114.1 	Sec. 24. APPROPRIATION; FIRE REMEDIATION GRANTS.
 114.2 	$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner 
114.3 	of public safety for grants to remediate the effects of fires in the city of Melrose on September 
114.4 	8, 2016. The commissioner must allocate the grants as follows:
114.5 	(1) $1,296,458 to the city of Melrose; and
114.6 	(2) $95,800 to Stearns County.
114.7 	A grant recipient must use the money appropriated under this section for remediation 
114.8 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
114.9 	costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 
114.10 	incurred by public or private entities as a result of the fires. This is a onetime appropriation 
114.11 	and is available until June 30, 2018.

114.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.13 	ARTICLE 5
114.14 	LOCAL OPTION SALES AND SPECIAL TAXES

114.15 	Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
114.16 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 
114.17 	First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 
114.18 	section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
114.19 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 
114.20 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
114.21 	impose an additional sales tax of up to one and three-quarter percent on sales transactions 
114.22 	which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 
114.23 	The imposition of this tax shall not be subject to voter referendum under either state law or 
114.24 	city charter provisions. When the city council determines that the taxes imposed under this 
114.25 	paragraph at a rate of three-quarters of one percent and other sources of revenue produce 
114.26 	revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 
114.27 	issuance and discount costs, issued for capital improvements at the Duluth Entertainment 
114.28 	and Convention Center, which include a new arena, the rate of tax under this subdivision 
114.29 	must be reduced by three-quarters of one percent.
114.30 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
114.31 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
114.32 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
115.1 	on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 
115.2 	subdivision 3, clause (c). This tax expires when the city council determines that the tax 
115.3 	imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 
115.4 	has produced revenues sufficient to pay the debt service on bonds in a principal amount of 
115.5 	no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 
115.6 	to public facilities to support tourism and recreational activities in that portion of the city 
115.7 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
115.8 	(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 
115.9 	under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 
115.10 	issuance and any premiums. The proceeds may be used to finance capital improvements to 
115.11 	public facilities that support tourism and recreational activities in the portion of the city 
115.12 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as 
115.13 	described in paragraph (b). The issuance of the bonds is subject to the provisions of 
115.14 	Minnesota Statutes, chapter 475, except no election shall be required unless required by the 
115.15 	city charter. The bonds shall not be included in computing net debt. The revenues from the 
115.16 	taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 
115.17 	(b), may be pledged to pay principal of and interest on such bonds.

115.18 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
115.19 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
115.20 	subdivisions 2 and 3.

115.21 	Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 
115.22 	8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 
115.23 	2014, chapter 308, article 3, section 22, is amended to read:
115.24 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
 115.25 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 
115.26 	or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 
115.27 	additional tax of one percent upon the gross receipts from the sale of lodging for periods of 
115.28 	less than 30 days in hotels and motels located in the city. The tax shall be collected in the 
115.29 	same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 
115.30 	The imposition of this tax shall not be subject to voter referendum under either state law or 
115.31 	city charter provisions.
115.32 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
115.33 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
115.34 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
116.1 	on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 
116.2 	motels located in the city. This tax expires when the city council first determines that the 
116.3 	tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 
116.4 	(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 
116.5 	of no more than $18,000,000, plus issuance and discount costs, to finance capital 
116.6 	improvements to public facilities to support tourism and recreational activities in that portion 
116.7 	of the city west of 34th 14th Avenue West and the area south of and including Skyline 
116.8 	Parkway.

116.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
116.10 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
116.11 	subdivisions 2 and 3.

116.12 	Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 
116.13 	1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 
116.14 	Laws 2009, chapter 88, article 4, section 14, is amended to read:
116.15 		Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
116.16 	1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 
116.17 	portion of the expenses of constructing and improving facilities as part of an urban 
116.18 	revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 
116.19 	include, but are not limited to, acquiring property and paying relocation expenses related 
116.20 	to the development of Riverfront 2000 and related facilities, and securing or paying debt 
116.21 	service on bonds or other obligations issued to finance the construction of Riverfront 2000 
116.22 	and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 
116.23 	means a civic-convention center, an arena, a riverfront park, a technology center and related 
116.24 	educational facilities, and all publicly owned real or personal property that the governing 
116.25 	body of the city determines will be necessary to facilitate the use of these facilities, including 
116.26 	but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 
116.27 	includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 
116.28 	Center, for use by Minnesota State University, Mankato.
116.29 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
116.30 	by voters at the November 4, 2016, general election, the city may by ordinance also use 
116.31 	revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, 
116.32 	plus associated bond costs, to pay all or a portion of the expenses of the following capital 
116.33 	projects:
117.1 	(1) construction and improvements to regional recreational facilities including existing 
117.2 	hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal 
117.3 	swimming pool including improvements to make the pool compliant with the Americans 
117.4 	with Disabilities Act, and indoor regional athletic facilities;
117.5 	(2) improvements to flood control and the levee system;
117.6 	(3) water quality improvement projects in Blue Earth and Nicollet Counties;
117.7 	(4) expansion of the regional transit building and related multimodal transit 
117.8 	improvements;
117.9 	(5) regional public safety and emergency communications improvements and equipment; 
117.10 	and
117.11 	(6) matching funds for improvements to publicly owned regional facilities including a 
117.12 	historic museum, supportive housing, and a senior center.

117.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
117.14 	city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
117.15 	645.021, subdivisions 2 and 3.

117.16 	Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 
117.17 	2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 
117.18 	article 7, section 10, is amended to read:
117.19 		Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 
117.20 	granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 
117.21 	expire on at the earlier of when revenues are sufficient to pay off the bonds, including 
117.22 	interest and all other associated bond costs authorized under subdivision 5, or  December 
117.23 	31, 2022 2038.

117.24 	EFFECTIVE DATE. This section is effective the day following final enactment without 
117.25 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

117.26 	Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
117.27 		Subd. 5.Bonds. (a) The city of Mankato may issue general obligation bonds of the city 
117.28 	in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 
117.29 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
117.30 	a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 
117.31 	facilities shall not be included in computing any debt limitations applicable to the city of 
118.1 	Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 
118.2 	on the bonds shall not be subject to any levy limitation or be included in computing or 
118.3 	applying any levy limitation applicable to the city.
118.4 	(b) The city of Mankato may issue general obligation bonds of the city in an amount not 
118.5 	to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without 
118.6 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
118.7 	a tax to pay them. The debt represented by bonds under this paragraph shall not be included 
118.8 	in computing any debt limitations applicable to the city of Mankato, and the levy of taxes 
118.9 	required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 
118.10 	and shall not be subject to any levy limitation or be included in computing or applying any 
118.11 	levy limitation applicable to the city. The city may use tax revenue in excess of one year's 
118.12 	principal interest reserve for intended annual bond payments to pay all or a portion of the 
118.13 	cost of capital improvements authorized in subdivision 3.

118.14 	EFFECTIVE DATE. This section is effective the day following final enactment without 
118.15 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

118.16 	Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 
118.17 	2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 
118.18 	article 4, section 4, is amended to read:
118.19 		Subdivision 1.Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 
118.20 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
118.21 	Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 
118.22 	sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 
118.23 	the city. The proceeds of the tax imposed under this section must be used to meet the costs 
118.24 	of:
118.25 	(1) extending a sewer interceptor line;
118.26 	(2) construction of a booster pump station, reservoirs, and related improvements to the 
118.27 	water system; and
118.28 	(3) construction of a building containing a police and fire station and an administrative 
118.29 	services facility.
118.30 	(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 
118.31 	it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 
118.32 	is approved by the voters at a general election held before December 31, 2012.
119.1 	(c) As approved by the voters at the November 8, 2016, general election, the proceeds 
119.2 	under this section may also be used to meet the costs of debt service payments for 
119.3 	construction of the Hermantown Wellness Center.

119.4 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
119.5 	city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 
119.6 	645.021, subdivisions 2 and 3.

119.7 	Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 
119.8 	2006, chapter 259, article 3, section 4, is amended to read:
119.9 		Subd. 4.Termination. The tax authorized under this section terminates on March 31, 
119.10 	2026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council 
119.11 	first determines that sufficient funds have been received from the tax to fund the costs, 
119.12 	including bonds and associated bond costs for the uses specified in subdivision 1. Any funds 
119.13 	remaining after completion of the improvements and retirement or redemption of the bonds 
119.14 	may be placed in the general fund of the city.

119.15 	EFFECTIVE DATE. This section is effective the day following final enactment without 
119.16 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

119.17 	Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:
119.18 		Subd. 3.Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
119.19 	1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 
119.20 	construction and improvement of a civic and community center and recreational facilities 
119.21 	to serve all ages, including seniors and youth. Authorized expenses include, but are not 
119.22 	limited to, acquiring property, paying construction and operating expenses related to the 
119.23 	development of an authorized facility, funding facilities replacement reserves, and paying 
119.24 	debt service on bonds or other obligations issued to finance the construction or expansion 
119.25 	of an authorized facility. The capital expenses for all projects authorized under this 
119.26 	subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount 
119.27 	equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
119.28 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
119.29 	by the voters at the November 8, 2016, general election, the city of New Ulm may by 
119.30 	ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a 
119.31 	maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses 
119.32 	of the following capital projects:
120.1 	(1) constructing an indoor water park and making safety improvements to the existing 
120.2 	recreational center pool;
120.3 	(2) constructing an indoor playground, a wellness center, and a gymnastics facility;
120.4 	(3) constructing a winter multipurpose dome;
120.5 	(4) making improvements to Johnson Park Grandstand; and
120.6 	(5) making improvements to the entrance road and parking at Hermann Heights Park.

120.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
120.8 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
120.9 	645.021, subdivisions 2 and 3.

120.10 	Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision 
120.11 	to read:
120.12 		Subd. 4a.Bonding authority; additional use and extension of tax. As approved by 
120.13 	the voters at the November 8, 2016, general election, and in addition to the bonds issued 
120.14 	under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in 
120.15 	an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b). 
120.16 	The debt represented by bonds under this subdivision shall not be included in computing 
120.17 	any debt limitations applicable to the city of New Ulm, and the levy of taxes required by 
120.18 	Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall 
120.19 	not be subject to any levy limitation or be included in computing or applying any levy 
120.20 	limitation applicable to the city.

120.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
120.22 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
120.23 	645.021, subdivisions 2 and 3.

120.24 	Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
120.25 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
120.26 	when the city council determines that sufficient funds have been received from the taxes to 
120.27 	finance the capital and administrative costs for the acquisition, construction, and improvement 
120.28 	of facilities described in subdivision 3, including the additional use of revenues under 
120.29 	subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general 
120.30 	election, and to prepay or retire at maturity the principal, interest, and premium due on any 
120.31 	bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining 
120.32 	after completion of the project and retirement or redemption of the bonds may be placed in 
121.1 	the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at 
121.2 	an earlier time if the city so determines by ordinance.

121.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
121.4 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
121.5 	645.021, subdivisions 2 and 3.

121.6 	Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 
121.7 	2008, chapter 366, article 7, section 12, is amended to read:
121.8 		Subdivision 1.Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 
121.9 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the city 
121.10 	voters at the first municipal general election held after the date of final enactment of this 
121.11 	act or at a special election held November 2, 1999, the city of Proctor may impose by 
121.12 	ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 
121.13 	subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
121.14 	administration, collection, and enforcement of the tax authorized under this subdivision.
121.15 	(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
121.16 	law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional 
121.17 	sales and use tax of up to one-half of one percent, as approved by the voters at the November 
121.18 	4 election. The revenues received from the additional tax must be used for the purposes 
121.19 	specified in subdivision 3, paragraph (b).

121.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
121.21 	city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
121.22 	subdivisions 2 and 3.

121.23 	Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2, 
121.24 	as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:
121.25 		Subd. 2.Use of revenues. The proceeds of the tax imposed under this section shall be 
121.26 	used to pay for lake water quality improvement projects as detailed in the Shell Rock River 
121.27 	watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding 
121.28 	any provision of statute, other law, or city charter to the contrary, the city shall transfer all 
121.29 	revenues from the tax imposed under subdivision 1, as soon as they are received, to the 
121.30 	Shell Rock River Watershed District. The city is not required to review the intended uses 
121.31 	of the revenues by the watershed district, nor is the watershed district required to submit to 
121.32 	the city proposed budgets, statements, or invoices explaining the intended uses of the 
121.33 	revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed 
122.1 	District shall appear before the city of Albert Lea City Council on a biannual basis to present 
122.2 	a report of its activities, expenditures, and intended uses of the city sales tax revenue.

122.3 	EFFECTIVE DATE. This section is effective the day after the chief clerical officer 
122.4 	and the governing body of the city of Albert Lea comply with Minnesota Statutes, section 
122.5 	645.021, subdivisions 2 and 3.

122.6 	Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, 
122.7 	as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:
122.8 		Subd. 4.Termination of taxes. The taxes imposed under this section expire at the earlier 
122.9 	of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first 
122.10 	determines that the amount of revenues raised to pay for the projects under subdivision 2, 
122.11 	shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after 
122.12 	completion of the projects may be placed in the general fund of the city.

122.13 	EFFECTIVE DATE. This section is effective the day after the chief clerical officer 
122.14 	and the governing body of the city of Albert Lea comply with Minnesota Statutes, section 
122.15 	645.021, subdivisions 2 and 3.

122.16 	Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3, 
122.17 	as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read:
122.18 		Subd. 3.Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
122.19 	1 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes 
122.20 	and; (2) to pay for the costs of a community center complex and; (3) to make renovations 
122.21 	to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that 
122.22 	this use of the tax is subject to the same restrictions that apply to the issuance of debt provided 
122.23 	in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring 
122.24 	property and paying construction expenses related to these improvements, and paying debt 
122.25 	service on bonds or other obligations issued to finance acquisition and construction of these 
122.26 	improvements.
122.27 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the 
122.28 	city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 5, 
122.29 	paragraph (b), the city must use any amounts in excess of the amounts necessary to meet 
122.30 	the obligations under paragraph (a) to pay the city's share of debt service on bonds issued 
122.31 	under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 
122.32 	System Project.

123.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
123.2 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
123.3 	645.021, subdivisions 2 and 3.

123.4 	Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4, 
123.5 	is amended to read:
123.6 		Subd. 4.Bonding authority. (a) If the tax authorized under subdivision 1 is approved 
123.7 	by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to pay capital 
123.8 	and administrative expenses for the improvements described in subdivision 3 in an amount 
123.9 	that does not exceed $6,000,000. An election to approve the bonds under Minnesota Statutes, 
123.10 	section 475.58, is not required.
123.11 	(b) The debt represented by the bonds is not included in computing any debt limitation 
123.12 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
123.13 	pay principal of and interest on the bonds is not subject to any levy limitation.
123.14 	(c) If the Worthington City Council intends to issue debt after June 30, 2017, for the 
123.15 	purposes of this subdivision, it must pass a resolution stating the intent to issue debt and 
123.16 	proposing a public hearing. The resolution must be published for two successive weeks in 
123.17 	the official newspaper of the city together with a notice setting a date for the public hearing. 
123.18 	The hearing must be held at least two weeks, but not more than four weeks, after the first 
123.19 	publication after passage of the resolution. Following the public hearing, if the city adopts 
123.20 	a resolution confirming its intention to issue additional debt, that resolution must also be 
123.21 	published in the official newspaper of the city, but the resolution is not effective for 30 days. 
123.22 	If within 30 days after publication of the resolution confirming the city's intention to issue 
123.23 	additional debt a petition signed by voters equal in number to ten percent of the votes cast 
123.24 	in the city in the last general election requesting a vote on the proposed resolution is filed 
123.25 	with the county auditor, the resolution is not effective until it has been submitted to the 
123.26 	voters in a general or special election and a majority of the votes cast on the question of 
123.27 	approving the resolution are in the affirmative. The commissioner of revenue shall prepare 
123.28 	a suggested form of question to be presented at the election.

123.29 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
123.30 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
123.31 	645.021, subdivisions 2 and 3.

124.1 	Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5, 
124.2 	as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read:
124.3 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 
124.4 	at the earlier of (1) ten years, or (2) when the city council determines that the amount of 
124.5 	revenue received from the taxes is sufficient to pay for the projects under subdivision 3 
124.6 	equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to 
124.7 	issuance of bonds under subdivision 4, including interest on the bonds. Any funds remaining 
124.8 	after completion of the project and retirement or redemption of the bonds shall be placed 
124.9 	in a capital project fund of the city. The taxes imposed under subdivisions 1 and 2 may 
124.10 	expire at an earlier time if the city so determines by ordinance.
124.11 	(b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the taxes 
124.12 	imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional 
124.13 	revenues that exceed those necessary to fund the projects and associated financing costs 
124.14 	listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds issued 
124.15 	under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 
124.16 	System Project.

124.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
124.18 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
124.19 	645.021, subdivisions 2 and 3.

124.20 	Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read:
124.21 	Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 124.22 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
124.23 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 
124.24 	approval of the voters on November 7, 2006, the city of North Mankato may impose by 
124.25 	ordinance a sales and use tax of one-half of one percent for the purposes specified in 
124.26 	subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
124.27 	administration, collection, and enforcement of the taxes authorized under this subdivision.
124.28 		Subd. 2.Use of revenues. Revenues received from the tax authorized by subdivision 1 
124.29 	must be used to pay all or part of the capital costs of the following projects:
124.30 	(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 
124.31 	project;
124.32 	(2) development of regional parks and hiking and biking trails, including construction 
124.33 	of regional athletic facilities;
125.1 	(3) expansion of the North Mankato Taylor Library;
125.2 	(4) riverfront redevelopment; and
125.3 	(5) lake improvement projects.
125.4 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
125.5 	these projects is $6,000,000 $21,000,000 plus any associated bond costs.
125.6 		Subd. 2a.Authorization to extend the tax. Notwithstanding Minnesota Statutes, section 
125.7 	297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend the 
125.8 	tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus 
125.9 	associated bond costs, to fund the projects in subdivision 2 as approved by the voters at the 
125.10 	November 8, 2016, general election.
125.11 		Subd. 3.Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 
125.12 	at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 
125.13 	may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 
125.14 	expenses for the projects described in subdivision 2, in an amount that does not exceed 
125.15 	$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
125.16 	475.58, is not required.
125.17 	(b) The city of North Mankato, pursuant to approval of the voters at the November 8, 
125.18 	2016, referendum extending the tax fee to provide additional revenue to be spent for the 
125.19 	projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 
125.20 	475, to pay capital and administrative expenses for those projects in an amount that does 
125.21 	not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes, 
125.22 	section 475.58, is not required.
125.23 	(c) The debt represented by the bonds is not included in computing any debt limitation 
125.24 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
125.25 	pay principal and interest on the bonds is not subject to any levy limitation.
125.26 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires when the 
125.27 	city council determines that the amount of revenues received from the taxes to pay for the 
125.28 	projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 
125.29 	needed to pay the costs related to issuance of bonds under subdivision 3, including interest 
125.30 	on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first 
125.31 	equal or exceed $21,000,000 plus the additional amount needed to pay costs related to 
125.32 	issuance of bonds under subdivision 3, including interest. Any funds remaining after 
125.33 	completion of the projects and retirement or redemption of the bonds shall be placed in a 
126.1 	capital facilities and equipment replacement fund of the city. The tax imposed under 
126.2 	subdivision 1 may expire at an earlier time if the city so determines by ordinance.

126.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
126.4 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
126.5 	645.021, subdivisions 2 and 3.

126.6 	Sec. 18. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
 126.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
126.8 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
126.9 	charter, and as approved by the voters at a special election on March 7, 2016, the city of 
126.10 	East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for 
126.11 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
126.12 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
126.13 	collection, and enforcement of the tax authorized under this subdivision.
126.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
126.15 	under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 
126.16 	collecting and administering the tax and to finance the capital and administrative costs of 
126.17 	improvement to the city public swimming pool. Authorized expenses include, but are not 
126.18 	limited to, paying construction expenses related to the renovation and the development of 
126.19 	these facilities and improvements, and securing and paying debt service on bonds issued 
126.20 	under subdivision 3 or other obligations issued to finance improvement of the public 
126.21 	swimming pool in the city of East Grand Forks.
126.22 		Subd. 3.Bonding authority. (a) The city of East Grand Forks may issue bonds under 
126.23 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
126.24 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
126.25 	subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of 
126.26 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
126.27 	to the city of East Grand Forks, including the tax authorized under subdivision 1. The 
126.28 	issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 
126.29 	and 275.61.
126.30 	(b) The bonds are not included in computing any debt limitation applicable to the city 
126.31 	of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to 
126.32 	pay principal and interest on the bonds is not subject to any levy limitation. A separate 
126.33 	election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
127.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the later 
127.2 	of: (1) five years after the tax is first imposed; or (2) when the city council determines that 
127.3 	$2,820,000 has been received from the tax to pay for the cost of the projects authorized 
127.4 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
127.5 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
127.6 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
127.7 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
127.8 	time if the city so determines by ordinance.

127.9 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
127.10 	body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions 
127.11 	2 and 3.

127.12 	Sec. 19. CITY OF EXCELSIOR; TAXES AUTHORIZED.
 127.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
127.14 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
127.15 	charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half 
127.16 	of one percent for the purposes specified in subdivision 2, as approved by the voters at the 
127.17 	November 4, 2014, general election. Except as otherwise provided in this section, the 
127.18 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
127.19 	collection, and enforcement of the tax authorized under this subdivision.
127.20 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
127.21 	under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and 
127.22 	administering the tax and to finance the capital and administrative costs of improvements 
127.23 	to the commons as indicated in the November 2016 findings of the commons master planning 
127.24 	work group. Authorized expenses include, but are not limited to, improvements for 
127.25 	walkability and accessibility, enhancement of beach area and facilities, prevention and 
127.26 	management of shoreline erosion, redesign of the port and bandshell, improvement of 
127.27 	playground equipment, and securing and paying debt service on bonds issued under 
127.28 	subdivision 3 or other obligations issued to the improvements listed in this subdivision in 
127.29 	the city of Excelsior.
127.30 		Subd. 3.Bonding authority. (a) The city of Excelsior may issue bonds under Minnesota 
127.31 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
127.32 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
127.33 	not exceed $7,000,000, plus an amount to be applied to the payment of the costs of issuing 
127.34 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
128.1 	Excelsior, including the tax authorized under subdivision 1. The issuance of bonds under 
128.2 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
128.3 	(b) The bonds are not included in computing any debt limitation applicable to the city 
128.4 	of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
128.5 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
128.6 	the bonds under Minnesota Statutes, section 475.58, is not required.
128.7 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the later 
128.8 	of: (1) 25 years after the tax is first imposed; or (2) when the city council determines that 
128.9 	$7,000,000 has been received from the tax to pay for the cost of the projects authorized 
128.10 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
128.11 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
128.12 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
128.13 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
128.14 	time if the city so determines by ordinance.

128.15 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
128.16 	body of the city of Excelsior with Minnesota Statutes, section 645.021, subdivisions 2 and 
128.17 	3.

128.18 	Sec. 20. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
 128.19 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
128.20 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
128.21 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
128.22 	of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for 
128.23 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
128.24 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
128.25 	collection, and enforcement of the tax authorized under this subdivision.
128.26 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
128.27 	under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and 
128.28 	administering the tax and to finance the capital and administrative costs of constructing and 
128.29 	funding recreational amenities, trails, and a community center. The total that may be raised 
128.30 	from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the 
128.31 	issuance and paying debt service on bonds for these projects.
128.32 		Subd. 3.Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota 
128.33 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
129.1 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
129.2 	not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing 
129.3 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
129.4 	Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under 
129.5 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
129.6 	(b) The bonds are not included in computing any debt limitation applicable to the city 
129.7 	of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
129.8 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
129.9 	the bonds under Minnesota Statutes, section 475.58, is not required.
129.10 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
129.11 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
129.12 	that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
129.13 	authorized under subdivision 3, including interest on the bonds, has been received from the 
129.14 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
129.15 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
129.16 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
129.17 	time if the city so determines by ordinance.

129.18 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
129.19 	body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions 2 and 
129.20 	3.

129.21 	Sec. 21. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
 129.22 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
129.23 	section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city 
129.24 	charter, and as approved by the voters at the November 8, 2016, general election, the city 
129.25 	of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one 
129.26 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
129.27 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
129.28 	administration, collection, and enforcement of the tax authorized under this subdivision.
129.29 		Subd. 2.Use of sales and use tax revenues. The revenues from the tax authorized under 
129.30 	subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and 
129.31 	administering the tax and securing and paying debt service on bonds issued to finance all 
129.32 	or part of the costs of the expansion and betterment of the Fergus Falls Public Library located 
129.33 	at 205 East Hampden Avenue in the city of Fergus Falls.
130.1 		Subd. 3.Bonding authority. (a) The city of Fergus Falls may issue bonds under 
130.2 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
130.3 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
130.4 	subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of 
130.5 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
130.6 	city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds 
130.7 	under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
130.8 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
130.9 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
130.10 	interest on the bonds is not subject to any levy limitation. A separate election to approve 
130.11 	the bonds under Minnesota Statutes, section 475.58, is not required.
130.12 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
130.13 	earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines 
130.14 	that $9,800,000 has been received from the tax to pay for the cost of the project authorized 
130.15 	under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the 
130.16 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
130.17 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
130.18 	in the general fund of the city. The tax imposed under subdivision 1 may expire at any 
130.19 	earlier time if the city so determines by ordinance.

130.20 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
130.21 	body of the city of Fergus Falls with Minnesota Statutes, section 645.021, subdivisions 2 
130.22 	and 3.

130.23 	Sec. 22. CITY OF MOOSE LAKE; TAXES AUTHORIZED.
 130.24 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
130.25 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
130.26 	as approved by the voters at the November 6, 2012, general election, the city of Moose Lake 
130.27 	may impose, by ordinance, a sales and use tax of up to one-half of one percent for the 
130.28 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
130.29 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
130.30 	collection, and enforcement of the tax authorized under this subdivision.
130.31 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
130.32 	under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting 
130.33 	and administering the tax and to finance the costs of: (1) improvements to the city's park 
130.34 	system; (2) street and related infrastructure improvements; and (3) municipal arena 
131.1 	improvements. Authorized costs include construction and engineering costs and associated 
131.2 	bond costs.
131.3 		Subd. 3.Bonding authority. The city of Moose Lake may issue bonds under Minnesota 
131.4 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
131.5 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
131.6 	not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing 
131.7 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
131.8 	Moose Lake, including the tax authorized under subdivision 1.  The issuance of bonds under 
131.9 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
131.10 	The bonds are not included in computing any debt limitation applicable to the city of 
131.11 	Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
131.12 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
131.13 	the bonds under Minnesota Statutes, section 475.58, is not required.
131.14 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
131.15 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
131.16 	that $3,000,000 has been received from the tax to pay for the cost of the projects authorized 
131.17 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
131.18 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
131.19 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
131.20 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
131.21 	time if the city so determines by ordinance.

131.22 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
131.23 	body of the city of Moose Lake with Minnesota Statutes, section 645.021, subdivisions 2 
131.24 	and 3.

131.25 	Sec. 23. CITY OF NEW LONDON; TAX AUTHORIZED.
 131.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
131.27 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
131.28 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
131.29 	of New London may impose, by ordinance, a sales and use tax of one-half of one percent 
131.30 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
131.31 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
131.32 	collection, and enforcement of the tax authorized under this subdivision.
132.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
132.2 	under subdivision 1 must be used by the city of New London to pay the costs of collecting 
132.3 	and administering the tax and to finance the capital and administrative costs of the following 
132.4 	projects:
132.5 	(1) construction and equipping of a new library and community room;
132.6 	(2) construction of an ambulance bay at the fire hall; and
132.7 	(3) improvements to the New London Senior Citizen Center.
132.8 	The total that may be raised from the tax to pay for these projects is limited to $872,000 
132.9 	plus the costs related to the issuance and paying debt service on bonds for these projects.
132.10 		Subd. 3.Bonding authority. (a) The city of New London may issue bonds under 
132.11 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
132.12 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
132.13 	subdivision may not exceed $872,000, plus an amount to be applied to the payment of the 
132.14 	costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
132.15 	to the city of New London, including the tax authorized under subdivision 1. The issuance 
132.16 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
132.17 	275.61.
132.18 	(b) The bonds are not included in computing any debt limitation applicable to the city 
132.19 	of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
132.20 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
132.21 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
132.22 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
132.23 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
132.24 	that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds 
132.25 	authorized under subdivision 3, including interest on the bonds, has been received from the 
132.26 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
132.27 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
132.28 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
132.29 	time if the city so determines by ordinance.

132.30 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
132.31 	body of the city of New London with Minnesota Statutes, section 645.021, subdivisions 2 
132.32 	and 3.

133.1 	Sec. 24. CITY OF NORTH MANKATO; FOOD AND BEVERAGE TAX 
133.2 	AUTHORIZED.
 133.3 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
133.4 	section 477A.016, or any ordinance, city charter, or other provision of law, the city of North 
133.5 	Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts 
133.6 	on all sales of food and beverages by a restaurant or place of refreshment, as defined by 
133.7 	resolution of the city, that are located within the city. For purposes of this section, "food 
133.8 	and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.
133.9 		Subd. 2.Use of proceeds from tax. The proceeds of any tax imposed under subdivision 
133.10 	1 shall be used by the city to pay all or a portion of the expenses of:
133.11 	(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting 
133.12 	Complex; and
133.13 	(2) for costs related to regional tourism events.
133.14 	Authorized capital expenses include securing or paying debt service on bonds or other 
133.15 	obligations issued to finance the construction of the Caswell Park Regional Sporting Complex 
133.16 	facilities.
133.17 		Subd. 3.Collection, administration, and enforcement. If the city desires, it may enter 
133.18 	into an agreement with the commissioner of revenue to administer, collect, and enforce the 
133.19 	taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax, 
133.20 	the provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 
133.21 	and enforcement apply.

133.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
133.23 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
133.24 	645.021, subdivisions 2 and 3.

133.25 	Sec. 25. CITY OF SLEEPY EYE; LODGING TAX.
 133.26 	Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, 
133.27 	ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by 
133.28 	ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under 
133.29 	Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 
133.30 	Minnesota Statutes, section 469.190, and the total tax imposed under that section and this 
133.31 	provision must not exceed five percent. Revenue from the tax imposed under this section 
133.32 	may only be used for the same purposes as a tax imposed under Minnesota Statutes, section 
133.33 	469.190.

134.1 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
134.2 	body of the city of Sleepy Eye with Minnesota Statutes, section 645.021, subdivisions 2 
134.3 	and 3.

134.4 	Sec. 26. CITY OF SPICER; TAX AUTHORIZED.
 134.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
134.6 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
134.7 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
134.8 	of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the 
134.9 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
134.10 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
134.11 	collection, and enforcement of the tax authorized under this subdivision.
134.12 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
134.13 	under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and 
134.14 	administering the tax and to finance the capital and administrative costs of the following 
134.15 	projects:
134.16 	(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk 
134.17 	signals at marked Trunk Highway 23;
134.18 	(2) park and trail capital improvements including signage for bicycle share the road 
134.19 	improvements and replacement of playground and related facilities; and
134.20 	(3) capital improvements to regional community facilities such as the Dethelfs roof and 
134.21 	window replacement and the Pioneerland branch library roof replacement.
134.22 		Subd. 3.Bonding authority. (a) The city of Spicer may issue bonds under Minnesota 
134.23 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
134.24 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
134.25 	not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing 
134.26 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
134.27 	Spicer, including the tax authorized under subdivision 1. The issuance of bonds under this 
134.28 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
134.29 	(b) The bonds are not included in computing any debt limitation applicable to the city 
134.30 	of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
134.31 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
134.32 	the bonds under Minnesota Statutes, section 475.58, is not required.
135.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
135.2 	earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or (3) when 
135.3 	the city council determines that $800,000, plus an amount sufficient to pay the costs related 
135.4 	to issuing the bonds authorized under subdivision 3, including interest on the bonds, has 
135.5 	been received from the tax to pay for the cost of the projects authorized under subdivision 
135.6 	2. All funds not used to pay collection and administration costs of the tax must be used for 
135.7 	projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier 
135.8 	time if the city so determines by ordinance.

135.9 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
135.10 	body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

135.11 	Sec. 27. CLAY COUNTY; TAX AUTHORIZED.
 135.12 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
135.13 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as 
135.14 	approved by the voters at the November 8, 2016, general election, Clay County may impose, 
135.15 	by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified 
135.16 	in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
135.17 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
135.18 	of the tax authorized under this subdivision.
135.19 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
135.20 	under subdivision 1 must be used by Clay County to pay the costs of collecting and 
135.21 	administering the tax and to finance the capital costs of constructing and equipping a new 
135.22 	correctional facility, law enforcement center, and related parking facility. Authorized 
135.23 	expenses include but are not limited to paying design, development, and construction costs 
135.24 	related to these facilities and improvements, and securing and paying debt service on bonds 
135.25 	issued under subdivision 3 or other obligations issued to finance the facilities listed in this 
135.26 	subdivision.
135.27 		Subd. 3.Bonding authority. Clay County may issue bonds under Minnesota Statutes, 
135.28 	chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision 
135.29 	2. The aggregate principal amount of bonds issued under this subdivision may not exceed 
135.30 	$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds. 
135.31 	The bonds may be paid from or secured by any funds available to Clay County, including 
135.32 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
135.33 	subject to Minnesota Statutes, sections 275.60 and 275.61.
136.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
136.2 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines 
136.3 	that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds 
136.4 	authorized under subdivision 3, including interest on the bonds, has been received from the 
136.5 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
136.6 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
136.7 	in the general fund of the county. The tax imposed under subdivision 1 may expire at an 
136.8 	earlier time if the county so determines by ordinance.

136.9 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
136.10 	body of Clay County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

136.11 	Sec. 28. WOODBURY LODGING TAX.
 136.12 	Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a 
136.13 	tax authorized in Minnesota Statutes, section 469.190, the city of Woodbury may impose 
136.14 	by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under  
136.15 	Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 
136.16 	Minnesota Statutes, section 469.190, and the total tax imposed by the city under this section 
136.17 	and Minnesota Statutes, section 469.190, must not exceed five percent. Revenue from the 
136.18 	tax imposed under this section may only be used for the same purposes as a tax imposed 
136.19 	under Minnesota Statutes, section 469.190.

136.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
136.21 	city of Woodbury and its chief clerical officer timely complete their compliance with 
136.22 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

136.23 	Sec. 29. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
 136.24 	Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 
136.25 	Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter 
136.26 	389, article 5, sections 1 and 2, and file its approval with the secretary of state by January 
136.27 	1, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the 
136.28 	approval of the voters on November 2, 2010, and otherwise in accordance with those laws 
136.29 	are validated.

136.30 	EFFECTIVE DATE. This section is effective the day following final enactment, without 
136.31 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph 
136.32 	(a).

137.1 	ARTICLE 6
137.2 	TAX INCREMENT FINANCING

137.3 	Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
137.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
137.5 	the meanings given.
137.6 	(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 
137.7 	correction, removal of hazardous waste or pollution, installation of utilities, construction 
137.8 	of public or private improvements, and other similar activities, but only to the extent that 
137.9 	tax increment revenues may be spent for such purposes under other law.
137.10 	(c) "Third party" means an entity other than (1) the person receiving the benefit of 
137.11 	assistance financed with tax increments, or (2) the municipality or the development authority 
137.12 	or other person substantially under the control of the municipality.
137.13 	(d) "Revenues derived from tax increments paid by properties in the district" means only 
137.14 	tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 
137.15 	tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).

137.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

137.17 	Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
137.18 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
137.19 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
137.20 	by properties in the district must be expended on activities in the district or to pay bonds, 
137.21 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
137.22 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
137.23 	than redevelopment districts for which the request for certification was made after June 30, 
137.24 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
137.25 	more than 25 percent of the total revenue derived from tax increments paid by properties 
137.26 	in the district may be expended, through a development fund or otherwise, on activities 
137.27 	outside of the district but within the defined geographic area of the project except to pay, 
137.28 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
137.29 	redevelopment districts for which the request for certification was made after June 30, 1995, 
137.30 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
137.31 	revenues derived from tax increments forpaid by properties in the district that are expended 
138.1 	on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
138.2 	calculating the percentages that must be expended within and without the district.
138.3 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
138.4 	subdivision 11, is an activity in the district.
138.5 	(c) All administrative expenses are for activities outside of the district, except that if the 
138.6 	only expenses for activities outside of the district under this subdivision are for the purposes 
138.7 	described in paragraph (d), administrative expenses will be considered as expenditures for 
138.8 	activities in the district.
138.9 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
138.10 	by up to ten percentage points the permitted amount of expenditures for activities located 
138.11 	outside the geographic area of the district under paragraph (a). As permitted by section 
138.12 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
138.13 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
138.14 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
138.15 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
138.16 	under this paragraph, the expenditures must:
138.17 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
138.18 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
138.19 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
138.20 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
138.21 	Revenue Code; and
138.22 	(3) be used to:
138.23 	(i) acquire and prepare the site of the housing;
138.24 	(ii) acquire, construct, or rehabilitate the housing; or
138.25 	(iii) make public improvements directly related to the housing; or
138.26 	(4) be used to develop housing:
138.27 	(i) if the market value of the housing does not exceed the lesser of:
138.28 	(A) 150 percent of the average market value of single-family homes in that municipality; 
138.29 	or
138.30 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
138.31 	473.121, or $125,000 for all other municipalities; and
139.1 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
139.2 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
139.3 	the parcel contains a residence containing one to four family dwelling units that has been 
139.4 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
139.5 	7, but without regard to whether the residence is the owner's principal residence, and only 
139.6 	after the redemption period has expired.
139.7 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
139.8 	Increments may continue to be expended under this authority after that date, if they are used 
139.9 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
139.10 	December 31, 2016, is considered to be the last date of the five-year period after certification 
139.11 	under that provision.

139.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

139.13 	Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
139.14 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
139.15 	in the district are considered to have been expended on an activity within the district under 
139.16 	subdivision 2 only if one of the following occurs:
139.17 	(1) before or within five years after certification of the district, the revenues are actually 
139.18 	paid to a third party with respect to the activity;
139.19 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
139.20 	sold to a third party before or within five years after certification, the revenues are spent to 
139.21 	repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 
139.22 	expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 
139.23 	temporary period within the meaning of the use of that term under section 148(c)(1) of the 
139.24 	Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 
139.25 	fund;
139.26 	(3) binding contracts with a third party are entered into for performance of the activity 
139.27 	before or within five years after certification of the district and the revenues are spent under 
139.28 	the contractual obligation;
139.29 	(4) costs with respect to the activity are paid before or within five years after certification 
139.30 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
139.31 	including interest on unreimbursed costs; or
140.1 	(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 
140.2 	(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 
140.3 	2, paragraph (e).
140.4 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
140.5 	original refunded bonds meet the requirements of paragraph (a), clause (2).
140.6 	(c) For a redevelopment district or a renewal and renovation district certified after June 
140.7 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
140.8 	extended to ten years after certification of the district. For a redevelopment district certified 
140.9 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
140.10 	(a) are extended to eight years after certification of the district. This extension is provided 
140.11 	primarily to accommodate delays in development activities due to unanticipated economic 
140.12 	circumstances.

140.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

140.14 	Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
140.15 		Subd. 7.Interfund loans. (a) The authority or municipality may advance or loan money 
140.16 	to finance expenditures under section 469.176, subdivision 4, from its general fund or any 
140.17 	other fund under which it has legal authority to do so.
140.18 	(b) Not later than 60 days after money is transferred, advanced, or spent, whichever is 
140.19 	earliest, the loan or advance must be authorized, by resolution of the governing body or of 
140.20 	the authority, whichever has jurisdiction over the fund from which the advance or loan is 
140.21 	authorized, before money is transferred, advanced, or spent, whichever is earliest.
140.22 	(c) The resolution may generally grant to the municipality or the authority the power to 
140.23 	make interfund loans under one or more tax increment financing plans or for one or more 
140.24 	districts. The resolution may be adopted before or after the adoption of the tax increment 
140.25 	financing plan or the creation of the tax increment financing district from which the advance 
140.26 	or loan is to be repaid.
140.27 	(d) The terms and conditions for repayment of the loan must be provided in writing and. 
140.28 	The written terms and conditions may be in any form, but must include, at a minimum, the 
140.29 	principal amount, the interest rate, and maximum term. Written terms may be modified or 
140.30 	amended in writing by the municipality or the authority before the latest decertification of 
140.31 	any tax increment financing district from which the interfund loan is to be repaid. The 
140.32 	maximum rate of interest permitted to be charged is limited to the greater of the rates 
140.33 	specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 
141.1 	unless the written agreement states that the maximum interest rate will fluctuate as the 
141.2 	interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
141.3 	Loans or advances may be structured as draw-down or line-of-credit obligations of the 
141.4 	lending fund.
141.5 	(e) The authority shall report in the annual report submitted pursuant to section 469.175, 
141.6 	subdivision 6:
141.7 	(1) the amount of any interfund loan or advance made in a calendar year; and
141.8 	(2) any amendment of an interfund loan or advance made in a calendar year.

141.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
141.10 	applies to all districts, regardless of when the request for certification was made.

141.11 	Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
141.12 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
141.13 	financing plan for a district, the rules under this section apply to a redevelopment district, 
141.14 	renewal and renovation district, economic development district, soil condition district, or 
141.15 	a soil deficiency district established by the city or a development authority of the city in the 
141.16 	project area.
141.17 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
141.18 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
141.19 	least 80 percent of the acreage of the project area (excluding street and railroad right of 
141.20 	way) are characterized by one or more of the following conditions:
141.21 	(1) peat or other soils with geotechnical deficiencies that impair development of 
141.22 	residential or commercial buildings or infrastructure;
141.23 	(2) soils or terrain that requires substantial filling in order to permit the development of 
141.24 	commercial or residential buildings or infrastructure;
141.25 	(3) landfills, dumps, or similar deposits of municipal or private waste;
141.26 	(4) quarries or similar resource extraction sites;
141.27 	(5) floodway; and
141.28 	(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 
141.29 	subdivision 10.
141.30 	(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 
141.31 	characterized by the relevant condition if at least 70 percent of the area of the parcel contains 
142.1 	the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 
142.2 	be characterized by substandard buildings if the buildings occupy at least 30 percent of the 
142.3 	area of the parcel.
142.4 	(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 
142.5 	extended to nine years for any district. The five-year rule under Minnesota Statutes, section 
142.6 	469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763, 
142.7 	subdivision 4, does not apply to any district.
142.8 	(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 
142.9 	(a), not more than 80 percent of the total revenue derived from tax increments paid by 
142.10 	properties in any district (measured over the life of the district) may be expended on activities 
142.11 	outside the district but within the project area.
142.12 	(f) For a soil deficiency district:
142.13 	(1) increments may be collected through 20 years after the receipt by the authority of 
142.14 	the first increment from the district; and
142.15 	(2) except as otherwise provided in this subdivision, increments may be used only to:
142.16 	(i) acquire parcels on which the improvements described in item (ii) will occur;
142.17 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
142.18 	cost of installing public improvements directly caused by the deficiencies; and
142.19 	(iii) pay for the administrative expenses of the authority allocable to the district.
142.20 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
142.21 	district but within the project area, are deemed to satisfy the requirements of paragraph (f) 
142.22 	and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
142.23 	(h) Increments from any district may not be used to pay the costs of landfill closure or 
142.24 	public infrastructure located on the following parcels within the plat known as Burnsville 
142.25 	Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
142.26 	(i) The authority to approve tax increment financing plans to establish tax increment 
142.27 	financing districts under this section expires on December 31, 2018 2020.

142.28 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
142.29 	of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section 
142.30 	645.021.

143.1 	Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 
143.2 	382, section 84, is amended to read:
143.3 	Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 
143.4 	FINANCING DISTRICT; SPECIAL RULES.
 143.5 	(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 
143.6 	the governing body of the city of Duluth approves the plan for the tax increment financing 
143.7 	district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 
143.8 	010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 
143.9 	010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 
143.10 	010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  010-2746-01250; 
143.11 	010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 
143.12 	010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 
143.13 	010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 
143.14 	010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 
143.15 	010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 
143.16 	Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 
143.17 	period from the date of certification of the tax increment financing district, must be 
143.18 	considered to be met if the activities are undertaken within five years after the date all 
143.19 	qualifying parcels are delisted from the Federal Superfund list.
143.20 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 
143.21 	in the sixth year following certification of the district requirement, will begin in the sixth 
143.22 	year following the date all qualifying parcels are delisted from the Federal Superfund list.
143.23 	(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 
143.24 	satisfied if the action is commenced within four years after the date all qualifying parcels 
143.25 	are delisted from the Federal Superfund list and evidence of the action required is submitted 
143.26 	to the county auditor by February 1 of the fifth year following the year in which all qualifying 
143.27 	parcels are delisted from the Federal Superfund list.
143.28 	(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 
143.29 	listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 
143.30 	USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the 
143.31 	tax increment financing district.
143.32 	(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 
143.33 	subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels 
143.34 	listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund
144.1 	Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted 
144.2 	status, and if delisted, the delisting date.
144.3 	(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other 
144.4 	law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan 
144.5 	program before approval of the tax increment financing plan for or the establishment of the 
144.6 	district authorized by this section. The authority may make loans under this program. The 
144.7 	proceeds of the loans may be used for any permitted use of increments under this law or 
144.8 	Minnesota Statutes, section  469.176, for the district and may be repaid with increments 
144.9 	from the district established under this section. This paragraph applies to any action 
144.10 	authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.

144.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
144.12 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
144.13 	subdivision 3.

144.14 	Sec. 7. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:
144.15 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
144.16 	Edina or its development authority may establish one or more tax increment financing 
144.17 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
144.18 	exist on March 31, 2014.
144.19 	(b) The authority to request certification of districts under this section expires on June 
144.20 	30, 2017 December 31, 2019.

144.21 	EFFECTIVE DATE. This section is effective upon compliance by the governing body 
144.22 	of the city of Edina with the requirements of Minnesota Statutes, section 645.021, 
144.23 	subdivisions 2 and 3.

144.24 	Sec. 8. Laws 2014, chapter 308, article 6, section 9, is amended to read:
144.25 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 144.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
144.27 	the meanings given them.
144.28 	(b) "City" means the city of Maple Grove.
144.29 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
144.30 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
144.31 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
145.1 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
145.2 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
145.3 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
145.4 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
145.5 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
145.6 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
145.7 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
145.8 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
145.9 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
145.10 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
145.11 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
145.12 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
145.13 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
145.14 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
145.15 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
145.16 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
145.17 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
145.18 	Section 24; thence South along said east line to the north line of the South Half of the 
145.19 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
145.20 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
145.21 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
145.22 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
145.23 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
145.24 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
145.25 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
145.26 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
145.27 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
145.28 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
145.29 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
145.30 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
145.31 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
145.32 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
145.33 	and there terminating, provided that the project area includes the rights-of-way for all present 
145.34 	and future highway interchanges abutting the area described in this paragraph, and may 
145.35 	include any additional property necessary to cause the property included in the tax increment 
145.36 	financing district to consist of complete parcels.
146.1 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
146.2 	of a portion of the project area in which the city finds by resolution that the following 
146.3 	conditions exist:
146.4 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
146.5 	the district require substantial filling, grading, or other physical preparation for use; and
146.6 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
146.7 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
146.8 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
146.9 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
146.10 	completion of the preparation.
146.11 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
146.12 	financing plan for a district, the rules under this section apply to a redevelopment district, 
146.13 	renewal and renovation district, soil condition district, or soil deficiency district established 
146.14 	by the city or a development authority of the city in the project area.
146.15 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
146.16 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
146.17 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
146.18 	are characterized by one or more of the following conditions:
146.19 	(1) peat or other soils with geotechnical deficiencies that impair development of 
146.20 	commercial buildings or infrastructure;
146.21 	(2) soils or terrain that require substantial filling in order to permit the development of 
146.22 	commercial buildings or infrastructure;
146.23 	(3) landfills, dumps, or similar deposits of municipal or private waste;
146.24 	(4) quarries or similar resource extraction sites;
146.25 	(5) floodway; and
146.26 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
146.27 	subdivision 10.
146.28 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
146.29 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
146.30 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
146.31 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
146.32 	parcel.
147.1 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
147.2 	extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 
147.3 	4, does not apply to any district.
147.4 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
147.5 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
147.6 	increments paid by properties in any district, measured over the life of the district, may be 
147.7 	expended on activities outside the district but within the project area.
147.8 	(f) For a soil deficiency district:
147.9 	(1) increments may be collected through 20 years after the receipt by the authority of 
147.10 	the first increment from the district;
147.11 	(2) increments may be used only to:
147.12 	(i) acquire parcels on which the improvements described in item (ii) will occur;
147.13 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
147.14 	cost of installing public improvements directly caused by the deficiencies; and
147.15 	(iii) pay for the administrative expenses of the authority allocable to the district; and
147.16 	(3) any parcel acquired with increments from the district must be sold at no less than 
147.17 	their fair market value.
147.18 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
147.19 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
147.20 	Statutes, section 469.176, subdivision 4j.
147.21 	(h) The authority to approve tax increment financing plans to establish tax increment 
147.22 	financing districts under this section expires June 30, 2020.
147.23 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
147.24 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
147.25 	either inside or outside of the district, but within the project area, if the acquisition or 
147.26 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
147.27 	is a qualified development only if all of the following requirements are satisfied:
147.28 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
147.29 	primarily to serve the development;
147.30 	(2) the city has a binding, written commitment and adequate financial assurances from 
147.31 	the developer that the development will be constructed; and
148.1 	(3) the development does not consist of retail trade or housing improvements.

148.2 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
148.3 	of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes, 
148.4 	section 645.021.

148.5 	Sec. 9. CITY OF ANOKA; TAX INCREMENT FINANCING; FIVE-YEAR RULE 
148.6 	EXTENSION.
 148.7 	For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 
148.8 	city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed 
148.9 	to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and 
148.10 	the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if 
148.11 	the district were certified on that date.

148.12 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
148.13 	of the city of Anoka and upon compliance by the city with Minnesota Statutes, section 
148.14 	645.021, subdivisions 2 and 3.

148.15 	Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING; EXTENSION 
148.16 	OF DISTRICT.
 148.17 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, 
148.18 	or any other law to the contrary, the city of Coon Rapids may collect tax increment from 
148.19 	District 6-1 Port Riverwalk through December 31, 2038.

148.20 	EFFECTIVE DATE. This section is effective upon compliance by the governing bodies 
148.21 	of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with 
148.22 	the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
148.23 	subdivision 3.

148.24 	Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING; 
148.25 	FIVE-YEAR RULE EXTENSION.
 148.26 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
148.27 	must be undertaken within a five-year period from the date of certification of a tax increment 
148.28 	financing district, is considered to be met for Tax Increment Financing District No. 1-12 
148.29 	(Gateway North), administered by the Cottage Grove Economic Development Authority, 
148.30 	if the activities are undertaken prior to January 1, 2017.

149.1 	EFFECTIVE DATE. This section is effective upon compliance by the chief clerical 
149.2 	officer of the governing body of the city of Cottage Grove with the requirements of Minnesota 
149.3 	Statutes, section 645.021, subdivisions 2 and 3.

149.4 	Sec. 12. CITY OF EDINA; TAX INCREMENT FINANCING; APPROVAL OF 2014 
149.5 	SPECIAL LAW.
 149.6 	Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, 
149.7 	the chief clerical officer of the city of Edina must file with the secretary of state certificate 
149.8 	of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if 
149.9 	the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, 
149.10 	subdivision 3, are otherwise complied with, the special law is deemed approved, and all 
149.11 	actions taken by the city before the effective date of this section in reliance on Laws 2014, 
149.12 	chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article 
149.13 	6, section 8, and this act.

149.14 	EFFECTIVE DATE. This section is effective the day following final enactment without 
149.15 	local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6, 
149.16 	section 8.

149.17 	Sec. 13. CITY OF MOORHEAD; TAX INCREMENT FINANCING; FIVE-YEAR 
149.18 	RULE EXTENSION.
 149.19 	For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 
149.20 	city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment TIF district is 
149.21 	deemed to be certified on June 29, 2012, rather than its actual certification date of July 12, 
149.22 	2012, and Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if the district 
149.23 	were certified on that date.

149.24 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
149.25 	of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section 
149.26 	645.021, subdivisions 2 and 3.

149.27 	Sec. 14. CITY OF RICHFIELD; TAX INCREMENT FINANCING; EXTENSION 
149.28 	OF DISTRICT.
 149.29 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 
149.30 	to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and 
149.31 	for the city of Richfield may elect to extend the duration limit of the redevelopment tax 
150.1 	increment financing district known as the Cedar Avenue Tax Increment Financing District 
150.2 	established by Laws 2005, chapter 152, article 2, section 25, by ten years.

150.3 	EFFECTIVE DATE. This section is effective upon compliance by the city of Richfield, 
150.4 	Hennepin County, and Independent School District No. 280 with the requirements of 
150.5 	Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and 3.

150.6 	Sec. 15. CITY OF RICHFIELD; TAX INCREMENT FINANCING; FIVE-YEAR 
150.7 	RULE EXTENSION.
 150.8 	The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
150.9 	must be undertaken within a five-year period from the date of certification of a tax increment 
150.10 	financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing 
150.11 	District established by the city of Richfield and the housing and redevelopment authority 
150.12 	in and for the city of Richfield if the activities are undertaken within seven years from the 
150.13 	date of certification.

150.14 	EFFECTIVE DATE. This section is effective upon the city of Richfield's compliance 
150.15 	with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
150.16 	subdivisions 2 and 3.

150.17 	Sec. 16. CITY OF ST. LOUIS PARK; TAX INCREMENT FINANCING; POOLING 
150.18 	PERCENTAGE INCREASE.
 150.19 	For purposes of the Elmwood Village Tax Increment Financing District in the city of 
150.20 	St. Louis Park, including the duration extension authorized by Laws 2009, chapter 88, article 
150.21 	5, section 19, the permitted percentage of increments that may be expended on activities 
150.22 	outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is increased 
150.23 	to 30 percent for the district.

150.24 	EFFECTIVE DATE. This section is effective upon compliance by the governing body 
150.25 	of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021, 
150.26 	subdivision 3.

150.27 	Sec. 17. CITY OF ST. PAUL; TAX INCREMENT FINANCING; FORD SITE 
150.28 	REDEVELOPMENT.
 150.29 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
150.30 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
150.31 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
151.1 	District. This authority is limited to the first four years of increment or increments derived 
151.2 	from taxes payable in 2023, whichever occurs first.
151.3 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
151.4 	applying any limits based on when the district was certified under Minnesota Statutes, 
151.5 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
151.6 	to be January 2 of the property tax assessment year for which increment is first received 
151.7 	under the waiver.

151.8 	EFFECTIVE DATE. This section is effective July 1, 2017, without local approval 
151.9 	under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

151.10 	Sec. 18. WASHINGTON COUNTY; TAX INCREMENT FINANCING; SPECIAL 
151.11 	RULES AUTHORIZATION.
 151.12 	(a) If Washington County elects, upon the adoption of a tax increment financing plan 
151.13 	for a district, the rules under this section apply to one or more tax increment financing 
151.14 	districts established by the county or the community development agency of the county. 
151.15 	The area within which the tax increment districts may be created is located in the city of 
151.16 	Newport and is south of marked Interstate Highway 494, north of 15th Street extended to 
151.17 	the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway 
151.18 	61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing 
151.19 	Project Area" or "project area."
151.20 	(b) The requirements for qualifying a redevelopment district under Minnesota Statutes, 
151.21 	section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification 
151.22 	numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, 
151.23 	2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, 
151.24 	260282244024, and 2602822440023, which are deemed substandard for the purpose of 
151.25 	qualifying the district as a redevelopment district.
151.26 	(c) Increments spent outside a district shall only be spent within the project area and on 
151.27 	costs described in Minnesota Statutes, section 469.176, subdivision 4j.
151.28 	(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763, 
151.29 	subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived from tax 
151.30 	increments paid by properties in any district, measured over the life of the district, may be 
151.31 	expended on activities outside the district but within the project area. The five-year rule 
151.32 	under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine 
151.33 	years.
152.1 	(e) The authority to approve a tax increment financing plan and to establish a tax 
152.2 	increment financing district under this section expires December 31, 2027.

152.3 	EFFECTIVE DATE. This section is effective and shall retroactively include the 
152.4 	redevelopment district in the project area approved by Washington County on November 
152.5 	8, 2016, upon approval by the governing body of the city of Newport and Washington 
152.6 	County and upon compliance by the county with Minnesota Statutes, section 645.021, 
152.7 	subdivision 3.

152.8 	ARTICLE 7
152.9 	PUBLIC FINANCE

152.10 	Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
152.11 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates of 
152.12 	indebtedness within the debt limits for a town purpose otherwise authorized by law. The 
152.13 	certificates shall be payable in not more than ten years and be issued on the terms and in 
152.14 	the manner as the board may determine, provided that notes issued for projects that eliminate 
152.15 	R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more 
152.16 	than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the 
152.17 	estimated market value of the town, they shall not be issued for at least ten days after 
152.18 	publication in a newspaper of general circulation in the town of the board's resolution 
152.19 	determining to issue them. If within that time, a petition asking for an election on the 
152.20 	proposition signed by voters equal to ten percent of the number of voters at the last regular 
152.21 	town election is filed with the clerk, the certificates shall not be issued until their issuance 
152.22 	has been approved by a majority of the votes cast on the question at a regular or special 
152.23 	election. A tax levy shall be made to pay the principal and interest on the certificates as in 
152.24 	the case of bonds.

152.25 	Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
152.26 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
152.27 	without public referendum, issue capital notes within existing debt limits for the purpose 
152.28 	of purchasing ambulance and other medical equipment, road construction or maintenance 
152.29 	equipment, public safety equipment and other capital equipment having an expected useful 
152.30 	life at least equal to the term of the notes issued. The notes shall be payable in not more 
152.31 	than ten years and shall be issued on terms and in a manner as the board determines, provided 
152.32 	that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 
152.33 	(b), clause (2), must be payable in not more than 20 years. The total principal amount of 
153.1 	the notes issued for any fiscal year shall not exceed one percent of the total annual budget 
153.2 	for that year and shall be issued solely for the purchases authorized in this subdivision. A 
153.3 	tax levy shall be made for the payment of the principal and interest on such notes as in the 
153.4 	case of bonds. For purposes of this subdivision, "equipment" includes computer hardware 
153.5 	and software, whether bundled with machinery or equipment or unbundled. For purposes 
153.6 	of this subdivision, the term "medical equipment" includes computer hardware and software 
153.7 	and other intellectual property for use in medical diagnosis, medical procedures, research, 
153.8 	record keeping, billing, and other hospital applications, together with application development 
153.9 	services and training related to the use of the computer hardware and software and other 
153.10 	intellectual property, all without regard to their useful life. For purposes of determining the 
153.11 	amount of capital notes which the county may issue in any year, the budget of the county 
153.12 	and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this 
153.13 	subdivision shall be in addition to obligations issuable under section 373.01, subdivision 
153.14 	3.

153.15 	Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
153.16 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
153.17 	(a) Notwithstanding any contrary provision of other law or charter, a home rule charter 
153.18 	city may, by resolution and without public referendum, issue capital notes subject to the 
153.19 	city debt limit to purchase capital equipment.
153.20 	(b) For purposes of this section, "capital equipment" means:
153.21 	(1) public safety equipment, ambulance and other medical equipment, road construction 
153.22 	and maintenance equipment, and other capital equipment; and
153.23 	(2) computer hardware and software, whether bundled with machinery or equipment or 
153.24 	unbundled, together with application development services and training related to the use 
153.25 	of the computer hardware and software.
153.26 	(c) The equipment or software must have an expected useful life at least as long as the 
153.27 	term of the notes.
153.28 	(d) The notes shall be payable in not more than ten years and be issued on terms and in 
153.29 	the manner the city determines, provided that notes issued for projects that eliminate R-22, 
153.30 	as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 
153.31 	20 years. The total principal amount of the capital notes issued in a fiscal year shall not 
153.32 	exceed 0.03 percent of the estimated market value of taxable property in the city for that 
153.33 	year.
154.1 	(e) A tax levy shall be made for the payment of the principal and interest on the notes, 
154.2 	in accordance with section 475.61, as in the case of bonds.
154.3 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of the 
154.4 	governing body of the city.
154.5 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
154.6 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
154.7 	limitations applicable to statutory cities pursuant to section 412.301.

154.8 	Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
154.9 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
154.10 	(a) The council may issue certificates of indebtedness or capital notes subject to the city 
154.11 	debt limits to purchase capital equipment.
154.12 	(b) For purposes of this section, "capital equipment" means:
154.13 	(1) public safety equipment, ambulance and other medical equipment, road construction 
154.14 	and maintenance equipment, and other capital equipment; and
154.15 	(2) computer hardware and software, whether bundled with machinery or equipment or 
154.16 	unbundled, together with application development services and training related to the use 
154.17 	of the computer hardware or software.
154.18 	(c) The equipment or software must have an expected useful life at least as long as the 
154.19 	terms of the certificates or notes.
154.20 	(d) Such certificates or notes shall be payable in not more than ten years and shall be 
154.21 	issued on such terms and in such manner as the council may determine, provided, however, 
154.22 	that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 
154.23 	(b), clause (2), must be payable in not more than 20 years.
154.24 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
154.25 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 
154.26 	not be issued for at least ten days after publication in the official newspaper of a council 
154.27 	resolution determining to issue them; and if before the end of that time, a petition asking 
154.28 	for an election on the proposition signed by voters equal to ten percent of the number of 
154.29 	voters at the last regular municipal election is filed with the clerk, such certificates or notes 
154.30 	shall not be issued until the proposition of their issuance has been approved by a majority 
154.31 	of the votes cast on the question at a regular or special election.
155.1 	(f) A tax levy shall be made for the payment of the principal and interest on such 
155.2 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

155.3 	Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:
155.4 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the general 
155.5 	obligation of the general jurisdiction governmental unit as additional security for bonds 
155.6 	payable from income or revenues of the project or the authority. The authority must find 
155.7 	that the pledged revenues will equal or exceed 110 percent of the principal and interest due 
155.8 	on the bonds for each year. The proceeds of the bonds must be used for a qualified housing 
155.9 	development project or projects. The obligations must be issued and sold in the manner and 
155.10 	following the procedures provided by chapter 475, except the obligations are not subject to 
155.11 	approval by the electors, and the maturities may extend to not more than 35 years for 
155.12 	obligations sold to finance housing for the elderly and 40 years for other obligations issued 
155.13 	under this subdivision. The authority is the municipality for purposes of chapter 475.
155.14 	(b) The principal amount of the issue must be approved by the governing body of the 
155.15 	general jurisdiction governmental unit whose general obligation is pledged. Public hearings 
155.16 	must be held on issuance of the obligations by both the authority and the general jurisdiction 
155.17 	governmental unit. The hearings must be held at least 15 days, but not more than 120 days, 
155.18 	before the sale of the obligations.
155.19 	(c) The maximum amount of general obligation bonds that may be issued and outstanding 
155.20 	under this section equals the greater of (1) one-half of one percent of the estimated market 
155.21 	value of the general jurisdiction governmental unit whose general obligation is pledged, or 
155.22 	(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, 
155.23 	the outstanding general obligation bonds of all cities in the county or counties issued under 
155.24 	this subdivision must be added in calculating the limit under clause (1).
155.25 	(d) "General jurisdiction governmental unit" means the city in which the housing 
155.26 	development project is located. In the case of a county or multicounty authority, the county 
155.27 	or counties may act as the general jurisdiction governmental unit. In the case of a multicounty 
155.28 	authority, the pledge of the general obligation is a pledge of a tax on the taxable property 
155.29 	in each of the counties.
155.30 	(e) "Qualified housing development project" means a housing development project 
155.31 	providing housing either for the elderly or for individuals and families with incomes not 
155.32 	greater than 80 percent of the median family income as estimated by the United States 
155.33 	Department of Housing and Urban Development for the standard metropolitan statistical 
155.34 	area or the nonmetropolitan county in which the project is located. The project must be 
156.1 	owned for the term of the bonds either by the authority or by a limited partnership or other 
156.2 	entity in which the authority or another entity under the sole control of the authority is the 
156.3 	sole general partner and the partnership or other entity must receive (1) an allocation from 
156.4 	the Department of Management and Budget or an entitlement issuer of tax-exempt bonding 
156.5 	authority for the project and a preliminary determination by the Minnesota Housing Finance 
156.6 	Agency or the applicable suballocator of tax credits that the project will qualify for four 
156.7 	percent low-income housing tax credits or (2) a reservation of nine percent low-income 
156.8 	housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax 
156.9 	credits for the project. A qualified housing development project may admit nonelderly 
156.10 	individuals and families with higher incomes if:
156.11 	(1) three years have passed since initial occupancy;
156.12 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
156.13 	insufficient revenues, because of changes in population or other unforeseen circumstances 
156.14 	that occurred after the initial finding of adequate revenues; and
156.15 	(3) the authority finds a tax levy or payment from general assets of the general jurisdiction 
156.16 	governmental unit will be necessary to pay debt service on the bonds if higher income 
156.17 	individuals or families are not admitted.
156.18 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
156.19 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
156.20 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
156.21 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after 
156.22 	July 1, 1992.

156.23 	Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
156.24 		Subdivision 1.Establishment. An economic development authority may create and 
156.25 	define the boundaries of economic development districts at any place or places within the 
156.26 	city, except that the district boundaries must be contiguous, and may use the powers granted 
156.27 	in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a 
156.28 	public hearing on the matter. At least ten days before the hearing, the authority shall publish 
156.29 	notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 
156.30 	shall find that an economic development district is proper and desirable to establish and 
156.31 	develop within the city.

157.1 	Sec. 7. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:
157.2 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
157.3 	without regard to the election requirement under subdivision 1, issue and sell obligations 
157.4 	for street reconstruction or bituminous overlays, if the following conditions are met:
157.5 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 
157.6 	that describes the street reconstruction or overlay to be financed, the estimated costs, and 
157.7 	any planned reconstruction or overlay of other streets in the municipality over the next five 
157.8 	years, and the plan and issuance of the obligations has been approved by a vote of all a 
157.9 	majority of the members of the governing body present at the meeting following a public 
157.10 	hearing for which notice has been published in the official newspaper at least ten days but 
157.11 	not more than 28 days prior to the hearing; and
157.12 	(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 
157.13 	of the votes cast in the last municipal general election and is filed with the municipal clerk 
157.14 	within 30 days of the public hearing, the municipality may issue the bonds only after 
157.15 	obtaining the approval of a majority of the voters voting on the question of the issuance of 
157.16 	the obligations. If the municipality elects not to submit the question to the voters, the 
157.17 	municipality shall not propose the issuance of bonds under this section for the same purpose 
157.18 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
157.19 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
157.20 	of section 475.58, subdivision 1a, shall apply.
157.21 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
157.22 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
157.23 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
157.24 	includes utility replacement and relocation and other activities incidental to the street 
157.25 	reconstruction, turn lanes and other improvements having a substantial public safety function, 
157.26 	realignments, other modifications to intersect with state and county roads, and the local 
157.27 	share of state and county road projects. For purposes of this subdivision, "street 
157.28 	reconstruction" includes expenditures for street reconstruction that have been incurred by 
157.29 	a municipality before approval of a street reconstruction plan, if such expenditures are 
157.30 	included in a street reconstruction plan approved on or before the date of the public hearing 
157.31 	under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
157.32 	(d) Except in the case of turn lanes, safety improvements, realignments, intersection 
157.33 	modifications, and the local share of state and county road projects, street reconstruction 
158.1 	and bituminous overlays does not include the portion of project cost allocable to widening 
158.2 	a street or adding curbs and gutters where none previously existed.

158.3 	Sec. 8. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
158.4 		Subd. 2.Requirements waived. The requirements as to public sale shall not apply:
158.5 	(1) to obligations issued under the provisions of a home rule charter or of a law 
158.6 	specifically authorizing a different method of sale, or authorizing them to be issued in such 
158.7 	manner or on such terms and conditions as the governing body may determine;
158.8 	(2) to obligations sold by an issuer in an amount not exceeding the total sum of 
158.9 	$1,200,000 in any 12-month period;
158.10 	(3) to obligations issued by a governing body other than a school board in anticipation 
158.11 	of the collection of taxes or other revenues appropriated for expenditure in a single year, if 
158.12 	sold in accordance with the most favorable of two or more proposals solicited privately;
158.13 	(4) to obligations sold to any board, department, or agency of the United States of 
158.14 	America or of the state of Minnesota, in accordance with rules or regulations promulgated 
158.15 	by such board, department, or agency;
158.16 	(5) to obligations issued to fund pension and retirement fund liabilities under section 
158.17 	475.52, subdivision 6, obligations issued with tender options under section 475.54, 
158.18 	subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision 
158.19 	13, and any issue of obligations comprised in whole or in part of obligations bearing interest 
158.20 	at a rate or rates which vary periodically referred to in section 475.56;
158.21 	(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 
158.22 	authorized by law, if the governing body of the municipality, on the advice of bond counsel 
158.23 	or special tax counsel, determines that interest on the obligations cannot be represented to 
158.24 	be excluded from gross income for purposes of federal income taxation;
158.25 	(7) to obligations issued in the form of an installment purchase contract, lease purchase 
158.26 	agreement, or other similar agreement;
158.27 	(8) to obligations sold under a bond reinvestment program; and
158.28 	(9) if the municipality has retained an independent financial advisor municipal adviser, 
158.29 	obligations which the governing body determines shall be sold by private negotiation.

159.1 	ARTICLE 8
159.2 	MISCELLANEOUS

159.3 	Section 1. Minnesota Statutes 2016, section 287.08, is amended to read:
159.4 	287.08 TAX, HOW PAYABLE; RECEIPTS.
159.5 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 
159.6 	county in this state in which the real property or some part is located at or before the time 
159.7 	of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 
159.8 	the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 
159.9 	any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 
159.10 	be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 
159.11 	taxation the endorsement shall, in substance, be "exempt from registration tax." In either 
159.12 	case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 
159.13 	whether a claim of exemption should be allowed, the tax must be paid as in the case of a 
159.14 	taxable mortgage. For documents submitted electronically, the endorsements and tax amount 
159.15 	shall be affixed electronically and no signature by the treasurer will be required. The actual 
159.16 	payment method must be arranged in advance between the submitter and the receiving 
159.17 	county.
159.18 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
159.19 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
159.20 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
159.21 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
159.22 	the tax was paid at any time after the expiration of six months from the time that the 
159.23 	application was submitted. A denial of refund may be appealed within 60 days from the 
159.24 	date of the denial by bringing an action in Tax Court in the county in which the tax was 
159.25 	paid. The action is commenced by the serving of a petition for relief on the county treasurer, 
159.26 	and by filing a copy with the court. The county attorney shall defend the action. The county 
159.27 	treasurer shall notify the treasurer of each county that has or would receive a portion of the 
159.28 	tax as paid.
159.29 	(c) If the county treasurer determines a refund should be paid, or if a refund is ordered 
159.30 	by the court, the county treasurer of each county that actually received a portion of the tax 
159.31 	shall immediately pay a proportionate share of three percent of the refund using any available 
159.32 	county funds. The county treasurer of each county that received, or would have received, 
159.33 	a portion of the tax shall also pay their county's proportionate share of the remaining 97 
159.34 	percent of the court-ordered refund on or before the 20th day of the following month using 
160.1 	solely the mortgage registry tax funds that would be paid to the commissioner of revenue 
160.2 	on that date under section 287.12. If the funds on hand under this procedure are insufficient 
160.3 	to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 
160.4 	which the action was brought shall file a claim with the commissioner of revenue under 
160.5 	section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 
160.6 	remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
160.7 	(d) When any mortgage covers real property located in more than one county in this 
160.8 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
160.9 	presented for recording, and the payment must be receipted as provided in paragraph (a). 
160.10 	If the principal debt or obligation secured by such a multiple county mortgage exceeds 
160.11 	$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the 
160.12 	commissioner of revenue and the nonstate portion of the tax must be divided and paid over 
160.13 	by the county treasurer receiving it commissioner of revenue, on or before the 20th day of 
160.14 	each month after receipt, to the county or counties entitled in the ratio that the estimated 
160.15 	market value of the real property covered by the mortgage in each county bears to the 
160.16 	estimated market value of all the real property in this state described in the mortgage. In 
160.17 	making the division and payment the county treasurer commissioner of revenue shall send 
160.18 	a statement giving the description of the real property described in the mortgage and the 
160.19 	estimated market value of the part located in each county. For this purpose, the treasurer of 
160.20 	any county commissioner of revenue may require the treasurer of any other county to certify 
160.21 	to the former the estimated market value of any tract of real property in any mortgage in 
160.22 	the county.
160.23 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 
160.24 	may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 
160.25 	collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 
160.26 	has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 
160.27 	collected for that purpose and the mortgagor is relieved of any further obligation to pay the 
160.28 	tax as to the amount collected by the mortgagee for this purpose.

160.29 	Sec. 2. Minnesota Statutes 2016, section 295.53, subdivision 1, is amended to read:
160.30 		Subdivision 1.Exemptions. (a) The following payments are excluded from the gross 
160.31 	revenues subject to the hospital, surgical center, or health care provider taxes under sections 
160.32 	295.50 to 295.59:
160.33 	(1) payments received for services provided under the Medicare program, including 
160.34 	payments received from the government, and organizations governed by sections 1833 and 
161.1 	1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 
161.2 	1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 
161.3 	enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 
161.4 	3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 
161.5 	Payments for services not covered by Medicare are taxable;
161.6 	(2) payments received for home health care services;
161.7 	(3) payments received from hospitals or surgical centers for goods and services on which 
161.8 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
161.9 	exempt under clause (1), (7), (10), or (14);
161.10 	(4) payments received from health care providers for goods and services on which 
161.11 	liability for tax is imposed under this chapter or the source of funds for the payment is 
161.12 	exempt under clause (1), (7), (10), or (14);
161.13 	(5) amounts paid for legend drugs, other than nutritional products and blood and blood 
161.14 	components, to a wholesale drug distributor who is subject to tax under section 295.52, 
161.15 	subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt 
161.16 	under this chapter;
161.17 	(6) payments received by a health care provider or the wholly owned subsidiary of a 
161.18 	health care provider for care provided outside Minnesota;
161.19 	(7) payments received from the chemical dependency fund under chapter 254B;
161.20 	(8) payments received in the nature of charitable donations that are not designated for 
161.21 	providing patient services to a specific individual or group;
161.22 	(9) payments received for providing patient services incurred through a formal program 
161.23 	of health care research conducted in conformity with federal regulations governing research 
161.24 	on human subjects. Payments received from patients or from other persons paying on behalf 
161.25 	of the patients are subject to tax;
161.26 	(10) payments received from any governmental agency for services benefiting the public, 
161.27 	not including payments made by the government in its capacity as an employer or insurer 
161.28 	or payments made by the government for services provided under general assistance medical 
161.29 	care, the MinnesotaCare program, or the medical assistance program governed by title XIX 
161.30 	of the federal Social Security Act, United States Code, title 42, sections 1396 to 1396v;
161.31 	(11) government payments received by the commissioner of human services for 
161.32 	state-operated services;
162.1 	(12) payments received by a health care provider for hearing aids and related equipment 
162.2 	or prescription eyewear delivered outside of Minnesota;
162.3 	(13) payments received by an educational institution from student tuition, student activity 
162.4 	fees, health care service fees, government appropriations, donations, or grants, and for 
162.5 	services identified in and provided under an individualized education program as defined 
162.6 	in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 
162.7 	for service payments and payments for extended coverage are taxable;
162.8 	(14) payments received under the federal Employees Health Benefits Act, United States 
162.9 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
162.10 	Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
162.11 	(15) payments received under the federal Tricare program, Code of Federal Regulations, 
162.12 	title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 
162.13 	to tax.
162.14 	(b) Payments received by wholesale drug distributors for legend drugs sold directly to 
162.15 	veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
162.16 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
162.17 	(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision 
162.18 	1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections 
162.19 	295.50 to 295.59.

162.20 	EFFECTIVE DATE. This section is effective retroactively for gross revenues received 
162.21 	on or after July 1, 2016.

162.22 	Sec. 3. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:
162.23 		Subd. 7.Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of 
162.24 	use for the purpose of producing or generatingused to produce or generate power for 
162.25 	propelling internal combustion engine aircraft, that meets the specifications in ASTM 
162.26 	specification D910-11, and that either.
162.27 	Aviation gasoline includes any gasoline:
162.28 	(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor 
162.29 	or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation 
162.30 	gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM 
162.31 	specification as gasoline appropriate for use in producing or generating power for propelling 
162.32 	internal combustion engine aircraft; or
163.1 	(2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, 
163.2 	or withdrawn from storage by any person, to be used for the purpose of producing or 
163.3 	generating power for propelling internal combustion engine aircraft sold to a dealer of 
163.4 	aviation gasoline for dispensing directly into the fuel tank of an aircraft.

163.5 	EFFECTIVE DATE. This section is effective the day following final enactment except 
163.6 	that the change to clause (2) is effective for sales and purchases made after June 30, 2017.

163.7 	Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
163.8 		Subd. 12.Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 
163.9 	means natural gas, primarily methane, condensed under high pressure and stored in specially 
163.10 	designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes 
163.11 	of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic 
163.12 	foot.

163.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
163.14 	30, 2017.

163.15 	Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
163.16 	read:
163.17 		Subd. 13a.Dealer of aviation gasoline. "Dealer of aviation gasoline" means any person 
163.18 	who sells gasoline on the premises of an airport as defined under section 360.013, subdivision 
163.19 	39, to be dispensed directly into the fuel tank of an aircraft.

163.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
163.21 	30, 2017.

163.22 	Sec. 6. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:
163.23 		Subd. 4.Exemptions. The provisions of subdivision 1 do not apply to gasoline or 
163.24 	denatured ethanol purchased by:
163.25 	(1) a transit system or transit provider receiving financial assistance or reimbursement 
163.26 	under section 174.24, 256B.0625, subdivision 17, or 473.384;
163.27 	(2) providers of transportation to recipients of medical assistance home and 
163.28 	community-based services waivers enrolled in day programs, including adult day care, 
163.29 	family adult day care, day treatment and habilitation, prevocational services, and structured 
163.30 	day services;
163.31 	(3) an ambulance service licensed under chapter 144E;
164.1 	(4) providers of medical or dental services by a federally qualified health center, as 
164.2 	defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 
164.3 	Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile 
164.4 	medical unit; or
164.5 	(5) a licensed distributor to be delivered to a terminal for use in blending; or
164.6 	(6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended to 
164.7 	be dispensed directly into the fuel tank of an aircraft.

164.8 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
164.9 	30, 2017.

164.10 	Sec. 7. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
164.11 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
164.12 	(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
164.13 	(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
164.14 	(c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; 
164.15 	or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," 
164.16 	as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural 
164.17 	gas or 126.67 cubic feet.
164.18 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified 
164.19 	in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed 
164.20 	by the commissioner.

164.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
164.22 	30, 2017.

164.23 	Sec. 8. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:
164.24 		Subdivision 1.Monthly gasoline report; shrinkage allowance. (a) Except as provided 
164.25 	in paragraph (e), on or before the 23rd day of each month, every person who is required to 
164.26 	pay a gasoline tax shall file with the commissioner a report, in the form and manner 
164.27 	prescribed by the commissioner, showing the number of gallons of petroleum products 
164.28 	received by the reporter during the preceding calendar month, and other information the 
164.29 	commissioner may require. A written report is deemed to have been filed as required in this 
164.30 	subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
165.1 	(b) The number of gallons of gasoline must be reported in United States standard liquid 
165.2 	gallons, 231 cubic inches, except that the commissioner may upon written application and 
165.3 	for cause shown permit the distributor to report the number of gallons of gasoline as corrected 
165.4 	to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered 
165.5 	in the application and allowed by the commissioner must continue to be reported by the 
165.6 	distributor on the adjusted basis for a period of one year from the date of the granting of 
165.7 	the application. The number of gallons of petroleum products other than gasoline must be 
165.8 	reported as originally invoiced. Each report must show separately the number of gallons of 
165.9 	aviation gasoline received by the reporter during each calendar month and the number of 
165.10 	gallons of gasoline sold to a dealer of aviation gasoline during each calendar month.
165.11 	(c) Each report must also include the amount of gasoline tax on gasoline received by 
165.12 	the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 
165.13 	of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 
165.14 	At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 
165.15 	2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
165.16 	(d) Each report shall contain a confession of judgment for the amount of the tax shown 
165.17 	due to the extent not timely paid.
165.18 	(e) Under certain circumstances and with the approval of the commissioner, taxpayers 
165.19 	may be allowed to file reports annually.

165.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
165.21 	30, 2017.

165.22 	Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:
165.23 		Subd. 4.Failure to use or sell for intended purpose; report required. (a) Any person 
165.24 	who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for 
165.25 	aircraft use, and who has paid the excise taxes due directly or indirectly through the amount 
165.26 	of the tax being included in the price, or otherwise, and uses said gasoline or special fuel 
165.27 	in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or 
165.28 	before the 23rd day of the month following that in which such gasoline or special fuel was 
165.29 	so used or sold, report the fact of the use or sale to the commissioner in the form and manner 
165.30 	prescribed by the commissioner.
165.31 	(b) Any person who buys gasoline other than aviation gasoline and who has paid the 
165.32 	motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 
165.33 	included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to 
166.1 	any person to be used for the purpose of producing or generating power for propelling 
166.2 	aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that 
166.3 	purpose, shall, on or before the 23rd day of the month following that in which such gasoline 
166.4 	was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or 
166.5 	withdrawal from storage to the commissioner in the form and manner prescribed by the 
166.6 	commissioner.

166.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
166.8 	30, 2017.

166.9 	Sec. 10. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:
166.10 		Subd. 2.Fuel used in other vehicle; claim for refund. Any person who buys and uses 
166.11 	gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as 
166.12 	provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than 
166.13 	use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount 
166.14 	of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be 
166.15 	reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim 
166.16 	for refund in the form and manner prescribed by the commissioner, and containing the 
166.17 	information the commissioner shall require. By signing any such claim which is false or 
166.18 	fraudulent, the applicant shall be subject to the penalties provided in this chapter for 
166.19 	knowingly making a false claim. The claim shall set forth the total amount of the gasoline 
166.20 	so purchased and used by the applicant other than in motor vehicles, or special fuel purchased 
166.21 	and used by the applicant other than in licensed motor vehicles, and shall state when and 
166.22 	for what purpose it was used. When a claim contains an error in computation or preparation, 
166.23 	the commissioner is authorized to adjust the claim in accordance with the evidence shown 
166.24 	on the claim or other information available to the commissioner. The commissioner, on 
166.25 	being satisfied that the claimant is entitled to the payments, shall approve the claim and 
166.26 	transmit it to the commissioner of management and budget. The words "gasoline" or "special 
166.27 	fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft. 
166.28 	Gasoline or special fuel bought and used for a "qualifying purpose" means:
166.29 	(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 
166.30 	situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have 
166.31 	the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code 
166.32 	as defined in section 289A.02, subdivision 7.
166.33 	(2) Gasoline or special fuel used for off-highway business use.
167.1 	(i) "Off-highway business use" means any use off the public highway by a person in 
167.2 	that person's trade, business, or activity for the production of income.
167.3 	(ii) Off-highway business use includes use of a passenger snowmobile off the public 
167.4 	highways as part of the operations of a resort as defined in section 157.15, subdivision 11; 
167.5 	and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not 
167.6 	including fuel consumed during idling time.
167.7 	(iii) Off-highway business use does not include use as a fuel in a motor vehicle which, 
167.8 	at the time of use, is registered or is required to be registered for highway use under the 
167.9 	laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of 
167.10 	a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 
167.11 	this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel 
167.12 	tank of a licensed motor vehicle and must be stored in a separate supply tank.
167.13 	(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured 
167.14 	in Minnesota, and shipped by interstate carrier to destinations in other states or foreign 
167.15 	countries.
167.16 	(4) Special fuel used in one of the following:
167.17 	(i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the 
167.18 	unit has an engine separate from the one used to propel the vehicle and the fuel is used 
167.19 	exclusively for the unit;
167.20 	(ii) to power an unlicensed motor vehicle that is used solely or primarily to move 
167.21 	semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
167.22 	(iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle, 
167.23 	whether or not the unit or engine is fueled from the same or a different fuel tank as that 
167.24 	from which the motor vehicle is fueled.

167.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
167.26 	30, 2017.

167.27 	Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:
167.28 		Subd. 3.Refund on graduated basis. Any person who has directly or indirectly paid 
167.29 	the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter 
167.30 	and has either paid the airflight property tax under section 270.072 or is an aerial applicator 
167.31 	with a category B, general aerial license, under section 18B.33, shall, as to all such aviation 
167.32 	gasoline and special fuel received, stored, or withdrawn from storage by the person in this 
168.1 	state in any calendar year and not sold or otherwise disposed of to others, or intended for 
168.2 	sale or other disposition to others, on which such tax has been so paid, be entitled to the 
168.3 	following graduated reductions in such tax for that calendar year, to be obtained by means 
168.4 	of the following refunds:
168.5 	(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but 
168.6 	five cents per gallon;
168.7 	(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 
168.8 	not more than 150,000 gallons, all but two cents per gallon;
168.9 	(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and 
168.10 	not more than 200,000 gallons, all but one cent per gallon;
168.11 	(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half 
168.12 	cent per gallon.

168.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
168.14 	30, 2017.

168.15 	Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:
168.16 		Subdivision 1.Retention. All distributors, dealers, special fuel dealers, bulk purchasers,
168.17 	dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record 
168.18 	of all purchases, transfers, sales, and use of petroleum products and special fuel, including 
168.19 	copies of all sales tickets issued, in a form and manner approved by the commissioner, and 
168.20 	shall retain all such records for 3-1/2 years.

168.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
168.22 	30, 2017.

168.23 	Sec. 13. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:
168.24 		Subd. 19.Petroleum products. The following petroleum products are exempt:
168.25 	(1) products upon which a tax has been imposed and paid under chapter 296A, and for 
168.26 	which no refund has been or will be allowed because the buyer used the fuel for nonhighway 
168.27 	use;
168.28 	(2) products that are used in the improvement of agricultural land by constructing, 
168.29 	maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water 
168.30 	impoundment, and other erosion control structures;
169.1 	(3) products purchased by a transit system receiving financial assistance under section 
169.2 	174.24, 256B.0625, subdivision 17, or 473.384;
169.3 	(4) products purchased by an ambulance service licensed under chapter 144E;
169.4 	(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision 
169.5 	39, for off-highway business use as part of the operations of a resort as provided under 
169.6 	section 296A.16, subdivision 2, clause (2);
169.7 	(6) products purchased by a state or a political subdivision of a state for use in motor 
169.8 	vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);
169.9 	(7) products purchased by providers of transportation to recipients of medical assistance 
169.10 	home and community-based services waivers enrolled in day programs, including adult day 
169.11 	care, family adult day care, day treatment and habilitation, prevocational services, and 
169.12 	structured day services; or
169.13 	(8) products used in a motor vehicle used exclusively as a mobile medical unit for the 
169.14 	provision of medical or dental services by a federally qualified health center, as defined 
169.15 	under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus 
169.16 	Budget Reconciliation Act of 1990; or
169.17 	(9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision 
169.18 	2, clause (4).

169.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
169.20 	30, 2017.

169.21 	Sec. 14. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision 
169.22 	to read:
169.23 		Subd. 6.Small winery credit. (a) A qualified winery producing wine or cider is entitled 
169.24 	to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to (g), on the 
169.25 	wine or cider sold in any fiscal year beginning July 1. A qualified winery may take the credit 
169.26 	on the 18th day of each month, but the total credit allowed may not exceed, in any fiscal 
169.27 	year, the lesser of:
169.28 	(1) the liability for tax; or
169.29 	(2) $136,275.
169.30 	(b) For purposes of this subdivision, "qualified winery" means a winery, whether or not 
169.31 	located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually.
170.1 	(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall 
170.2 	provide a report to the chairs and ranking minority members of the legislative committees 
170.3 	having jurisdiction over taxes that includes the following information for the previous fiscal 
170.4 	year, regarding the credit authorized under this subdivision:
170.5 	(1) the total amount of the tax expenditure for the credit, including the amount of credits 
170.6 	claimed by Minnesota small wineries and out-of-state small wineries; and
170.7 	(2) the number of claimants for the credit, including the number of Minnesota small 
170.8 	wineries and the number of out-of-state small wineries.

170.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

170.10 	Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read:
170.11 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
170.12 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
170.13 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
170.14 	Iron Range Resources and Rehabilitation Board in a separate taconite economic development 
170.15 	fund for each taconite and direct reduced ore producer. Money from the fund for each 
170.16 	producer shall be released by the commissioner after review by a joint committee consisting 
170.17 	of an equal number of representatives of the salaried employees and the nonsalaried 
170.18 	production and maintenance employees of that producer. The District 11 director of the 
170.19 	United States Steelworkers of America, on advice of each local employee president, shall 
170.20 	select the employee members. In nonorganized operations, the employee committee shall 
170.21 	be elected by the nonsalaried production and maintenance employees. The review must be 
170.22 	completed no later than six months after the producer presents a proposal for expenditure 
170.23 	of the funds to the committee. The funds held pursuant to this section may be released only 
170.24 	for workforce development and associated public facility improvement, concurrent 
170.25 	reclamation, or for acquisition of plant and stationary mining equipment and facilities for 
170.26 	the producer or for research and development in Minnesota on new mining, or taconite, 
170.27 	iron, or steel production technology, but only if the producer provides a matching expenditure 
170.28 	equal to the amount of the distribution to be used for the same purpose beginning with 
170.29 	distributions in 2014. Effective for proposals for expenditures of money from the fund 
170.30 	beginning May 26, 2007, the commissioner may not release the funds before the next 
170.31 	scheduled meeting of the board. If a proposed expenditure is not approved by the board, 
170.32 	the funds must be deposited in the Taconite Environmental Protection Fund under sections 
170.33 	298.222 to 298.225. If a producer uses money which has been released from the fund prior 
170.34 	to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the 
171.1 	producer removes the piece of equipment from the taconite tax relief area defined in section 
171.2 	273.134 within ten years from the date of receipt of the money from the fund, a portion of 
171.3 	the money granted from the fund must be repaid to the taconite economic development 
171.4 	fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is 
171.5 	removed from the taconite tax relief area within 12 months after receipt of the money from 
171.6 	the fund, declining by ten percent for each of the subsequent nine years during which the 
171.7 	equipment remains within the taconite tax relief area. If a taconite production facility is sold 
171.8 	after operations at the facility had ceased, any money remaining in the fund for the former 
171.9 	producer may be released to the purchaser of the facility on the terms otherwise applicable 
171.10 	to the former producer under this section. If a producer fails to provide matching funds for 
171.11 	a proposed expenditure within six months after the commissioner approves release of the 
171.12 	funds, the funds are available for release to another producer in proportion to the distribution 
171.13 	provided and under the conditions of this section. Any portion of the fund which is not 
171.14 	released by the commissioner within one year of its deposit in the fund shall be divided 
171.15 	between the taconite environmental protection fund created in section 298.223 and the 
171.16 	Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 
171.17 	in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 
171.18 	to the taconite environmental protection fund and one-third to the Douglas J. Johnson 
171.19 	economic protection trust fund.
171.20 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
171.21 	distributions and the review process, an amount equal to ten cents per taxable ton of 
171.22 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
171.23 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
171.24 	wood product facility located in the taconite tax relief area and in a county that contains a 
171.25 	city of the first class. This amount must be deducted from the distribution under paragraph 
171.26 	(a) for which a matching expenditure by the producer is not required. The granting of the 
171.27 	loan or grant is subject to approval by the board. If the money is provided as a loan, interest 
171.28 	must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 
171.29 	Repayments of the loan and interest, if any, must be deposited in the taconite environment 
171.30 	protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 
171.31 	paragraph by July 1, 2012, the amount that had been made available for the loan under this 
171.32 	paragraph must be transferred to the taconite environment protection fund under sections 
171.33 	298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 
171.34 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 
171.35 	pro rata basis.
172.1 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
172.2 	paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation 
172.3 	Board for public works projects in house legislative districts in the same proportion as 
172.4 	taxable tonnage of production in 2007 in each house legislative district, for distribution in 
172.5 	2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 
172.6 	Notwithstanding any other law to the contrary, expenditures under this paragraph do not 
172.7 	require approval by the governor. For purposes of this paragraph, "house legislative districts" 
172.8 	means the legislative districts in existence on May 15, 2009.

172.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

172.10 	Sec. 16. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, 
172.11 	article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:
172.12 	Sec. 58. 2010 DISTRIBUTIONS ONLY.
 172.13 	For distributions in 2010 only, a special fund is established to receive the sum of the 
172.14 	following amounts that otherwise would be allocated under Minnesota Statutes, section 
172.15 	298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as 
172.16 	the fiscal agent for the recipients for the specific purposes:
172.17 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives 
172.18 	for at least two dentists to establish dental practices in high-need areas of the taconite tax 
172.19 	relief area;
172.20 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
172.21 	heat at the Olcott Park Greenhouse/Virginia Commons project;
172.22 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs 
172.23 	at the Miners Memorial;
172.24 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of 
172.25 	Highway 142/Grant and Park Avenues;
172.26 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades 
172.27 	and capital improvements to the public arena in Coleraine;
172.28 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
172.29 	pumphouse modifications;
172.30 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 
172.31 	claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
173.1 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child 
173.2 	care center;
173.3 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;
173.4 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library 
173.5 	project;
173.6 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water 
173.7 	and sewer services for Lakewood Housing;
173.8 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the 
173.9 	Children's Museum;
173.10 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
173.11 	corrections. This amount must be matched by local sources;
173.12 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
173.13 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
173.14 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
173.15 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad 
173.16 	crossing;
173.17 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping 
173.18 	of the community center parking lot;
173.19 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
173.20 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, 
173.21 	milling, and overlay for Summit Street between Alaska Avenue and Highway 135;
173.22 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
173.23 	replacements and improvements in the Northeast Lower Alley area;
173.24 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz 
173.25 	Road culvert;
173.26 	(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
173.27 	Street and associated infrastructure;
173.28 	(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements 
173.29 	at the Park Ridge development;
174.1 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and 
174.2 	site preparation for its renewable and sustainable energy park;
174.3 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
174.4 	improvements;
174.5 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding 
174.6 	for the Summit Addition;
174.7 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
174.8 	improvements;
174.9 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer 
174.10 	infrastructure improvements;
174.11 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
174.12 	improvements;
174.13 	(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 
174.14 	improvements and land purchase, provided that if the city sells or otherwise disposes of any 
174.15 	of the land purchased with the money provided under this clause within a period of ten five
174.16 	years after it was purchased, the city must transfer a portion of the proceeds of the sale equal 
174.17 	to the amount of the purchase price paid from the money provided under this clause to the 
174.18 	commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite 
174.19 	environmental protection fund to be used for the purposes of the fund under Minnesota 
174.20 	Statutes, section 298.223;
174.21 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
174.22 	improvements;
174.23 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
174.24 	improvements;
174.25 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
174.26 	improvements;
174.27 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
174.28 	improvements;
174.29 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
174.30 	improvements;
174.31 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
174.32 	improvements;
175.1 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
175.2 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
175.3 	infrastructure improvements;
175.4 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
175.5 	improvements at the athletic facility;
175.6 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
175.7 	improvements;
175.8 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure 
175.9 	related to a housing development;
175.10 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
175.11 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit 
175.12 	for a signage kiosk;
175.13 	(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines 
175.14 	and adjacent development near County State-Aid Highway 24; and
175.15 	(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall 
175.16 	infrastructure around the athletic complex.

175.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

175.18 	Sec. 17. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 
175.19 	TACONITE TAX PROCEEDS.
 175.20 	The commissioner of Iron Range Resources and Rehabilitation may use any unspent 
175.21 	amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause 
175.22 	(19), remaining as of May 22, 2016, for the specific purposes identified in that section. 
175.23 	Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any 
175.24 	other law to the contrary, interest accrued on this amount shall also be distributed to the 
175.25 	recipient. Amounts under this section are available until expended and do not lapse or cancel 
175.26 	under Minnesota Statutes, section 16A.28.

175.27 	EFFECTIVE DATE. This section is effective retroactively from May 22, 2016.

175.28 	Sec. 18. 2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION.
 175.29 	(a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph (a), 
175.30 	25.1 cents per taxable ton of the tax collected under Minnesota Statutes, section 298.24, for 
176.1 	production year 2016, may be transferred by the commissioner of Iron Range Resources 
176.2 	and Rehabilitation, as provided in paragraph (b), to the taconite economic development 
176.3 	fund under Minnesota Statutes, section 298.227.
176.4 	(b) If the amount is transferred by the commissioner of Iron Range Resources and 
176.5 	Rehabilitation under paragraph (a), two-thirds shall be transferred from the taconite 
176.6 	environmental protection fund, and one-third shall be transferred from the Douglas J. Johnson 
176.7 	economic protection fund, and deposited into the taconite economic development fund by 
176.8 	June 30, 2017.
176.9 	(c) Money from the taconite economic development fund shall be released as provided 
176.10 	in Minnesota Statutes, section 298.227, except that no distribution shall be made to a taconite 
176.11 	producer's fund unless the producer has timely paid its tax under Minnesota Statutes, section 
176.12 	298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided for 
176.13 	by administrative agreement.

176.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.15 	Sec. 19. APPROPRIATION CANCELLATION.
 176.16 	All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt 
176.17 	Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled 
176.18 	to the Minnesota 21st century fund on June 1, 2017.

176.19 	Sec. 20.  REPEALER.
 176.20 	Minnesota Rules, part 8125.1300, subpart 3, is repealed.

176.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.22 	ARTICLE 9
176.23 	IRON RANGE RESOURCES AND REHABILITATION BOARD

176.24 	Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
176.25 		Subd. 7.Iron Range resources and rehabilitation Board. After seeking a 
176.26 	recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner 
176.27 	of Iron Range resources and rehabilitation Board may purchase insurance it considers the 
176.28 	commissioner deems necessary and appropriate to insure facilities operated by the board.

177.1 	Sec. 2. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
177.2 		Subd. 2.Use of fund. The commissioner shall use money in the fund to make loans or, 
177.3 	including forgivable loans, equity investments or grants for infrastructure in mineral, steel, 
177.4 	or any other industry processing, production, manufacturing, or technology project that 
177.5 	would enhance the economic diversification and that is located within the taconite relief 
177.6 	tax area as defined under section 273.134. The commissioner must, prior to making any 
177.7 	loans or equity investments and after consultation with industry and public officials, develop 
177.8 	a strategy for making loans and, equity investments or grants for infrastructure that assists 
177.9 	the taconite relief area in retaining and enhancing its economic competitiveness. Money in 
177.10 	the fund may also be used to pay for the costs of carrying out the commissioner's due 
177.11 	diligence duties under this section.

177.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

177.13 	Sec. 3. Minnesota Statutes 2016, section 116J.424, is amended to read:
177.14 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 
177.15 	CONTRIBUTION.
177.16 	The commissioner of the Iron Range resources and rehabilitation Board with approval 
177.17 	by the board, may provide an equal match for any loan or equity investment made for a 
177.18 	project located in the tax relief area defined in section 273.134, paragraph (b), by the 
177.19 	Minnesota 21st century fund created by section 116J.423. The match may be in the form 
177.20 	of a loan or equity investment, notwithstanding whether the fund makes a loan or equity 
177.21 	investment. The state shall not acquire an equity interest because of an equity investment 
177.22 	or loan by the board under this section and the board at its sole discretion commissioner, 
177.23 	after consultation with the Iron Range Resources and Rehabilitation Board, shall have the 
177.24 	sole discretion to decide what interest it the board acquires in a project. The commissioner 
177.25 	of employment and economic development may require a commitment from the board
177.26 	commissioner to make the match prior to disbursing money from the fund.

177.27 	Sec. 4. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
177.28 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
177.29 	the meanings given them in this subdivision.
177.30 	(b) "Area development rate" means a rate schedule established by a utility that provides 
177.31 	customers within an area development zone service under a base utility rate schedule, except 
178.1 	that charges may be reduced from the base rate as agreed upon by the utility and the customer 
178.2 	consistent with this section.
178.3 	(c) "Area development zone" means a contiguous or noncontiguous area designated by 
178.4 	an authority or municipality for development or redevelopment and within which one of 
178.5 	the following conditions exists:
178.6 	(1) obsolete buildings not suitable for improvement or conversion or other identified 
178.7 	hazards to the health, safety, and general well-being of the community;
178.8 	(2) buildings in need of substantial rehabilitation or in substandard condition; or
178.9 	(3) low values and damaged investments.
178.10 	(d) "Authority" means a rural development financing authority established under sections 
178.11 	469.142 to 469.151; a housing and redevelopment authority established under sections 
178.12 	469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 
178.13 	economic development authority established under sections 469.090 to 469.108; a 
178.14 	redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron 
178.15 	Range resources and rehabilitation, acting after consultation with the board established 
178.16 	under section 298.22; a municipality that is administering a development district created 
178.17 	under sections 469.124 to 469.133 or any special law; a municipality that undertakes a 
178.18 	project under sections 469.152 to 469.165, except a town located outside the metropolitan 
178.19 	area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or 
178.20 	less; or a municipality that exercises the powers of a port authority under any general or 
178.21 	special law.
178.22 	(e) "Municipality" means a city, however organized, and, with respect to a project 
178.23 	undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 
178.24 	sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
178.25 	to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 
178.26 	also includes any county.

178.27 	Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
178.28 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
178.29 	or part within the area. If a municipality is located partly within and partly without the area, 
178.30 	the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 
178.31 	taxation or taxing jurisdiction within the municipality are to the property or portion thereof 
178.32 	that is located in that portion of the municipality within the area, except that the fiscal 
178.33 	capacity of the municipality must be computed upon the basis of the valuation and population 
179.1 	of the entire municipality. A municipality shall be excluded from the area if its municipal 
179.2 	comprehensive zoning and planning policies conscientiously exclude most 
179.3 	commercial-industrial development, for reasons other than preserving an agricultural use. 
179.4 	The commissioner of Iron Range resources and rehabilitation Board and the commissioner 
179.5 	of revenue shall jointly make this determination annually and shall notify those municipalities 
179.6 	that are ineligible to participate in the tax base sharing program provided in this chapter for 
179.7 	the following year. Before making the joint determination, the commissioner of Iron Range 
179.8 	resources and rehabilitation shall seek a recommendation from the Iron Range Resources 
179.9 	and Rehabilitation Board.

179.10 	Sec. 6. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
179.11 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
179.12 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
179.13 	rehabilitation, after seeking a recommendation from the Iron Range Resources and 
179.14 	Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation 
179.15 	and cooperatively operated school account under section 298.28, subdivision 7a.
179.16 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
179.17 	Iron Range resources and rehabilitation, after seeking a recommendation from the Iron 
179.18 	Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range 
179.19 	school consolidation and cooperatively operated account has insufficient funds to make 
179.20 	payments as authorized under section 298.28, subdivision 7a.

179.21 	Sec. 7. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
179.22 		Subdivision 1.Development. In any county where the county board by proper resolution 
179.23 	sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 
179.24 	section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 
179.25 	with the approval of the, after seeking a recommendation from the Iron Range Resources 
179.26 	and Rehabilitation Board, may upon request of the county board assist said county in carrying 
179.27 	out any project for the long range development of its forest resources through matching of 
179.28 	funds or otherwise.

179.29 	Sec. 8. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
179.30 		Subd. 8.Commissioner. "Commissioner" means the commissioner of revenue of the 
179.31 	state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to 
179.32 	298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

180.1 	Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
180.2 		Subdivision 1.The Office of the Commissioner of Iron Range Resources and 
180.3 	Rehabilitation. (a) The Office of the Commissioner of Iron Range Resources and 
180.4 	Rehabilitation is created as an agency in the executive branch of state government. The 
180.5 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
180.6 	section 15.06. The commissioner may expend amounts appropriated to the commissioner 
180.7 	or the board for projects after submitting the expenditure to the board for a recommendation 
180.8 	under subdivision 1a.
180.9 	(b) The commissioner may hold other positions or appointments that are not incompatible 
180.10 	with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 
180.11 	may appoint a deputy commissioner. All expenses of the commissioner, including the 
180.12 	payment of staff and other assistance as may be necessary, must be paid out of the amounts 
180.13 	appropriated by section 298.28 or otherwise made available by law to the commissioner. 
180.14 	Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 
180.15 	options available under section 471.345 when the commissioner determines it is in the best 
180.16 	interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The agency 
180.17 	has the authority to reimburse any nongovernmental manager operating state-owned facilities 
180.18 	within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment, or 
180.19 	other items used in the operations at such facilities.
180.20 	(c) When the commissioner determines that distress and unemployment exists or may 
180.21 	exist in the future in any county by reason of the removal of natural resources or a possibly 
180.22 	limited use of natural resources in the future and any resulting decrease in employment, the 
180.23 	commissioner may use whatever amounts of the appropriation made to the commissioner 
180.24 	of revenue in section 298.28 that are determined to be necessary and proper in the 
180.25 	development of the remaining resources of the county and in the vocational training and 
180.26 	rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 
180.27 	to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 
180.28 	effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 
180.29 	section, "development of remaining resources" includes, but is not limited to, the promotion 
180.30 	of tourism.

180.31 	Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
180.32 		Subd. 1a.Iron Range Resources and Rehabilitation Board. The Iron Range Resources 
180.33 	and Rehabilitation Board consists of the state senators and representatives elected from state 
180.34 	senatorial or legislative districts in which one-third or more of the residents reside in a 
181.1 	taconite assistance area as defined in section 273.1341. One additional state senator shall 
181.2 	also be appointed by the senate Subcommittee on Committees of the Committee on Rules 
181.3 	and Administration. All expenditures and projects made by the commissioner shall first be 
181.4 	submitted to the board for approval. The board shall recommend approval or disapproval 
181.5 	or modification of the expenditures and projects. The expenses of the board shall be paid 
181.6 	by the state from the funds raised pursuant to this section. Members of the board may be 
181.7 	reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101, 
181.8 	and may receive per diem payments during the interims between legislative sessions in the 
181.9 	manner provided in section 3.099, subdivision 1.
181.10 	The members shall be appointed in January of every odd-numbered year, and shall serve 
181.11 	until January of the next odd-numbered year. Vacancies on the board shall be filled in the 
181.12 	same manner as original members were chosen.

181.13 	Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
181.14 		Subd. 5a.Forest trust. The commissioner, upon approval by after requesting a 
181.15 	recommendation from the board, may purchase forest lands in the taconite assistance area 
181.16 	defined in under section 273.1341 with funds specifically authorized for the purchase. The 
181.17 	acquired forest lands must be held in trust for the benefit of the citizens of the taconite 
181.18 	assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be 
181.19 	managed and developed for recreation and economic development purposes. The 
181.20 	commissioner, upon approval by after requesting a recommendation from the board, may 
181.21 	sell forest lands purchased under this subdivision if the board finds commissioner determines
181.22 	that the sale advances the purposes of the trust. Proceeds derived from the management or 
181.23 	sale of the lands and from the sale of timber or removal of gravel or other minerals from 
181.24 	these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account 
181.25 	that is established within the state financial accounts. Funds may be expended from the 
181.26 	account upon approval by after the commissioner has sought a recommendation from the 
181.27 	board, to purchase, manage, administer, convey interests in, and improve the forest lands. 
181.28 	With approval by After the commissioner has sought a recommendation from the board, 
181.29 	money in the Iron Range Miners' Memorial Forest account may be transferred into the 
181.30 	corpus of the Douglas J. Johnson economic protection trust fund established under sections 
181.31 	298.291 to 298.294. The property acquired under the authority granted by this subdivision 
181.32 	and income derived from the property or the operation or management of the property are 
181.33 	exempt from taxation by the state or its political subdivisions while held by the forest trust.

182.1 	Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
182.2 		Subd. 6.Private entity participation. After seeking a recommendation from the board, 
182.3 	the commissioner may acquire an equity interest in any project for which it the commissioner
182.4 	provides funding. The commissioner may establish, participate in the management of, and 
182.5 	dispose of the assets of charitable foundations, nonprofit limited liability companies, and 
182.6 	nonprofit corporations associated with any project for which it provides funding, including 
182.7 	specifically, but without limitation, a corporation within the meaning of section 317A.011, 
182.8 	subdivision 6.

182.9 	Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
182.10 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range resources 
182.11 	and rehabilitation may not sell or privatize the IronworldMinnesota Discovery Center or 
182.12 	Giants Ridge Golf and Ski Resort without prior approval by the board.

182.13 	Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
182.14 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
182.15 	shall annually prepare a budget for operational expenditures, programs, and projects, and 
182.16 	submit it to the Iron Range Resources and Rehabilitation Board for approval. After the 
182.17 	budget is approved by the board and the governor, the commissioner may spend money in 
182.18 	accordance with the approved budget.

182.19 	Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read:
182.20 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
182.21 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 
182.22 	to the terms of any contract entered into by the state under authority of section 298.22 and 
182.23 	any fees which may, in the discretion of the commissioner of Iron Range resources and 
182.24 	rehabilitation, be charged in connection with any project pursuant to that section as amended, 
182.25 	shall be deposited in the state treasury to the credit of the Iron Range Resources and 
182.26 	Rehabilitation Board account in the special revenue fund and are hereby appropriated for 
182.27 	the purposes of section 298.22.
182.28 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 
182.29 	of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts 
182.30 	if the commissioner determines that the merchandise can be used for special event prizes 
182.31 	or mementos at facilities operated by the board. Nothing in this paragraph authorizes the 
182.32 	commissioner or a member of the board to receive merchandise for personal use.
183.1 	(c) All fees charged by the commissioner in connection with public use of the state-owned 
183.2 	ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 
183.3 	by the commissioner from the operation or lease of those facilities and from the lease, sale, 
183.4 	or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 
183.5 	deposited into an Iron Range Resources and Rehabilitation Board account that is created 
183.6 	within the state enterprise fund. All funds deposited in the enterprise fund account are 
183.7 	appropriated to the commissioner to be expended, subject to approval by after seeking a 
183.8 	recommendation from the board, as follows:
183.9 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
183.10 	improvement of the Giants Ridge Recreation Area facilities or lands;
183.11 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 
183.12 	associated with the financing of the facilities; and
183.13 	(3) to pay the costs of any other project authorized under section 298.22.

183.14 	Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
183.15 		Subd. 3.Project approval. All projects authorized by this section shall be submitted 
183.16 	by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 
183.17 	by a recommendation from the board. Prior to the commencement of a project involving 
183.18 	the exercise by the commissioner of any authority of sections 469.174 to 469.179, the 
183.19 	governing body of each municipality in which any part of the project is located and the 
183.20 	county board of any county containing portions of the project not located in an incorporated 
183.21 	area shall by majority vote approve or disapprove the project. Any project approved by the 
183.22 	board commissioner and the applicable governing bodies, if any, together with detailed 
183.23 	information concerning the project, its costs, the sources of its funding, and the amount of 
183.24 	any bonded indebtedness to be incurred in connection with the project, shall be transmitted 
183.25 	to the governor, who shall approve, disapprove, or return the proposal for additional 
183.26 	consideration within 30 days of receipt. No project authorized under this section shall be 
183.27 	undertaken, and no obligations shall be issued and no tax increments shall be expended for 
183.28 	a project authorized under this section until the project has been approved by the governor.

183.29 	Sec. 17. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
183.30 		Subdivision 1.Creation; purposes. A fund called the taconite environmental protection 
183.31 	fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 
183.32 	Minnesota located within the taconite assistance area defined in section 273.1341, that are 
183.33 	adversely affected by the environmentally damaging operations involved in mining taconite 
184.1 	and iron ore and producing iron ore concentrate and for the purpose of promoting the 
184.2 	economic development of northeast Minnesota. The taconite environmental protection fund 
184.3 	shall be used for the following purposes:
184.4 	(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 
184.5 	Board determines are in need of study and which will determine the environmental problems 
184.6 	requiring remedial action;
184.7 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 
184.8 	by state law;
184.9 	(3) local economic development projects but only if those projects are approved by the 
184.10 	commissioner after seeking a recommendation of the projects from the board, and public 
184.11 	works, including construction of sewer and water systems located within the taconite 
184.12 	assistance area defined in section 273.1341;
184.13 	(4) monitoring of mineral industry related health problems among mining employees; 
184.14 	and
184.15 	(5) local public works projects under section 298.227, paragraph (c).

184.16 	Sec. 18. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
184.17 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall be 
184.18 	administered by the commissioner of the Iron Range Resources and Rehabilitation Board. 
184.19 	The commissioner shall by September 1 of each year submit to the board a list of projects 
184.20 	to be funded from the taconite area environmental protection fund, with such supporting 
184.21 	information including description of the projects, plans, and cost estimates as may be 
184.22 	necessary.
184.23 	(b) Each year no less than one-half of the amounts deposited into the taconite 
184.24 	environmental protection fund must be used for public works projects, including construction 
184.25 	of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range 
184.26 	Resources and Rehabilitation Board may waive the requirements of this paragraph.
184.27 	(c) Upon approval by the board, the list of projects approved under this subdivision shall 
184.28 	be submitted to the governor by November 1 of each year. By December 1 of each year, 
184.29 	the governor shall approve or disapprove, or return for further consideration, each project.
184.30 	The commissioner must seek review of the projects by the board. Funds for a project may 
184.31 	be expended only upon approval of the project by the board and the governor. The 
184.32 	commissioner may submit supplemental projects to the board and governor for approval at 
184.33 	any time after seeking review of the projects by the board.

185.1 	Sec. 19. Minnesota Statutes 2016, section 298.227, is amended to read:
185.2 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
185.3 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
185.4 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
185.5 	Iron Range Resources and Rehabilitation Board in a separate taconite economic development 
185.6 	fund for each taconite and direct reduced ore producer. Money from the fund for each 
185.7 	producer shall be released by the commissioner after review by a joint committee consisting 
185.8 	of an equal number of representatives of the salaried employees and the nonsalaried 
185.9 	production and maintenance employees of that producer. The District 11 director of the 
185.10 	United States Steelworkers of America, on advice of each local employee president, shall 
185.11 	select the employee members. In nonorganized operations, the employee committee shall 
185.12 	be elected by the nonsalaried production and maintenance employees. The review must be 
185.13 	completed no later than six months after the producer presents a proposal for expenditure 
185.14 	of the funds to the committee. The funds held pursuant to this section may be released only 
185.15 	for workforce development and associated public facility improvement, or for acquisition 
185.16 	of plant and stationary mining equipment and facilities for the producer or for research and 
185.17 	development in Minnesota on new mining, or taconite, iron, or steel production technology, 
185.18 	but only if the producer provides a matching expenditure equal to the amount of the 
185.19 	distribution to be used for the same purpose beginning with distributions in 2014. Effective 
185.20 	for proposals for expenditures of money from the fund beginning May 26, 2007, the 
185.21 	commissioner may not release the funds before the next scheduled meeting of the board. If 
185.22 	a proposed expenditure is not approved by the commissioner, after seeking a recommendation 
185.23 	from the board, the funds must be deposited in the Taconite Environmental Protection Fund 
185.24 	under sections 298.222 to 298.225. If a producer uses money which has been released from 
185.25 	the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining 
185.26 	shovels, and the producer removes the piece of equipment from the taconite tax relief area 
185.27 	defined in section 273.134 within ten years from the date of receipt of the money from the 
185.28 	fund, a portion of the money granted from the fund must be repaid to the taconite economic 
185.29 	development fund. The portion of the money to be repaid is 100 percent of the grant if the 
185.30 	equipment is removed from the taconite tax relief area within 12 months after receipt of the 
185.31 	money from the fund, declining by ten percent for each of the subsequent nine years during 
185.32 	which the equipment remains within the taconite tax relief area. If a taconite production 
185.33 	facility is sold after operations at the facility had ceased, any money remaining in the fund 
185.34 	for the former producer may be released to the purchaser of the facility on the terms otherwise 
185.35 	applicable to the former producer under this section. If a producer fails to provide matching 
186.1 	funds for a proposed expenditure within six months after the commissioner approves release 
186.2 	of the funds, the funds are available for release to another producer in proportion to the 
186.3 	distribution provided and under the conditions of this section. Any portion of the fund which 
186.4 	is not released by the commissioner within one year of its deposit in the fund shall be divided 
186.5 	between the taconite environmental protection fund created in section 298.223 and the 
186.6 	Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 
186.7 	in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 
186.8 	to the taconite environmental protection fund and one-third to the Douglas J. Johnson 
186.9 	economic protection trust fund.
186.10 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
186.11 	distributions and the review process, an amount equal to ten cents per taxable ton of 
186.12 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
186.13 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
186.14 	wood product facility located in the taconite tax relief area and in a county that contains a 
186.15 	city of the first class. This amount must be deducted from the distribution under paragraph 
186.16 	(a) for which a matching expenditure by the producer is not required. The granting of the 
186.17 	loan or grant is subject to approval by the board. If the money is provided as a loan, interest 
186.18 	must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 
186.19 	Repayments of the loan and interest, if any, must be deposited in the taconite environment 
186.20 	protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 
186.21 	paragraph by July 1, 2012, the amount that had been made available for the loan under this 
186.22 	paragraph must be transferred to the taconite environment protection fund under sections 
186.23 	298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 
186.24 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 
186.25 	pro rata basis.
186.26 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
186.27 	paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation 
186.28 	Board for public works projects in house legislative districts in the same proportion as 
186.29 	taxable tonnage of production in 2007 in each house legislative district, for distribution in 
186.30 	2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 
186.31 	Notwithstanding any other law to the contrary, expenditures under this paragraph do not 
186.32 	require approval by the governor. For purposes of this paragraph, "house legislative districts" 
186.33 	means the legislative districts in existence on May 15, 2009.

187.1 	Sec. 20. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
187.2 		Subd. 7a.Iron Range school consolidation and cooperatively operated school account.
 187.3 	(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation 
187.4 	Board to be deposited in the Iron Range school consolidation and cooperatively operated 
187.5 	school account that is hereby created:
187.6 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 
187.7 	under section 298.24; and
187.8 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
187.9 	under section 298.24;
187.10 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
187.11 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
187.12 	proceeds attributable to the increase in the implicit price deflator as provided in section 
187.13 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
187.14 	Johnson economic protection trust fund;
187.15 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 
187.16 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
187.17 	298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third 
187.18 	to be distributed to the Douglas J. Johnson economic protection trust fund; and
187.19 	(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 
187.20 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
187.21 	298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining 
187.22 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
187.23 	(4) any other amount as provided by law.
187.24 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
187.25 	and shall be made only to provide disbursements to assist school districts with the payment 
187.26 	of bonds that were issued for qualified school projects, or for any other school disbursement 
187.27 	as approved by the commissioner of Iron Range resources and rehabilitation after the 
187.28 	commissioner of Iron Range resources and rehabilitation has sought review of the 
187.29 	expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this 
187.30 	section, "qualified school projects" means school projects within the taconite assistance 
187.31 	area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 
187.32 	2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
188.1 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
188.2 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
188.3 	any reduction in debt service equalization aid that the school district qualifies for in that 
188.4 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
188.5 	qualified for in fiscal year 2018.
188.6 	(d) No expenditure under this section shall be made unless approved by seven members 
188.7 	of the commissioner of Iron Range resources and rehabilitation after seeking review of the 
188.8 	expenditure from the Iron Range Resources and Rehabilitation Board.

188.9 	Sec. 21. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
188.10 		Subd. 9d.Iron Range higher education account. Five cents per taxable ton must be 
188.11 	allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 
188.12 	Range higher education account that is hereby created, to be used for higher education 
188.13 	programs conducted at educational institutions in the taconite assistance area defined in 
188.14 	section 273.1341. The Iron Range Higher Education committee under section 298.2214,
188.15 	and the Iron Range Resources and Rehabilitation Board commissioner of Iron Range 
188.16 	resources and rehabilitation must approve all expenditures from the account, after seeking 
188.17 	review and recommendation of the expenditures from the Iron Range Resources and 
188.18 	Rehabilitation Board.

188.19 	Sec. 22. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
188.20 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
188.21 	fund may be used for the following purposes:
188.22 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
188.23 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
188.24 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
188.25 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
188.26 	percent or an interest rate three percentage points less than a full faith and credit obligation 
188.27 	of the United States government of comparable maturity, at the time that the loan is approved;
188.28 	(2) to fund reserve accounts established to secure the payment when due of the principal 
188.29 	of and interest on bonds issued pursuant to section 298.2211;
188.30 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
188.31 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
189.1 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
189.2 	alternative energy sources;
189.3 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
189.4 	entities that are engaging in, or that will engage in, projects or programs that have the 
189.5 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
189.6 	or enterprise unless at least two other unrelated investors make investments of at least 
189.7 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
189.8 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
189.9 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
189.10 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
189.11 	which the investment is made or to any individual who owns more than 40 percent of the 
189.12 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
189.13 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
189.14 	interests in it. For purposes of determining the limitations under this clause, the amount of 
189.15 	investments made by an investor other than the Douglas J. Johnson economic protection 
189.16 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
189.17 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
189.18 	economic protection trust fund; and
189.19 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
189.20 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
189.21 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
189.22 	commissioner upon approval by after seeking a recommendation from the board. The net 
189.23 	proceeds must be deposited in the trust fund for the purposes and uses of this section.
189.24 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
189.25 	assistance area defined in section 273.1341.

189.26 	Sec. 23. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:
189.27 		Subdivision 1.Project approval. (a) The commissioner of Iron Range resources and 
189.28 	rehabilitation, after seeking a recommendation from the board and commissioner shall by 
189.29 	August 1 of each year prepare a list of projects to be funded, may expend funds for projects 
189.30 	to be funded from the Douglas J. Johnson economic protection trust with necessary 
189.31 	supporting information including description of the projects, plans, and cost estimates. These 
189.32 	projects shall be consistent with the priorities established in section 298.292 and shall not 
189.33 	be approved by the board commissioner unless it the commissioner, after seeking a 
189.34 	recommendation from the board, finds that:
190.1 	(a) (1) the project will materially assist, directly or indirectly, the creation of additional 
190.2 	long-term employment opportunities;
190.3 	(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and
190.4 	(c) (3) in the case of assistance to private enterprise, the project will serve a sound 
190.5 	business purpose.
190.6 	(b) Each project must be approved by over one-half of all of the members of the board 
190.7 	and the commissioner of Iron Range resources and rehabilitation after seeking a 
190.8 	recommendation from the board for the project. The list of projects shall be submitted to 
190.9 	the governor, who shall, by November 15 of each year, approve or disapprove, or return 
190.10 	for further consideration, each project. The money for a project may be expended only upon 
190.11 	approval of the project by the governor. The board may submit supplemental projects for 
190.12 	approval at any time.

190.13 	Sec. 24. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:
190.14 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 
190.15 	projects and for administration of the trust fund only from the net interest, earnings, and 
190.16 	dividends arising from the investment of the trust at any time, including net interest, earnings, 
190.17 	and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 
190.18 	use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 
190.19 	provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 
190.20 	to make school bond payments and payments to recipients of taconite production tax proceeds 
190.21 	pursuant to section 298.225, may be taken from the corpus of the trust.
190.22 	(b) Additionally, upon recommendation by the commissioner after seeking a 
190.23 	recommendation from the board, up to $13,000,000 from the corpus of the trust may be 
190.24 	made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus 
190.25 	of the trust may be made available for use as provided in section 298.2961.
190.26 	(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 
190.27 	on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 
190.28 	made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 
190.29 	section 17, may be expended on projects. Funds may be expended for projects under this 
190.30 	paragraph only if the project:
190.31 	(1) is for the purposes established under section 298.292, subdivision 1, clause (1) or 
190.32 	(2); and
191.1 	(2) is approved by two-thirds of all of the members of the commissioner after seeking 
191.2 	a recommendation from the board.
191.3 	No money made available under this paragraph or paragraph (d) can be used for 
191.4 	administrative or operating expenses of the Iron Range Resources and Rehabilitation Board 
191.5 	or expenses relating to any facilities owned or operated by the board on May 18, 2002.
191.6 	(d) Upon recommendation by a unanimous vote of all members the commissioner after 
191.7 	seeking a recommendation of the board, amounts in addition to those authorized under 
191.8 	paragraphs (a), (b), and (c) may be expended on projects described in section 298.292, 
191.9 	subdivision 1.
191.10 	(e) Annual administrative costs, not including detailed engineering expenses for the 
191.11 	projects, shall not exceed five percent of the net interest, dividends, and earnings arising 
191.12 	from the trust in the preceding fiscal year.
191.13 	(f) Principal and interest received in repayment of loans made pursuant to this section, 
191.14 	and earnings on other investments made under section 298.292, subdivision 2, clause (4), 
191.15 	shall be deposited in the state treasury and credited to the trust. These receipts are 
191.16 	appropriated to the board for the purposes of sections 298.291 to 298.298.
191.17 	(g) Additionally, notwithstanding section 298.293, upon the approval of the commissioner 
191.18 	of Iron Range resources and rehabilitation, after seeking a recommendation from the board, 
191.19 	money from the corpus of the trust may be expanded to purchase forest lands within the 
191.20 	taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292, 
191.21 	subdivision 2, clause (5).

191.22 	Sec. 25. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:
191.23 		Subd. 4.Temporary loan authority. (a) After seeking a recommendation from the 
191.24 	board, the commissioner of Iron Range resources and rehabilitation may recommend that
191.25 	use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 
191.26 	grants, or equity investments as provided in this subdivision. The money would be available 
191.27 	for loans for construction and equipping of facilities constituting (1) a value added iron 
191.28 	products plant, which may be either a new plant or a facility incorporated into an existing 
191.29 	plant that produces iron upgraded to a minimum of 75 percent iron content or any iron alloy 
191.30 	with a total minimum metallic content of 90 percent; or (2) a new mine or minerals processing 
191.31 	plant for any mineral subject to the net proceeds tax imposed under section 298.015. A loan 
191.32 	or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.
192.1 	(b) Additionally, the board commissioner of Iron Range resources and rehabilitation
192.2 	must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from 
192.3 	the investment of the trust after June 30, 1996, to be used for grants, loans, loan guarantees, 
192.4 	or equity investments for the purposes set forth in paragraph (a). This amount must be 
192.5 	reserved until it is used as described in this subdivision.
192.6 	(c) Additionally, the board commissioner may recommend that up to $5,500,000 from 
192.7 	the corpus of the trust may be used for additional grants, loans, loan guarantees, or equity 
192.8 	investments for the purposes set forth in paragraph (a).
192.9 	(d) The commissioner of Iron Range resources and rehabilitation, after seeking a 
192.10 	recommendation from the board, may require that it the board receive an equity percentage 
192.11 	in any project to which it contributes under this section.

192.12 	Sec. 26. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:
192.13 		Subd. 2.Projects; approval. (a) Projects funded must be for:
192.14 	(1) environmentally unique reclamation projects; or
192.15 	(2) pit or plant repairs, expansions, or modernizations other than for a value added iron 
192.16 	products plant.
192.17 	(b) To be proposed by the board, a project must be approved by Before the commissioner 
192.18 	may propose a project, the commissioner must seek a recommendation from the board. The 
192.19 	money for a project may be spent only upon approval of the project by the governor. The 
192.20 	board commissioner may submit a supplemental projects project for approval at any time
192.21 	after seeking a recommendation for the project from the board.
192.22 	(c) The board commissioner may require that it the board receive an equity percentage 
192.23 	in any project to which it contributes under this section.

192.24 	Sec. 27. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:
192.25 		Subd. 4.Grant and loan fund. (a) A fund is established to receive distributions under 
192.26 	section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 
192.27 	Any grant or loan made under this subdivision must first be approved by the commissioner 
192.28 	after seeking a recommendation from the board, established under section 298.22.
192.29 	(b) All distributions received in 2009 and subsequent years are allocated for projects 
192.30 	under section 298.223, subdivision 1.

193.1 	Sec. 28. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
193.2 		Subd. 2.Unmined iron ore; valuation petition. When in the opinion of the duly 
193.3 	constituted authorities of a taxing district there are in existence reserves of unmined iron 
193.4 	ore located in such district, these authorities may petition the commissioner of Iron Range 
193.5 	resources and rehabilitation Board for authority to petition the county assessor to verify the 
193.6 	existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 
193.7 	with established engineering and geological exploration methods, in order that such taxing 
193.8 	district may be able to forecast in a proper manner its future economic and fiscal potentials.
193.9 	The commissioner of Iron Range resources and rehabilitation may grant the authority to 
193.10 	petition after seeking a recommendation from the Iron Range Resources and Rehabilitation 
193.11 	Board.

193.12 	Sec. 29. IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY 
193.13 	SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
 193.14 	(a) "Commissioner" as used in this section means the commissioner of the Iron Range 
193.15 	Resources and Rehabilitation Board unless otherwise specified.
193.16 	(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the 
193.17 	commissioner of management and budget, shall offer a targeted early separation incentive 
193.18 	program for employees of the commissioner who have attained the age of 60 years or who 
193.19 	have received credit for at least 30 years of allowable service under the provisions of 
193.20 	Minnesota Statutes, chapter 352.  The commissioner shall also offer a targeted separation 
193.21 	incentive program for employees of the commissioner whose positions are in support of 
193.22 	operations at Giants Ridge and will be eliminated if the agency no longer directly manages 
193.23 	Giants Ridge operations.
193.24 	(c) The early separation incentive program may include one or more of the following:
193.25 	(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
193.26 	(2) cash incentives that may, but are not required to be, used to purchase additional years 
193.27 	of service credit through the Minnesota State Retirement System, to the extent that the 
193.28 	purchases are otherwise authorized by law.
193.29 	(d) The commissioner shall establish eligibility requirements for employees to receive 
193.30 	an incentive.
193.31 	(e) The commissioner, consistent with the established program provisions under paragraph 
193.32 	(b), and with the eligibility requirements under paragraph (f), may designate specific 
193.33 	programs or employees as eligible to be offered the incentive program.
194.1 	(f) Acceptance of the offered incentive must be voluntary on the part of the employee 
194.2 	and must be in writing. The incentive may only be offered at the sole discretion of the 
194.3 	commissioner.
194.4 	(g) The cost of the incentive is payable solely by funds made available to the 
194.5 	commissioner by law, but only on prior approval of the expenditures by the commissioner, 
194.6 	after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
194.7 	(h) Unilateral implementation of this section by the commissioner is not an unfair labor 
194.8 	practice under Minnesota Statutes, chapter 179A.

194.9 	EFFECTIVE DATE. This section is effective the day following final enactment. This 
194.10 	section is repealed July 30, 2019.

194.11 	Sec. 30. REVISOR'S INSTRUCTION.
 194.12 	The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes 
194.13 	and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary 
194.14 	approval authority for all expenditures and projects from the Iron Range Resources and 
194.15 	Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and 
194.16 	(ii) provide that the commissioner must, in good faith, seek the review and recommendation 
194.17 	of the board, as required, before exercising approval authority. The revisor shall submit the 
194.18 	proposal, in a form ready for introduction, during the 2018 regular legislative session to the 
194.19 	chairs and ranking minority members of the senate and house of representatives committees 
194.20 	with jurisdiction over taxes.

194.21 	Sec. 31.  REPEALER.
 194.22 	Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4, 5, 
194.23 	and 6; and 298.298, are repealed.

194.24 	ARTICLE 10
194.25 	DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION DEVICES 
194.26 	PROVISIONS

194.27 	Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; 
194.28 	DEFINITIONS.
194.29 	(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and 
194.30 	609.5316, subdivision 3, the following terms have the meanings given.
195.1 	(b) "Automated sales suppression device" or "zapper" means a software program, carried 
195.2 	on any tangible medium, or accessed through any other means, that falsifies the electronic 
195.3 	records of electronic cash registers and other point-of-sale systems including, but not limited 
195.4 	to, transaction data and transaction reports.
195.5 	(c) "Electronic cash register" means a device that keeps a register or supporting documents 
195.6 	through the means of an electronic device or computer system designed to record transaction 
195.7 	data for the purpose of computing, compiling, or processing retail sales transaction data in 
195.8 	whatever manner.
195.9 	(d) "Phantom-ware" means hidden preinstalled or later-installed programming option 
195.10 	embedded in the operating system of an electronic cash register or hardwired into the 
195.11 	electronic cash register that can be used to create a virtual second electronic cash register 
195.12 	or may eliminate or manipulate transaction records that may or may not be preserved in 
195.13 	digital formats to represent the true or manipulated record of transactions in the electronic 
195.14 	cash register.
195.15 	(e) "Transaction data" includes items purchased by a customer, the price of each item, 
195.16 	the taxability determination for each item, a segregated tax amount for each of the taxed 
195.17 	items, the date and time of the purchase, the name, address, and identification number of 
195.18 	the vendor, and the receipt or invoice number of the transaction.
195.19 	(f) "Transaction report" means a report documenting, but not limited to, the sales, taxes 
195.20 	collected, media totals, and discount voids at an electronic cash register that is printed on 
195.21 	cash register tape at the end of a day or shift, or a report documenting every action at an 
195.22 	electronic cash register that is stored electronically.

195.23 	EFFECTIVE DATE. This section is effective for activities enumerated in Minnesota 
195.24 	Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after 
195.25 	August 1, 2017.

195.26 	Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 
195.27 	read:
195.28 		Subd. 32.Sales suppression. (a) A person who:
195.29 	(1) sells;
195.30 	(2) transfers;
195.31 	(3) develops;
195.32 	(4) manufactures; or
196.1 	(5) possesses with the intent to sell or transfer
196.2 	an automated sales suppression device, zapper, phantom-ware, or similar device capable of 
196.3 	being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under 
196.4 	paragraph (b).
196.5 	(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total 
196.6 	amount of all taxes and penalties due that are attributable to the use of any automated sales 
196.7 	suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, 
196.8 	development, or manufacture of the automated sales suppression device, zapper, 
196.9 	phantom-ware, or similar device by the person.
196.10 	(c) The definitions in section 289A.14 apply to this subdivision.
196.11 	(d) This subdivision does not apply to the commissioner, a person acting at the direction 
196.12 	of the commissioner, an agent of the commissioner, law enforcement agencies, or 
196.13 	postsecondary education institutions that possess an automated sales suppression device, 
196.14 	zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 
196.15 	sales suppression devices, zappers, or phantom-ware.

196.16 	EFFECTIVE DATE. This section is effective for activities enumerated that occur on 
196.17 	or after August 1, 2017.

196.18 	Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 
196.19 	read:
196.20 		Subd. 12.Felony. (a) A person who sells, purchases, installs, transfers, develops, 
196.21 	manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or 
196.22 	similar device knowing that the device or phantom-ware is capable of being used to commit 
196.23 	tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for 
196.24 	not more than five years or to a payment of a fine of not more than $10,000, or both.
196.25 	(b) An automated sales suppression device, zapper, phantom-ware, and any other device 
196.26 	containing an automated sales suppression, zapper, or phantom-ware device or software is 
196.27 	contraband and subject to forfeiture under section 609.5316.
196.28 	(c) The definitions in section 289A.14 apply to this subdivision.
196.29 	(d) This subdivision does not apply to the commissioner, a person acting at the direction 
196.30 	of the commissioner, an agent of the commissioner, law enforcement agencies, or 
196.31 	postsecondary education institutions that possess an automated sales suppression device, 
197.1 	zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 
197.2 	sales suppression devices, zappers, or phantom-ware.

197.3 	EFFECTIVE DATE. This section is effective for activities enumerated that occur on 
197.4 	or after August 1, 2017.

197.5 	Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
197.6 		Subd. 3.Weapons, telephone cloning paraphernalia, automated sales suppression 
197.7 	devices, and bullet-resistant vests. Weapons used are contraband and must be summarily 
197.8 	forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 
197.9 	a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 
197.10 	of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 
197.11 	defined in section 609.486, worn or possessed during the commission or attempted 
197.12 	commission of a crime are contraband and must be summarily forfeited to the appropriate 
197.13 	agency upon conviction of the owner or possessor for a controlled substance crime or for 
197.14 	any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 
197.15 	609.894, and automated sales suppression devices, phantom-ware, and other devices 
197.16 	containing an automated sales suppression or phantom-ware device or software used in 
197.17 	violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited 
197.18 	to the appropriate agency upon a conviction.

197.19 	EFFECTIVE DATE. This section is effective for activities enumerated in Minnesota 
197.20 	Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.

197.21 	ARTICLE 11
197.22 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
197.23 	PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

197.24 	Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
197.25 		Subd. 11.Information included in income tax return. (a) The return must state:
197.26 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 
197.27 	of the taxpayer in the same name or names and same address as the taxpayer has used in 
197.28 	making the taxpayer's income tax return to the United States;
197.29 	(2) the date or dates of birth of the taxpayer or taxpayers;
197.30 	(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 
197.31 	has been issued by the United States with respect to the taxpayers; and
198.1 	(4) the amount of the taxable income of the taxpayer as it appears on the federal return 
198.2 	for the taxable year to which the Minnesota state return applies.
198.3 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 
198.4 	of the federal income tax return that the taxpayer has filed or is about to file for the period, 
198.5 	unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 
198.6 	by telefiling.

198.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

198.8 	Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
198.9 		Subd. 16.Tax refund or return preparers; electronic filing; paper filing fee imposed.
 198.10 	(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph 
198.11 	(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue 
198.12 	Code, and who reasonably expects to prepare more than ten Minnesota individual income, 
198.13 	corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior 
198.14 	calendar year must file all Minnesota individual income, corporate franchise, S corporation, 
198.15 	partnership, or fiduciary income tax returns prepared for that calendar year by electronic 
198.16 	means.
198.17 	(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 
198.18 	that the taxpayer did not want the return filed by electronic means.
198.19 	(c) For each return that is not filed electronically by a tax refund or return preparer under 
198.20 	this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is 
198.21 	imposed upon the preparer. The fee is collected from the preparer in the same manner as 
198.22 	income tax. The fee does not apply to returns that the commissioner requires to be filed in 
198.23 	paper form.

198.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
198.25 	31, 2016.

198.26 	Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
198.27 		Subd. 2.Withholding statement. (a) A person required to deduct and withhold from 
198.28 	an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 
198.29 	who would have been required to deduct and withhold a tax under section 290.92, subdivision 
198.30 	2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 
198.31 	without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 
198.32 	more than one withholding exemption, or who paid wages or made payments not subject 
199.1 	to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 
199.2 	employee or person receiving royalty payments in excess of $600, or who has entered into 
199.3 	a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 
199.4 	give every employee or person receiving royalty payments in respect to the remuneration 
199.5 	paid by the person to the employee or person receiving royalty payments during the calendar 
199.6 	year, on or before January 31 of the succeeding year, or, if employment is terminated before 
199.7 	the close of the calendar year, within 30 days after the date of receipt of a written request 
199.8 	from the employee if the 30-day period ends before January 31, a written statement showing 
199.9 	the following:
199.10 	(1) name of the person;
199.11 	(2) the name of the employee or payee and the employee's or payee's Social Security 
199.12 	account number;
199.13 	(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 
199.14 	paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 
199.15 	subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal 
199.16 	Revenue Code; and the amount of royalties subject to withholding under section 290.923, 
199.17 	subdivision 2; and
199.18 	(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
199.19 	or 3, or 290.923, subdivision 2.
199.20 	(b) The statement required to be furnished by paragraph (a) with respect to any 
199.21 	remuneration must be furnished at those times, must contain the information required, and 
199.22 	must be in the form the commissioner prescribes.
199.23 	(c) The commissioner may prescribe rules providing for reasonable extensions of time, 
199.24 	not in excess of 30 days, to employers or payers required to give the statements to their 
199.25 	employees or payees under this subdivision.
199.26 	(d) A duplicate of any statement made under this subdivision and in accordance with 
199.27 	rules prescribed by the commissioner, along with a reconciliation in the form the 
199.28 	commissioner prescribes of the statements for the calendar year, including a reconciliation 
199.29 	of the quarterly returns required to be filed under subdivision 1, must be filed with the 
199.30 	commissioner on or before February 28 January 31 of the year after the payments were 
199.31 	made.
199.32 	(e) If an employer cancels the employer's Minnesota withholding account number required 
199.33 	by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 
200.1 	with the commissioner within 30 days of the end of the quarter in which the employer 
200.2 	cancels its account number.
200.3 	(f) The employer must submit the statements required to be sent to the commissioner in 
200.4 	the same manner required to satisfy the federal reporting requirements of section 6011(e) 
200.5 	of the Internal Revenue Code and the regulations issued under it. An employer must submit 
200.6 	statements to the commissioner required by this section by electronic means if the employer 
200.7 	is required to send more than 25 statements to the commissioner, even though the employer 
200.8 	is not required to submit the returns federally by electronic means. For statements issued 
200.9 	for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 
200.10 	required under section 290.92 are aggregated for purposes of determining whether the 
200.11 	electronic submission threshold is met. The commissioner shall prescribe the content, format, 
200.12 	and manner of the statement pursuant to section 270C.30.
200.13 	(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 
200.14 	(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 
200.15 	paragraph (a), with the commissioner by electronic means.

200.16 	EFFECTIVE DATE. This section is effective for statements required to be sent to the 
200.17 	commissioner after December 31, 2017, except that the date change in paragraph (d) is 
200.18 	effective for wages paid after December 31, 2016.

200.19 	Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
200.20 		Subd. 14.Regulated investment companies; Reporting exempt interest and
200.21 	exempt-interest dividends. (a) A regulated investment company paying $10 or more in 
200.22 	exempt-interest dividends to an individual who is a resident of Minnesota, or any person 
200.23 	receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee 
200.24 	to an individual who is a resident of Minnesota, must make a return indicating the amount 
200.25 	of the exempt interest or exempt-interest dividends, the name, address, and Social Security 
200.26 	number of the recipient, and any other information that the commissioner specifies. The 
200.27 	return must be provided to the shareholder recipient by February 15 of the year following 
200.28 	the year of the payment. The return provided to the shareholder recipient must include a 
200.29 	clear statement, in the form prescribed by the commissioner, that the exempt interest or
200.30 	exempt-interest dividends must be included in the computation of Minnesota taxable income. 
200.31 	By June 1 of each year, the regulated investment company payor must file a copy of the 
200.32 	return with the commissioner.
200.33 	(b) For purposes of this subdivision, the following definitions apply.
201.1 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 
201.2 	852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 
201.3 	dividends that are not required to be added to federal taxable income under section 290.0131, 
201.4 	subdivision 2, paragraph (b).
201.5 	(2) "Regulated investment company" means regulated investment company as defined 
201.6 	in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 
201.7 	as defined in section 851(g) of the Internal Revenue Code.
201.8 	(3) "Exempt interest" means income on obligations of any state other than Minnesota, 
201.9 	or a political or governmental subdivision, municipality, or governmental agency or 
201.10 	instrumentality of any state other than Minnesota, and exempt from federal income taxes 
201.11 	under the Internal Revenue Code or any other federal statute.

201.12 	EFFECTIVE DATE. This section is effective for reports required to be filed after 
201.13 	December 31, 2017.

201.14 	Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 
201.15 	read:
201.16 		Subd. 2a.Annual withholding returns; eligible employers. (a) An employer who 
201.17 	deducts and withholds an amount required to be withheld by section 290.92 may file an 
201.18 	annual return and make an annual payment of the amount required to be deducted and 
201.19 	withheld for that calendar year if the employer has received a notification under paragraph 
201.20 	(b). The ability to elect to file an annual return continues through the year following the 
201.21 	year where an employer is required to deduct and withhold more than $500.
201.22 	(b) The commissioner is authorized to determine which employers are eligible to file 
201.23 	an annual return and to notify employers who newly qualify to file an annual return because 
201.24 	the amount an employer is required to deduct and withhold for that calendar year is $500 
201.25 	or less based on the most recent period of four consecutive quarters for which the 
201.26 	commissioner has compiled data on that employer's withholding tax for that period. At the 
201.27 	time of notification, eligible employers may still decide to file returns and make deposits 
201.28 	quarterly. An employer who decides to file returns and make deposits quarterly is required 
201.29 	to make all returns and deposits required by this chapter and, notwithstanding paragraph 
201.30 	(a), is subject to all applicable penalties for failing to do so.
201.31 	(c) If, at the end of any calendar month other than the last month of the calendar year, 
201.32 	the aggregate amount of undeposited tax withheld by an employer who has elected to file 
202.1 	an annual return exceeds $500, the employer must deposit the aggregate amount with the 
202.2 	commissioner within 30 days of the end of the calendar month.
202.3 	(d) If an employer who has elected to file an annual return ceases to pay wages for which 
202.4 	withholding is required, the employer must file a final return and deposit any undeposited 
202.5 	tax within 30 days of the end of the calendar month following the month in which the 
202.6 	employer ceased paying wages.
202.7 	(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return 
202.8 	must file the return and pay the tax not previously deposited before February 1 of the year 
202.9 	following the year in which the tax was withheld.
202.10 	(f) A notification to an employer regarding eligibility to file an annual return under 
202.11 	Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).

202.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
202.13 	31, 2016.

202.14 	Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
202.15 		Subd. 2.Withholding from wages, entertainer withholding, withholding from 
202.16 	payments to out-of-state contractors, and withholding by partnerships, small business 
202.17 	corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax 
202.18 	required to be deducted and withheld during the quarterly period must be paid on or before 
202.19 	the last day of the month following the close of the quarterly period, unless an earlier time 
202.20 	for payment is provided. A tax required to be deducted and withheld from compensation 
202.21 	of an entertainer and from a payment to an out-of-state contractor must be paid on or before 
202.22 	the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 
202.23 	required to be deducted and withheld by partnerships, S corporations, and trusts must be 
202.24 	paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 
202.25 	trusts and under section 289A.26 for S corporations.
202.26 	(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 
202.27 	under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
202.28 	withheld under those sections with the commissioner within the time allowed to deposit the 
202.29 	employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 
202.30 	section 31.6302-1, as amended through December 31, 2001, without regard to the safe 
202.31 	harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 
202.32 	must submit a copy of their federal notice of deposit status to the commissioner upon request 
202.33 	by the commissioner.
203.1 	(c) The commissioner may prescribe by rule other return periods or deposit requirements. 
203.2 	In prescribing the reporting period, the commissioner may classify payors according to the 
203.3 	amount of their tax liability and may adopt an appropriate reporting period for the class that 
203.4 	the commissioner judges to be consistent with efficient tax collection. In no event will the 
203.5 	duration of the reporting period be more than one year.
203.6 	(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 
203.7 	with respect to both the tax and the amount to be deducted must be made, without interest, 
203.8 	in the manner and at the times the commissioner prescribes. If the underpayment cannot be 
203.9 	adjusted, the amount of the underpayment will be assessed and collected in the manner and 
203.10 	at the times the commissioner prescribes.
203.11 	(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 
203.12 	June 30, the employer must remit each required deposit for wages paid in all subsequent 
203.13 	calendar years by electronic means.
203.14 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 
203.15 	clause (2), who remits withholding deposits must remit all deposits by electronic means as 
203.16 	provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 
203.17 	year for all of the employers.

203.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
203.19 	31, 2016.

203.20 	Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:
203.21 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
203.22 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
203.23 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
203.24 	taxpayer upon whom the tax is imposed, except in the following cases:
203.25 	(1) The tax due from a decedent for that part of the taxable year in which the decedent 
203.26 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
203.27 	prior years must be paid by the decedent's personal representative, if any. If there is no 
203.28 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
203.29 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
203.30 	decedent;
203.31 	(2) The tax due from an infant or other incompetent person must be paid by the person's 
203.32 	guardian or other person authorized or permitted by law to act for the person;
204.1 	(3) The tax due from the estate of a decedent must be paid by the estate's personal 
204.2 	representative;
204.3 	(4) The tax due from a trust, including those within the definition of a corporation, as 
204.4 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
204.5 	(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 
204.6 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
204.7 	of the business or property so far as the tax is due to the income from the business or property.
204.8 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
204.9 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
204.10 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
204.11 	entertainer for the amount of the payment.
204.12 	(c) The tax taxes imposed under section sections 289A.35 and290.0922 on partnerships 
204.13 	is are the joint and several liability of the partnership and the general partners.

204.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

204.15 	Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:
204.16 	289A.35 ASSESSMENTS ON RETURNS.
204.17 	(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 
204.18 	income, items of federal tax preferences, or federal credit amounts to make them conform 
204.19 	with the provisions of chapter 290 or section 298.01. If a return has been filed, the 
204.20 	commissioner shall enter the liability reported on the return and may make any audit or 
204.21 	investigation that is considered necessary.
204.22 	(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 
204.23 	best interest of the state, the commissioner may allow S corporations and partnerships to 
204.24 	receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 
204.25 	owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 
204.26 	be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
204.27 	(c) A taxpayer may petition the commissioner for the use of the method described in 
204.28 	paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 
204.29 	order of assessment has been issued.
204.30 	(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 
204.31 	of a taxpayer cannot be appealed to the Tax Court or any other court.
205.1 	(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under 
205.2 	chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 
205.3 	shall notify the estate no later than nine months after the filing date, as provided by section 
205.4 	289A.38, subdivision 2, whether the return is under examination or the return has been 
205.5 	processed as filed.

205.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

205.7 	Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
205.8 		Subd. 28.Preparer identification number. Any Minnesota individual income tax return 
205.9 	or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 
205.10 	13, paragraph (f), shall bear the identification number the preparer is required to use federally 
205.11 	under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who 
205.12 	prepares a Minnesota individual income tax return required by section 289A.08, subdivisions 
205.13 	1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required 
205.14 	number on the return or claim is subject to a penalty of $50 for each failure.

205.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
205.16 	31, 2016.

205.17 	Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
205.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
205.19 	the meanings given.
205.20 	(b) "Long-term care insurance" means a policy that:
205.21 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 
205.22 	the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46; 
205.23 	or provides similar coverage issued under the laws of another jurisdiction; and
205.24 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
205.25 	(3) has been offered in compliance with the inflation protection requirements of section 
205.26 	62S.23.
205.27 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
205.28 	(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 
205.29 	long-term care insurance premiums that qualify as deductions under section 213 of the 
205.30 	Internal Revenue Code; and (2) the total amount deductible for medical care under section 
205.31 	213 of the Internal Revenue Code.

206.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
206.2 	after December 31, 2012.

206.3 	Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
206.4 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
206.5 	given.
206.6 	(a) "Qualified research expenses" means (i) qualified research expenses and basic research 
206.7 	payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 
206.8 	not include expenses incurred for qualified research or basic research conducted outside 
206.9 	the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 
206.10 	(ii) contributions to a nonprofit corporation established and operated pursuant to the 
206.11 	provisions of chapter 317A for the purpose of promoting the establishment and expansion 
206.12 	of business in this state, provided the contributions are invested by the nonprofit corporation 
206.13 	for the purpose of providing funds for small, technologically innovative enterprises in 
206.14 	Minnesota during the early stages of their development.
206.15 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
206.16 	Internal Revenue Code, except that the term does not include qualified research conducted 
206.17 	outside the state of Minnesota.
206.18 	(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 
206.19 	Code, except that the average annual gross receipts and aggregate gross receipts must be 
206.20 	calculated using Minnesota sales or receipts under section 290.191 and the definitions 
206.21 	contained in clauses paragraphs (a) and (b) shall apply.

206.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

206.23 	Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
206.24 		Subd. 2.Income not derived from conduct of a trade or business. The income of a 
206.25 	taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 
206.26 	business must be assigned in accordance with paragraphs (a) to (f):
206.27 	(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 
206.28 	3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 
206.29 	that, the work of the employee is performed within it; all other income from such sources 
206.30 	is treated as income from sources without this state.
206.31 	Severance pay shall be considered income from labor or personal or professional services.
207.1 	(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 
207.2 	or entertainer, income from compensation for labor or personal services performed within 
207.3 	this state shall be determined in the following manner:
207.4 	(i) The amount of income to be assigned to Minnesota for an individual who is a 
207.5 	nonresident salaried athletic team employee shall be determined by using a fraction in which 
207.6 	the denominator contains the total number of days in which the individual is under a duty 
207.7 	to perform for the employer, and the numerator is the total number of those days spent in 
207.8 	Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 
207.9 	at the team's facilities as part of a team imposed program, are not included in the total number 
207.10 	of duty days. Bonuses earned as a result of play during the regular season or for participation 
207.11 	in championship, play-off, or all-star games must be allocated under the formula. Signing 
207.12 	bonuses are not subject to allocation under the formula if they are not conditional on playing 
207.13 	any games for the team, are payable separately from any other compensation, and are 
207.14 	nonrefundable; and
207.15 	(ii) The amount of income to be assigned to Minnesota for an individual who is a 
207.16 	nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 
207.17 	athletic or entertainment performance in Minnesota shall be determined by assigning to this 
207.18 	state all income from performances or athletic contests in this state.
207.19 	(3) For purposes of this section, amounts received by a nonresident as "retirement income" 
207.20 	as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 
207.21 	Law 104-95, are not considered income derived from carrying on a trade or business or 
207.22 	from wages or other compensation for work an employee performed in Minnesota, and are 
207.23 	not taxable under this chapter.
207.24 	(b) Income or gains from tangible property located in this state that is not employed in 
207.25 	the business of the recipient of the income or gains must be assigned to this state.
207.26 	(c) Income or gains from intangible personal property not employed in the business of 
207.27 	the recipient of the income or gains must be assigned to this state if the recipient of the 
207.28 	income or gains is a resident of this state or is a resident trust or estate.
207.29 	Gain on the sale of a partnership interest is allocable to this state in the ratio of the 
207.30 	original cost of partnership tangible property in this state to the original cost of partnership 
207.31 	tangible property everywhere, determined at the time of the sale. If more than 50 percent 
207.32 	of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 
207.33 	the partnership interest is allocated to this state in accordance with the sales factor of the 
208.1 	partnership for its first full tax period immediately preceding the tax period of the partnership 
208.2 	during which the partnership interest was sold.
208.3 	Gain on the sale of an interest in a single member limited liability company that is 
208.4 	disregarded for federal income tax purposes is allocable to this state as if the single member 
208.5 	limited liability company did not exist and the assets of the limited liability company are 
208.6 	personally owned by the sole member.
208.7 	Gain on the sale of goodwill or income from a covenant not to compete that is connected 
208.8 	with a business operating all or partially in Minnesota is allocated to this state to the extent 
208.9 	that the income from the business in the year preceding the year of sale was assignable
208.10 	allocable to Minnesota under subdivision 3.
208.11 	When an employer pays an employee for a covenant not to compete, the income allocated 
208.12 	to this state is in the ratio of the employee's service in Minnesota in the calendar year 
208.13 	preceding leaving the employment of the employer over the total services performed by the 
208.14 	employee for the employer in that year.
208.15 	(d) Income from winnings on a bet made by an individual while in Minnesota is assigned 
208.16 	to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 
208.17 	2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
208.18 	(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 
208.19 	taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
208.20 	(f) For the purposes of this section, working as an employee shall not be considered to 
208.21 	be conducting a trade or business.

208.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

208.23 	Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
208.24 		Subdivision 1.Partners, not partnership, subject to tax. Except as provided under 
208.25 	section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax 
208.26 	imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 
208.27 	carrying on business as partners shall be liable for income tax only in their separate or 
208.28 	individual capacities.

208.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

208.30 	Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:
208.31 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
209.1 	(a) The owner or managing agent of any property for which rent is paid for occupancy 
209.2 	as a homestead must furnish a certificate of rent paid to a person who is a renter on December 
209.3 	31, in the form prescribed by the commissioner. If the renter moves before December 31, 
209.4 	the owner or managing agent may give the certificate to the renter at the time of moving, 
209.5 	or mail the certificate to the forwarding address if an address has been provided by the 
209.6 	renter. The certificate must be made available to the renter before February 1 of the year 
209.7 	following the year in which the rent was paid. The owner or managing agent must retain a 
209.8 	duplicate of each certificate or an equivalent record showing the same information for a 
209.9 	period of three years. The duplicate or other record must be made available to the 
209.10 	commissioner upon request.
209.11 	(b) The commissioner may require the owner or managing agent, through a simple 
209.12 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
209.13 	rent paid furnished to a renter for rent paid in the prior year, in the content, format, and 
209.14 	manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, 
209.15 	the commissioner, after consulting with representatives of owners or managing agents, shall 
209.16 	develop an implementation and administration plan for the requirements of this paragraph 
209.17 	that attempts to minimize financial burdens, administration and compliance costs, and takes 
209.18 	into consideration existing systems of owners and managing agents.
209.19 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
209.20 	section 327C.01, subdivision 6, and "property" includes a lot as defined under section 
209.21 	327C.01, subdivision 3.

209.22 	EFFECTIVE DATE. This section is effective for certificates of rent paid furnished to 
209.23 	a renter for rent paid after December 31, 2016.

209.24 	Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
209.25 		Subd. 2.Additions. The following amounts, to the extent deducted in computing or 
209.26 	otherwise excluded from the federal taxable estate, must be added in computing the 
209.27 	Minnesota taxable estate:
209.28 	(1) the amount of the deduction for state death taxes allowed under section 2058 of the 
209.29 	Internal Revenue Code;
209.30 	(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 
209.31 	of the Internal Revenue Code; and
209.32 	(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 
209.33 	Revenue Code, made by the decedent within three years of the date of death. For purposes 
210.1 	of this clause, the amount of the addition equals the value of the gift under section 2512 of 
210.2 	the Internal Revenue Code and excludes any value of the gift included in the federal estate.

210.3 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
210.4 	dying after June 30, 2013.

210.5 	Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
210.6 		Subd. 3.Subtraction. The following amounts, to the extent included in computing the 
210.7 	federal taxable estate, may be subtracted in computing the Minnesota taxable estate but 
210.8 	must not reduce the Minnesota taxable estate to less than zero:
210.9 	(1) the value of property subject to an election under section 291.03, subdivision 1d; 
210.10 	and
210.11 	(2) the value of qualified small business property under section 291.03, subdivision 9, 
210.12 	and the value of qualified farm property under section 291.03, subdivision 10, or the result 
210.13 	of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5)items (i) 
210.14 	to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but 
210.15 	must not reduce the Minnesota taxable estate to less than zero:
210.16 	(1) (i) $1,200,000 for estates of decedents dying in 2014;
210.17 	(2) (ii) $1,400,000 for estates of decedents dying in 2015;
210.18 	(3) (iii) $1,600,000 for estates of decedents dying in 2016;
210.19 	(4) (iv) $1,800,000 for estates of decedents dying in 2017; and
210.20 	(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.

210.21 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
210.22 	dying after June 30, 2011.

210.23 	Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
210.24 		Subd. 9.Qualified small business property. Property satisfying all of the following 
210.25 	requirements is qualified small business property:
210.26 	(1) The value of the property was included in the federal adjusted taxable estate.
210.27 	(2) The property consists of the assets of a trade or business or shares of stock or other 
210.28 	ownership interests in a corporation or other entity engaged in a trade or business. Shares 
210.29 	of stock in a corporation or an ownership interest in another type of entity do not qualify 
210.30 	under this subdivision if the shares or ownership interests are traded on a public stock 
211.1 	exchange at any time during the three-year period ending on the decedent's date of death. 
211.2 	For purposes of this subdivision, an ownership interest includes the interest the decedent is 
211.3 	deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
211.4 	(3) During the taxable year that ended before the decedent's death, the trade or business 
211.5 	must not have been a passive activity within the meaning of section 469(c) of the Internal 
211.6 	Revenue Code, and the decedent or the decedent's spouse must have materially participated 
211.7 	in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 
211.8 	excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 
211.9 	by United States Treasury Department regulation that substitutes material participation in 
211.10 	prior taxable years for material participation in the taxable year that ended before the 
211.11 	decedent's death.
211.12 	(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 
211.13 	taxable year that ended before the date of the death of the decedent.
211.14 	(5) The property does not consist of include:
211.15 	(i) cash,;
211.16 	(ii) cash equivalents,;
211.17 	(iii) publicly traded securities,; or
211.18 	(iv) any assets not used in the operation of the trade or business.
211.19 	(6) For property consisting of shares of stock or other ownership interests in an entity, 
211.20 	the value of cash, cash equivalents, publicly traded securities, or assets not used in the 
211.21 	operation of the trade or business held by the corporation or other entity items described in 
211.22 	clause (5) must be deducted from the value of the property qualifying under this subdivision 
211.23 	in proportion to the decedent's share of ownership of the entity on the date of death excluded 
211.24 	in the valuation of the decedent's interest in the entity.
211.25 	(6) (7) The decedent continuously owned the property, including property the decedent 
211.26 	is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 
211.27 	the three-year period ending on the date of death of the decedent. In the case of a sole 
211.28 	proprietor, if the property replaced similar property within the three-year period, the 
211.29 	replacement property will be treated as having been owned for the three-year period ending 
211.30 	on the date of death of the decedent.
211.31 	(7) (8) For three years following the date of death of the decedent, the trade or business 
211.32 	is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 
211.33 	and a family member materially participates in the operation of the trade or business within 
212.1 	the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 
212.2 	of the Internal Revenue Code and any other provision provided by United States Treasury 
212.3 	Department regulation that substitutes material participation in prior taxable years for 
212.4 	material participation in the three years following the date of death of the decedent.
212.5 	(8) (9) The estate and the qualified heir elect to treat the property as qualified small 
212.6 	business property and agree, in the form prescribed by the commissioner, to pay the recapture 
212.7 	tax under subdivision 11, if applicable.

212.8 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
212.9 	dying after June 30, 2011.

212.10 	Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
212.11 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and before 
212.12 	the death of the qualified heir, the qualified heir disposes of any interest in the qualified 
212.13 	property, other than by a disposition to a family member, or a family member ceases to 
212.14 	satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 
212.15 	tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 
212.16 	qualified small business property excluded under subdivision 9 with similar property, then 
212.17 	the qualified heir will not be treated as having disposed of an interest in the qualified property.
212.18 	(b) The amount of the additional tax equals the amount of the exclusion claimed by the 
212.19 	estate under subdivision 8, paragraph (d), multiplied by 16 percent.
212.20 	(c) The additional tax under this subdivision is due on the day which is six months after 
212.21 	the date of the disposition or cessation in paragraph (a).
212.22 	(d) This subdivision shall not apply as a result of any of the following:
212.23 	(1) a portion of qualified farm property consisting of less than one-fifth of the acreage 
212.24 	of the property is reclassified as class 2b property under section 273.13, subdivision 23, and 
212.25 	the qualified heir has not substantially altered the reclassified property during the three-year 
212.26 	holding period; or
212.27 	(2) a portion of qualified farm property classified as 2a property at the death of the 
212.28 	decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, 
212.29 	garage, and immediately surrounding one acre of land is reclassified as 4bb property during 
212.30 	the three-year holding period, and the qualified heir has not substantially altered the property.

212.31 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
212.32 	dying after June 30, 2011.

213.1 	Sec. 19.  REPEALER.
 213.2 	(a) Minnesota Rules, part 8092.1400, is repealed.
213.3 	(b) Minnesota Rules, part 8092.2000, is repealed.

213.4 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
213.5 	December 31, 2016, except that notifications from the Department of Revenue to employers 
213.6 	regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain 
213.7 	in force. Paragraph (b) is effective the day following final enactment.

213.8 	ARTICLE 12
213.9 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
213.10 	PROVISIONS; PROPERTY TAX

213.11 	Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
213.12 		Subd. 2.Income property assessment data. The following data collected by political 
213.13 	subdivisions and the state from individuals or business entities concerning income properties 
213.14 	are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
213.15 	(a) detailed income and expense figures;
213.16 	(b) average vacancy factors;
213.17 	(c) verified net rentable areas or net usable areas, whichever is appropriate;
213.18 	(d) anticipated income and expenses;
213.19 	(e) projected vacancy factors; and
213.20 	(f) lease information.

213.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

213.22 	Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
213.23 		Subd. 2.Air commerce. (a) "Air commerce" means the transportation by aircraft of 
213.24 	persons or property for hire in interstate, intrastate, or international transportation on regularly 
213.25 	scheduled flights or on intermittent or irregularly timed flights by airline companies and 
213.26 	includes transportation by any airline company making three or more flights in or out of 
213.27 	Minnesota, or within Minnesota, during a calendar year.
213.28 	(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 
213.29 	flight, a flight arranged at the convenience of an airline and the person contracting for the 
214.1 	transportation, or a charter flight. It includes any airline company making three or more 
214.2 	flights in or out of Minnesota during a calendar year.
214.3 	(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 
214.4 	owned and used for private air flight purposes if the person furnishing the transportation 
214.5 	does not hold out to be engaged regularly in transportation for hire.

214.6 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

214.7 	Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:
214.8 		Subd. 7.Flight property. "Flight property" means all aircraft and flight equipment used 
214.9 	in connection therewith, including spare flight equipment. Flight property also includes 
214.10 	computers and computer software used in operating, controlling, or regulating aircraft and 
214.11 	flight equipment. Flight property does not include aircraft with a maximum takeoff weight 
214.12 	of less than 30,000 pounds.

214.13 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

214.14 	Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:
214.15 		Subd. 8.Person. "Person" means any an individual, corporation, firm, copartnership, 
214.16 	company, or association, and includes any guardian, trustee, executor, administrator, receiver, 
214.17 	conservator, or any person acting in any fiduciary capacity therefortrust, estate, fiduciary, 
214.18 	partnership, company, corporation, limited liability company, association, governmental 
214.19 	unit or agency, public or private organization of any kind, or other legal entity.

214.20 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

214.21 	Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 
214.22 	read:
214.23 		Subd. 10.Intermittent or irregularly timed flights. "Intermittently or irregularly timed 
214.24 	flights" means any flight in which the departure time, departure location, and arrival location 
214.25 	are specifically negotiated with the customer or the customer's representative, including but 
214.26 	not limited to charter flights.

214.27 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

214.28 	Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
214.29 		Subd. 2.Assessment of flight property.  Flight property that is owned by, or is leased, 
214.30 	loaned, or otherwise made available to an airline company operating in Minnesota shall be 
215.1 	assessed and appraised annually by the commissioner with reference to its value on January 
215.2 	2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 
215.3 	with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 
215.4 	flights shall be excluded from the provisions of sections 270.071 to 270.079.

215.5 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

215.6 	Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:
215.7 		Subd. 3.Report by airline company. (a) Each year, on or before July 1, every airline 
215.8 	company engaged in air commerce in this state shall file with the commissioner a report 
215.9 	under oath setting forth specifically the information prescribed by the commissioner to 
215.10 	enable the commissioner to make the assessment required in sections 270.071 to 270.079, 
215.11 	unless the commissioner determines that the airline company or person should be excluded 
215.12 	from is exempt from filing because its activities do not constitute air commerce as defined 
215.13 	herein.
215.14 	(b) The commissioner shall prescribe the content, format, and manner of the report 
215.15 	pursuant to section 270C.30, except that a "law administered by the commissioner" includes 
215.16 	the property tax laws. If a report is made by electronic means, the taxpayer's signature is 
215.17 	defined pursuant to section 270C.304, except that a "law administered by the commissioner" 
215.18 	includes the property tax laws.

215.19 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for reports filed in 
215.20 	2018 and thereafter. The amendment adding paragraph (b) is effective the day following 
215.21 	final enactment.

215.22 	Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 
215.23 	read:
215.24 		Subd. 3a.Commissioner filed reports. If an airline company fails to file a report required 
215.25 	by subdivision 3, the commissioner may, from information in the commissioner's possession 
215.26 	or obtainable by the commissioner, make and file a report for the airline company, or may 
215.27 	issue a notice of net tax capacity and tax under section 270.075, subdivision 2.

215.28 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.1 	Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 
216.2 	read:
216.3 		Subd. 6.Reassessment orders. If the State Board of Equalization determines that a 
216.4 	considerable amount of property has been undervalued or overvalued compared to like 
216.5 	property such that the assessment is grossly unfair or inequitable, the State Board of 
216.6 	Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders 
216.7 	to the county assessor to reassess all parcels or an identified set of parcels in a county.

216.8 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.9 	Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:
216.10 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
216.11 	commissioner a copy of the abstract that will be acted upon by the local and county boards 
216.12 	of review. The abstract must list the real and personal property in the county itemized by 
216.13 	assessment districts. The assessor of each county in the state shall file with the commissioner, 
216.14 	within ten working days following final action of the local board of review or equalization 
216.15 	and within five days following final action of the county board of equalization, any changes 
216.16 	made by the local or county board. The information must be filed in the manner prescribed 
216.17 	by the commissioner. It must be accompanied by a printed or typewritten copy of the 
216.18 	proceedings of the appropriate board.

216.19 	EFFECTIVE DATE. This section is effective for local and county boards of appeal 
216.20 	and equalization meetings held in 2017 and thereafter.

216.21 	Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
216.22 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
216.23 	enumerated below, all personal property and the property described in section 272.03, 
216.24 	subdivision 1, paragraphs (c) and (d), shall be exempt.
216.25 	The following personal property shall be taxable:
216.26 	(a) personal property which is part of (1) an electric generating, transmission, or 
216.27 	distribution system or; (2) a pipeline system transporting or distributing water, gas, crude 
216.28 	oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot 
216.29 	or chilled water for heating or cooling buildings and structures;
216.30 	(b) railroad docks and wharves which are part of the operating property of a railroad 
216.31 	company as defined in section 270.80;
217.1 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
217.2 	(d) leasehold or other personal property interests which are taxed pursuant to section 
217.3 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
217.4 	providing the property is taxable as if the lessee or user were the fee owner;
217.5 	(e) manufactured homes and sectional structures, including storage sheds, decks, and 
217.6 	similar removable improvements constructed on the site of a manufactured home, sectional 
217.7 	structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 
217.8 	(f); and
217.9 	(f) flight property as defined in section 270.071.

217.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

217.11 	Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
217.12 		Subd. 2.Definitions. (a) For the purposes of this section, the term:
217.13 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
217.14 	subdivision 19, and also includes a substation that is used and owned by one or more wind 
217.15 	energy conversion facilities;
217.16 	(2) "large scale wind energy conversion system" means a wind energy conversion system 
217.17 	of more than 12 megawatts, as measured by the nameplate capacity of the system or as 
217.18 	combined with other systems as provided in paragraph (b);
217.19 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
217.20 	system of over two and not more than 12 megawatts, as measured by the nameplate capacity 
217.21 	of the system or as combined with other systems as provided in paragraph (b); and
217.22 	(4) "small scale wind energy conversion system" means a wind energy conversion system 
217.23 	of two megawatts and under, as measured by the nameplate capacity of the system or as 
217.24 	combined with other systems as provided in paragraph (b).
217.25 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
217.26 	wind energy conversion system under this subdivision shall be determined according to this 
217.27 	paragraph. Unless the systems are interconnected with different distribution systems, the 
217.28 	nameplate capacity of one wind energy conversion system shall be combined with the 
217.29 	nameplate capacity of any other wind energy conversion system that is:
217.30 	(1) located within five miles of the wind energy conversion system;
218.1 	(2) constructed within the same calendar year 12-month period as the wind energy 
218.2 	conversion system; and
218.3 	(3) under common ownership.
218.4 	In the case of a dispute, the commissioner of commerce shall determine the total size of 
218.5 	the system, and shall draw all reasonable inferences in favor of combining the systems.
218.6 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
218.7 	determine that two wind energy conversion systems are under common ownership when 
218.8 	the underlying ownership structure contains similar persons or entities, even if the ownership 
218.9 	shares differ between the two systems. Wind energy conversion systems are not under 
218.10 	common ownership solely because the same person or entity provided equity financing for 
218.11 	the systems.

218.12 	EFFECTIVE DATE. This section is effective for reports filed in 2018 and thereafter.

218.13 	Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 
218.14 	to read:
218.15 		Subd. 8.Extension. The commissioner may, for good cause, extend the time for filing 
218.16 	the report required by subdivision 4. The extension must not exceed 15 days.

218.17 	EFFECTIVE DATE. This section is effective for reports filed in 2018 and thereafter.

218.18 	Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:
218.19 		Subd. 7.Division of duties between local and county assessor. The duty of the duly 
218.20 	appointed local assessor shall be to view and appraise the value of all property as provided 
218.21 	by law, but all the book work shall be done by the county assessor, or the assessor's assistants, 
218.22 	and the value of all property subject to assessment and taxation shall be determined by the 
218.23 	county assessor, except as otherwise hereinafter provided. If directed by the county assessor, 
218.24 	the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), 
218.25 	and must enter construction and valuation data into the records in the manner prescribed 
218.26 	by the county assessor.

218.27 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

218.28 	Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:
218.29 	273.08 ASSESSOR'S DUTIES.
219.1 	The assessor shall actually view, and determine the market value of each tract or lot of 
219.2 	real property listed for taxation, including the value of all improvements and structures 
219.3 	thereon, at maximum intervals of five years and shall enter the value opposite each 
219.4 	description. When directed by the county assessor, local assessors must enter construction 
219.5 	and valuation data into the records in the manner prescribed by the county assessor.

219.6 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

219.7 	Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 
219.8 	to read:
219.9 		Subd. 3.Compliance. A county assessor, or a city assessor having the powers of a 
219.10 	county assessor, who does not comply with the timely notice requirement under subdivision 
219.11 	1 must:
219.12 	(1) mail an additional valuation notice to each person who was not provided timely 
219.13 	notice; and
219.14 	(2) convene a supplemental local board of appeal and equalization or local review session 
219.15 	no sooner than ten days after sending the additional notices required by clause (1).

219.16 	EFFECTIVE DATE. This section is effective for valuation notices sent in 2018 and 
219.17 	thereafter.

219.18 	Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
219.19 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
219.20 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
219.21 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
219.22 	property is deemed to be used for homestead purposes. The market value of class 1a property 
219.23 	must be determined based upon the value of the house, garage, and land.
219.24 	The first $500,000 of market value of class 1a property has a net classification rate of 
219.25 	one percent of its market value; and the market value of class 1a property that exceeds 
219.26 	$500,000 has a classification rate of 1.25 percent of its market value.
219.27 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
219.28 	used for the purposes of a homestead by:
219.29 	(1) any person who is blind as defined in section 256D.35, or the blind person and the 
219.30 	blind person's spouse;
220.1 	(2) any person who is permanently and totally disabled or by the disabled person and 
220.2 	the disabled person's spouse; or
220.3 	(3) the surviving spouse of a permanently and totally disabled veteran homesteading a 
220.4 	property classified under this paragraph for taxes payable in 2008.
220.5 	Property is classified and assessed under clause (2) only if the government agency or 
220.6 	income-providing source certifies, upon the request of the homestead occupant, that the 
220.7 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
220.8 	property is not eligible for the valuation exclusion under subdivision 34.
220.9 	Property is classified and assessed under paragraph (b) only if the commissioner of 
220.10 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
220.11 	of this paragraph.
220.12 	Permanently and totally disabled for the purpose of this subdivision means a condition 
220.13 	which is permanent in nature and totally incapacitates the person from working at an 
220.14 	occupation which brings the person an income. The first $50,000 market value of class 1b 
220.15 	property has a net classification rate of .45 percent of its market value. The remaining market 
220.16 	value of class 1b property has a classification rate using the rates for is classified as class 
220.17 	1a or class 2a property, whichever is appropriate, of similar market value.
220.18 	(c) Class 1c property is commercial use real and personal property that abuts public 
220.19 	water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 
220.20 	seasonal residential occupancy for recreational purposes but not devoted to commercial 
220.21 	purposes for more than 250 days in the year preceding the year of assessment, and that 
220.22 	includes a portion used as a homestead by the owner, which includes a dwelling occupied 
220.23 	as a homestead by a shareholder of a corporation that owns the resort, a partner in a 
220.24 	partnership that owns the resort, or a member of a limited liability company that owns the 
220.25 	resort even if the title to the homestead is held by the corporation, partnership, or limited 
220.26 	liability company. For purposes of this paragraph, property is devoted to a commercial 
220.27 	purpose on a specific day if any portion of the property, excluding the portion used 
220.28 	exclusively as a homestead, is used for residential occupancy and a fee is charged for 
220.29 	residential occupancy. Class 1c property must contain three or more rental units. A "rental 
220.30 	unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 
220.31 	site equipped with water and electrical hookups for recreational vehicles. Class 1c property 
220.32 	must provide recreational activities such as the rental of ice fishing houses, boats and motors, 
220.33 	snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 
220.34 	services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 
221.1 	the property is transferred to an individual or entity by deeded interest, or the sale of shares 
221.2 	or stock, no longer qualifies for class 1c even though it may remain available for rent. A 
221.3 	camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 
221.4 	1c, regardless of the term of the rental agreement, as long as the use of the camping pad 
221.5 	does not exceed 250 days. If the same owner owns two separate parcels that are located in 
221.6 	the same township, and one of those properties is classified as a class 1c property and the 
221.7 	other would be eligible to be classified as a class 1c property if it was used as the homestead 
221.8 	of the owner, both properties will be assessed as a single class 1c property; for purposes of 
221.9 	this sentence, properties are deemed to be owned by the same owner if each of them is 
221.10 	owned by a limited liability company, and both limited liability companies have the same 
221.11 	membership. The portion of the property used as a homestead is class 1a property under 
221.12 	paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 
221.13 	market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 
221.14 	market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 
221.15 	1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 
221.16 	temporary and seasonal residential occupancy for recreation purposes in which all or a 
221.17 	portion of the property was devoted to commercial purposes for not more than 250 days in 
221.18 	the year preceding the year of assessment desiring classification as class 1c, must submit a 
221.19 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
221.20 	the year preceding the year of assessment by January 15 of the assessment year. Those 
221.21 	cabins or units and a proportionate share of the land on which they are located must be 
221.22 	designated as class 1c as otherwise provided. The remainder of the cabins or units and a 
221.23 	proportionate share of the land on which they are located must be designated as class 3a 
221.24 	commercial. The owner of property desiring designation as class 1c property must provide 
221.25 	guest registers or other records demonstrating that the units for which class 1c designation 
221.26 	is sought were not occupied for more than 250 days in the year preceding the assessment 
221.27 	if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
221.28 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
221.29 	commercial basis not directly related to temporary and seasonal residential occupancy for 
221.30 	recreation purposes does not qualify for class 1c.
221.31 	(d) Class 1d property includes structures that meet all of the following criteria:
221.32 	(1) the structure is located on property that is classified as agricultural property under 
221.33 	section 273.13, subdivision 23;
221.34 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
221.35 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
222.1 	the property, provided that use of the structure for storage of farm equipment and produce 
222.2 	does not disqualify the property from classification under this paragraph;
222.3 	(3) the structure meets all applicable health and safety requirements for the appropriate 
222.4 	season; and
222.5 	(4) the structure is not salable as residential property because it does not comply with 
222.6 	local ordinances relating to location in relation to streets or roads.
222.7 	The market value of class 1d property has the same classification rates as class 1a property 
222.8 	under paragraph (a).

222.9 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

222.10 	Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:
222.11 		Subdivision 1.Listing and assessment in county. The personal property of express, 
222.12 	stage and transportation companies, and of pipeline companies engaged in the business of 
222.13 	transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise 
222.14 	provided by law, shall be listed and assessed in the county, town or district where the same 
222.15 	is usually kept.

222.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

222.17 	Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
222.18 		Subd. 2.Listing and assessment by commissioner. The personal property, consisting 
222.19 	of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 
222.20 	and others engaged in the operations or business of transporting natural gas, gasoline, crude 
222.21 	oil, or other petroleum products by pipelines, shall be listed with and assessed by the 
222.22 	commissioner of revenue and the values provided to the city or county assessor by order. 
222.23 	This subdivision shall not apply to the assessment of the products transported through the 
222.24 	pipelines nor to the lines of local commercial gas companies engaged primarily in the 
222.25 	business of distributing gas products to consumers at retail nor to pipelines used by the 
222.26 	owner thereof to supply natural gas or other petroleum products exclusively for such owner's 
222.27 	own consumption and not for resale to others. If more than 85 percent of the natural gas or 
222.28 	other petroleum products actually transported over the pipeline is used for the owner's own 
222.29 	consumption and not for resale to others, then this subdivision shall not apply; provided, 
222.30 	however, that in that event, the pipeline shall be assessed in proportion to the percentage 
222.31 	of gas products actually transported over such pipeline that is not used for the owner's own 
222.32 	consumption. On or before August 1, the commissioner shall certify to the auditor of each 
223.1 	county, the amount of such personal property assessment against each company in each 
223.2 	district in which such property is located. If the commissioner determines that the amount 
223.3 	of personal property assessment certified on or before August 1 is in error, the commissioner 
223.4 	may issue a corrected certification on or before October 1. The commissioner may correct 
223.5 	errors that are merely clerical in nature until December 31.

223.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

223.7 	Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:
223.8 		Subdivision 1.Scope. (a) As provided in this section, an appeal by a utility or railroad 
223.9 	company concerning property for which the commissioner of revenue has provided the city 
223.10 	or county assessor with valuations by order, or for which the commissioner has recommended 
223.11 	values to the city or county assessor, must be brought against the commissioner, and not 
223.12 	against the county or taxing district where the property is located. Service must be made 
223.13 	on the commissioner only, and not on the county or taxing district.
223.14 	(b) This section governs administrative appeals and appeals to court of a claim that utility 
223.15 	or railroad operating property has been partially, unfairly, or unequally assessed, or assessed 
223.16 	at a valuation greater than its real or actual value, misclassified, or that the property is 
223.17 	exempt. This section applies only to property described in sections 270.81, subdivision 1, 
223.18 	273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that 
223.19 	have been provided to the city or county by the commissioner and which have not been 
223.20 	changed by city or county. If the taxable net tax capacity being appealed is not the taxable 
223.21 	net tax capacity established by the commissioner, or if the appeal claims that the tax rate 
223.22 	applied against the parcel is incorrect, or that the tax has been paid, this section does not 
223.23 	apply.

223.24 	EFFECTIVE DATE. This section is effective for appeals of valuations made in 
223.25 	assessment year 2018 and thereafter.

223.26 	Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
223.27 		Subd. 2.Contents and filing of petition. (a) In all appeals to court that are required to 
223.28 	be brought against the commissioner under this section, the petition initiating the appeal 
223.29 	must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 
223.30 	as provided in paragraph (b) or (c).
223.31 	(b) If the appeal to court is from an order of the commissioner, it must be brought under 
223.32 	chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, 
224.1 	except that when the provisions of this section conflict with chapter 271 or 278, this section 
224.2 	prevails. In addition, the petition must include all the parcels encompassed by that order 
224.3 	which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 
224.4 	at a valuation greater than their real or actual value, misclassified, or are exempt. For this 
224.5 	purpose, an order of the commissioner is either (1) a certification or notice of value by the 
224.6 	commissioner for property described in subdivision 1, or (2) the final determination by the 
224.7 	commissioner of either an administrative appeal conference or informal administrative 
224.8 	appeal described in subdivision 4.
224.9 	(c) If the appeal is from the tax that results from implementation of the commissioner's 
224.10 	order, certification, or recommendation, it must be brought under chapter 278, and the 
224.11 	provisions in that chapter apply, except that service shall be on the commissioner only and 
224.12 	not on the local officials specified in section 278.01, subdivision 1, and if any other provision 
224.13 	of this section conflicts with chapter 278, this section prevails. In addition, the petition must 
224.14 	include either all the utility parcels or all the railroad parcels in the state in which the 
224.15 	petitioner claims an interest and which the petitioner claims have been partially, unfairly, 
224.16 	or unequally assessed, assessed at a valuation greater than their real or actual value, 
224.17 	misclassified, or are exempt.

224.18 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

224.19 	Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
224.20 		Subd. 4.Administrative appeals. (a) Companies that submit the reports under section 
224.21 	270.82 or 273.371 by the date specified in that section, or by the date specified by the 
224.22 	commissioner in an extension, may appeal administratively to the commissioner prior to 
224.23 	bringing an action in court.
224.24 	(b) Companies that must submit reports under section 270.82 must submit file a written 
224.25 	request to for an appeal with the commissioner for a conference within ten 30 days after 
224.26 	the notice date of the commissioner's valuation certification or other notice to the company, 
224.27 	or by June 15, whichever is earlier. For purposes of this section, "notice date" means the 
224.28 	notice date of the valuation certification, commissioner's order, recommendation, or other 
224.29 	notice.
224.30 	(c) Companies that submit reports under section 273.371 must submit a written request 
224.31 	to the commissioner for a conference within ten days after the date of the commissioner's 
224.32 	valuation certification or notice to the company, or by July 1, whichever is earlier The appeal 
224.33 	need not be in any particular form but must contain the following information:
225.1 	(1) name and address of the company;
225.2 	(2) the date;
225.3 	(3) its Minnesota identification number;
225.4 	(4) the assessment year or period involved;
225.5 	(5) the findings in the valuation that the company disputes;
225.6 	(6) a summary statement specifying its reasons for disputing each item; and
225.7 	(7) the signature of the company's duly authorized agent or representative.
225.8 	(d) When requested in writing and within the time allowed for filing an administrative 
225.9 	appeal, the commissioner may extend the time for filing an appeal for a period of not more 
225.10 	than 15 days from the expiration of the time for filing the appeal.
225.11 	(d) (e) The commissioner shall conduct the conference either in person or by telephone 
225.12 	upon the commissioner's entire files and records and such further information as may be 
225.13 	offered. The conference must be held no later than 20 days after the date of the 
225.14 	commissioner's valuation certification or notice to the company, or by the date specified by 
225.15 	the commissioner in an extension request for an appeal. Within 60 30 days after the 
225.16 	conference the commissioner shall make a final determination of the matter and shall notify 
225.17 	the company promptly of the determination. The conference is not a contested case hearing
225.18 	subject to chapter 14.
225.19 	(e) In addition to the opportunity for a conference under paragraph (a), the commissioner 
225.20 	shall also provide the railroad and utility companies the opportunity to discuss any questions 
225.21 	or concerns relating to the values established by the commissioner through certification or 
225.22 	notice in a less formal manner. This does not change or modify the deadline for requesting 
225.23 	a conference under paragraph (a), the deadline in section 271.06 for appealing an order of 
225.24 	the commissioner, or the deadline in section 278.01 for appealing property taxes in court.

225.25 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

225.26 	Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
225.27 	to read:
225.28 		Subd. 5.Agreement determining valuation. When it appears to be in the best interest 
225.29 	of the state, the commissioner may settle any matter under consideration regarding an appeal 
225.30 	filed under this section. The agreement must be in writing and signed by the commissioner 
225.31 	and the company or the company's authorized representative. The agreement is final and 
226.1 	conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a 
226.2 	material fact, the case may not be reopened as to the matters agreed upon.

226.3 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

226.4 	Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
226.5 	to read:
226.6 		Subd. 6.Dismissal of administrative appeal. If a taxpayer files an administrative appeal 
226.7 	from an order of the commissioner and also files an appeal to the Tax Court for that same 
226.8 	order of the commissioner, the administrative appeal is dismissed and the commissioner is 
226.9 	no longer required to make the determination of appeal under subdivision 4.

226.10 	EFFECTIVE DATE. This section is effective beginning with assessment year 2017.

226.11 	Sec. 25. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
226.12 	After making the apportionment provided in Minnesota Rules, part 8100.0600, the 
226.13 	commissioner must equalize the values of the operating structures to the level accepted by 
226.14 	the State Board of Equalization if the appropriate sales ratio for each county, as conducted 
226.15 	by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is 
226.16 	outside the range accepted by the State Board of Equalization. The commissioner must not 
226.17 	equalize the value of the operating structures if the sales ratio determined pursuant to this 
226.18 	subdivision is within the range accepted by the State Board of Equalization.

226.19 	EFFECTIVE DATE. This section is effective beginning with assessment year 2017.

226.20 	Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
226.21 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town board 
226.22 	of a town, or the council or other governing body of a city, is the local board of appeal and 
226.23 	equalization except (1) in cities whose charters provide for a board of equalization or (2) 
226.24 	in any city or town that has transferred its local board of review power and duties to the 
226.25 	county board as provided in subdivision 3. The county assessor shall fix a day and time 
226.26 	when the board or the local board of equalization shall meet in the assessment districts of 
226.27 	the county. Notwithstanding any law or city charter to the contrary, a city board of 
226.28 	equalization shall be referred to as a local board of appeal and equalization. On or before 
226.29 	February 15 of each year the assessor shall give written notice of the time to the city or 
226.30 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 
226.31 	be held between April 1 and May 31 each year. The clerk shall give published and posted 
226.32 	notice of the meeting at least ten days before the date of the meeting.
227.1 	The board shall meet either at a central location within the county or at the office of the 
227.2 	clerk to review the assessment and classification of property in the town or city. No changes 
227.3 	in valuation or classification which are intended to correct errors in judgment by the county 
227.4 	assessor may be made by the county assessor after the board has adjourned in those cities 
227.5 	or towns that hold a local board of review; however, corrections of errors that are merely 
227.6 	clerical in nature or changes that extend homestead treatment to property are permitted after 
227.7 	adjournment until the tax extension date for that assessment year. The changes must be fully 
227.8 	documented and maintained in the assessor's office and must be available for review by any 
227.9 	person. A copy of the changes made during this period in those cities or towns that hold a 
227.10 	local board of review must be sent to the county board no later than December 31 of the 
227.11 	assessment year.
227.12 	(b) The board shall determine whether the taxable property in the town or city has been 
227.13 	properly placed on the list and properly valued by the assessor. If real or personal property 
227.14 	has been omitted, the board shall place it on the list with its market value, and correct the 
227.15 	assessment so that each tract or lot of real property, and each article, parcel, or class of 
227.16 	personal property, is entered on the assessment list at its market value. No assessment of 
227.17 	the property of any person may be raised unless the person has been duly notified of the 
227.18 	intent of the board to do so. On application of any person feeling aggrieved, the board shall 
227.19 	review the assessment or classification, or both, and correct it as appears just. The board 
227.20 	may not make an individual market value adjustment or classification change that would 
227.21 	benefit the property if the owner or other person having control over the property has refused 
227.22 	the assessor access to inspect the property and the interior of any buildings or structures as 
227.23 	provided in section 273.20. A board member shall not participate in any actions of the board 
227.24 	which result in market value adjustments or classification changes to property owned by 
227.25 	the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 
227.26 	brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 
227.27 	board member has a financial interest. The relationship may be by blood or marriage.
227.28 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
227.29 	reductions must not reduce the aggregate assessment made by the county assessor by more 
227.30 	than one percent. If the total reductions would lower the aggregate assessments made by 
227.31 	the county assessor by more than one percent, none of the adjustments may be made. The 
227.32 	assessor shall correct any clerical errors or double assessments discovered by the board 
227.33 	without regard to the one percent limitation.
227.34 	(d) A local board does not have authority to grant an exemption or to order property 
227.35 	removed from the tax rolls.
228.1 	(e) A majority of the members may act at the meeting, and adjourn from day to day until 
228.2 	they finish hearing the cases presented. The assessor shall attend and take part in the 
228.3 	proceedings, but must not vote. The county assessor, or an assistant delegated by the county 
228.4 	assessor shall attend the meetings. The board shall list separately all omitted property added 
228.5 	to the list by the board and all items of property increased or decreased, with the market 
228.6 	value of each item of property, added or changed by the board. The county assessor shall 
228.7 	enter all changes made by the board.
228.8 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 
228.9 	or by written communication before the board after being duly notified of the board's intent 
228.10 	to raise the assessment of the property, or if a person feeling aggrieved by an assessment 
228.11 	or classification fails to apply for a review of the assessment or classification, the person 
228.12 	may not appear before the county board of appeal and equalization for a review. This 
228.13 	paragraph does not apply if an assessment was made after the local board meeting, as 
228.14 	provided in section 273.01, or if the person can establish not having received notice of 
228.15 	market value at least five days before the local board meeting.
228.16 	(g) The local board must complete its work and adjourn within 20 days from the time 
228.17 	of convening stated in the notice of the clerk, unless a longer period is approved by the 
228.18 	commissioner of revenue. No action taken after that date is valid. All complaints about an 
228.19 	assessment or classification made after the meeting of the board must be heard and 
228.20 	determined by the county board of equalization. A nonresident may, at any time, before the 
228.21 	meeting of the board file written objections to an assessment or classification with the county 
228.22 	assessor. The objections must be presented to the board at its meeting by the county assessor 
228.23 	for its consideration.

228.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

228.25 	Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
228.26 		Subdivision 1.Members; meetings; rules for equalizing assessments. The county 
228.27 	commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 
228.28 	present, the deputy county auditor, or, if there is no deputy, the court administrator of the 
228.29 	district court, shall form a board for the equalization of the assessment of the property of 
228.30 	the county, including the property of all cities whose charters provide for a board of 
228.31 	equalization. This board shall be referred to as the county board of appeal and equalization. 
228.32 	The board shall meet annually, on the date specified in section 274.14, at the office of the 
228.33 	auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 
228.34 	Members shall not participate in any actions of the board which result in market value 
229.1 	adjustments or classification changes to property owned by the board member, the spouse, 
229.2 	parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 
229.3 	nephew, or niece of a board member, or property in which a board member has a financial 
229.4 	interest. The relationship may be by blood or marriage. The board shall examine and compare 
229.5 	the returns of the assessment of property of the towns or districts, and equalize them so that 
229.6 	each tract or lot of real property and each article or class of personal property is entered on 
229.7 	the assessment list at its market value, subject to the following rules:
229.8 	(1) The board shall raise the valuation of each tract or lot of real property which in its 
229.9 	opinion is returned below its market value to the sum believed to be its market value. The 
229.10 	board must first give notice of intention to raise the valuation to the person in whose name 
229.11 	it is assessed, if the person is a resident of the county. The notice must fix a time and place 
229.12 	for a hearing.
229.13 	(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 
229.14 	above its market value to the sum believed to be its market value.
229.15 	(3) The board shall raise the valuation of each class of personal property which in its 
229.16 	opinion is returned below its market value to the sum believed to be its market value. It 
229.17 	shall raise the aggregate value of the personal property of individuals, firms, or corporations, 
229.18 	when it believes that the aggregate valuation, as returned, is less than the market value of 
229.19 	the taxable personal property possessed by the individuals, firms, or corporations, to the 
229.20 	sum it believes to be the market value. The board must first give notice to the persons of 
229.21 	intention to do so. The notice must set a time and place for a hearing.
229.22 	(4) The board shall reduce the valuation of each class of personal property that is returned 
229.23 	above its market value to the sum it believes to be its market value. Upon complaint of a 
229.24 	party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 
229.25 	property, or of any class of personal property for which the individual is assessed, which 
229.26 	in its opinion has been assessed at too large a sum, to the sum it believes was the market 
229.27 	value of the individual's personal property of that class.
229.28 	(5) The board must not reduce the aggregate value of all the property of its county, as 
229.29 	submitted to the county board of equalization, with the additions made by the auditor under 
229.30 	this chapter, by more than one percent of its whole valuation. The board may raise the 
229.31 	aggregate valuation of real property, and of each class of personal property, of the county, 
229.32 	or of any town or district of the county, when it believes it is below the market value of the 
229.33 	property, or class of property, to the aggregate amount it believes to be its market value.
230.1 	(6) The board shall change the classification of any property which in its opinion is not 
230.2 	properly classified.
230.3 	(7) The board does not have the authority to grant an exemption or to order property 
230.4 	removed from the tax rolls.
230.5 	(8) The board may not make an individual market value adjustment or classification 
230.6 	change that would benefit property if the owner or other person having control over the 
230.7 	property has refused the assessor access to inspect the property and the interior of any 
230.8 	buildings or structures as provided in section 273.20.

230.9 	EFFECTIVE DATE. This section is effective for county board of appeal and 
230.10 	equalization meetings in 2018 and thereafter.

230.11 	Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
230.12 		Subd. 3.Proof of compliance; transfer of duties. (a) Any county that conducts county 
230.13 	boards of appeal and equalization meetings must provide proof to the commissioner by 
230.14 	December 1, 2009, and each year thereafter, February 1  that it is in compliance with the 
230.15 	requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 
230.16 	was a quorum of voting members at each meeting of the board of appeal and equalization 
230.17 	in the current previous year. A county that does not comply with these requirements is 
230.18 	deemed to have transferred its board of appeal and equalization powers to the special board 
230.19 	of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the 
230.20 	following year's assessment and continuing unless the powers are reinstated under paragraph 
230.21 	(c). A county that does not comply with the requirements of subdivision 2 and has not 
230.22 	appointed a special board of equalization shall appoint a special board of equalization before 
230.23 	the following year's assessment.
230.24 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
230.25 	a county has been transferred to the special board of equalization under this subdivision 
230.26 	and, prior to the meeting time of the special board of equalization, the county shall make 
230.27 	available to those taxpayers a procedure for a review of the assessments, including, but not 
230.28 	limited to, open book meetings. This alternate review process must take place in April and 
230.29 	May.
230.30 	(c) A county board whose powers are transferred to the special board of equalization 
230.31 	under this subdivision may be reinstated by resolution of the county board and upon proof 
230.32 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
231.1 	provided to the commissioner by December February 1 in order to be effective for the 
231.2 	following current year's assessment.
231.3 	(d) If a person who was entitled to appeal to the county board of appeal and equalization 
231.4 	or to the county special board of equalization is not able to do so in a particular year because 
231.5 	the county board or special board did not meet the quorum and training requirements in this 
231.6 	section and section 274.13, or because the special board was not appointed, that person may 
231.7 	instead appeal to the commissioner of revenue, provided that the appeal is received by the 
231.8 	commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 
231.9 	270C.92. The commissioner must issue an appropriate order to the county assessor in 
231.10 	response to each timely appeal, either upholding or changing the valuation or classification 
231.11 	of the property. Prior to October 1 of each year, the commissioner must charge and bill the 
231.12 	county where the property is located $500 for each tax parcel covered by an order issued 
231.13 	under this paragraph in that year. Amounts received by the commissioner under this paragraph 
231.14 	must be deposited in the state's general fund. If payment of a billed amount is not received 
231.15 	by the commissioner before December 1 of the year when billed, the commissioner must 
231.16 	deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 
231.17 	county under chapter 477A in the next year. Late payments may either be returned to the 
231.18 	county uncashed and undeposited or may be accepted. If a late payment is accepted, the 
231.19 	state aid paid to the county under chapter 477A must be adjusted within 12 months to 
231.20 	eliminate any reduction that occurred because the payment was late. Amounts needed to 
231.21 	make these adjustments are included in the appropriation under section 477A.03, subdivision 
231.22 	2.

231.23 	EFFECTIVE DATE. This section is effective for county board of appeal and 
231.24 	equalization meetings held in 2018 and thereafter.

231.25 	Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
231.26 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
231.27 	on or before September 30, each county and each home rule charter or statutory city shall 
231.28 	certify to the county auditor the proposed property tax levy for taxes payable in the following 
231.29 	year.
231.30 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
231.31 	town and each special taxing district shall adopt and certify to the county auditor a proposed 
231.32 	property tax levy for taxes payable in the following year. For towns, the final certified levy 
231.33 	shall also be considered the proposed levy.
232.1 	(c) On or before September 30, each school district that has not mutually agreed with 
232.2 	its home county to extend this date shall certify to the county auditor the proposed property 
232.3 	tax levy for taxes payable in the following year. Each school district that has agreed with 
232.4 	its home county to delay the certification of its proposed property tax levy must certify its 
232.5 	proposed property tax levy for the following year no later than October 7. The school district 
232.6 	shall certify the proposed levy as:
232.7 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
232.8 	and non-voter-approved levies and between referendum market value and tax capacity 
232.9 	levies; or
232.10 	(2) the maximum levy limitation certified by the commissioner of education according 
232.11 	to section 126C.48, subdivision 1.
232.12 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
232.13 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
232.14 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
232.15 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
232.16 	jurisdictions.
232.17 	(e) For purposes of this section, "special taxing district" means a special taxing district 
232.18 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
232.19 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
232.20 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
232.21 	taxing districts for purposes of this section.
232.22 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
232.23 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
232.24 	its any subsequent regularly scheduled meetings at which the budget and levy will be 
232.25 	discussed and at which the public will be allowed to speak. The time and place of those 
232.26 	meetings must be included in the proceedings or summary of proceedings published in the 
232.27 	official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

232.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

232.29 	Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
232.30 		Subd. 2.Local governments required to report. For purposes of this section, "local 
232.31 	governmental unit" means a county, home rule charter or statutory city with a population 
232.32 	greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 
233.1 	statutory city or town that receives a distribution from the taconite municipal aid account 
233.2 	in the levy year.

233.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

233.4 	Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
233.5 		Subdivision 1.Determination of validity. (a) Any person having personal property, or 
233.6 	any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 
233.7 	property has been partially, unfairly, or unequally assessed in comparison with other property 
233.8 	in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 
233.9 	the portion of the county excluding the first class city, or that the parcel has been assessed 
233.10 	at a valuation greater than its real or actual value, or that the tax levied against the same is 
233.11 	illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 
233.12 	levied, may have the validity of the claim, defense, or objection determined by the district 
233.13 	court of the county in which the tax is levied or by the Tax Court by serving one copy of a 
233.14 	petition for such determination upon the county auditor, one copy on the county attorney, 
233.15 	one copy on the county treasurer, and three copies on the county assessor. The county 
233.16 	assessor shall immediately forward one copy of the petition to the appropriate governmental 
233.17 	authority in a home rule charter or statutory city or town in which the property is located if 
233.18 	that city or town employs its own certified assessor. A copy of the petition shall also be 
233.19 	forwarded by the assessor to the school board of the school district in which the property 
233.20 	is located.
233.21 	(b) In counties where the office of county treasurer has been combined with the office 
233.22 	of county auditor, the county may elect to require the petitioner to serve the number of 
233.23 	copies as determined by the county. The county assessor shall immediately forward one 
233.24 	copy of the petition to the appropriate governmental authority in a home rule charter or 
233.25 	statutory city or town in which the property is located if that city or town employs its own 
233.26 	certified assessor. A list of petitioned properties, including the name of the petitioner, the 
233.27 	identification number of the property, and the estimated market value, shall be sent on or 
233.28 	before the first day of July by the county auditor/treasurer to the school board of the school 
233.29 	district in which the property is located.
233.30 	(c) For all counties, the petitioner must file the copies with proof of service, in the office 
233.31 	of the court administrator of the district court on or before April 30 of the year in which the 
233.32 	tax becomes payable. A petition for determination under this section may be transferred by 
233.33 	the district court to the Tax Court. An appeal may also be taken to the Tax Court under 
233.34 	chapter 271 at any time following receipt of the valuation notice that county assessors or 
234.1 	city assessors having the powers of a county assessor are required by section 273.121 to 
234.2 	send to persons whose property is to be included on the assessment roll that year, but prior 
234.3 	to May 1 of the year in which the taxes are payable.

234.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

234.5 	Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
234.6 		Subd. 1a.Conveyance to public entities. (a) Upon written request from a state agency 
234.7 	or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 
234.8 	withheld from sale or lease to others for a maximum of six months. The request must be 
234.9 	submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 
234.10 	from sale or lease to any other party for six months, and must confirm the starting date of 
234.11 	the six-month withholding period to the requesting agency or subdivision. If the request is 
234.12 	from a governmental subdivision of the state, the governmental subdivision must pay the 
234.13 	maintenance costs incurred by the county during the period the parcel is withheld. The 
234.14 	county board may approve a sale or conveyance to the requesting party during the 
234.15 	withholding period. A conveyance of the property to the requesting party terminates the 
234.16 	withholding period.
234.17 	A governmental subdivision of the state must not make, and a county auditor must not 
234.18 	act upon, a second request to withhold a parcel from sale or lease within 18 months of a 
234.19 	previous request for that parcel. A county may reject a request made under this paragraph 
234.20 	if the request is made more than 30 days after the county has given notice to the requesting 
234.21 	state agency or governmental subdivision of the state that the county intends to sell or 
234.22 	otherwise dispose of the property.
234.23 	(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 
234.24 	value as determined by the county board, to an organized or incorporated governmental 
234.25 	subdivision of the state for any public purpose for which the subdivision is authorized to 
234.26 	acquire property. When the term "market value" is used in this section, it means an estimate 
234.27 	of the full and actual market value of the parcel as determined by the county board, but in 
234.28 	making this determination, the board and the persons employed by or under contract with 
234.29 	the board in order to perform, conduct, or assist in the determination, are exempt from the 
234.30 	licensure requirements of chapter 82B.
234.31 	(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 
234.32 	taxing districts on application to sold by the county board by, for their market value as 
234.33 	determined by the county board, to a state agency for an authorized use at not less than their 
235.1 	market value as determined by the county board any public purpose for which the agency 
235.2 	is authorized to acquire property.
235.3 	(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 
235.4 	or incorporated governmental subdivision of the state or state agency for less than their 
235.5 	market value if:
235.6 	(1) the county board determines that a sale at a reduced price is in the public interest 
235.7 	because a reduced price is necessary to provide an incentive to correct the blighted conditions 
235.8 	that make the lands undesirable in the open market, or the reduced price will lead to the 
235.9 	development of affordable housing; and
235.10 	(2) the governmental subdivision or state agency has documented its specific plans for 
235.11 	correcting the blighted conditions or developing affordable housing, and the specific law 
235.12 	or laws that empower it to acquire real property in furtherance of the plans.
235.13 	If the sale under this paragraph is to a governmental subdivision of the state, the 
235.14 	commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 
235.15 	If the sale under this paragraph is to a state agency, the property is released from the trust 
235.16 	in favor of the taxing districts and the commissioner of revenue must issue a conveyance 
235.17 	document that releases the property from the trust in favor of the taxing districts convey the 
235.18 	property on behalf of the state by quitclaim deed to the agency.
235.19 	(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 
235.20 	be conveyed by the commissioner of revenue in the name of the state to a governmental 
235.21 	subdivision for an authorized public use, if an application is submitted to the commissioner 
235.22 	which includes a statement of facts as to the use to be made of the tract and the favorable 
235.23 	recommendation of the county board. For the purposes of this paragraph, "authorized public 
235.24 	use" means a use that allows an indefinite segment of the public to physically use and enjoy 
235.25 	the property in numbers appropriate to its size and use, or is for a public service facility. 
235.26 	Authorized public uses as defined in this paragraph are limited to:
235.27 	(1) a road, or right-of-way for a road;
235.28 	(2) a park that is both available to, and accessible by, the public that contains 
235.29 	improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
235.30 	(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 
235.31 	with a reasonable amount of surrounding land maintained in its natural state;
236.1 	(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 
236.2 	transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 
236.3 	facilities related to a public transit system;
236.4 	(5) public beaches or boat launches;
236.5 	(6) public parking;
236.6 	(7) civic recreation or conference facilities; and
236.7 	(8) public service facilities such as fire halls, police stations, lift stations, water towers, 
236.8 	sanitation facilities, water treatment facilities, and administrative offices.
236.9 	No monetary compensation or consideration is required for the conveyance, except as 
236.10 	provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 
236.11 	including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
236.12 	(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
236.13 	land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 
236.14 	upon the favorable recommendation of the county board if the governmental subdivision 
236.15 	has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 
236.16 	under a written development agreement or instrument, but the conveyance failed to occur 
236.17 	prior to forfeiture. No compensation or consideration is required for, and no conditions 
236.18 	attach to, the conveyance.
236.19 	(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
236.20 	land to the association of a common interest community by quitclaim deed upon the favorable 
236.21 	recommendation of the county board if the association certifies to the board that prior to 
236.22 	forfeiture the association was entitled to the parcel under a written agreement, but the 
236.23 	conveyance failed to occur prior to forfeiture. No compensation or consideration is required 
236.24 	for, and no conditions attach to, the conveyance.
236.25 	(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 
236.26 	state for less than its market value for either: (1) creation or preservation of wetlands; (2) 
236.27 	drainage or storage of storm water under a storm water management plan; or (3) preservation, 
236.28 	or restoration and preservation, of the land in its natural state. The deed must contain a 
236.29 	restrictive covenant limiting the use of the land to one of these purposes for 30 years or 
236.30 	until the property is reconveyed back to the state in trust. At any time, the governmental 
236.31 	subdivision may reconvey the property to the state in trust for the taxing districts. The deed 
236.32 	of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 
236.33 	price determined under this paragraph shall be refunded upon a reconveyance, but the 
237.1 	amount paid for a conveyance under this paragraph may be taken into account by the county 
237.2 	board when setting the terms of a future sale of the same property to the same governmental 
237.3 	subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 
237.4 	incorporated municipality and the commissioner of natural resources determines there is a 
237.5 	mineral use potential, the sale is subject to the approval of the commissioner of natural 
237.6 	resources.
237.7 	(i) A park and recreation board in a city of the first class is a governmental subdivision 
237.8 	for the purposes of this section.
237.9 	(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 
237.10 	the commissioner of revenue in the name of the state to a governmental subdivision for a 
237.11 	school forest under section 89.41. An application that includes a statement of facts as to the 
237.12 	use to be made of the tract and the favorable recommendation of the county board and the 
237.13 	commissioner of natural resources must be submitted to the commissioner of revenue. No 
237.14 	monetary compensation or consideration is required for the conveyance, but the conveyance 
237.15 	is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 
237.16 	(e). At any time, the governmental subdivision may reconvey the property back to the state 
237.17 	in trust for the taxing districts. The deed of reconveyance is subject to approval by the 
237.18 	commissioner of revenue.

237.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

237.20 	Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
237.21 		Subd. 1d.Reverter for failure to use; conveyance to state. (a) After three years from 
237.22 	the date of any conveyance of tax-forfeited land to a governmental subdivision for an 
237.23 	authorized public use as provided in this section, regardless of when the deed for the 
237.24 	authorized public use was executed, if the governmental subdivision has failed to put the 
237.25 	land to that use, or abandons that use, the governing body of the subdivision must: (1) with 
237.26 	the approval of the county board, purchase the property for an authorized public purpose 
237.27 	at the present market value as determined by the county board, or (2) authorize the proper 
237.28 	officers to convey the land, or the part of the land not required for an authorized public use, 
237.29 	to the state of Minnesota in trust for the taxing districts. If the governing body purchases 
237.30 	the property under clause (1), the commissioner of revenue shall, upon proper application 
237.31 	submitted by the county auditor and upon the reconveyance of the land subject to the 
237.32 	conditional use deed to the state, convey the property on behalf of the state by quitclaim 
237.33 	deed to the subdivision free of a use restriction and the possibility of reversion or 
237.34 	defeasement. If the governing body decides to reconvey the property to the state under this 
238.1 	clause, the officers shall execute a deed of conveyance immediately. The conveyance is 
238.2 	subject to the approval of the commissioner and its form must be approved by the attorney 
238.3 	general. For 15 years from the date of the conveyance, there is no failure to put the land to 
238.4 	the authorized public use and no abandonment of that use if a formal plan of the governmental 
238.5 	subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 
238.6 	intended future use of the land for the authorized public use.
238.7 	(b) Property held by a governmental subdivision of the state under a conditional use 
238.8 	deed executed under this section by the commissioner of revenue on or after January 1, 
238.9 	2007, may be acquired by that governmental subdivision after 15 years from the date of the 
238.10 	conveyance if the commissioner determines upon written application from the subdivision 
238.11 	that the subdivision has in fact put the property to the authorized public use for which it 
238.12 	was conveyed, and the subdivision has made a finding that it has no current plans to change 
238.13 	the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 
238.14 	the county board where the land is located objects to a conveyance of the property to the 
238.15 	subdivision without conditions and without further act by or obligation of the subdivision. 
238.16 	If the county does not object within 60 days, and the commissioner makes a favorable 
238.17 	determination, the commissioner shall issue a quitclaim deed on behalf of the state 
238.18 	unconditionally conveying the property to the governmental subdivision. For purposes of 
238.19 	this paragraph, demonstration of an intended future use for the authorized public use in a 
238.20 	formal plan of the governmental subdivision does not constitute use for that authorized 
238.21 	public use.
238.22 	(c) Property held by a governmental subdivision of the state under a conditional use 
238.23 	deed executed under this section by the commissioner of revenue before January 1, 2007, 
238.24 	is released from the use restriction and possibility of reversion on January 1, 2022, if the 
238.25 	county board records a resolution describing the land and citing this paragraph. The county 
238.26 	board may authorize the county treasurer to deduct the amount of the recording fees from 
238.27 	future settlements of property taxes to the subdivision.
238.28 	(d) Except for tax-forfeited land conveyed to establish a school forest under section 
238.29 	89.41, property conveyed under a conditional use deed executed under this section by the 
238.30 	commissioner of revenue, regardless of when the deed for the authorized public use was 
238.31 	executed, is released from the use restriction and reverter, and any use restriction or reverter 
238.32 	for which no declaration of reversion has been recorded with the county recorder or registrar 
238.33 	of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 
238.34 	the date the deed was acknowledged; or (3) final resolution of an appeal to district court 
239.1 	under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 
239.2 	county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
239.3 	(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 
239.4 	school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 
239.5 	The property reverts to the state in trust for the taxing districts by operation of law if the 
239.6 	commissioner of natural resources determines and reports to the commissioner of revenue 
239.7 	under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 
239.8 	land for school forest purposes for three consecutive years. The commissioner of revenue 
239.9 	shall record a declaration of reversion for land that has reverted under this paragraph.

239.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

239.11 	Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 
239.12 	to read:
239.13 		Subd. 14.Communication by electronic mail. Prior to receiving aid pursuant to this 
239.14 	section, a city must register an official electronic mail address with the commissioner, which 
239.15 	the commissioner may use as an exclusive means to communicate with the city.

239.16 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

239.17 	Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
239.18 	to read:
239.19 		Subd. 3a.Certification. On or before June 1 of each year, the commissioner of natural 
239.20 	resources shall certify to the commissioner of revenue the number of watercraft launches 
239.21 	and the number of watercraft trailer parking spaces in each county.

239.22 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

239.23 	Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
239.24 	to read:
239.25 		Subd. 3b.Certification. On or before June 1 of each year, the commissioner of natural 
239.26 	resources shall certify to the commissioner of revenue the counties that complied with the 
239.27 	requirements of subdivision 3 the prior year and are eligible to receive aid under this section.

239.28 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

240.1 	Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
240.2 		Subd. 2.Exception. This section does not apply to sales made under chapter 282 or if 
240.3 	the purchaser is represented throughout the transaction by either:
240.4 	(1) a person licensed to practice law in this state; or
240.5 	(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 
240.6 	that the representation does not create a dual agency, as that term is defined in section 82.55, 
240.7 	subdivision 6.

240.8 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited land occurring 
240.9 	the day following final enactment and thereafter.

240.10 	Sec. 38. Laws 2014, chapter 308, article 9, section 94, is amended to read:
240.11 	Sec. 94. REPEALER.
 240.12 	(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 
240.13 	19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 
240.14 	part 8007.0200, are repealed.
240.15 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 
240.16 	2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 
240.17 	82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 
240.18 	273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 
240.19 	8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 
240.20 	subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 
240.21 	subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 
240.22 	subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 
240.23 	469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 
240.24 	2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 
240.25 	Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 
240.26 	repealed.
240.27 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
240.28 	(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 
240.29 	469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 
240.30 	469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 
240.31 	section 469.340, subdivision 4, are repealed.
240.32 	(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

241.1 	EFFECTIVE DATE. This section is effective retroactively from May 20, 2014, and 
241.2 	pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, 
241.3 	subdivision 2, is revived and reenacted as of that date.

241.4 	Sec. 39.  REPEALER.
 241.5 	(a) Minnesota Statutes 2016, section 281.22, is repealed.
241.6 	(b) Minnesota Rules, part 8100.0700, is repealed.

241.7 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
241.8 	Paragraph (b) is effective for assessment year 2017 and thereafter.

241.9 	ARTICLE 13
241.10 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
241.11 	PROVISIONS; MISCELLANEOUS

241.12 	Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:
241.13 		Subdivision 1.Annual report required. Every railroad company doing business in 
241.14 	Minnesota shall annually file with the commissioner on or before March 31 a report under 
241.15 	oath setting forth the information prescribed by the commissioner to enable the commissioner 
241.16 	to make the valuation and equalization required by sections 270.80 to 270.87. The 
241.17 	commissioner shall prescribe the content, format, and manner of the report pursuant to 
241.18 	section 270C.30, except that a "law administered by the commissioner" includes the property 
241.19 	tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant 
241.20 	to section 270C.304, except that a "law administered by the commissioner" includes the 
241.21 	property tax laws.

241.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

241.23 	Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
241.24 		Subd. 5.Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 
241.25 	certain amount of money, which equals or exceeds $25 and which is due and payable to a 
241.26 	claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 
241.27 	fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 
241.28 	restitution. A debt may arise under a contractual or statutory obligation, a court order, or 
241.29 	other legal obligation, but need not have been reduced to judgment.
241.30 	A debt includes any legal obligation of a current recipient of assistance which is based 
241.31 	on overpayment of an assistance grant where that payment is based on a client waiver or 
242.1 	an administrative or judicial finding of an intentional program violation; or where the debt 
242.2 	is owed to a program wherein the debtor is not a client at the time notification is provided 
242.3 	to initiate recovery under this chapter and the debtor is not a current recipient of food support, 
242.4 	transitional child care, or transitional medical assistance.
242.5 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
242.6 	care, including hospitalization if the income of the debtor at the time when the medical care 
242.7 	was rendered does not exceed the following amount:
242.8 	(1) for an unmarried debtor, an income of $8,800 $12,560 or less;
242.9 	(2) for a debtor with one dependent, an income of $11,270 $16,080 or less;
242.10 	(3) for a debtor with two dependents, an income of $13,330 $19,020 or less;
242.11 	(4) for a debtor with three dependents, an income of $15,120 $21,580 or less;
242.12 	(5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and
242.13 	(6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.
242.14 	For purposes of this paragraph, "debtor" means the individual whose income, together 
242.15 	with the income of the individual's spouse, other than a separated spouse, brings the 
242.16 	individual within the income provisions of this paragraph. For purposes of this paragraph, 
242.17 	a spouse, other than a separated spouse, shall be considered a dependent.
242.18 	(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 
242.19 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
242.20 	that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." 
242.21 	For 2001 2016, the commissioner shall then determine the percent change from the 12 
242.22 	months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, 
242.23 	and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the 
242.24 	12 months ending on August 31 of the year preceding the taxable year. The determination 
242.25 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
242.26 	not be subject to the Administrative Procedure Act contained in chapter 14. The income 
242.27 	amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 
242.28 	the amount is rounded up to the nearest $10 amount.
242.29 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 
242.30 	dollar amount of the premium authorized under section 256L.15, subdivision 1a.

242.31 	EFFECTIVE DATE. The section is effective retroactively for debts incurred after 
242.32 	December 31, 2014.

243.1 	Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
243.2 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
243.3 	the commissioner of human services, the commissioner shall disclose return information 
243.4 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
243.5 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
243.6 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
243.7 	employment, income, and property of a person owing or alleged to be owing an obligation 
243.8 	of child support.
243.9 	(c) The commissioner of human services may request data only for the purposes of 
243.10 	carrying out the child support enforcement program and to assist in the location of parents 
243.11 	who have, or appear to have, deserted their children. Data received may be used only as set 
243.12 	forth in section 256.978.
243.13 	(d) The commissioner shall provide the records and information necessary to administer 
243.14 	the supplemental housing allowance to the commissioner of human services.
243.15 	(e) At the request of the commissioner of human services, the commissioner of revenue 
243.16 	shall electronically match the Social Security numbers and names of participants in the 
243.17 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
243.18 	tax refund filers, and determine whether each participant's household income is within the 
243.19 	eligibility standards for the telephone assistance plan.
243.20 	(f) The commissioner may provide records and information collected under sections 
243.21 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
243.22 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
243.23 	102-234. Upon the written agreement by the United States Department of Health and Human 
243.24 	Services to maintain the confidentiality of the data, the commissioner may provide records 
243.25 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
243.26 	Medicaid Services section of the United States Department of Health and Human Services 
243.27 	for purposes of meeting federal reporting requirements.
243.28 	(g) The commissioner may provide records and information to the commissioner of 
243.29 	human services as necessary to administer the early refund of refundable tax credits.
243.30 	(h) The commissioner may disclose information to the commissioner of human services 
243.31 	as necessary to verify income for income verification for eligibility and premium payment 
243.32 	under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the 
243.33 	medical assistance program under chapter 256B.
244.1 	(i) The commissioner may disclose information to the commissioner of human services 
244.2 	necessary to verify whether applicants or recipients for the Minnesota family investment 
244.3 	program, general assistance, food support, Minnesota supplemental aid program, and child 
244.4 	care assistance have claimed refundable tax credits under chapter 290 and the property tax 
244.5 	refund under chapter 290A, and the amounts of the credits.
244.6 	(j) The commissioner may disclose information to the commissioner of human services 
244.7 	necessary to verify income for purposes of calculating parental contribution amounts under 
244.8 	section 252.27, subdivision 2a.

244.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

244.10 	Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:
244.11 	270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
244.12 	Except as otherwise provided by law, the commissioner shall prescribe the content and,
244.13 	format, and manner of all returns and other forms required to be filed under a law 
244.14 	administered by the commissioner, and may furnish them subject to charge on application.

244.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

244.16 	Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:
244.17 		Subd. 5.Prohibition against collection during appeal period of an order. No collection 
244.18 	action can be taken on an order of assessment, or any other order imposing a liability, 
244.19 	including the filing of liens under section 270C.63, and no late payment penalties may be 
244.20 	imposed when a return has been filed for the tax type and period upon which the order is 
244.21 	based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 
244.22 	after the order has been mailed to the taxpayer notice date designated by the commissioner
244.23 	on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after
244.24 	the notice date designated by the commissioner on the written determination of the 
244.25 	administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 
244.26 	decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 
244.27 	is based upon a constitutional challenge to the tax, 60 days after final determination of the 
244.28 	appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 
244.29 	or a jeopardy collection under section 270C.36.

244.30 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
244.31 	2017.

245.1 	Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:
245.2 		Subd. 8.Sufficiency of notice. An assessment of tax made by the commissioner, sent 
245.3 	postage prepaid by United States mail to the taxpayer at the taxpayer's last known address, 
245.4 	or sent by electronic mail to the taxpayer's last known electronic mailing address as provided 
245.5 	for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal 
245.6 	disability, or, in the case of a corporation, has terminated its existence, unless the 
245.7 	commissioner has been provided with a new address by a party authorized to receive notices 
245.8 	of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date 
245.9 	designated by the commissioner on the assessment.

245.10 	EFFECTIVE DATE. This section is effective for assessments dated after December 
245.11 	31, 2017.

245.12 	Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
245.13 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
245.14 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
245.15 	charge, must be filed with the commissioner within 60 days of the notice date of the notice 
245.16 	was mailed to the taxpayer's last known address, stating that a penalty has been imposedor 
245.17 	additional tax charge. For purposes of this section, "notice date" means the notice date 
245.18 	designated by the commissioner on the order or other notice that a penalty or additional tax 
245.19 	charge has been imposed.
245.20 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
245.21 	interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 
245.22 	in section 270C.35 or appeal to Tax Court as provided in section 271.06.
245.23 	(c) If the commissioner does not issue an order on the abatement request within 60 days 
245.24 	from the date the request is received, the taxpayer may appeal to Tax Court as provided in 
245.25 	section 271.06.

245.26 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
245.27 	December 31, 2017.

245.28 	Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:
245.29 		Subd. 3.Notice date. For purposes of this section, the term "notice date" means the
245.30 	notice date of designated by the commissioner on the order adjusting the tax or order denying 
245.31 	a request for abatement, or, in the case of a denied refund, the notice date of designated by 
245.32 	the commissioner on the notice of denial.

246.1 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
246.2 	December 31, 2017.

246.3 	Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 
246.4 	read:
246.5 		Subd. 11.Dismissal of administrative appeal. If a taxpayer files an administrative 
246.6 	appeal for an order of the commissioner and also files an appeal to the Tax Court for that 
246.7 	same order of the commissioner, the administrative appeal is dismissed and the commissioner 
246.8 	is no longer required to make a determination of appeal under subdivision 6.

246.9 	EFFECTIVE DATE. This section is effective for all administrative appeals filed after 
246.10 	June 30, 2017.

246.11 	Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
246.12 		Subdivision 1.Sufficient notice. (a) If no method of notification of a written 
246.13 	determination or action of the commissioner is otherwise specifically provided for by law, 
246.14 	notice of the determination or action sent postage prepaid by United States mail to the 
246.15 	taxpayer or other person affected by the determination or action at the taxpayer's or person's 
246.16 	last known address, is sufficient. If the taxpayer or person being notified is deceased or is 
246.17 	under a legal disability, or, in the case of a corporation being notified that has terminated 
246.18 	its existence, notice to the last known address of the taxpayer, person, or corporation is 
246.19 	sufficient, unless the department has been provided with a new address by a party authorized 
246.20 	to receive notices from the commissioner.
246.21 	(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 
246.22 	of a determination or action of the commissioner sent by electronic mail to the taxpayer's 
246.23 	or person's last known electronic mailing address as provided for in section 325L.08 is 
246.24 	sufficient.
246.25 	(c) Notice of a determination or action of the commissioner is sufficient if it is sent on 
246.26 	or before the notice date designated by the commissioner on the notice.

246.27 	EFFECTIVE DATE. This section is effective for notices dated after December 31, 
246.28 	2017.

247.1 	Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 
247.2 	to read:
247.3 		Subd. 9.Enforcement; limitations. (a) Notwithstanding any other law, the imposition 
247.4 	of a penalty or any other action against a tax preparer authorized by subdivision 6 with 
247.5 	respect to a return may be taken by the commissioner within the period provided by section 
247.6 	289A.38 to assess tax on that return.
247.7 	(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision 
247.8 	6 other than with respect to a return must be taken by the commissioner within five years 
247.9 	of the violation of statute.

247.10 	EFFECTIVE DATE. This section is effective for tax preparation services provided 
247.11 	after the day following final enactment.

247.12 	Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
247.13 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax preparer 
247.14 	from the list of tax preparers published under this section:
247.15 	(1) when the commissioner determines that the name was included on the list in error;
247.16 	(2) within 90 days three years after the preparer has demonstrated to the commissioner 
247.17 	that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied 
247.18 	any sentence imposed, successfully completed any probationary period imposed, and 
247.19 	successfully completed any remedial actions required by the commissioner, the State Board 
247.20 	of Accountancy, or the Lawyers Board of Professional Responsibility; or
247.21 	(3) when the commissioner has been notified that the tax preparer is deceased.

247.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

247.23 	Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
247.24 		Subd. 4.Licensing authority; duties. All licensing authorities must require the applicant 
247.25 	to provide the applicant's Social Security number or individual taxpayer identification 
247.26 	number and Minnesota business identification number, as applicable, on all license 
247.27 	applications. Upon request of the commissioner, the licensing authority must provide the 
247.28 	commissioner with a list of all applicants, including the name, address, business name and 
247.29 	address, and Social Security number, or individual taxpayer identification number and 
247.30 	business identification number, as applicable, of each applicant. The commissioner may 
248.1 	request from a licensing authority a list of the applicants no more than once each calendar 
248.2 	year.

248.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

248.4 	Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
248.5 		Subd. 2.Time; notice; intervention. Except as otherwise provided by law, within 60 
248.6 	days after the notice of the making and filing date of an order of the commissioner of revenue, 
248.7 	the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 
248.8 	and file the original, with proof of such service, with the Tax Court administrator or with 
248.9 	the court administrator of district court acting as court administrator of the Tax Court; 
248.10 	provided, that the Tax Court, for cause shown, may by written order extend the time for 
248.11 	appealing for an additional period not exceeding 30 days. For purposes of this section, 
248.12 	"notice date" means the notice date designated by the commissioner on the order. The notice 
248.13 	of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt, 
248.14 	the commissioner shall transmit a copy of the notice of appeal to the attorney general. The 
248.15 	attorney general shall represent the commissioner, if requested, upon all such appeals except 
248.16 	in cases where the attorney general has appealed in behalf of the state, or in other cases 
248.17 	where the attorney general deems it against the interests of the state to represent the 
248.18 	commissioner, in which event the attorney general may intervene or be substituted as an 
248.19 	appellant in behalf of the state at any stage of the proceedings.
248.20 	Upon a final determination of any other matter over which the court is granted jurisdiction 
248.21 	under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 
248.22 	petition or notice of appeal as provided by law with the court administrator of district court, 
248.23 	acting in the capacity of court administrator of the Tax Court, with proof of service of the 
248.24 	petition or notice of appeal as required by law and within the time required by law. As used 
248.25 	in this subdivision, "final determination" includes a notice of assessment and equalization 
248.26 	for the year in question received from the local assessor, an order of the local board of 
248.27 	equalization, or an order of a county board of equalization.
248.28 	The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 
248.29 	with the district court administrator acting as court administrator of the Tax Court is 
248.30 	forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 
248.31 	property valuation for which the assessor, a local board of equalization, a county board of 
248.32 	equalization or the commissioner of revenue has issued an order, the officer issuing the 
248.33 	order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 
248.34 	in the form prescribed by the Tax Court.

249.1 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
249.2 	2017.

249.3 	Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
249.4 		Subd. 7.Rules. Except as provided in section 278.05, subdivision 6, the Rules of 
249.5 	Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 
249.6 	in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 
249.7 	60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court 
249.8 	may adopt rules under chapter 14.

249.9 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
249.10 	2017.

249.11 	Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
249.12 		Subd. 10.Personal property used for pollution control. Personal property used 
249.13 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
249.14 	extent that it is so used, and real property is exempt if it is used primarily for abatement and 
249.15 	control of air, water, or land pollution as part of an agricultural operation, as a part of a 
249.16 	centralized treatment and recovery facility operating under a permit issued by the Minnesota 
249.17 	Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 
249.18 	7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 
249.19 	and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 
249.20 	or inorganic materials from hazardous industrial wastes, or as part of an electric generation 
249.21 	system. For purposes of this subdivision, personal property includes ponderous machinery 
249.22 	and equipment used in a business or production activity that at common law is considered 
249.23 	real property.
249.24 	Any taxpayer requesting exemption of all or a portion of any real property or any 
249.25 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
249.26 	water, or land pollution shall file an application with the commissioner of revenue. The 
249.27 	commissioner shall develop an electronic means to notify interested parties when electric 
249.28 	power generation facilities have filed an application. The commissioner shall prescribe the 
249.29 	content, format, and manner of the application pursuant to section 270C.30, except that a 
249.30 	"law administered by the commissioner" includes the property tax laws, and if an application 
249.31 	is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, 
249.32 	except that a "law administered by the commissioner" includes the property tax laws. The 
250.1 	Minnesota Pollution Control Agency shall upon request of the commissioner furnish 
250.2 	information and advice to the commissioner.
250.3 	The information and advice furnished by the Minnesota Pollution Control Agency must 
250.4 	include statements as to whether the equipment, device, or real property meets a standard, 
250.5 	rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 
250.6 	whether the equipment, device, or real property is installed or operated in accordance with 
250.7 	it. On determining that property qualifies for exemption, the commissioner shall issue an 
250.8 	order exempting the property from taxation. The commissioner shall develop an electronic 
250.9 	means to notify interested parties when the commissioner has issued an order exempting 
250.10 	property from taxation under this subdivision. The equipment, device, or real property shall 
250.11 	continue to be exempt from taxation as long as the order issued by the commissioner remains 
250.12 	in effect.

250.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

250.14 	Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
250.15 		Subdivision 1.Efficiency determination and certification. An owner or operator of a 
250.16 	new or existing electric power generation facility, excluding wind energy conversion systems, 
250.17 	may apply to the commissioner of revenue for a market value exclusion on the property as 
250.18 	provided for in this section. This exclusion shall apply only to the market value of the 
250.19 	equipment of the facility, and shall not apply to the structures and the land upon which the 
250.20 	facility is located. The commissioner of revenue shall prescribe the formscontent, format, 
250.21 	manner, and procedures for this application pursuant to section 270C.30, except that a "law 
250.22 	administered by the commissioner" includes the property tax laws. If an application is made 
250.23 	by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except 
250.24 	that a "law administered by the commissioner" includes the property tax laws. Upon receiving 
250.25 	the application, the commissioner of revenue shall: (1) request the commissioner of commerce 
250.26 	to make a determination of the efficiency of the applicant's electric power generation facility; 
250.27 	and (2) shall develop an electronic means to notify interested parties when electric power 
250.28 	generation facilities have filed an application. The commissioner of commerce shall calculate 
250.29 	efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 
250.30 	based on the performance of the facility's equipment during normal full load operation. The 
250.31 	commissioner must include in this formula the energy used in any on-site preparation of 
250.32 	materials necessary to convert the materials into the fuel used to generate electricity, such 
250.33 	as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 
250.34 	(HHV) for all substances in the commissioner's efficiency calculations, except for wood 
251.1 	for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 
251.2 	commissioner shall adjust the heating value to allow for energy consumed for evaporation 
251.3 	of the moisture in the wood. The applicant shall provide the commissioner of commerce 
251.4 	with whatever information the commissioner deems necessary to make the determination. 
251.5 	Within 30 days of the receipt of the necessary information, the commissioner of commerce 
251.6 	shall certify the findings of the efficiency determination to the commissioner of revenue 
251.7 	and to the applicant. The commissioner of commerce shall determine the efficiency of the 
251.8 	facility and certify the findings of that determination to the commissioner of revenue every 
251.9 	two years thereafter from the date of the original certification.

251.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

251.11 	Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
251.12 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
251.13 	the state of Minnesota or any political subdivision thereof, and property exempt from taxation 
251.14 	under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 
251.15 	provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 
251.16 	described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 
251.17 	the assessor of the assessment district in which the property is located.
251.18 	(b) A taxpayer claiming an exemption from taxation on property described in section 
251.19 	272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, 
251.20 	on or before February 15 of each year for which the taxpayer claims an exemption.
251.21 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
251.22 	commissioner may extend the time for filing the statement of exemption for a period not to 
251.23 	exceed 60 days.
251.24 	(d) The commissioner of revenue shall prescribe the form and contents content, format, 
251.25 	and manner of the statement of exemption pursuant to section 270C.30, except that a "law 
251.26 	administered by the commissioner" includes the property tax laws.
251.27 	(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 
251.28 	to section 270C.304, except that a "law administered by the commissioner" includes the 
251.29 	property tax laws.

251.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

252.1 	Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
252.2 		Subd. 4.Reports. (a) An owner of a wind energy conversion system subject to tax under 
252.3 	subdivision 3 shall file a report with the commissioner of revenue annually on or before 
252.4 	February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced 
252.5 	by the wind energy conversion system for the previous calendar year. The commissioner 
252.6 	shall prescribe the form content, format, and manner of the report pursuant to section 
252.7 	270C.30, except that a "law administered by the commissioner" includes the property tax 
252.8 	laws. The report must contain the information required by the commissioner to determine 
252.9 	the tax due to each county under this section for the current year. If an owner of a wind 
252.10 	energy conversion system subject to taxation under this section fails to file the report by 
252.11 	the due date, the commissioner of revenue shall determine the tax based upon the nameplate 
252.12 	capacity of the system multiplied by a capacity factor of 60 percent.
252.13 	(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant 
252.14 	to section 270C.304, except that a "law administered by the commissioner" includes the 
252.15 	property tax laws.
252.16 	(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 
252.17 	of the wind energy conversion systems of the tax due to each county for the current year 
252.18 	and shall certify to the county auditor of each county in which the systems are located the 
252.19 	tax due from each owner for the current year.

252.20 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
252.21 	that the amendment in paragraph (a) moving the date to file the report is effective for reports 
252.22 	filed in 2018 and thereafter.

252.23 	Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
252.24 		Subd. 4.Reports. An owner of a solar energy generating system subject to tax under 
252.25 	this section shall file a report with the commissioner of revenue annually on or before 
252.26 	January 15 detailing the amount of electricity in megawatt-hours that was produced by the 
252.27 	system in the previous calendar year. The commissioner shall prescribe the form content, 
252.28 	format, and manner of the report pursuant to section 270C.30. The report must contain the 
252.29 	information required by the commissioner to determine the tax due to each county under 
252.30 	this section for the current year. If an owner of a solar energy generating system subject to 
252.31 	taxation under this section fails to file the report by the due date, the commissioner of 
252.32 	revenue shall determine the tax based upon the nameplate capacity of the system multiplied 
252.33 	by a capacity factor of 30 percent.

253.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

253.2 	Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
253.3 		Subd. 2.Form; information required. The certificate of value shall require such facts 
253.4 	and information as may be determined by the commissioner to be reasonably necessary in 
253.5 	the administration of the state education aid formulas. The formcommissioner shall prescribe 
253.6 	the content, format, and manner of the certificate of value shall be prescribed by the 
253.7 	Department of Revenue which shall provide an adequate supply of forms to each county 
253.8 	auditor pursuant to section 270C.30, except that a "law administered by the commissioner" 
253.9 	includes the property tax laws.

253.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

253.11 	Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
253.12 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
253.13 	under subdivision 1 must file a homestead application with the county assessor to initially 
253.14 	obtain homestead classification.
253.15 	(b) The format and contents of a uniform homestead application shall be prescribed by 
253.16 	the commissioner of revenue. The commissioner shall prescribe the content, format, and 
253.17 	manner of the homestead application required to be filed under this chapter pursuant to 
253.18 	section 270C.30. The application must clearly inform the taxpayer that this application must 
253.19 	be signed by all owners who occupy the property or by the qualifying relative and returned 
253.20 	to the county assessor in order for the property to receive homestead treatment.
253.21 	(c) Every property owner applying for homestead classification must furnish to the 
253.22 	county assessor the Social Security number of each occupant who is listed as an owner of 
253.23 	the property on the deed of record, the name and address of each owner who does not occupy 
253.24 	the property, and the name and Social Security number of each owner's spouse who occupies 
253.25 	the property. The application must be signed by each owner who occupies the property and 
253.26 	by each owner's spouse who occupies the property, or, in the case of property that qualifies 
253.27 	as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
253.28 	If a property owner occupies a homestead, the property owner's spouse may not claim 
253.29 	another property as a homestead unless the property owner and the property owner's spouse 
253.30 	file with the assessor an affidavit or other proof required by the assessor stating that the 
253.31 	property qualifies as a homestead under subdivision 1, paragraph (e).
254.1 	Owners or spouses occupying residences owned by their spouses and previously occupied 
254.2 	with the other spouse, either of whom fail to include the other spouse's name and Social 
254.3 	Security number on the homestead application or provide the affidavits or other proof 
254.4 	requested, will be deemed to have elected to receive only partial homestead treatment of 
254.5 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
254.6 	When an owner or spouse's name and Social Security number appear on homestead 
254.7 	applications for two separate residences and only one application is signed, the owner or 
254.8 	spouse will be deemed to have elected to homestead the residence for which the application 
254.9 	was signed.
254.10 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
254.11 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
254.12 	the property to receive homestead status, a homestead application must be filed with the 
254.13 	assessor. The Social Security number of each relative and spouse of a relative occupying 
254.14 	the property shall be required on the homestead application filed under this subdivision. If 
254.15 	a different relative of the owner subsequently occupies the property, the owner of the property 
254.16 	must notify the assessor within 30 days of the change in occupancy. The Social Security 
254.17 	number of a relative or relative's spouse occupying the property is private data on individuals 
254.18 	as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 
254.19 	revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 
254.20 	personal property taxes owing, to the county treasurer.
254.21 	(e) The homestead application shall also notify the property owners that if the property 
254.22 	is granted homestead status for any assessment year, that same property shall remain 
254.23 	classified as homestead until the property is sold or transferred to another person, or the 
254.24 	owners, the spouse of the owner, or the relatives no longer use the property as their 
254.25 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
254.26 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
254.27 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
254.28 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
254.29 	shall result in the penalty provided under this subdivision and the property will lose its 
254.30 	current homestead status.
254.31 	(f) If a homestead application has not been filed with the county by December 15, the 
254.32 	assessor shall classify the property as nonhomestead for the current assessment year for 
254.33 	taxes payable in the following year, provided that the owner may be entitled to receive the 
254.34 	homestead classification by proper application under section 375.192.

254.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

255.1 	Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:
255.2 	273.371 REPORTS OF UTILITY COMPANIES.
255.3 		Subdivision 1.Report required. Every electric light, power, gas, water, express, stage, 
255.4 	and transportation company, and pipeline company doing business in Minnesota shall 
255.5 	annually file with the commissioner on or before March 31 a report under oath setting forth 
255.6 	the information prescribed by the commissioner to enable the commissioner to make 
255.7 	valuations, recommended valuations, and equalization required under sections 273.33, 
255.8 	273.35, 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format, 
255.9 	and manner of the report pursuant to section 270C.30, except that a "law administered by 
255.10 	the commissioner" includes the property tax laws. If all the required information is not 
255.11 	available on March 31, the company or pipeline shall file the information that is available 
255.12 	on or before March 31, and the balance of the information as soon as it becomes available.
255.13 	If a report is made by electronic means, the taxpayer's signature is defined pursuant to section 
255.14 	270C.304, except that a "law administered by the commissioner" includes the property tax 
255.15 	laws.
255.16 		Subd. 2.Extension. The commissioner for good cause may extend the time for filing 
255.17 	the report required by subdivision 1. The extension may must not exceed 15 days.
255.18 		Subd. 3.Reports filed by the commissioner. If a company fails to file a report required 
255.19 	by subdivision 1, the commissioner may, from information in the commissioner's possession 
255.20 	or obtainable by the commissioner, make and file a report for the company or make the 
255.21 	valuations, recommended valuations, and equalizations required under sections 273.33, 
255.22 	273.35 to 273.37, and 273.3711.

255.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

255.24 	Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:
255.25 	287.2205 TAX-FORFEITED LAND.
255.26 	Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 
255.27 	the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 
255.28 	private sale or a repurchase of tax-forfeited land. State agencies and local units of government 
255.29 	that acquire tax-forfeited land by purchase or any other means are subject to this section. 
255.30 	The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 
255.31 	for an authorized public use under section 282.01, subdivision 1a, for a school forest under 
255.32 	section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, 
255.33 	subdivision 1b.

256.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

256.2 	Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 
256.3 	to read:
256.4 		Subd. 17.Format. The commissioner shall prescribe the content, format, and manner 
256.5 	of the returns and other documents pursuant to section 270C.30. This does not authorize 
256.6 	the commissioner to require individual income taxpayers to file individual income tax returns 
256.7 	electronically.

256.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

256.9 	Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
256.10 		Subdivision 1.Returns. (a) An employer who is required to deduct and withhold tax 
256.11 	under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 
256.12 	under section 290.923, subdivision 2, must file a return with the commissioner for each 
256.13 	quarterly period unless otherwise prescribed by the commissioner.
256.14 	(b) A person or corporation required to make deposits under section 290.9201, subdivision 
256.15 	8, must file an entertainer withholding tax return with the commissioner.
256.16 	(c) A person required to withhold an amount under section 290.9705, subdivision 1, 
256.17 	must file a return.
256.18 	(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 
256.19 	4b, must file a return.
256.20 	(e) An S corporation required to deduct and withhold tax under section 290.92, 
256.21 	subdivision 4c, must also file a return.
256.22 	(f) Returns must be filed in the form and manner, and contain the information prescribed 
256.23 	by the commissioner. The commissioner shall prescribe the content, format, and manner 
256.24 	of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed 
256.25 	by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 
256.26 	designee.

256.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

256.28 	Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
256.29 		Subdivision 1.Return required. (a) Except as provided in section 289A.18, subdivision 
256.30 	4, for the month in which taxes imposed by chapter 297A are payable, or for which a return 
257.1 	is due, a return for the preceding reporting period must be filed with the commissioner in 
257.2 	the form and manner the commissioner prescribes. The commissioner shall prescribe the 
257.3 	content, format, and manner of the returns pursuant to section 270C.30. A person making 
257.4 	sales at retail at two or more places of business may file a consolidated return subject to 
257.5 	rules prescribed by the commissioner. In computing the dollar amount of items on the return, 
257.6 	the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 
257.7 	cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
257.8 	(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 
257.9 	permit under chapter 297A and who makes annual purchases, for use in a trade or business, 
257.10 	of less than $18,500, or a person who is not required to hold a sales tax permit and who 
257.11 	makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 
257.12 	may file an annual use tax return on a form prescribed by the commissioner. The 
257.13 	commissioner shall prescribe the content, format, and manner of the return pursuant to 
257.14 	section 270C.30. If a person who qualifies for an annual use tax reporting period is required 
257.15 	to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 
257.16 	excess of $18,500 during the calendar year, the reporting period must be considered ended 
257.17 	at the end of the month in which the permit is applied for or the purchase in excess of 
257.18 	$18,500 is made and a return must be filed for the preceding reporting period.
257.19 	(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's 
257.20 	religious beliefs from using electronics shall be allowed to file by mail, without any additional 
257.21 	fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 
257.22 	form prescribed by the commissioner. A return filed under this paragraph must be postmarked 
257.23 	no later than the day the return is due in order to be considered filed on a timely basis.

257.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.25 	Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
257.26 		Subdivision 1.Individual income, fiduciary income, corporate franchise, and 
257.27 	entertainment taxes; partnership and S corporation returns; information returns; 
257.28 	mining company returns. The returns required to be made under sections 289A.08 and 
257.29 	289A.12 must be filed at the following times:
257.30 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
257.31 	the close of the calendar year, except that returns of corporations and partnerships must be 
257.32 	filed on the due date for filing the federal income tax return;
258.1 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 
258.2 	month following the close of the fiscal year, except that returns of corporations and 
258.3 	partnerships must be filed on the due date for filing the federal income tax return;
258.4 	(3) returns for a fractional part of a year must be filed on the due date for filing the 
258.5 	federal income tax return;
258.6 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
258.7 	must be filed on the 15th day of the fourth month following the close of the 12-month period 
258.8 	that began with the first day of that fractional part of a year;
258.9 	(5) in the case of the return of a cooperative association, returns must be filed on or 
258.10 	before the 15th day of the ninth month following the close of the taxable year;
258.11 	(6) if a corporation has been divested from a unitary group and files a return for a 
258.12 	fractional part of a year in which it was a member of a unitary business that files a combined 
258.13 	report under section 290.17, subdivision 4, the divested corporation's return must be filed 
258.14 	on the 15th day of the third month following the close of the common accounting period 
258.15 	that includes the fractional year;
258.16 	(7) returns of entertainment entities must be filed on April 15 following the close of the 
258.17 	calendar year;
258.18 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 
258.19 	the 15th day of the fifth month following the close of the taxable year;
258.20 	(9) returns of mining companies must be filed on May 1 following the close of the 
258.21 	calendar year; and
258.22 	(10) returns required to be filed with the commissioner under section 289A.12, 
258.23 	subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the 
258.24 	commissioner.

258.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

258.26 	Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
258.27 		Subd. 2.Erroneous refunds. An erroneous refund is considered an underpayment of 
258.28 	tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 
258.29 	be made at any time within two years from the making of the refund. If part of the refund 
258.30 	was induced by fraud or misrepresentation of a material fact, the assessment may be made 
258.31 	at any time (a) Except as provided in paragraph (b), an erroneous refund occurs when the 
258.32 	commissioner issues a payment to a person that exceeds the amount the person is entitled 
259.1 	to receive under law. An erroneous refund is considered an underpayment of tax on the date 
259.2 	issued.
259.3 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
259.4 	taxpayer, an erroneous refund does not include the following:
259.5 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
259.6 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
259.7 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
259.8 	290.0681; or 290.0692; or chapter 290A; or
259.9 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
259.10 	taxpayer.
259.11 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
259.12 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
259.13 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
259.14 	be made at any time.
259.15 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
259.16 	conducted under section 289A.38.

259.17 	EFFECTIVE DATE. This section is effective July 1, 2017.

259.18 	Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
259.19 		Subd. 7.Remedies. (a) If the taxpayer is notified by the commissioner that the refund 
259.20 	claim is denied in whole or in part, the taxpayer may:
259.21 	(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 
259.22 	Tax Court, within 60 days after issuance the notice date of the commissioner's notice of 
259.23 	denial; or
259.24 	(2) file an action in the district court to recover the refund.
259.25 	(b) An action in the district court on a denied claim for refund must be brought within 
259.26 	18 months of the notice date of the denial of the claim by the commissioner. For the purposes 
259.27 	of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
259.28 	(c) No action in the district court or the Tax Court shall be brought within six months 
259.29 	of the filing of the refund claim unless the commissioner denies the claim within that period.
260.1 	(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 
260.2 	of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 
260.3 	time after the expiration of six months from the time the claim was filed.
260.4 	(e) The commissioner and the taxpayer may agree to extend the period for bringing an 
260.5 	action in the district court.
260.6 	(f) An action for refund of tax by the taxpayer must be brought in the district court of 
260.7 	the district in which lies the county of the taxpayer's residence or principal place of business. 
260.8 	In the case of an estate or trust, the action must be brought at the principal place of its 
260.9 	administration. Any action may be brought in the district court for Ramsey County.

260.10 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
260.11 	December 31, 2017.

260.12 	Sec. 31. [290B.11] FORMS.
260.13 	The commissioner shall prescribe the content, format, and manner of all forms and other 
260.14 	documents required to be filed under this chapter pursuant to section 270C.30.

260.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

260.16 	Sec. 32. [293.15] FORMS.
260.17 	The commissioner shall prescribe the content, format, and manner of all forms and other 
260.18 	documents required to be filed under this chapter pursuant to section 270C.30.

260.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

260.20 	Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
260.21 		Subd. 6.Form of returns. The estimated payments and annual return must contain the 
260.22 	information and be in the form prescribed by the commissioner The commissioner shall 
260.23 	prescribe the content, format, and manner of the estimated payment forms and annual return 
260.24 	pursuant to section 270C.30.

260.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

261.1 	Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 
261.2 	to read:
261.3 		Subd. 5.Forms.  The commissioner shall prescribe the content, format, and manner of 
261.4 	all forms and other documents required to be filed under this chapter pursuant to section 
261.5 	270C.30.

261.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

261.7 	Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
261.8 		Subd. 9.Abatement of penalty. (a) The commissioner may by written order abate any 
261.9 	penalty imposed under this section, if in the commissioner's opinion there is reasonable 
261.10 	cause to do so.
261.11 	(b) A request for abatement of penalty must be filed with the commissioner within 60 
261.12 	days of the notice date of the notice stating that a penalty has been imposed was mailed to 
261.13 	the taxpayer's last known address. For purposes of this section, "notice date" means the 
261.14 	notice date designated by the commissioner on the order or other notice that a penalty has 
261.15 	been imposed.
261.16 	(c) If the commissioner issues an order denying a request for abatement of penalty, the 
261.17 	taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 
261.18 	Court as provided in section 271.06. If the commissioner does not issue an order on the 
261.19 	abatement request within 60 days from the date the request is received, the taxpayer may 
261.20 	appeal to Tax Court as provided in section 271.06.

261.21 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
261.22 	December 31, 2017.

261.23 	Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:
261.24 	296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
261.25 	In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 
261.26 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
261.27 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
261.28 	provided under section 271.06. For purposes of this section, "notice date" means the notice 
261.29 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

261.30 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
261.31 	2017.

262.1 	Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:
262.2 	297D.02 ADMINISTRATION.
262.3 	The commissioner of revenue shall administer this chapter. The commissioner shall 
262.4 	prescribe the content, format, and manner of all forms and other documents required to be 
262.5 	filed under this chapter pursuant to section 270C.30. Payments required by this chapter 
262.6 	must be made to the commissioner on the form provided by the commissioner. Tax obligors 
262.7 	are not required to give their name, address, Social Security number, or other identifying 
262.8 	information on the form. The commissioner shall collect all taxes under this chapter.

262.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

262.10 	Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
262.11 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section are due and payable 
262.12 	to the commissioner when the gambling tax return is required to be filed. Distributors must 
262.13 	file their monthly sales figures with the commissioner on a form prescribed by the 
262.14 	commissioner. Returns covering the taxes imposed under this section must be filed with 
262.15 	the commissioner on or before the 20th day of the month following the close of the previous 
262.16 	calendar month. The commissioner may require that the returns be filed via magnetic media 
262.17 	or electronic data transfer. The commissioner shall prescribe the content, format, and manner 
262.18 	of returns or other documents pursuant to section 270C.30. The proceeds, along with the 
262.19 	revenue received from all license fees and other fees under sections 349.11 to 349.191, 
262.20 	349.211, and 349.213, must be paid to the commissioner of management and budget for 
262.21 	deposit in the general fund.
262.22 	(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 
262.23 	distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 
262.24 	the organization is exempt from taxes imposed by chapter 297A and is exempt from all 
262.25 	local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
262.26 	(c) One-half of one percent of the revenue deposited in the general fund under paragraph 
262.27 	(a), is appropriated to the commissioner of human services for the compulsive gambling 
262.28 	treatment program established under section 245.98. One-half of one percent of the revenue 
262.29 	deposited in the general fund under paragraph (a), is appropriated to the commissioner of 
262.30 	human services for a grant to the state affiliate recognized by the National Council on 
262.31 	Problem Gambling to increase public awareness of problem gambling, education and training 
262.32 	for individuals and organizations providing effective treatment services to problem gamblers 
263.1 	and their families, and research relating to problem gambling. Money appropriated by this 
263.2 	paragraph must supplement and must not replace existing state funding for these programs.

263.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

263.4 	Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
263.5 		Subdivision 1.Reports of sales. A manufacturer who sells gambling product for use or 
263.6 	resale in this state, or for receipt by a person or entity in this state, shall file with the 
263.7 	commissioner, on a form prescribed by the commissioner, a report of gambling product 
263.8 	sold to any person in the state, including the established governing body of an Indian tribe 
263.9 	recognized by the United States Department of the Interior. The report must be filed monthly 
263.10 	on or before the 20th day of the month succeeding the month in which the sale was made. 
263.11 	The commissioner may require that the report be submitted via magnetic media or electronic 
263.12 	data transfer. The commissioner shall prescribe the content, format, and manner of returns 
263.13 	or other documents pursuant to section 270C.30. The commissioner may inspect the premises, 
263.14 	books, records, and inventory of a manufacturer without notice during the normal business 
263.15 	hours of the manufacturer. A person violating this section is guilty of a misdemeanor.

263.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

263.17 	Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
263.18 		Subd. 4.Reports. A distributor shall report monthly to the commissioner, on a form the 
263.19 	commissioner prescribes, its sales of each type of gambling product. This report must be 
263.20 	filed monthly on or before the 20th day of the month succeeding the month in which the 
263.21 	sale was made. The commissioner may require that a distributor submit the monthly report 
263.22 	and invoices required in this subdivision via magnetic media or electronic data transfer.
263.23 	The commissioner shall prescribe the content, format, and manner of returns or other 
263.24 	documents pursuant to section 270C.30.

263.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

263.26 	Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
263.27 		Subdivision 1.Reports. An organization must file with the commissioner, on a form 
263.28 	prescribed by the commissioner, a report showing all gambling activity conducted by that 
263.29 	organization for each month. Gambling activity includes all gross receipts, prizes, all 
263.30 	gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 
263.31 	purpose and board-approved expenditures. The report must be filed with the commissioner 
263.32 	on or before the 20th day of the month following the month in which the gambling activity 
264.1 	takes place. The commissioner may require that the reports be filed via magnetic media or 
264.2 	electronic data transfer. The commissioner shall prescribe the content, format, and manner 
264.3 	of returns or other documents pursuant to section 270C.30.

264.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

264.5 	Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
264.6 		Subdivision 1.Monthly return; cigarette distributor. On or before the 18th day of 
264.7 	each calendar month, a distributor with a place of business in this state shall file a return 
264.8 	with the commissioner showing the quantity of cigarettes manufactured or brought in from 
264.9 	outside the state or purchased during the preceding calendar month and the quantity of 
264.10 	cigarettes sold or otherwise disposed of in this state and outside this state during that month. 
264.11 	A licensed distributor outside this state shall in like manner file a return showing the quantity 
264.12 	of cigarettes shipped or transported into this state during the preceding calendar month. 
264.13 	Returns must be made in the form and manner prescribed by The commissioner shall 
264.14 	prescribe the content, format, and manner of returns pursuant to section 270C.30, and the 
264.15 	returns must contain any other information required by the commissioner. The return must 
264.16 	be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 
264.17 	subject to the accelerated tax payment requirements in subdivision 10, the return for the 
264.18 	May liability is due two business days before June 30th of the year and the return for the 
264.19 	June liability is due on or before August 18th of the year.

264.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

264.21 	Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:
264.22 	297F.23 JUDICIAL REVIEW.
264.23 	In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 
264.24 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
264.25 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
264.26 	provided under section 271.06. For purposes of this section, "notice date" means the notice 
264.27 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

264.28 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
264.29 	2017.

265.1 	Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
265.2 		Subdivision 1.Monthly returns; manufacturers, wholesalers, brewers, or importers.
 265.3 	On or before the 18th day of each calendar month following the month in which a licensed 
265.4 	manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 
265.5 	or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 
265.6 	acquires title to or possession of untaxed fermented malt beverages, the licensed 
265.7 	manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 
265.8 	with the commissioner, and in addition must keep records and render reports as required 
265.9 	by the commissioner. Returns must be made in a form and manner prescribed by the 
265.10 	commissioner, and  The commissioner shall prescribe the content, format, and manner of 
265.11 	returns pursuant to section 270C.30. The returns must contain any other information required 
265.12 	by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 
265.13 	liability. Returns must be filed regardless of whether a tax is due.

265.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.15 	Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:
265.16 	297G.22 JUDICIAL REVIEW.
265.17 	In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 
265.18 	the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 
265.19 	from the date of the notice date of the order, appeal to the Tax Court in the manner provided 
265.20 	under section 271.06. For purposes of this section, "notice date" means the notice date 
265.21 	designated by the commissioner on the order fixing a tax, penalty, or interest.

265.22 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
265.23 	2017.

265.24 	Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 
265.25 	to read:
265.26 		Subd. 11.Format.  The commissioner shall prescribe the content, format, and manner 
265.27 	of returns or other documents pursuant to section 270C.30.

265.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.29 	Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
265.30 		Subd. 2.Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 
265.31 	or in part, the taxpayer may contest the denial by:
266.1 	(1) filing an administrative appeal with the commissioner under section 270C.35;
266.2 	(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; 
266.3 	or
266.4 	(3) filing an action in the district court to recover the refund.
266.5 	(b) An action in the district court must be brought within 18 months following of the 
266.6 	notice date of the notice of denial. For purposes of this section, "notice date" has the meaning 
266.7 	given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be 
266.8 	brought in the district court of the district in which lies the taxpayer's principal place of 
266.9 	business or in the District Court for Ramsey County. If a taxpayer files a claim for refund 
266.10 	and the commissioner has not issued a denial of the claim, the taxpayer may bring an action 
266.11 	in the district court or the Tax Court at any time after the expiration of six months from the 
266.12 	time the claim was filed.

266.13 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
266.14 	December 31, 2017.

266.15 	Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
266.16 		Subd. 5.Waiver authority. (a) The commissioner may waive all or part of a repayment 
266.17 	required under subdivision 1, if the commissioner, in consultation with the commissioner 
266.18 	of employment and economic development and appropriate officials from the local 
266.19 	government units in which the qualified business is located, determines that requiring 
266.20 	repayment of the tax is not in the best interest of the state or the local government units and 
266.21 	the business ceased operating as a result of circumstances beyond its control including, but 
266.22 	not limited to:
266.23 	(1) a natural disaster;
266.24 	(2) unforeseen industry trends; or
266.25 	(3) loss of a major supplier or customer.
266.26 	(b)(1) The commissioner shall waive repayment required under subdivision 1a if the 
266.27 	commissioner has waived repayment by the operating business under subdivision 1, unless 
266.28 	the person that received benefits without having to operate a business in the zone was a 
266.29 	contributing factor in the qualified business becoming subject to repayment under subdivision 
266.30 	1;
266.31 	(2) the commissioner shall waive the repayment required under subdivision 1a, even if 
266.32 	the repayment has not been waived for the operating business if:
267.1 	(i) the person that received benefits without having to operate a business in the zone and 
267.2 	the business that operated in the zone are not related parties as defined in section 267(b) of 
267.3 	the Internal Revenue Code of 1986, as amended through December 31, 2007; and
267.4 	(ii) actions of the person were not a contributing factor in the qualified business becoming 
267.5 	subject to repayment under subdivision 1.
267.6 	(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 
267.7 	date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 
267.8 	issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means 
267.9 	the notice date designated by the commissioner on the order.

267.10 	EFFECTIVE DATE. This section is effective for orders of the commissioner of revenue 
267.11 	dated after December 31, 2017.

267.12 	Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:

267.13 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
267.14 	September 30, 2015 December 31, 2017.

267.15 	EFFECTIVE DATE. This section is effective retroactively from September 30, 2015.

267.16 	ARTICLE 14
267.17 	DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE 
267.18 	ACT PROVISIONS

267.19 	Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:
267.20 	290C.03 ELIGIBILITY REQUIREMENTS.
267.21 	(a) Land may be enrolled in the sustainable forest incentive program under this chapter 
267.22 	if all of the following conditions are met:
267.23 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 
267.24 	must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
267.25 	(2) a forest management plan for the land must be (i) prepared by an approved plan 
267.26 	writer and implemented during the period in which the land is enrolled, and (ii) registered 
267.27 	with the Department of Natural Resources;
267.28 	(3) timber harvesting and forest management guidelines must be used in conjunction 
267.29 	with any timber harvesting or forest management activities conducted on the land during 
267.30 	the period in which the land is enrolled;
267.31 	(4) the land must be enrolled for a minimum of eight years;
268.1 	(5) there are no delinquent property taxes on the land; and
268.2 	(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program 
268.3 	must allow year-round, nonmotorized access to fish and wildlife resources and motorized 
268.4 	access on established and maintained roads and trails, unless the road or trail is temporarily 
268.5 	closed for safety, natural resource, or road damage reasons on enrolled land except within 
268.6 	one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 
268.7 	by the commissioner of natural resources; and
268.8 	(7) the land is not classified as 2c managed forest land.
268.9 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 
268.10 	action:
268.11 	(1) extend any assurance that the land is safe for any purpose;
268.12 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 
268.13 	care is owed; or
268.14 	(3) assume responsibility for or incur liability for any injury to the person or property 
268.15 	caused by an act or omission of the person.
268.16 	(c) A minimum of three acres must be excluded from enrolled land when the land is 
268.17 	improved with a structure that is not a minor, ancillary, or nonresidential structure. If land 
268.18 	does not meet the definition of forest land in section 290C.02, subdivision 6, because the 
268.19 	land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal 
268.20 	conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject 
268.21 	to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural 
268.22 	land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan 
268.23 	Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is 
268.24 	not eligible to be enrolled in the program.

268.25 	EFFECTIVE DATE. The amendment to paragraph (a), clause (2), is effective for 
268.26 	certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is 
268.27 	effective for certifications and applications due in 2017 and thereafter. The amendment 
268.28 	adding paragraph (c) is effective the day following final enactment.

268.29 	Sec. 2. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
268.30 	On request of the commissioner, the commissioner of natural resources must annually 
268.31 	provide verification that the claimant has a current forest management plan on file with the 
268.32 	Department of Natural Resources.

269.1 	EFFECTIVE DATE. This section is effective for certifications filed after July 1, 2018.

269.2 	Sec. 3.  REPEALER.
 269.3 	Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are 
269.4 	repealed.

269.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

269.6 	ARTICLE 15
269.7 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
269.8 	PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES

269.9 	Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
269.10 		Subd. 5.Calculation of state aid. (a) The amount of fire state aid available for 
269.11 	apportionment, before the addition of the minimum fire state aid allocation amount under 
269.12 	subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 
269.13 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
269.14 	commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 
269.15 	be reduced by the amount required to pay the state auditor's costs and expenses of the audits 
269.16 	or exams of the firefighters relief associations.
269.17 	The total amount for apportionment in respect to fire state aid must not be less than two 
269.18 	percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 
269.19 	Premium Report after subtracting the following amounts:
269.20 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
269.21 	exams of the firefighters relief associations; and
269.22 	(2) one percent of the premiums reported by town and farmers' township mutual insurance 
269.23 	companies and mutual property and casualty companies with total assets of $5,000,000 or 
269.24 	less.
269.25 	(b) The total amount for apportionment as police state aid is equal to 104 percent of the 
269.26 	amount of premium taxes paid to the state on the premiums reported to the commissioner 
269.27 	by insurers on the Minnesota Aid to Police Premium Report. The total amount for 
269.28 	apportionment in respect to the police state aid program must not be less than two percent 
269.29 	of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 
269.30 	to Police Premium Report.
270.1 	(c) The commissioner shall calculate the percentage of increase or decrease reflected in 
270.2 	the apportionment over or under the previous year's available state aid using the same 
270.3 	premiums as a basis for comparison.
270.4 	(d) In addition to the amount for apportionment of police state aid under paragraph (b), 
270.5 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
270.6 	this increase is annually appropriated from the general fund.

270.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

270.8 	Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
270.9 		Subd. 6.Omission in excess of 25 percent. Additional taxes may be assessed within 
270.10 	6-1/2 years after the due date of the return or the date the return was filed, whichever is 
270.11 	later, if:
270.12 	(1) the taxpayer omits from gross income an amount properly includable in it that is in 
270.13 	excess of 25 percent of the amount of gross income stated in the return;
270.14 	(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax 
270.15 	imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes 
270.16 	reported in the return; or
270.17 	(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 
270.18 	estate reported in the return.

270.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

270.20 	Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:
270.21 		Subd. 2.Exemptions. The following entities are exempt from the tax imposed by this 
270.22 	section:
270.23 	(1) corporations exempt from tax under section 290.05;
270.24 	(2) real estate investment trusts;
270.25 	(3) regulated investment companies or a fund thereof; and
270.26 	(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 
270.27 	Code;
270.28 	(5) town and farmers' township mutual insurance companies;
271.1 	(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 
271.2 	to persons age 55 and over and are classified as homesteads under section 273.124, 
271.3 	subdivision 3; and
271.4 	(7) a qualified business as defined under section 469.310, subdivision 11, if for the 
271.5 	taxable year all of its property is located in a job opportunity building zone designated under 
271.6 	section 469.314 and all of its payroll is a job opportunity building zone payroll under section 
271.7 	469.310.
271.8 	Entities not specifically exempted by this subdivision are subject to tax under this section, 
271.9 	notwithstanding section 290.05.

271.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

271.11 	Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:
271.12 		Subd. 2.Pharmacy refund. A pharmacy may claim an annual refund against the total 
271.13 	amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 
271.14 	subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 
271.15 	distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 
271.16 	the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 
271.17 	295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 
271.18 	under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 
271.19 	refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 
271.20 	the annual return as provided under section 295.55, subdivision 5 prescribed by the 
271.21 	commissioner, on or before March 15 of the year following the calendar year the legend 
271.22 	drugs were delivered outside Minnesota. The refund must be claimed within 18 months 
271.23 	from the date the drugs were delivered outside of Minnesota shall not be allowed if the 
271.24 	initial claim for refund is filed more than one year after the original due date of the return. 
271.25 	Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 
271.26 	claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 
271.27 	date of the return if a return is due or the date of the actual claim for refund, whichever is 
271.28 	later.

271.29 	EFFECTIVE DATE. This section is effective for qualifying legend drugs delivered 
271.30 	outside Minnesota after December 31, 2017.

272.1 	Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
272.2 	read:
272.3 		Subd. 9a.Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility" 
272.4 	means a single property, or contiguous or adjacent properties used for a common purpose 
272.5 	and owned or operated by the same person, on or in which are located one or more stationary 
272.6 	tanks that are used singularly or in combination for the storage or containment of more than 
272.7 	1,100 gallons of petroleum.

272.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

272.9 	Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:
272.10 		Subd. 33.Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless 
272.11 	of its composition or properties, used to propel a motor vehicle.

272.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

272.13 	Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:
272.14 		Subd. 42.Petroleum products. "Petroleum products" means all of the products defined 
272.15 	in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

272.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

272.17 	Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:
272.18 		Subdivision 1.Tax imposed. There is imposed an excise tax on gasoline, gasoline 
272.19 	blended with ethanol, and agricultural alcohol gasoline used in producing and generating 
272.20 	power for propelling motor vehicles used on the public highways of this state. The tax is 
272.21 	imposed on the first licensed distributor who received the product in Minnesota. For purposes 
272.22 	of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 
272.23 	25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the 
272.24 	commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 
272.25 	exceptions and reductions specified in section 296A.17.

272.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

272.27 	Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
272.28 		Subd. 4.Exemptions. (a) The following transactions are exempt from the tax imposed 
272.29 	in this chapter to the extent provided.
273.1 	(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 
273.2 	or partnership is exempt if the transfer constitutes a transfer within the meaning of section 
273.3 	351 or 721 of the Internal Revenue Code.
273.4 	(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 
273.5 	an aircraft for which a commercial use permit has been issued pursuant to section 360.654
273.6 	is exempt, if the aircraft is resold while the permit is in effect.
273.7 	(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 
273.8 	companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 
273.9 	subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 
273.10 	maintenance of such air flight equipment, and flight simulators, but does not include airplanes
273.11 	aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on 
273.12 	intermittent or irregularly timed flights.
273.13 	(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 
273.14 	section 360.511 and approved by the Federal Aviation Administration, and which the seller 
273.15 	delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 
273.16 	transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 
273.17 	a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 
273.18 	within Minnesota, except in the course of interstate commerce or isolated and occasional 
273.19 	use, and will be registered in another state or country upon its removal from Minnesota. 
273.20 	This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 
273.21 	and uses the aircraft in the state exclusively for training purposes for a period not to exceed 
273.22 	ten days prior to removing the aircraft from this state.
273.23 	(f) The sale or purchase of the following items that relate to aircraft operated under 
273.24 	Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 
273.25 	equipment and parts necessary for repair and maintenance of aircraft; and equipment and 
273.26 	parts to upgrade and improve aircraft.

273.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
273.28 	December 31, 2017.

273.29 	Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
273.30 		Subd. 4a.Deposit in state airports fund. Tax revenue, including interest and penalties,
273.31 	collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 
273.32 	in the state airports fund established in section 360.017. For purposes of this subdivision, 
273.33 	"revenue" does not include the revenue, including interest and penalties, generated by the 
274.1 	sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as 
274.2 	provided under article XI, section 15, of the Minnesota Constitution.

274.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

274.4 	Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
274.5 		Subd. 7.Untaxed gambling product. (a) In addition to penalties or criminal sanctions 
274.6 	imposed by this chapter, a person, organization, or business entity possessing or selling a 
274.7 	pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 
274.8 	this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 
274.9 	pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 
274.10 	be assessed as if it were a full deal.
274.11 	(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1)
274.12 	not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 
274.13 	or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 
274.14 	609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six 
274.15 	percent of the gross receipts from that activity.
274.16 	(c) The tax must may be assessed by the commissioner. An assessment must be considered 
274.17 	a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 
274.18 	commissioner shall assess the tax based on personal knowledge or information available to 
274.19 	the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 
274.20 	address, or serve in person, a written notice of the amount of tax, demand its immediate 
274.21 	payment, and, if payment is not immediately made, collect the tax by any method described 
274.22 	in chapter 270C, except that the commissioner need not await the expiration of the times 
274.23 	specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 
274.24 	and correctly determined and assessed. The burden is upon the taxpayer to show its 
274.25 	incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 
274.26 	that is exempt from taxation under subdivision 2.
274.27 	(d) A person, organization, or business entity conducting gambling activity under this 
274.28 	subdivision must file monthly tax returns with the commissioner, in the form required by 
274.29 	the commissioner. The returns must be filed on or before the 20th day of the month following 
274.30 	the month in which the gambling activity occurred. The tax imposed by this section is due 
274.31 	and payable at the time when the returns are required to be filed.
274.32 	(e) Notwithstanding any law to the contrary, neither the commissioner nor a public 
274.33 	employee may reveal facts contained in a tax return filed with the commissioner of revenue 
275.1 	as required by this subdivision, nor can any information contained in the report or return 
275.2 	be used against the tax obligor in any criminal proceeding, unless independently obtained, 
275.3 	except in connection with a proceeding involving taxes due under this section, or as provided 
275.4 	in section 270C.055, subdivision 1. However, this paragraph does not prohibit the 
275.5 	commissioner from publishing statistics that do not disclose the identity of tax obligors or 
275.6 	the contents of particular returns or reports. Any person violating this paragraph is guilty 
275.7 	of a gross misdemeanor.

275.8 	EFFECTIVE DATE. This section is effective for games played or purchased after June 
275.9 	30, 2017.

275.10 	Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
275.11 		Subd. 2.Materials. The tax is not imposed upon charges to generators of mixed municipal 
275.12 	solid waste or upon the volume of nonmixed municipal solid waste for waste management 
275.13 	services to manage the following materials:
275.14 	(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 
275.15 	of Minnesota;
275.16 	(2) recyclable materials that are separated for recycling by the generator, collected 
275.17 	separately from other waste, and recycled, to the extent the price of the service for handling 
275.18 	recyclable material is separately itemized on a bill to the generator;
275.19 	(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 
275.20 	generator, collected separately from other waste, delivered to a waste facility for the purpose 
275.21 	of recycling, and recycled;
275.22 	(4) industrial waste, when it is transported to a facility owned and operated by the same 
275.23 	person that generated it;
275.24 	(5) mixed municipal solid waste from a recycling facility that separates or processes 
275.25 	recyclable materials and reduces the volume of the waste by at least 85 percent, provided 
275.26 	that the exempted waste is managed separately from other waste;
275.27 	(6) recyclable materials that are separated from mixed municipal solid waste by the 
275.28 	generator, collected and delivered to a waste facility that recycles at least 85 percent of its 
275.29 	waste, and are collected with mixed municipal solid waste that is segregated in leakproof 
275.30 	bags, provided that the mixed municipal solid waste does not exceed five percent of the 
275.31 	total weight of the materials delivered to the facility and is ultimately delivered to a waste 
275.32 	facility identified as a preferred waste management facility in county solid waste plans 
275.33 	under section 115A.46;
276.1 	(7) source-separated compostable waste materials, if the waste is materials are delivered 
276.2 	to a facility exempted as described in this clause. To initially qualify for an exemption, a 
276.3 	facility must apply for an exemption in its application for a new or amended solid waste 
276.4 	permit to the Pollution Control Agency. The first time a facility applies to the agency it 
276.5 	must certify in its application that it will comply with the criteria in items (i) to (v) and the 
276.6 	commissioner of the agency shall so certify to the commissioner of revenue who must grant 
276.7 	the exemption. The facility must annually apply to the agency for certification to renew its 
276.8 	exemption for the following year. The application must be filed according to the procedures 
276.9 	of, and contain the information required by, the agency. The commissioner of revenue shall 
276.10 	grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 
276.11 	to the commissioner of revenue that based on an evaluation of the composition of incoming 
276.12 	waste and residuals and the quality and use of the product:
276.13 	(i) generators separate materials at the source;
276.14 	(ii) the separation is performed in a manner appropriate to the technology specific to the 
276.15 	facility that:
276.16 	(A) maximizes the quality of the product;
276.17 	(B) minimizes the toxicity and quantity of residuals rejects; and
276.18 	(C) provides an opportunity for significant improvement in the environmental efficiency 
276.19 	of the operation;
276.20 	(iii) the operator of the facility educates generators, in coordination with each county 
276.21 	using the facility, about separating the waste to maximize the quality of the waste stream 
276.22 	for technology specific to the facility;
276.23 	(iv) process residuals rejects do not exceed 15 percent of the weight of the total material 
276.24 	delivered to the facility; and
276.25 	(v) the final product is accepted for use;
276.26 	(8) waste and waste by-products for which the tax has been paid; and
276.27 	(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 
276.28 	Control Agency.

276.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

277.1 	Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
277.2 		Subd. 2.Town and farmers' Township mutual insurance. A tax is imposed on town 
277.3 	and farmers' township mutual insurance companies. The rate of tax is equal to one percent 
277.4 	of gross premiums less return premiums on all direct business received by the insurer or 
277.5 	agents of the insurer in Minnesota, in cash or otherwise, during the year.

277.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

277.7 	Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
277.8 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct a 
277.9 	surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
277.10 	premiums, less return premiums, on all direct business received by any licensed foreign or 
277.11 	domestic fire insurance company on property in a city of the first class, or by its agents for 
277.12 	it, in cash or otherwise.
277.13 	(b) By July 31 and December 31 of each year, the commissioner of management and 
277.14 	budget shall pay to each city of the first class a warrant for an amount equal to the total 
277.15 	amount of the surcharge on the premiums collected within that city since the previous 
277.16 	payment.
277.17 	(c) The treasurer of the city shall place the money received under this subdivision in a 
277.18 	special account or fund to defray all or a portion of the employer contribution requirement 
277.19 	of public employees police and fire plan coverage for city firefighters.

277.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

277.21 	Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
277.22 		Subd. 3.Appropriation. The amount necessary to make the payments required under 
277.23 	this section is appropriated to the commissioner of management and budget from the general 
277.24 	fund.

277.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

277.26 	Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
277.27 		Subd. 4c.Special deductions; net operating loss. (a) For purposes of determining 
277.28 	taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
277.29 	and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
278.1 	(b) The amount of net operating loss incurred in a taxable year beginning before January 
278.2 	1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 
278.3 	the amount of net operating loss carryover determined in the calculation of the hypothetical 
278.4 	corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.

278.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

278.6 	ARTICLE 16
278.7 	DEPARTMENT 2017 TECHNICAL PROVISIONS: INCOME, CORPORATE 
278.8 	FRANCHISE, AND ESTATE TAXES

278.9 	Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
278.10 		Subd. 21.Military service pension; retirement pay.  To the extent included in federal 
278.11 	taxable income, compensation received from a pension or other retirement pay from the 
278.12 	federal government for service in the military, as computed under United States Code, title 
278.13 	10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must 
278.14 	not include any amount used to claim the credit allowed under section 290.0677 is limited 
278.15 	to individuals who do not claim the credit under section 290.0677.

278.16 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
278.17 	after December 31, 2015.

278.18 	Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:
278.19 		Subd. 3.Income. (a) "Income" means the sum of the following:
278.20 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
278.21 	(2) the sum of the following amounts to the extent not included in clause (1):
278.22 	(i) all nontaxable income;
278.23 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
278.24 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
278.25 	carryover allowed under section 469(b) of the Internal Revenue Code;
278.26 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
278.27 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
278.28 	Code;
278.29 	(iv) cash public assistance and relief;
278.30 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
278.31 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
279.1 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
279.2 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
279.3 	gross income in the years when the payments were made;
279.4 	(vi) interest received from the federal or a state government or any instrumentality or 
279.5 	political subdivision thereof;
279.6 	(vii) workers' compensation;
279.7 	(viii) nontaxable strike benefits;
279.8 	(ix) the gross amounts of payments received in the nature of disability income or sick 
279.9 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
279.10 	or otherwise;
279.11 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
279.12 	1986, as amended through December 31, 1995;
279.13 	(xi) contributions made by the claimant to an individual retirement account, including 
279.14 	a qualified voluntary employee contribution; simplified employee pension plan; 
279.15 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
279.16 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
279.17 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
279.18 	the claimant and spouse;
279.19 	(xii) to the extent not included in federal adjusted gross income, distributions received 
279.20 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
279.21 	(xiii) nontaxable scholarship or fellowship grants;
279.22 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
279.23 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
279.24 	Code;
279.25 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
279.26 	Code; and
279.27 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
279.28 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
279.29 	In the case of an individual who files an income tax return on a fiscal year basis, the 
279.30 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
279.31 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
280.1 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
280.2 	or carryforward allowed for the year.
280.3 	(b) "Income" does not include:
280.4 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
280.5 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
280.6 	or spouse and which funding payments were not excluded from federal adjusted gross 
280.7 	income in the years when the payments were made;
280.8 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
280.9 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
280.10 	the retirement base amount reduced by the amount of contributions excluded from federal 
280.11 	adjusted gross income, but not less than zero;
280.12 	(4) surplus food or other relief in kind supplied by a governmental agency;
280.13 	(5) relief granted under this chapter;
280.14 	(6) child support payments received under a temporary or final decree of dissolution or 
280.15 	legal separation; or
280.16 	(7) restitution payments received by eligible individuals and excludable interest as 
280.17 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
280.18 	Public Law 107-16.
280.19 	(c) The sum of the following amounts may be subtracted from income:
280.20 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
280.21 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
280.22 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
280.23 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
280.24 	(5) for the claimant's fifth dependent, the exemption amount; and
280.25 	(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 
280.26 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
280.27 	amount.
280.28 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
280.29 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
280.30 	the income is reported; "retirement base amount" means the deductible amount for the 
280.31 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
281.1 	Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue 
281.2 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
281.3 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
281.4 	408, 408A, and 457 of the Internal Revenue Code.

281.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

281.6 	Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:
281.7 	290A.10 PROOF OF TAXES PAID.
281.8 	Every If requested by the commissioner of revenue, a claimant who files a claim for 
281.9 	relief for property taxes payable shall include with the claim provide a property tax statement 
281.10 	or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue 
281.11 	indicating that there are no delinquent property taxes on the homestead. Indication on the 
281.12 	property tax statement from the county treasurer that there are no delinquent taxes on the 
281.13 	homestead shall be sufficient proof. Taxes included in a confession of judgment under 
281.14 	section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is 
281.15 	current on the payments required to be made under section 277.23 or 279.37.

281.16 	EFFECTIVE DATE. This section is effective for refunds based on rent paid after 
281.17 	December 31, 2015, and property taxes payable after December 31, 2016.

281.18 	Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:
281.19 	291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.
281.20 	If, after the final determination of the tax imposed by this chapter, the property valued 
281.21 	pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify 
281.22 	and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit 
281.23 	for state death taxes federal gross or taxable estate shall be reported to the commissioner 
281.24 	within 90 days after final determination of the increased credit of the federal adjustment. 
281.25 	Upon notification the commissioner may assess an additional tax in accordance with section 
281.26 	291.03, subdivision 1.

281.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

281.28 	Sec. 5.  REPEALER.
 281.29 	Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.

281.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

282.1 	ARTICLE 17
282.2 	DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: SALES AND 
282.3 	USE, AND SPECIAL TAXES

282.4 	Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:
282.5 		Subd. 10.Proof of sales tax payment; collection and refund. (a) A person applying 
282.6 	for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, 
282.7 	showing a complete description of the snowmobile, the seller's name and address, the full 
282.8 	purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must 
282.9 	include information showing either receipt, invoice, or other document to prove that:
282.10 	(1) that the sales and use tax under chapter 297A was paid or;
282.11 	(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 
282.12 	safety, in consultation with the commissioner and the commissioner of revenue, shall 
282.13 	prescribe the form of the certificate.The certificate is not required if the applicant provides 
282.14 	a receipt, invoice, or other document that shows; or
282.15 	(3) the snowmobile was purchased from a retailer that is maintaining a place of business 
282.16 	in this state as defined in section 297A.66, subdivision 1, and is a dealer.
282.17 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
282.18 	commissioner of revenue under an agreement between the commissioner and the 
282.19 	commissioner of revenue, as provided in section 297A.825:
282.20 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
282.21 	required under paragraph (a); and
282.22 	(2) are authorized to issue refunds of use tax paid to them in error.
282.23 	(c) Subdivision 11 does not apply to refunds under this subdivision.

282.24 	EFFECTIVE DATE. This section is effective for snowmobiles registered after June 
282.25 	30, 2017.

282.26 	Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:
282.27 		Subd. 11.Proof of sales tax payment; collection and refund. (a) A person applying 
282.28 	for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's 
282.29 	certificate showing a complete description of the all-terrain vehicle, the seller's name and 
282.30 	address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any. 
283.1 	The certificate also must include information showing either receipt, invoice, or other 
283.2 	document to prove that:
283.3 	(1) the sales and use tax under chapter 297A was paid, or;
283.4 	(2) the purchase was exempt from tax under chapter 297A. The certificate is not required 
283.5 	if the applicant provides a receipt, invoice, or other document that shows; or
283.6 	(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of 
283.7 	business in this state as defined in section 297A.66, subdivision 1, and is a dealer.
283.8 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
283.9 	commissioner of revenue under an agreement between the commissioner and the 
283.10 	commissioner of revenue, as provided in section 297A.825:
283.11 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
283.12 	required under paragraph (a); and
283.13 	(2) are authorized to issue refunds of use tax paid to them in error.
283.14 	(c) Subdivision 12 does not apply to refunds under this subdivision.

283.15 	EFFECTIVE DATE. This section is effective for all-terrain vehicles registered after 
283.16 	June 30, 2017.

283.17 	Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:
283.18 		Subd. 12.Proof of sales tax payment; collection and refund. (a) A person applying 
283.19 	for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing 
283.20 	a complete description of the watercraft, the seller's name and address, the full purchase 
283.21 	price of the watercraft, and the trade-in allowance, if any. The certificate must include 
283.22 	information showing either receipt, invoice, or other document to prove that:
283.23 	(1) that the sales and use tax under chapter 297A was paid or;
283.24 	(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 
283.25 	safety, in consultation with the commissioner and the commissioner of revenue, shall 
283.26 	prescribe the form of the certificate.The certificate is not required if the applicant provides 
283.27 	a receipt, invoice, or other document that shows; or
283.28 	(3) the watercraft was purchased from a retailer that is maintaining a place of business 
283.29 	in this state as defined in section 297A.66, subdivision 1, and is a dealer.
284.1 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
284.2 	commissioner of revenue under an agreement between the commissioner and the 
284.3 	commissioner of revenue, as provided in section 297A.825:
284.4 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
284.5 	required under paragraph (a); and
284.6 	(2) are authorized to issue refunds of use tax paid to them in error.
284.7 	(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.

284.8 	EFFECTIVE DATE. This section is effective for watercraft licensed after June 30, 
284.9 	2017.

284.10 	Sec. 4. Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read:
284.11 		Subdivision 1.Registration fee. (a) Each manufacturer who registers under section 
284.12 	115A.1312 must, by August 15 each year, pay to the commissioner of revenue an annual 
284.13 	registration fee, on a form and in a manner prescribed by the commissioner of revenue. The 
284.14 	commissioner of revenue must deposit the fee in the state treasury and credit the fee to the 
284.15 	environmental fund.
284.16 	(b) The registration fee for manufacturers that sell 100 or more video display devices 
284.17 	to households in the state during the previous calendar year is $2,500, plus a variable 
284.18 	recycling fee. The registration fee for manufacturers that sell fewer than 100 video display 
284.19 	devices to households in the state during the previous calendar year is a variable recycling 
284.20 	fee. The variable recycling fee is calculated according to the formula:
284.21 	[A - (B + C)] x D, where:
284.22 	A = the manufacturer's recycling obligation as determined under section 115A.1320;
284.23 	B = the number of pounds of covered electronic devices recycled by a manufacturer 
284.24 	from households during the immediately preceding program year, as reported under section 
284.25 	115A.1316, subdivision 1;
284.26 	C = the number of phase I or phase II recycling credits a manufacturer elects to use to 
284.27 	calculate the variable recycling fee; and
284.28 	D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for 
284.29 	manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation; 
284.30 	$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90 percent 
284.31 	of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who recycle 
284.32 	at least 90 percent but less than 100 percent of the manufacturer's recycling obligation; and 
285.1 	$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's 
285.2 	recycling obligation.
285.3 	(c) A manufacturer may petition the agency to waive the per-pound cost of recycling 
285.4 	fee, element D in the formula in paragraph (b), required under this section. The agency shall 
285.5 	direct the commissioner of revenue to waive the per-pound cost of recycling fee if the 
285.6 	manufacturer demonstrates to the agency's satisfaction a good faith effort to meet its recycling 
285.7 	obligation as determined under section 115A.1320. The petition must include:
285.8 	(1) documentation that the manufacturer has met at least 75 percent of its recycling 
285.9 	obligation as determined under section 115A.1320;
285.10 	(2) a list of political subdivisions and public and private collectors with whom the 
285.11 	manufacturer had a formal contract or agreement in effect during the previous program year 
285.12 	to recycle or collect covered electronic devices;
285.13 	(3) the total amounts of covered electronic devices collected from both within and outside 
285.14 	of the 11-county metropolitan area, as defined in subdivision 2;
285.15 	(4) a description of the manufacturer's best efforts to meet its recycling obligation as 
285.16 	determined under section 115A.1320; and
285.17 	(5) any other information requested by the agency.
285.18 	(d) A manufacturer may retain phase I and phase II recycling credits to be added, in 
285.19 	whole or in part, to the actual value of C, as reported under section 115A.1316, subdivision 
285.20 	2, during any succeeding program year, provided that no more than 25 percent of a 
285.21 	manufacturer's recycling obligation (A x B) for any program year may be met with phase 
285.22 	I and phase II recycling credits, separately or in combination, generated in a prior program 
285.23 	year. A manufacturer may sell any portion or all of its phase I and phase II recycling credits 
285.24 	to another manufacturer, at a price negotiated by the parties, who may use the credits in the 
285.25 	same manner.
285.26 	(e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph 
285.27 	(b), starting with the program year beginning July 1, 2019, and continuing each year 
285.28 	thereafter, the weight of covered electronic devices collected from households located 
285.29 	outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b), is 
285.30 	calculated at 1.5 times their actual weight.

285.31 	EFFECTIVE DATE. This section is effective for registration fees due after June 30, 
285.32 	2017.

286.1 	Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 
286.2 	read:
286.3 		Subd. 20.Department of Natural Resources; authorized deputy registrars of motor 
286.4 	vehicles. The commissioner may disclose return information related to the taxes imposed 
286.5 	by chapter 297A to the Department of Natural Resources or an authorized deputy registrar 
286.6 	of motor vehicles only:
286.7 	(1) if the commissioner has an agreement with the commissioner of natural resources 
286.8 	under section 297A.825, subdivision 1; and
286.9 	(2) to the extent necessary for the Department of Natural Resources or an authorized 
286.10 	deputy registrar of motor vehicles, as agents for the commissioner, to verify that the 
286.11 	applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase 
286.12 	of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82, 
286.13 	subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding 
286.14 	either their collection of use tax or their issuance of refunds to applicants of use tax paid to 
286.15 	them in error.

286.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

286.17 	Sec. 6. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:
286.18 		Subdivision 1.Definitions. (a) If a special law grants a local government unit or group 
286.19 	of units the authority to impose a local tax other than sales tax, including but not limited to 
286.20 	taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the 
286.21 	Department of Revenue either has agreed to or is required to administer the tax, such that 
286.22 	the tax is reported and paid with the chapter 297A taxes, then the local government unit or 
286.23 	group of units must adopt each definition term used in the special law is defined as follows:
286.24 	(1) the definition must be identical to the definition found as defined in chapter 297A 
286.25 	or in Minnesota Rules, chapter 8130; or
286.26 	(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules, 
286.27 	chapter 8130, then the definition must be defined consistent with the position of the 
286.28 	Department of Revenue as to the extent of the tax base.
286.29 	(b) This subdivision does not apply to terms that are defined by the authorizing special 
286.30 	law.
286.31 	(c) This subdivision applies notwithstanding whether a local government unit or group 
286.32 	of units adopts consistent definitions into local law.

287.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

287.2 	Sec. 7. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:
287.3 		Subd. 2a.Refund of sales tax to purchasers. (a) If a vendor has collected from a 
287.4 	purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the 
287.5 	purchaser may apply directly to the commissioner for a refund under this section if:
287.6 	(1) the purchaser is currently registered or was registered during the period of the claim, 
287.7 	to collect and remit the sales tax or to remit the use tax; and
287.8 	(2) either
287.9 	(i) the amount of the refund to be applied for exceeds $500, or
287.10 	(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser 
287.11 	also applies for a capital equipment claim at the same time, and the total of the two refunds 
287.12 	exceeds $500.
287.13 	(b) The purchaser may not file more than two applications for refund under this 
287.14 	subdivision in a calendar year.
287.15 	(c) Refunds shall not be issued for sales for resale where the vendor has a published no 
287.16 	resale policy.

287.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

287.18 	Sec. 8. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; 
287.19 	PAYMENT OF TAXES; REFUNDS.
287.20 		Subdivision 1.Agreement with commissioners of natural resources and public 
287.21 	safety; collection and refunds. The commissioner may enter into an agreement with the 
287.22 	commissioner of natural resources, in consultation with the commissioner of public safety, 
287.23 	that provides that:
287.24 	(1) the commissioner of natural resources and authorized deputy registrars of motor 
287.25 	vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from 
287.26 	persons applying for initial registration or license of the item unless the applicant provides 
287.27 	a receipt, invoice, or other document to prove that:
287.28 	(i) sales tax was paid on the purchase;
287.29 	(ii) the purchase was exempt under this chapter;
287.30 	(iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or
288.1 	(iv) the item was purchased from a retailer that is maintaining a place of business in this 
288.2 	state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section 
288.3 	84.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and
288.4 	(2) the commissioner of natural resources and authorized deputy registrars of motor 
288.5 	vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either 
288.6 	the sales or use tax had already been paid or that the purchase was exempt from tax under 
288.7 	this chapter.
288.8 		Subd. 2.Agents. For the purposes of collecting or refunding the tax under this section, 
288.9 	the commissioner of natural resources and authorized deputy registrars of motor vehicles 
288.10 	are the agents of the commissioner and are subject to, and must strictly comply with, all 
288.11 	rules consistent with this chapter prescribed by the commissioner.

288.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

288.13 	Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:
288.14 		Subd. 7.Surcharge. (a) By April 30 of each year, every company required to pay the 
288.15 	surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period 
288.16 	ending March 31 in the form prescribed by the commissioner.
288.17 	(b) (a) By June 30 of each year, every company required to pay the surcharge under 
288.18 	section 297I.10, subdivision 1, shall file a return for the two-month seven-month period 
288.19 	ending May 31 in the form prescribed by the commissioner.
288.20 	(c) (b) By November 30 of each year, every company required to pay the surcharge 
288.21 	under section 297I.10, subdivision 1, shall file a return for the five-month period ending 
288.22 	October 31 in the form prescribed by the commissioner.

288.23 	EFFECTIVE DATE. This section is effective for returns due after October 31, 2017.

288.24 	Sec. 10. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:
288.25 		Subd. 3.Occupation tax; other ores.  Every person engaged in the business of mining, 
288.26 	refining, or producing ores, metals, or minerals in this state, except iron ore or taconite 
288.27 	concentrates, shall pay an occupation tax to the state of Minnesota as provided in this 
288.28 	subdivision. For purposes of this subdivision, mining includes the application of 
288.29 	hydrometallurgical processes. Hydrometallurgical processes are processes that extract the 
288.30 	ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover 
288.31 	the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by 
288.32 	section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 
289.1 	4, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by 
289.2 	applying to taxable income the rate of 2.45 percent. A person subject to occupation tax 
289.3 	under this section shall apportion its net income on the basis of the percentage obtained by 
289.4 	taking the sum of:
289.5 	(1) 75 percent of the percentage which the sales made within this state in connection 
289.6 	with the trade or business during the tax period are of the total sales wherever made in 
289.7 	connection with the trade or business during the tax period;
289.8 	(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 
289.9 	in this state in connection with the trade or business during the tax period is of the total 
289.10 	tangible property, wherever located, used by the taxpayer in connection with the trade or 
289.11 	business during the tax period; and
289.12 	(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 
289.13 	in this state or paid in respect to labor performed in this state in connection with the trade 
289.14 	or business during the tax period are of the taxpayer's total payrolls paid or incurred in 
289.15 	connection with the trade or business during the tax period.
289.16 	The tax is in addition to all other taxes.

289.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

289.18 	Sec. 11. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:
289.19 		Subd. 4.Occupation tax; iron ore; taconite concentrates. A person engaged in the 
289.20 	business of mining or producing of iron ore, taconite concentrates or direct reduced ore in 
289.21 	this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the 
289.22 	same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 
289.23 	1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the 
289.24 	occupation tax shall be computed by applying to taxable income the rate of 2.45 percent. 
289.25 	A person subject to occupation tax under this section shall apportion its net income on the 
289.26 	basis of the percentage obtained by taking the sum of:
289.27 	(1) 75 percent of the percentage which the sales made within this state in connection 
289.28 	with the trade or business during the tax period are of the total sales wherever made in 
289.29 	connection with the trade or business during the tax period;
289.30 	(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 
289.31 	in this state in connection with the trade or business during the tax period is of the total 
289.32 	tangible property, wherever located, used by the taxpayer in connection with the trade or 
289.33 	business during the tax period; and
290.1 	(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 
290.2 	in this state or paid in respect to labor performed in this state in connection with the trade 
290.3 	or business during the tax period are of the taxpayer's total payrolls paid or incurred in 
290.4 	connection with the trade or business during the tax period.
290.5 	The tax is in addition to all other taxes.

290.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

290.7 	Sec. 12. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:
290.8 		Subdivision 1.Imposed; calculation. (a) For concentrate produced in 2013, there is 
290.9 	imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and 
290.10 	upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, 
290.11 	a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The 
290.12 	tax is also imposed upon other iron-bearing material.
290.13 	(b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal 
290.14 	to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied 
290.15 	by the percentage increase in the implicit price deflator from the fourth quarter of the second 
290.16 	preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means 
290.17 	the implicit price deflator for the gross domestic product prepared by the Bureau of Economic 
290.18 	Analysis of the United States Department of Commerce.
290.19 	(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron 
290.20 	ore concentrate for each one percent that the iron content of the product exceeds 72 percent, 
290.21 	when dried at 212 degrees Fahrenheit.
290.22 	(d) The tax on taconite and iron sulphides shall be imposed on the average of the 
290.23 	production for the current year and the previous two years. The rate of the tax imposed will 
290.24 	be the current year's tax rate. This clause shall not apply in the case of the closing of a 
290.25 	taconite facility if the property taxes on the facility would be higher if this clause and section 
290.26 	298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the 
290.27 	current year production.
290.28 	(e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The 
290.29 	tax on other iron-bearing material shall be imposed on the current year production. The rate 
290.30 	of the tax imposed is the current year's tax rate.
290.31 	(e) (f) If the tax or any part of the tax imposed by this subdivision is held to be 
290.32 	unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 
290.33 	shall be imposed.
291.1 	(f) (g) Consistent with the intent of this subdivision to impose a tax based upon the 
291.2 	weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 
291.3 	determine the weight of merchantable iron ore concentrate included in fluxed pellets by 
291.4 	subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux 
291.5 	additives included in the pellets from the weight of the pellets. For purposes of this paragraph, 
291.6 	"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or 
291.7 	other basic flux additives are combined with merchantable iron ore concentrate. No 
291.8 	subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical 
291.9 	additives other than basic flux additives, or moisture.
291.10 	(g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years 
291.11 	of a plant's commercial production of direct reduced ore from ore mined in this state, no 
291.12 	tax is imposed under this section. As used in this paragraph, "commercial production" is 
291.13 	production of more than 50,000 tons of direct reduced ore in the current year or in any prior 
291.14 	year, "noncommercial production" is production of 50,000 tons or less of direct reduced 
291.15 	ore in any year, and "direct reduced ore" is ore that results in a product that has an iron 
291.16 	content of at least 75 percent. For the third year of a plant's commercial production of direct 
291.17 	reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise 
291.18 	determined under this subdivision. For the fourth commercial production year, the rate is 
291.19 	50 percent of the rate otherwise determined under this subdivision; for the fifth commercial 
291.20 	production year, the rate is 75 percent of the rate otherwise determined under this subdivision; 
291.21 	and for all subsequent commercial production years, the full rate is imposed.
291.22 	(2) Subject to clause (1), production of direct reduced ore in this state is subject to the 
291.23 	tax imposed by this section, but if that production is not produced by a producer of taconite, 
291.24 	iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or 
291.25 	other iron-bearing material, that is consumed in the production of direct reduced iron ore
291.26 	in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or 
291.27 	other iron-bearing material.
291.28 	(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct 
291.29 	reduced ore under this section during the facility's noncommercial production of direct 
291.30 	reduced ore. The taconite or iron sulphides consumed in the noncommercial production of 
291.31 	direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. 
291.32 	Three-year average production of direct reduced ore does not include production of direct 
291.33 	reduced ore in any noncommercial year. Three-year average production for a direct reduced 
291.34 	ore facility that has noncommercial production is the average of the commercial production 
291.35 	of direct reduced ore for the current year and the previous two commercial years.
292.1 	(4) This paragraph applies only to plants for which all environmental permits have been 
292.2 	obtained and construction has begun before July 1, 2008.

292.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

292.4 	Sec. 13. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:
292.5 		Subd. 2.City or town where quarried or produced. (a) 4.5 cents per gross ton of 
292.6 	merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 
292.7 	provided in paragraph (c), must be allocated to the city or town in the county in which the 
292.8 	lands from which taconite was mined or quarried were located or within which the 
292.9 	concentrate was produced. If the mining, quarrying, and concentration, or different steps 
292.10 	in either thereof are carried on in more than one taxing district, the commissioner shall 
292.11 	apportion equitably the proceeds of the part of the tax going to cities and towns among such 
292.12 	subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation 
292.13 	of mining or quarrying the taconite, and the remainder to the concentrating plant and to the 
292.14 	processes of concentration, and with respect to each thereof giving due consideration to the 
292.15 	relative extent of such operations performed in each such taxing district. The commissioner's 
292.16 	order making such apportionment shall be subject to review by the Tax Court at the instance 
292.17 	of any of the interested taxing districts, in the same manner as other orders of the 
292.18 	commissioner.
292.19 	(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships 
292.20 	affected by mining because their boundaries are within three miles of a taconite mine pit 
292.21 	that:
292.22 	(i) was actively mined by LTV Steel Mining Company in 1999; or
292.23 	(ii) has been actively mined in at least one of the prior three years.
292.24 	(2) If a city or town is located near more than one mine meeting these the criteria under 
292.25 	this paragraph, the city or town is eligible to receive aid calculated from only the mine 
292.26 	producing the largest taxable tonnage. When more than one municipality qualifies for aid 
292.27 	based on one company's production, the aid must be apportioned among the municipalities 
292.28 	in proportion to their populations. The amounts distributed under this paragraph to each 
292.29 	municipality must be used for infrastructure improvement projects.
292.30 	(c) The amount that would have been computed for the current year under Minnesota 
292.31 	Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to 
292.32 	the cities and townships within the school district in the proportion that their taxable net tax 
293.1 	capacity within the school district bears to the taxable net tax capacity of the school district 
293.2 	for property taxes payable in the year prior to distribution.

293.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

293.4 	Sec. 14. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
293.5 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
293.6 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
293.7 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
293.8 	(b) to (d).
293.9 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
293.10 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
293.11 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
293.12 	2 is the basis for the distribution.
293.13 	(c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
293.14 	shall be paid to a county that received a distribution under this section in 2000 because there 
293.15 	was located in the county an electric power plant owned by and providing the primary source 
293.16 	of power for a taxpayer mining and concentrating taconite is located in a different county 
293.17 	other than the county in which the mining and the concentrating processes are conducted, 
293.18 	one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and 
293.19 	imposed on and collected from such taxpayer shall be paid to the county in which the power 
293.20 	plant is located.
293.21 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
293.22 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
293.23 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
293.24 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
293.25 	processes are carried on in more than one county, the commissioner shall follow the 
293.26 	apportionment formula prescribed in subdivision 2.

293.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

293.28 	Sec. 15. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:
293.29 		Subdivision 1.Authorization; tax base. (a) Notwithstanding section 477A.016 or any 
293.30 	other law, a statutory or home rule charter city may by ordinance, and a town may by the 
293.31 	affirmative vote of the electors at the annual town meeting, or at a special town meeting, 
293.32 	impose a tax of up to three percent on the gross receipts from the furnishing for consideration 
294.1 	of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting 
294.2 	or leasing of it for a continuous period of 30 days or more. A statutory or home rule charter 
294.3 	city may by ordinance impose the tax authorized under this subdivision on the camping site 
294.4 	receipts of a municipal campground.
294.5 	(b) Regardless of whether the tax is collected locally or by the state, the tax imposed 
294.6 	under this subdivision or under a special law applies to the entire consideration paid to 
294.7 	obtain access to lodging, including ancillary or related services, such as services provided 
294.8 	by an accommodations intermediary as defined in section 297A.61, and similar services.

294.9 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
294.10 	final enactment. In enacting this section, the legislature confirms that Minnesota Statutes, 
294.11 	section 469.190, its predecessor provisions, and any special laws authorizing political 
294.12 	subdivisions to impose local lodging taxes, were and are intended to apply to the entire 
294.13 	consideration paid to obtain access to transient lodging, including ancillary or related services, 
294.14 	such as services provided by an accommodations intermediary as defined in Minnesota 
294.15 	Statutes, section 297A.61, and similar services. The provisions of this section must not be 
294.16 	interpreted to imply a narrower construction of the tax base under the lodging tax provisions 
294.17 	of Minnesota law prior to the enactment of this section.

294.18 	Sec. 16. Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read:
294.19 		Subd. 7.Collection. (a) The statutory or home rule charter city may agree with the 
294.20 	commissioner of revenue that a tax imposed pursuant to this section shall be collected by 
294.21 	the commissioner together with the tax imposed by chapter 297A, and subject to the same 
294.22 	interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be 
294.23 	remitted to the city.
294.24 	(b) If a tax under this section or a special law is not collected by the commissioner of 
294.25 	revenue, the local government imposing the tax may by ordinance limit the required filing 
294.26 	and remittance of the tax by an accommodations intermediary as defined in section 297A.61, 
294.27 	subdivision 47, to once every calendar year. The local government must inform the 
294.28 	accommodations intermediary of the date when the return or remittance is due and the date 
294.29 	must coincide with one of the monthly dates for filing and remitting state sales tax under 
294.30 	chapter 297A. The local government must also electronically provide an accommodations 
294.31 	intermediary with geographic and zip code information necessary to collect the tax.

294.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

295.1 	ARTICLE 18
295.2 	DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: PROPERTY 
295.3 	TAX AND LOCAL GOVERNMENT AID

295.4 	Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:
295.5 		Subdivision 1.Valuation. The commissioner shall determine the market valuation of 
295.6 	all flight property operated or used by every airline company in air commerce in this state. 
295.7 	The valuation apportioned to this state of such flight property shall be the proportion of the 
295.8 	total valuation thereof determined on the basis of the total of the following percentages:
295.9 	(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and 
295.10 	freight first received by the airline company in this state during the preceding calendar year 
295.11 	plus the total tonnage of passengers, express and freight finally discharged by it within this 
295.12 	state during the preceding calendar year is of the total of such tonnage first received by the 
295.13 	airline company or finally discharged by it, within and without this state during the preceding 
295.14 	calendar year.
295.15 	(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all 
295.16 	aircraft of the airline company in flight in this state during the preceding calendar year, is 
295.17 	of the total of such time in flight within and without this state during the preceding calendar 
295.18 	year.
295.19 	(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of 
295.20 	passengers, mail, express and freight flown by the airline company within this state during 
295.21 	the preceding calendar year is of the total number of such miles flown by it within and 
295.22 	without this state during the preceding calendar year.
295.23 	(2) 50 percent of the percentage that the total departures performed by the airline company 
295.24 	within this state during the preceding calendar year is of the total departures performed 
295.25 	within and without this state during the preceding calendar year.

295.26 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

295.27 	Sec. 2. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:
295.28 		Subdivision 1.Conformance to federal law. If any provision of sections 270.071 to 
295.29 	270.079 is contrary to any provision of any law of the United States of America, hereinafter 
295.30 	enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying 
295.31 	equipment of an airline company, such provision shall be of no effect and the commissioner 
295.32 	is authorized and directed to prescribe by rule such provisions as may be necessary to make 
296.1 	sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of 
296.2 	sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher 
296.3 	than that provided in section 270.075 or a net tax capacity based on a percentage higher 
296.4 	than that provided in section 270.074, subdivision 2 3.

296.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

296.6 	Sec. 3. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
296.7 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
296.8 	the state of Minnesota or any political subdivision thereof, and property exempt from taxation 
296.9 	under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 
296.10 	provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 
296.11 	described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 
296.12 	the assessor of the assessment district in which the property is located. By February 1, 2018, 
296.13 	and by February 1 of each third year thereafter, the commissioner of revenue shall publish 
296.14 	on its Web site a list of the exemptions for which a taxpayer claiming an exemption must 
296.15 	file a statement of exemption. The commissioner's requirement that a taxpayer file a statement 
296.16 	of exemption pursuant to this subdivision shall not be considered a rule and is not subject 
296.17 	to the Administrative Procedure Act, chapter 14.
296.18 	(b) A taxpayer claiming an exemption from taxation on property described in section 
296.19 	272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, 
296.20 	on or before February 15 of each year for which the taxpayer claims an exemption.
296.21 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
296.22 	commissioner may extend the time for filing the statement of exemption for a period not to 
296.23 	exceed 60 days.
296.24 	(d) The commissioner of revenue shall prescribe the form and contents of the statement 
296.25 	of exemption.

296.26 	EFFECTIVE DATE. This section is effective for applications for exemption submitted 
296.27 	in 2018 and thereafter.

296.28 	Sec. 4. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision 
296.29 	to read:
296.30 		Subd. 8.Extension. The commissioner may, for good cause, extend the time for filing 
296.31 	the report required by subdivision 4. The extension must not exceed 15 days.

296.32 	EFFECTIVE DATE. This section is effective for reports filed in 2018 and thereafter.

297.1 	Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:
297.2 		Subdivision 1.Requirement. Except as otherwise provided in subdivision 5 or 6, 
297.3 	whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by 
297.4 	warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, 
297.5 	grantee or the legal agent of either shall file a certificate of value with the county auditor 
297.6 	in the county in which the property is located when the deed or other document is presented 
297.7 	for recording. Contract for deeds are subject to recording under section 507.235, subdivision 
297.8 	1. Value shall, in the case of any deed not a gift, be the amount of the full actual consideration 
297.9 	thereof, paid or to be paid, including the amount of any lien or liens assumed. The items 
297.10 	and value of personal property transferred with the real property must be listed and deducted 
297.11 	from the sale price. The certificate of value shall include the classification to which the 
297.12 	property belongs for the purpose of determining the fair market value of the property, and 
297.13 	shall include any proposed change in use of the property known to the person filing the 
297.14 	certificate that could change the classification of the property. The certificate shall include 
297.15 	financing terms and conditions of the sale which are necessary to determine the actual, 
297.16 	present value of the sale price for purposes of the sales ratio study. If the property is being 
297.17 	acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code 
297.18 	of 1986, as amended through December 31, 2006, that must be indicated on the certificate. 
297.19 	The commissioner of revenue shall promulgate administrative rules specifying the financing 
297.20 	terms and conditions which must be included on the certificate. The certificate of value 
297.21 	must include the Social Security number or the federal employer identification number of 
297.22 	the grantors and grantees. However, a married person who is not an owner of record and 
297.23 	who is signing a conveyance instrument along with the person's spouse solely to release 
297.24 	and convey their marital interest, if any, in the real property being conveyed is not a grantor 
297.25 	for the purpose of the preceding sentence. A statement in the deed that is substantially in 
297.26 	the following form is sufficient to allow the county auditor to accept a certificate for filing 
297.27 	without the Social Security number of the named spouse: "(Name) claims no ownership 
297.28 	interest in the real property being conveyed and is executing this instrument solely to release 
297.29 	and convey a marital interest, if any, in that real property." The identification numbers of 
297.30 	the grantors and grantees are private data on individuals or nonpublic data as defined in 
297.31 	section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or 
297.32 	nonpublic data may be disclosed to the commissioner of revenue for purposes of tax 
297.33 	administration. The information required to be shown on the certificate of value is limited 
297.34 	to the information required as of the date of the acknowledgment on the deed or other 
297.35 	document to be recorded. The commissioner's determination of the amount for which a 
298.1 	certificate of value is required pursuant to this subdivision shall not be considered a rule 
298.2 	and is not subject to the Administrative Procedure Act, chapter 14.

298.3 	EFFECTIVE DATE. This section is effective for certificates of value filed after 
298.4 	December 31, 2017.

298.5 	Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
298.6 		Subd. 2.Form; information required. The certificate of value shall require such facts 
298.7 	and information as may be determined by the commissioner to be reasonably necessary in 
298.8 	the administration of the state education aid formulas. The form of the certificate of value 
298.9 	shall be prescribed by the Department of Revenue which shall provide an adequate supply 
298.10 	of forms to each county auditor.

298.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

298.12 	Sec. 7. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:
298.13 		Subd. 3.Copies transmitted; homestead status. The county auditor shall transmit two 
298.14 	true copies of the certificate of value to the assessor who shall insert into the certificate of 
298.15 	value the most recent market value and when available, the year of original construction of 
298.16 	each parcel of property on both copies, and shall transmit one copythe certificate of value 
298.17 	to the Department of Revenue. Upon the request of a city council located within the county, 
298.18 	a copy of each certificate of value for property located in that city shall be made available 
298.19 	to the governing body of the city. The assessor shall remove the homestead classification 
298.20 	for the following assessment year from a property which is sold or transferred, unless the 
298.21 	grantee or the person to whom the property is transferred completes a homestead application 
298.22 	under section 273.124, subdivision 13, and qualifies for homestead status.

298.23 	EFFECTIVE DATE. This section is effective for certificates of value filed after 
298.24 	December 31, 2017.

298.25 	Sec. 8. Minnesota Statutes 2016, section 273.0755, is amended to read:
298.26 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
298.27 	(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 
298.28 	by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 
298.29 	successfully complete a weeklong Minnesota laws course sponsored by the Department of 
298.30 	Revenue at least once in every four-year period. An assessor need not attend the course if 
298.31 	they successfully pass the test for the course.
299.1 	(b) The commissioner of revenue may require that each county, and each city for which 
299.2 	the city assessor performs the duties of county assessor, have (i) a person on the assessor's 
299.3 	staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer 
299.4 	or employee who is certified by the Department of Revenue in tax calculations, and (iii) an 
299.5 	officer or employee who is certified by the Department of Revenue in the proper preparation 
299.6 	of abstracts of assessment. The commissioner of revenue may require that each county have 
299.7 	an officer or employee who is certified by the Department of Revenue in the proper 
299.8 	preparation of abstracts of tax lists.  Certifications under this paragraph expire after four 
299.9 	years.
299.10 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
299.11 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
299.12 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
299.13 	assessment practices developed and presented by the commissioner of revenue. This 
299.14 	requirement must be met at least once in every subsequent four-year period. This requirement 
299.15 	applies to all assessors licensed for one year or more in the four-year period.
299.16 	(d) The commissioner of revenue may require that at least one employee of any county 
299.17 	or city that performs functions related to property tax administration complete additional 
299.18 	training that the commissioner deems necessary to promote uniform and equitable 
299.19 	implementation of the property tax laws, as defined in section 270C.01, subdivision 7.

299.20 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

299.21 	Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
299.22 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
299.23 	under subdivision 1 must file a homestead application with the county assessor to initially 
299.24 	obtain homestead classification.
299.25 	(b) The format and contents of a uniform homestead application shall be prescribed by 
299.26 	the commissioner of revenue. The application must clearly inform the taxpayer that this 
299.27 	application must be signed by all owners who occupy the property or by the qualifying 
299.28 	relative and returned to the county assessor in order for the property to receive homestead 
299.29 	treatment.
299.30 	(c) Every property owner applying for homestead classification must furnish to the 
299.31 	county assessor the Social Security number of each occupant who is listed as an owner of 
299.32 	the property on the deed of record, the name and address of each owner who does not occupy 
299.33 	the property, and the name and Social Security number of each owner's spouse who occupies 
300.1 	the property. The application must be signed by each owner who occupies the property and 
300.2 	by each owner's spouse who occupies the property, or, in the case of property that qualifies 
300.3 	as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
300.4 	If a property owner occupies a homestead, the property owner's spouse may not claim 
300.5 	another property as a homestead unless the property owner and the property owner's spouse 
300.6 	file with the assessor an affidavit or other proof required by the assessor stating that the 
300.7 	property qualifies as a homestead under subdivision 1, paragraph (e).
300.8 	Owners or spouses occupying residences owned by their spouses and previously occupied 
300.9 	with the other spouse, either of whom fail to include the other spouse's name and Social 
300.10 	Security number on the homestead application or provide the affidavits or other proof 
300.11 	requested, will be deemed to have elected to receive only partial homestead treatment of 
300.12 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
300.13 	When an owner or spouse's name and Social Security number appear on homestead 
300.14 	applications for two separate residences and only one application is signed, the owner or 
300.15 	spouse will be deemed to have elected to homestead the residence for which the application 
300.16 	was signed.
300.17 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
300.18 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
300.19 	the property to receive homestead status, a homestead application must be filed with the 
300.20 	assessor. The Social Security number of each relative occupying the property and the name 
300.21 	and Social Security number of the spouse of a relative occupying the property shall be 
300.22 	required on the homestead application filed under this subdivision. If a different relative of 
300.23 	the owner subsequently occupies the property, the owner of the property must notify the 
300.24 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
300.25 	occupying the property or relative's the spouse of a relative occupying the property is private 
300.26 	data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
300.27 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
300.28 	Act to recover personal property taxes owing, to the county treasurer.
300.29 	(e) The homestead application shall also notify the property owners that if the property 
300.30 	is granted homestead status for any assessment year, that same property shall remain 
300.31 	classified as homestead until the property is sold or transferred to another person, or the 
300.32 	owners, the spouse of the owner, or the relatives no longer use the property as their 
300.33 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
300.34 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
300.35 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
301.1 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
301.2 	shall result in the penalty provided under this subdivision and the property will lose its 
301.3 	current homestead status.
301.4 	(f) If a homestead application has not been filed with the county by December 15, the 
301.5 	assessor shall classify the property as nonhomestead for the current assessment year for 
301.6 	taxes payable in the following year, provided that the owner may be entitled to receive the 
301.7 	homestead classification by proper application under section 375.192.

301.8 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
301.9 	2018 and thereafter.

301.10 	Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:
301.11 		Subd. 13d.Homestead data.  On or before April 30 each year beginning in 2007, each 
301.12 	county must provide the commissioner with the following data for each parcel of homestead 
301.13 	property by electronic means as defined in section 289A.02, subdivision 8:
301.14 	(1) the property identification number assigned to the parcel for purposes of taxes payable 
301.15 	in the current year;
301.16 	(2) the name and Social Security number of each occupant of homestead property who 
301.17 	is the property owner, property owner's spouse,or qualifying relative of a property owner,
301.18 	and the spouse of the property owner who occupies homestead property or spouse of a 
301.19 	qualifying relative of a property owner who occupies homestead property;
301.20 	(3) the classification of the property under section 273.13 for taxes payable in the current 
301.21 	year and in the prior year;
301.22 	(4) an indication of whether the property was classified as a homestead for taxes payable 
301.23 	in the current year because of occupancy by a relative of the owner or by a spouse of a 
301.24 	relative;
301.25 	(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
301.26 	current year and the prior year;
301.27 	(6) the market value of improvements to the property first assessed for tax purposes for 
301.28 	taxes payable in the current year;
301.29 	(7) the assessor's estimated market value assigned to the property for taxes payable in 
301.30 	the current year and the prior year;
301.31 	(8) the taxable market value assigned to the property for taxes payable in the current 
301.32 	year and the prior year;
302.1 	(9) whether there are delinquent property taxes owing on the homestead;
302.2 	(10) the unique taxing district in which the property is located; and
302.3 	(11) such other information as the commissioner decides is necessary.
302.4 	The commissioner shall use the information provided on the lists as appropriate under 
302.5 	the law, including for the detection of improper claims by owners, or relatives of owners, 
302.6 	under chapter 290A.

302.7 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
302.8 	2018 and thereafter.

302.9 	Sec. 11. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:
302.10 		Subdivision 1.Reduction in tax; tax relief area. The property tax to be paid in respect 
302.11 	to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on 
302.12 	homestead property, as otherwise determined by law and regardless of the market value of 
302.13 	the property, and on nonhomestead portions of property classified as both homestead and 
302.14 	nonhomestead property as provided in section 273.124, subdivision 11, for all purposes 
302.15 	shall be reduced in the amount prescribed by subdivision 2, subject to the limitations 
302.16 	contained therein.

302.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

302.18 	Sec. 12. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:
302.19 		Subd. 3.Proof of compliance; transfer of duties. (a) Any city or town that conducts 
302.20 	local boards of appeal and equalization meetings must provide proof to the county assessor 
302.21 	by February 1 that it is in compliance comply with the training requirements of subdivision 
302.22 	2 by February 1, by having at least one member who has attended an appeals and equalization 
302.23 	course described in subdivision 2 within the last four years. This notice must also verify 
302.24 	that there was a quorum of voting members at each meeting of the board of appeal and 
302.25 	equalization in the previous year. A city or town that does not comply with these requirements 
302.26 	is deemed to have transferred its board of appeal and equalization powers to the county for 
302.27 	a minimum of two assessment years, beginning with the current year's assessment and 
302.28 	continuing thereafter unless the powers are reinstated under paragraph (c).
302.29 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
302.30 	a city or town has been transferred to the county under this subdivision and, prior to the 
302.31 	meeting time of the county board of equalization, the county shall make available to those 
303.1 	taxpayers a procedure for a review of the assessments, including, but not limited to, open 
303.2 	book meetings. This alternate review process shall take place in April and May.
303.3 	(c) A local board whose powers are transferred to the county under this subdivision may 
303.4 	be reinstated by resolution of the governing body of the city or town and upon proof of 
303.5 	compliance with the requirements of subdivision 2. The resolution and proofs must be 
303.6 	provided to the county assessor by February 1 in order to be effective for the following 
303.7 	year's assessment.
303.8 	(d) A local board whose powers are transferred to the county under this subdivision may 
303.9 	continue to employ a local assessor and is not deemed to have transferred its powers to 
303.10 	make assessments.

303.11 	EFFECTIVE DATE. This section is effective for board of appeal and equalization 
303.12 	meetings held in 2018 and thereafter.

303.13 	Sec. 13. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
303.14 		Subd. 3.Proof of compliance; transfer of duties. (a) Any county that conducts county 
303.15 	boards of appeal and equalization meetings must provide proof to the commissioner by 
303.16 	December 1, 2009, and each year thereafter, that it is in compliance comply with the training 
303.17 	requirements of subdivision 2 by February 1, by having at least one member who has attended 
303.18 	an appeals and equalization course described in subdivision 2 within the last four years. 
303.19 	Beginning in 2009, this notice must also verify that there was a quorum of voting members 
303.20 	at each meeting of the board of appeal and equalization in the current year. A county that 
303.21 	does not comply with these requirements is deemed to have transferred its board of appeal 
303.22 	and equalization powers to the special board of equalization appointed pursuant to section 
303.23 	274.13, subdivision 2, for a minimum of two assessment years, beginning with the following 
303.24 	year's assessment and continuing thereafter unless the powers are reinstated under paragraph 
303.25 	(c). A county that does not comply with the requirements of subdivision 2 and has not 
303.26 	appointed a special board of equalization shall appoint a special board of equalization before 
303.27 	the following year's assessment.
303.28 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
303.29 	a county has been transferred to the special board of equalization under this subdivision 
303.30 	and, prior to the meeting time of the special board of equalization, the county shall make 
303.31 	available to those taxpayers a procedure for a review of the assessments, including, but not 
303.32 	limited to, open book meetings. This alternate review process must take place in April and 
303.33 	May.
304.1 	(c) A county board whose powers are transferred to the special board of equalization 
304.2 	under this subdivision may be reinstated by resolution of the county board and upon proof 
304.3 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
304.4 	provided to the commissioner by December 1 in order to be effective for the following 
304.5 	year's assessment.
304.6 	(d) If a person who was entitled to appeal to the county board of appeal and equalization 
304.7 	or to the county special board of equalization is not able to do so in a particular year because 
304.8 	the county board or special board did not meet the quorum and training requirements in this 
304.9 	section and section 274.13, or because the special board was not appointed, that person may 
304.10 	instead appeal to the commissioner of revenue, provided that the appeal is received by the 
304.11 	commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 
304.12 	270C.92. The commissioner must issue an appropriate order to the county assessor in 
304.13 	response to each timely appeal, either upholding or changing the valuation or classification 
304.14 	of the property. Prior to October 1 of each year, the commissioner must charge and bill the 
304.15 	county where the property is located $500 for each tax parcel covered by an order issued 
304.16 	under this paragraph in that year. Amounts received by the commissioner under this paragraph 
304.17 	must be deposited in the state's general fund. If payment of a billed amount is not received 
304.18 	by the commissioner before December 1 of the year when billed, the commissioner must 
304.19 	deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 
304.20 	county under chapter 477A in the next year. Late payments may either be returned to the 
304.21 	county uncashed and undeposited or may be accepted. If a late payment is accepted, the 
304.22 	state aid paid to the county under chapter 477A must be adjusted within 12 months to 
304.23 	eliminate any reduction that occurred because the payment was late. Amounts needed to 
304.24 	make these adjustments are included in the appropriation under section 477A.03, subdivision 
304.25 	2.

304.26 	EFFECTIVE DATE. This section is effective for board of appeal and equalization 
304.27 	meetings held in 2018 and thereafter.

304.28 	Sec. 14. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:
304.29 		Subd. 2.Transmittal of order. The chief administrative law judge shall see that copies 
304.30 	of the order are mailed to all parties entitled to mailed notice of hearing under subdivision 
304.31 	1, the secretary of state, the Department of Revenue, the state demographer, individual 
304.32 	property owners if initiated in that manner, affected county auditor, and any other party of 
304.33 	record. The affected county auditor shall record the order against the affected property.

304.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

305.1 	Sec. 15. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:
305.2 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
305.3 	meanings given them.
305.4 	(b) "County program aid" means the sum of "county need aid," "county tax base 
305.5 	equalization aid," and "county transition aid."
305.6 	(c) "Age-adjusted population" means a county's population multiplied by the county age 
305.7 	index.
305.8 	(d) "County age index" means the percentage of the population over age 65 and over 
305.9 	within the county divided by the percentage of the population over age 65 and over within 
305.10 	the state, except that the age index for any county may not be greater than 1.8 nor less than 
305.11 	0.8.
305.12 	(e) "Population over age 65 and over" means the population over age 65 and over 
305.13 	established as of July 15 in an aid calculation year by the most recent federal census, by a 
305.14 	special census conducted under contract with the United States Bureau of the Census, by a 
305.15 	population estimate made by the Metropolitan Council, or by a population estimate of the 
305.16 	state demographer made pursuant to section 4A.02, whichever is the most recent as to the 
305.17 	stated date of the count or estimate for the preceding calendar year and which has been 
305.18 	certified to the commissioner of revenue on or before July 15 of the aid calculation year. A 
305.19 	revision to an estimate or count is effective for these purposes only if certified to the 
305.20 	commissioner on or before July 15 of the aid calculation year. Clerical errors in the 
305.21 	certification or use of estimates and counts established as of July 15 in the aid calculation 
305.22 	year are subject to correction within the time periods allowed under section 477A.014.
305.23 	(f) "Part I crimes" means the three-year average annual number of Part I crimes reported 
305.24 	for each county by the Department of Public Safety for the most recent years available. By 
305.25 	July 1 of each year, the commissioner of public safety shall certify to the commissioner of 
305.26 	revenue the number of Part I crimes reported for each county for the three most recent 
305.27 	calendar years available.
305.28 	(g) "Households receiving food stamps" means the average monthly number of 
305.29 	households receiving food stamps for the three most recent years for which data is available. 
305.30 	By July 1 of each year, the commissioner of human services must certify to the commissioner 
305.31 	of revenue the average monthly number of households in the state and in each county that 
305.32 	receive food stamps, for the three most recent calendar years available.
306.1 	(h) "County net tax capacity" means the county's adjusted net tax capacity under section 
306.2 	273.1325.

306.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

306.4 	Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:
306.5 		Subdivision 1.Towns. (a) In 2014 and thereafter, each town is eligible for a distribution 
306.6 	under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town 
306.7 	area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the 
306.8 	following terms have the meanings given them:
306.9 	(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 
306.10 	agricultural property located in a town, divided by to the adjusted net tax capacity of all 
306.11 	other property located in the town. The agricultural property factor cannot exceed eight;
306.12 	(2) "agricultural property" means property classified under section 273.13, as homestead 
306.13 	and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal 
306.14 	recreational property;
306.15 	(3) "town area factor" means the most recent estimate of total acreage, not to exceed 
306.16 	50,000 acres, located in the township available as of July 1 in the aid calculation year, 
306.17 	estimated or established by:
306.18 	(i) the United States Bureau of the Census;
306.19 	(ii) the State Land Management Information Center; or
306.20 	(iii) the secretary of state; and
306.21 	(4) "population factor" means the square root of the towns' population.
306.22 	(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit 
306.23 	under section 477A.03, subdivision 2c, the distribution to each town must be reduced 
306.24 	proportionately so that the total amount of aids distributed under this section does not exceed 
306.25 	the limit in section 477A.03, subdivision 2c.
306.26 	(c) Data used in calculating aids to towns under this subdivision, other than acreage, 
306.27 	shall be the most recently available data as of January 1 in the year in which the aid is 
306.28 	calculated.

306.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

307.1 	Sec. 17.  REPEALER.
 307.2 	Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.

307.3 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

307.4 	ARTICLE 19
307.5 	DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS

307.6 	Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:
307.7 		Subd. 2.Definitions. (a) For purposes of this section and sections 270C.4451 to 
307.8 	270C.447, the following terms have the meanings given.
307.9 	(b) "Advertise" means to solicit business through any means or medium.
307.10 	(c) "Client" means an individual a person for whom a tax preparer performs or agrees 
307.11 	to perform tax preparation services.
307.12 	(d) "Facilitate" means to individually or in conjunction or cooperation with another 
307.13 	person:
307.14 	(1) accept an application for a refund anticipation loan;
307.15 	(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any 
307.16 	other means, of a refund anticipation loan; or
307.17 	(3) offer, arrange, process, provide, or in any other manner act to allow the making of, 
307.18 	a refund anticipation loan.
307.19 	(e) "Person" means an individual, corporation, partnership, limited liability company, 
307.20 	association, trustee, or other legal entity.
307.21 	(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client 
307.22 	by the tax preparer or another person, which is issued from the proceeds of a taxpayer's 
307.23 	federal or state income tax refund or both and represents the net of the refund minus the tax 
307.24 	preparation fee and any other fees. A refund anticipation check includes a refund transfer.
307.25 	(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether 
307.26 	provided by the tax preparer or another entity such as a financial institution, in anticipation 
307.27 	of, and whose payment is secured by, a client's federal or state income tax refund or both.
307.28 	(h) (g) "Tax preparation services" means services provided for a fee or other consideration
307.29 	compensation to a client to:
307.30 	(1) assist with preparing or filing state or federal individual income tax returns a return;
308.1 	(2) assume final responsibility for completed work on an individual income tax a return 
308.2 	on which preliminary work has been done by another; or
308.3 	(3) sign or include on a return the preparer tax identification number required under 
308.4 	section 6109(a)(4) of the Internal Revenue Code; or
308.5 	(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund 
308.6 	anticipation checks check.
308.7 	(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services 
308.8 	subject to this section. except:
308.9 	(1) an employee who prepares their employer's return;
308.10 	(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the 
308.11 	fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
308.12 	(3) nonprofit organizations providing tax preparation services under the Internal Revenue 
308.13 	Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly 
308.14 	Program;
308.15 	(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
308.16 	(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently 
308.17 	registered with the commissioner; and
308.18 	(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph 
308.19 	(c), that provides all of the sales tax functions for a retailer not maintaining a place of 
308.20 	business in this state as described in section 297A.66.
308.21 	(i) Except as otherwise provided, "return" means:
308.22 	(1) a return as defined in section 270C.01, subdivision 8;
308.23 	(2) a claim for refund of an overpayment;
308.24 	(3) a claim filed pursuant to chapter 290A; and
308.25 	(4) a claim for a credit filed under section 290.0677, subdivision 1.

308.26 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
308.27 	31, 2017.

308.28 	Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:
308.29 		Subd. 3.Standards of conduct. No tax preparer shall:
309.1 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
309.2 	complete a client's tax return;
309.3 	(2) obtain the signature of a client to a tax return or authorizing document that contains 
309.4 	blank spaces to be filled in after it has been signed;
309.5 	(3) fail to sign a client's tax return when payment compensation for services rendered 
309.6 	has been made;
309.7 	(4) fail to provide on a client's return the preparer tax identification number when required 
309.8 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
309.9 	(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature 
309.10 	within a reasonable time after the client signs the document;
309.11 	(5) (6) fail to retain for at least four years a copy of individual income tax a client's
309.12 	returns;
309.13 	(6) (7) fail to maintain a confidential relationship with clients or former clients;
309.14 	(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
309.15 	personal information;
309.16 	(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly 
309.17 	or indirectly, any false, deceptive, or misleading statement or representation relating to or 
309.18 	in connection with the offering or provision of tax preparation services;
309.19 	(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's
309.20 	return;
309.21 	(10) (11) claim credits or deductions on a client's tax return for which the tax preparer 
309.22 	knows or reasonably should know the client does not qualify;
309.23 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
309.24 	preparer knows or reasonably should know is not accurate;
309.25 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
309.26 	13, 20, 20a, 26, or 28;
309.27 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
309.28 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
309.29 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
309.30 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
310.1 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
310.2 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
310.3 	(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
310.4 	refund for tax preparation services;
310.5 	(12) (18) under any circumstances, withhold or fail to return to a client a document 
310.6 	provided by the client for use in preparing the client's tax return;
310.7 	(13) (19) establish an account in the preparer's name to receive a client's refund through 
310.8 	a direct deposit or any other instrument unless the client's name is also on the account, 
310.9 	except that a taxpayer may assign the portion of a refund representing the Minnesota 
310.10 	education credit available under section 290.0674 to a bank account without the client's 
310.11 	name, as provided under section 290.0679;
310.12 	(14) (20) fail to act in the best interests of the client;
310.13 	(15) (21) fail to safeguard and account for any money handled for the client;
310.14 	(16) (22) fail to disclose all material facts of which the preparer has knowledge which 
310.15 	might reasonably affect the client's rights and interests;
310.16 	(17) (23) violate any provision of section 332.37;
310.17 	(18) (24) include any of the following in any document provided or signed in connection 
310.18 	with the provision of tax preparation services:
310.19 	(i) a hold harmless clause;
310.20 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
310.21 	client or appear as the client in any judicial proceeding;
310.22 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
310.23 	a debtor;
310.24 	(iv) an assignment of or an order for payment of wages or other compensation for 
310.25 	services;
310.26 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
310.27 	available;
310.28 	(vi) a waiver of any provision of this section or a release of any obligation required to 
310.29 	be performed on the part of the tax preparer; or
310.30 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
310.31 	a class basis; or
311.1 	(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide 
311.2 	all disclosures required by the federal Truth in Lending Act, United States Code, title 15, 
311.3 	in a form that may be retained by the client.

311.4 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
311.5 	31, 2017.

311.6 	Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:
311.7 		Subd. 5a.Nongame wildlife checkoff. A tax preparer must give written notice of the 
311.8 	option to contribute to the nongame wildlife management account in section 290.431 to 
311.9 	corporate clients that file an income tax return and to individual clients who file an income 
311.10 	tax return or property tax refund claim form under chapter 290A. This notification must be 
311.11 	included with information sent to the client at the same time as the preliminary worksheets 
311.12 	or other documents used in preparing the client's return and must include a line for displaying 
311.13 	contributions.

311.14 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
311.15 	31, 2017.

311.16 	Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:
311.17 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
311.18 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
311.19 	of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not 
311.20 	be imposed for any conduct that is also subject to the for which a tax return preparer penalties 
311.21 	inpenalty is imposed under section 289A.60, subdivision 13. The commissioner may 
311.22 	terminate a tax preparer's authority to transmit returns electronically to the state, if the 
311.23 	commissioner determines the tax preparer engaged in a pattern and practice of violating 
311.24 	this section. Imposition of a penalty under this subdivision paragraph is subject to the 
311.25 	contested case procedure under chapter 14. The commissioner shall collect the penalty in 
311.26 	the same manner as the income tax. There is no right to make a claim for refund under 
311.27 	section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this 
311.28 	subdivision paragraph are public data.
311.29 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
311.30 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
311.31 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
311.32 	desist from committing the violation. The administrative order may include an administrative 
311.33 	penalty provided in paragraph (a).
312.1 	(c) If the commissioner issues an administrative order under paragraph (b), the 
312.2 	commissioner must send the order to the tax preparer addressed to the last known address 
312.3 	of the tax preparer.
312.4 	(d) A cease and desist order under paragraph (b) must:
312.5 	(1) describe the act, conduct, or practice committed and include a reference to the law 
312.6 	that the act, conduct, or practice violates; and
312.7 	(2) provide notice that the tax preparer may request a hearing as provided in this 
312.8 	subdivision.
312.9 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
312.10 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
312.11 	for hearing must be made in writing and must be served on the commissioner at the address 
312.12 	specified in the order. The hearing request must specifically state the reasons for seeking 
312.13 	review of the order. The date on which a request for hearing is served by mail is the postmark 
312.14 	date on the envelope in which the request for hearing is mailed.
312.15 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
312.16 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
312.17 	subject to review by any court or agency.
312.18 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
312.19 	under paragraph (b), the hearing must be commenced within ten days after the commissioner 
312.20 	receives the request for a hearing.
312.21 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
312.22 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
312.23 	must issue a report containing findings of fact, conclusions of law, and a recommended 
312.24 	order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 
312.25 	or the submission of written arguments, whichever is later.
312.26 	(i) Within five days of the date of the administrative law judge's report issued under 
312.27 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
312.28 	written exceptions and arguments to the commissioner. Within 15 days after receiving the 
312.29 	administrative law judge's report, the commissioner must issue an order vacating, modifying, 
312.30 	or making final the administrative order.
312.31 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
312.32 	lengthen any time periods prescribed in paragraphs (g) to (i).
313.1 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
313.2 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
313.3 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
313.4 	the exclusive remedy for a tax preparer aggrieved by the order.
313.5 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
313.6 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
313.7 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
313.8 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
313.9 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
313.10 	penalty order. The request for hearing must be made in writing and must be served on the 
313.11 	commissioner at the address specified in the order. The hearing request must specifically 
313.12 	state the reasons for seeking review of the order. The cease and desist order issued under 
313.13 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
313.14 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
313.15 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
313.16 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
313.17 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
313.18 	under this paragraph may be collected and enforced by the commissioner as an income tax 
313.19 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
313.20 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
313.21 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
313.22 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
313.23 	to the state. Termination under this paragraph is public data.
313.24 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
313.25 	order.
313.26 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
313.27 	action under this subdivision against a tax preparer, with respect to a return, within the 
313.28 	period to assess tax on that return as provided by section 289A.38.
313.29 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
313.30 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
313.31 	the commissioner within five years of the violation of statute.

313.32 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
313.33 	31, 2017.

314.1 	Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:
314.2 		Subd. 6a.Exchange of data; State Board of Accountancy. The State Board of 
314.3 	Accountancy shall refer to the commissioner complaints it receives about tax preparers who 
314.4 	are not subject to the jurisdiction of the State Board of Accountancy and who are alleged 
314.5 	to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 
314.6 	subdivision 5a, or section 270C.4451.

314.7 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
314.8 	31, 2017.

314.9 	Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:
314.10 		Subd. 6b.Exchange of data; Lawyers Board of Professional Responsibility. The 
314.11 	Lawyers Board of Professional Responsibility may refer to the commissioner complaints 
314.12 	it receives about tax preparers who are not subject to its jurisdiction and who are alleged to 
314.13 	have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 
314.14 	subdivision 5a, or section 270C.4451.

314.15 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
314.16 	31, 2017.

314.17 	Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:
314.18 		Subd. 6c.Exchange of data; commissioner. The commissioner shall refer information 
314.19 	and complaints about tax preparers who are alleged to have violated the provisions of 
314.20 	subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section 
314.21 	270C.4451, to:
314.22 	(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and
314.23 	(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its 
314.24 	jurisdiction.

314.25 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
314.26 	31, 2017.

314.27 	Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:
314.28 		Subd. 7.Enforcement; civil actions. (a) Any violation of this section or section 
314.29 	270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section 
314.30 	8.31. An action taken under this section is in the public interest.
315.1 	(b) A client may bring a civil action seeking redress for a violation of this section in the 
315.2 	conciliation or the district court of the county in which unlawful action is alleged to have 
315.3 	been committed or where the respondent resides or has a principal place of business.
315.4 	(c) A court finding for the plaintiff must award:
315.5 	(1) actual damages;
315.6 	(2) incidental and consequential damages;
315.7 	(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the 
315.8 	plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all 
315.9 	interest and fees for a refund anticipation loan;
315.10 	(4) reasonable attorney fees;
315.11 	(5) court costs; and
315.12 	(6) any other equitable relief as the court considers appropriate.

315.13 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
315.14 	31, 2017.

315.15 	Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:
315.16 		Subd. 8.Limited exemptions. (a) Except as provided in paragraph (b), the provisions 
315.17 	of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs 
315.18 	(a) to (n); and 7, do not apply to:
315.19 	(1) an attorney admitted to practice under section 481.01;
315.20 	(2) a registered accounting practitioner, a registered accounting practitioner firm, a 
315.21 	certified public accountant, or other person who is subject to the jurisdiction of the State 
315.22 	Board of Accountancy a certified public accountant firm, licensed in accordance with chapter 
315.23 	326A;
315.24 	(3) an enrolled agent who has passed the special enrollment examination administered 
315.25 	by the Internal Revenue Service; or
315.26 	(4) anyone a person who provides, or assists in providing, tax preparation services within 
315.27 	the scope of duties as an employee or supervisor under the direction or supervision of a 
315.28 	person who is exempt under this subdivision; or
315.29 	(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.
316.1 	(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax 
316.2 	preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:
316.3 	(1) had a professional license suspended or revoked for cause, not including a failure to 
316.4 	pay a professional licensing fee, by any authority of any state, territory, or possession of 
316.5 	the United States, including a commonwealth, or the District of Columbia, any federal court 
316.6 	of record, or any federal agency, body, or board;
316.7 	(2) irrespective of whether an appeal has been taken, been convicted of any crime 
316.8 	involving dishonesty or breach of trust;
316.9 	(3) been censured, suspended, or disbarred under United States Treasury Department 
316.10 	Circular 230;
316.11 	(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal 
316.12 	proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or 
316.13 	the tax preparer's own tax liability, for:
316.14 	(i) instituting or maintaining proceedings primarily for delay;
316.15 	(ii) advancing frivolous or groundless arguments; or
316.16 	(iii) failing to pursue available administrative remedies; or
316.17 	(5) demonstrated a pattern of willful disreputable conduct by:
316.18 	(i) failing to file a return that the tax preparer was required to file annually for two of 
316.19 	the three immediately preceding tax periods; or
316.20 	(ii) failing to file a return that the tax preparer was required to file more frequently than 
316.21 	annually for three of the six immediately preceding tax periods.

316.22 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
316.23 	31, 2017.

316.24 	Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 
316.25 	to read:
316.26 		Subd. 9.Powers additional. The powers and authority granted in this section are in 
316.27 	addition to all other powers of the commissioner. The use of the powers granted in this 
316.28 	section does not preclude the use of any other power or authority of the commissioner.

316.29 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
316.30 	31, 2017.

317.1 	Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:
317.2 		Subd. 2.Required and excluded tax preparers. (a) Subject to the limitations of 
317.3 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
317.4 	289A.60, subdivision 13, paragraph (f) 270C.445, subdivision 2, paragraph (h), who have 
317.5 	been:
317.6 	(1) convicted under section 289A.63for returns or claims prepared as a tax preparer or;
317.7 	(2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13, 
317.8 	paragraph (a);
317.9 	(3) convicted for identity theft under section 609.527, or a similar statute, for a return 
317.10 	filed with the commissioner, the Internal Revenue Service, or another state;
317.11 	(4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess 
317.12 	of $1,000;
317.13 	(5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph 
317.14 	(b), that has become a final order; or
317.15 	(6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating 
317.16 	a cease and desist order.
317.17 	(b) For the purposes of this section, tax preparers are not subject to publication if:
317.18 	(1) an administrative or court action contesting the or appealing a penalty described in 
317.19 	paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time 
317.20 	when notice would be given under subdivision 3;
317.21 	(2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4), 
317.22 	or (6), has not expired; or
317.23 	(3) the commissioner has been notified that the tax preparer is deceased;
317.24 	(4) an appeal period to contest a cease and desist order issued under section 270C.445, 
317.25 	subdivision 6, paragraph (b), has not expired;
317.26 	(5) an administrative or court action contesting or appealing a cease and desist order 
317.27 	issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and 
317.28 	is unresolved at the time when notice would be given under subdivision 3;
317.29 	(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been 
317.30 	filed or served and is unresolved at the time when the notice would be given under 
317.31 	subdivision 3; or
318.1 	(7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3), 
318.2 	has not expired.

318.3 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
318.4 	31, 2017.

318.5 	Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:
318.6 		Subd. 3.Notice to tax preparer. (a) At least 30 days before publishing the name of a 
318.7 	tax preparer subject to penalty publication under this section, the commissioner shall mail 
318.8 	a written notice to the tax preparer, detailing the amount and nature of each penalty basis 
318.9 	for the publication and the intended publication of the information listed in subdivision 4 
318.10 	related to the penalty. The notice must be mailed by first class and certified mail sent to the 
318.11 	tax preparer addressed to the last known address of the tax preparer. The notice must include 
318.12 	information regarding the exceptions listed in subdivision 2, paragraph (b), and must state 
318.13 	that the tax preparer's information will not be published if the tax preparer provides 
318.14 	information establishing that subdivision 2, paragraph (b), prohibits publication of the tax 
318.15 	preparer's name.
318.16 	(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the 
318.17 	commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner 
318.18 	may publish in a list of tax preparers subject to penalty the information about the tax preparer 
318.19 	that is listed in subdivision 4.

318.20 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
318.21 	31, 2017.

318.22 	Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:
318.23 		Subd. 4.Form of list. The list may be published by any medium or method. The list 
318.24 	must contain the name, associated business name or names, address or addresses, and 
318.25 	violation or violations for which a penalty was imposed of that make each tax preparer 
318.26 	subject to penalty publication.

318.27 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
318.28 	31, 2017.

318.29 	Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
318.30 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax preparer 
318.31 	from the list of tax preparers published under this section:
319.1 	(1) when the commissioner determines that the name was included on the list in error;
319.2 	(2) within 90 days three years after the preparer has demonstrated to the commissioner 
319.3 	that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied 
319.4 	any sentence imposed, successfully completed any probationary period imposed, and 
319.5 	successfully completed any remedial actions required by the commissioner, the State Board 
319.6 	of Accountancy, or the Lawyers Board of Professional Responsibility; or
319.7 	(3) when the commissioner has been notified that the tax preparer is deceased.

319.8 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
319.9 	31, 2017.

319.10 	Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:
319.11 		Subdivision 1.Commencement of action. (a) Whenever it appears to the commissioner 
319.12 	that a tax preparer doing business in Minnesota has engaged in any conduct described in 
319.13 	subdivision 2, a civil action in the name of the state of Minnesota may be commenced to 
319.14 	enjoin any person who is a tax return preparer doing business in this state from further 
319.15 	engaging in any conduct described in subdivision 2 the conduct and enforce compliance.
319.16 	(b) An action under this subdivision must be brought by the attorney general in:
319.17 	(1) the district court for the judicial district of the tax return preparer's residence or 
319.18 	principal place of business, or in which the;
319.19 	(2) the district court for the judicial district of the residence of any taxpayer with respect 
319.20 	to whose tax return the action is brought resides; or
319.21 	(3) Ramsey County District Court.
319.22 	(c) The court may exercise its jurisdiction over the action separate and apart from any 
319.23 	other action brought by the state of Minnesota against the tax return preparer or any taxpayer.
319.24 	The court must grant a permanent injunction or other appropriate relief if the commissioner 
319.25 	shows that the person has engaged in conduct constituting a violation of a law administered 
319.26 	by the commissioner or a cease and desist order issued by the commissioner. The 
319.27 	commissioner shall not be required to show irreparable harm.

319.28 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
319.29 	31, 2017.

320.1 	Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:
320.2 		Subd. 2.Injunction prohibiting specific conduct. In an action under subdivision 1,
320.3 	the court may enjoin the person from further engaging in that conduct if the court finds that 
320.4 	a tax return preparer has:
320.5 	(1) engaged in any conduct subject to a civil penalty under section 289A.60or, a criminal 
320.6 	penalty under section 289A.63, or a criminal penalty under section 609.527 or a similar 
320.7 	statute for a return filed with the commissioner, the Internal Revenue Service, or another 
320.8 	state;
320.9 	(2) misrepresented the preparer's eligibility to practice before the Department of Revenue, 
320.10 	or otherwise misrepresented the preparer's experience or education as a tax return preparer;
320.11 	(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or
320.12 	(4) violated a cease and desist order issued by the commissioner; or
320.13 	(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes 
320.14 	with the proper administration of a law administered by the commissioner, and injunctive 
320.15 	relief is appropriate to prevent the recurrence of that conduct,.
320.16 	the court may enjoin the person from further engaging in that conduct.

320.17 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
320.18 	31, 2017.

320.19 	Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:
320.20 		Subd. 3.Injunction prohibiting all business activities. If the court finds that a tax 
320.21 	return preparer has continually or repeatedly engaged in conduct described in subdivision 
320.22 	2, and that an injunction prohibiting that conduct would not be sufficient to prevent the 
320.23 	person's interference with the proper administration of a law administered by the 
320.24 	commissioner, the court may enjoin the person from acting as a tax return preparer. The 
320.25 	court may not enjoin the employer of a tax return preparer for conduct described in 
320.26 	subdivision 2 engaged in by one or more of the employer's employees unless the employer 
320.27 	was also actively involved in that conduct.

320.28 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
320.29 	31, 2017.

321.1 	Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision 
321.2 	to read:
321.3 		Subd. 3a.Enforcement of cease and desist orders. (a) Whenever the commissioner 
321.4 	under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court 
321.5 	must consider the allegations in the cease and desist order conclusively established if the 
321.6 	order is a final order.
321.7 	(b) If the court finds the tax preparer was not in compliance with a cease and desist order, 
321.8 	the court may impose a further civil penalty against the tax preparer for contempt in an 
321.9 	amount up to $10,000 for each violation and may grant any other relief the court determines 
321.10 	is just and proper in the circumstances. A civil penalty imposed by a court under this section 
321.11 	may be collected and enforced by the commissioner as an income tax liability.
321.12 	(c) The court may not require the commissioner to post a bond in an action or proceeding 
321.13 	under this section.

321.14 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
321.15 	31, 2017.

321.16 	Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:
321.17 		Subd. 13.Penalties for tax return preparers. (a) If an understatement of liability with 
321.18 	respect to a return or claim for refund is due to a reckless disregard of laws and rules or 
321.19 	willful attempt in any manner to understate the liability for a tax by a person who is a tax 
321.20 	return preparer with respect to the return or claim, the person shall pay to the commissioner 
321.21 	a penalty of $500. If a part of a property tax refund claim filed under section 290.0677, 
321.22 	subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt 
321.23 	in any manner to overstate the claim for relief allowed under chapter 290A by a person who 
321.24 	is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a 
321.25 	penalty of $500 with respect to the claim. These penalties may not be assessed against the 
321.26 	employer of a tax return preparer unless the employer was actively involved in the reckless 
321.27 	disregard or willful attempt to understate the liability for a tax or to overstate the claim for 
321.28 	refund. These penalties are income tax liabilities and may be assessed at any time as provided 
321.29 	in section 289A.38, subdivision 5.
321.30 	(b) A civil action in the name of the state of Minnesota may be commenced to enjoin 
321.31 	any person who is a tax return preparer doing business in this state as provided in section 
321.32 	270C.447.
322.1 	(c) The commissioner may terminate or suspend a tax preparer's authority to transmit 
322.2 	returns electronically to the state, if the commissioner determines that the tax preparer has 
322.3 	engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision 
322.4 	or has been convicted under section 289A.63.
322.5 	(d) For purposes of this subdivision, the term "understatement of liability" means an 
322.6 	understatement of the net amount payable with respect to a tax imposed by state tax law, 
322.7 	or an overstatement of the net amount creditable or refundable with respect to a tax. The 
322.8 	determination of whether or not there is an understatement of liability must be made without 
322.9 	regard to any administrative or judicial action involving the taxpayer. For purposes of this 
322.10 	subdivision, the amount determined for underpayment of estimated tax under either section 
322.11 	289A.25 or 289A.26 is not considered an understatement of liability.
322.12 	(e) For purposes of this subdivision, the term "overstatement of claim" means an 
322.13 	overstatement of the net amount refundable with respect to a claim for property tax relief 
322.14 	provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination 
322.15 	of whether or not there is an overstatement of a claim must be made without regard to 
322.16 	administrative or judicial action involving the claimant.
322.17 	(f) For purposes of this section, the term "tax refund or return preparer"means an 
322.18 	individual who prepares for compensation, or who employs one or more individuals to 
322.19 	prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of 
322.20 	a substantial part of a return or claim for refund is treated as if it were the preparation of 
322.21 	the entire return or claim for refund. An individual is not considered a tax return preparer 
322.22 	merely because the individual:
322.23 	(1) gives typing, reproducing, or other mechanical assistance;
322.24 	(2) prepares a return or claim for refund of the employer, or an officer or employee of 
322.25 	the employer, by whom the individual is regularly and continuously employed;
322.26 	(3) prepares a return or claim for refund of any person as a fiduciary for that person; or
322.27 	(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the 
322.28 	taxpayer "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision 
322.29 	2, paragraph (h).

322.30 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
322.31 	31, 2017.

323.1 	Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
323.2 		Subd. 28.Preparer identification number. Any Minnesota individual income tax return 
323.3 	or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 
323.4 	13, paragraph (f), shall bear the identification number the preparer is required to use federally 
323.5 	under section 6109(a)(4) of the Internal Revenue Code (a) Each of the following that is 
323.6 	prepared by a tax preparer must include the tax preparer's tax identification number:
323.7 	(1) a tax return required to be filed under this chapter;
323.8 	(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and
323.9 	(3) a claim for refund of an overpayment.
323.10 	(b) A tax preparer is not required to include their preparer tax identification number on 
323.11 	a filing if the number is not required in the forms or filing requirements provided by the 
323.12 	commissioner.
323.13 	(c) A tax refund or return preparer who prepares a Minnesota individual income tax 
323.14 	return or claim for refund and fails to include the requiredpreparer tax identification number 
323.15 	on the return or claim as required by this section is subject to a penalty of $50 for each 
323.16 	failure.
323.17 	(d) A tax preparer who fails to include the preparer tax identification number as required 
323.18 	by this section, and who is required to have a valid preparer tax identification number issued 
323.19 	under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to 
323.20 	a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is 
323.21 	not subject to the penalty in paragraph (c).
323.22 	(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section 
323.23 	270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means 
323.24 	the number the tax preparer is required to use federally under section 6109(a)(4) of the 
323.25 	Internal Revenue Code.

323.26 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
323.27 	31, 2017.

323.28 	Sec. 21. REVISOR'S INSTRUCTION.
 323.29 	(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in 
323.30 	column A to the references listed in column B.

323.31		Column A
	Column B
	
323.32		270C.445, subdivision 3a
	270C.4451, subdivision 1
	
324.1		270C.445, subdivision 4
	270C.4451, subdivision 2
	
324.2		270C.445, subdivision 4a
	270C.4451, subdivision 3
	
324.3		270C.445, subdivision 4b
	270C.4451, subdivision 4
	
324.4		270C.445, subdivision 5b
	270C.4451, subdivision 5
	
324.5 	(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and 
324.6 	Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445, 
324.7 	subdivisions 3a, 4, 4a, 4b, and 5b.
324.8 	(c) The revisor shall publish the statutory derivations of the laws renumbered in this act 
324.9 	in Laws of Minnesota and report the derivations in Minnesota Statutes.
324.10 	(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further 
324.11 	amended in the 2017 legislative session, the revisor shall codify the amendments in a manner 
324.12 	consistent with this act. The revisor may make necessary changes to sentence structure to 
324.13 	preserve the meaning of the text.

324.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.15 	Sec. 22.  REPEALER.
 324.16 	Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision 
324.17 	4, are repealed.

324.18 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
324.19 	31, 2017.

APPENDIX 

Repealed Minnesota Statutes: S2255-1 

270.074 VALUATION OF FLIGHT PROPERTY; METHODS OF APPORTIONMENT; RATIO OF TAX.Subd. 2.Other apportionment methods. 
The method prescribed by subdivision 1 shall be presumed to determine fairly and correctly the value of the flight property of an airline allocable to this state. Any airline aggrieved by the valuation of the flight property or the application to its case of the apportionment methods prescribed by subdivision 1, may petition the commissioner for determination of the valuation or the apportionment thereof to this state by the use of some other method. Thereupon, if the commissioner finds that the application of the methods prescribed by subdivision 1 will be unjust to the airline, the commissioner may allow the use of the methods so petitioned for by the airline, or may determine the valuation or apportionment thereof by other methods if satisfied that such other methods will fairly reflect such valuation or apportionment thereof. 

270C.445 TAX PREPARATION SERVICES.Subdivision 1.Scope. 
This section applies to a person who provides tax preparation services, except: 

(1) a person who provides tax preparation services for fewer than ten clients in a calendar year; 

(2) a person who provides tax preparation services only to immediate family members. For the purposes of this section, "immediate family members" means a spouse, parent, grandparent, child, or sibling; 

(3) an employee who prepares a tax return for an employer's business; 

(4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and 

(5) nonprofit organizations providing tax preparation services under the Internal Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly Program. 

270C.447 LEGAL ACTION TO ENJOIN TAX RETURN PREPARER.Subd. 4.Tax return preparer. 
For purposes of this section, the term "tax return preparer" means an individual who prepares for compensation, or who employs one or more individuals to prepare for compensation, a return of tax or a claim for refund of tax. The preparation of a substantial part of a return or claim for refund is treated as if it were the preparation of the entire return or claim for refund. An individual is not considered a tax return preparer merely because the individual: 

(1) gives typing, reproducing, or other mechanical assistance; 

(2) prepares a return or claim for refund of the employer, or an officer or employee of the employer, by whom the individual is regularly and continuously employed; 

(3) prepares a return or claim for refund of any person as a fiduciary for that person; or 

(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the taxpayer. 

281.22 COUNTY AUDITOR TO GIVE NOTICE.
In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section. 

The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided. 

289A.10 FILING REQUIREMENTS FOR ESTATE TAX RETURNS.Subd. 1a.Recapture tax return required. 
If a disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined under section 291.03, subdivision 8, paragraph (c), or personal representative of the decedent's estate must submit a recapture tax return to the commissioner. 

289A.12 FILING REQUIREMENTS FOR INFORMATION RETURNS AND REPORTS.Subd. 18.Returns by qualified heirs. 
A qualified heir, as defined in section 291.03, subdivision 8, paragraph (c), must file two returns with the commissioner attesting that no disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later than 26 months after the decedent's death. The second return must be filed no earlier than 36 months and no later than 39 months after the decedent's death. 

289A.18 DUE DATES FOR FILING OF RETURNS.Subd. 3a.Recapture tax return. 
A recapture tax return must be filed with the commissioner within six months after the date of the disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a). 

289A.20 DUE DATES FOR MAKING PAYMENTS OF TAX.Subd. 3a.Recapture tax. 
The additional estate tax imposed by section 291.03, subdivision 11, paragraph (b), is due and payable on or before the expiration of the date provided by section 291.03, subdivision 11, paragraph (c). 

290.9743 ELECTION BY FASIT.
An entity having a valid election as a financial asset securitization investment trust in effect for a taxable year under section 860L(a) of the Internal Revenue Code shall not be subject to the taxes imposed by this chapter, except the tax imposed under section 290.92. 

290.9744 FASIT INCOME TAXABLE TO HOLDERS OF INTERESTS.
The income of a financial asset securitization investment trust is taxable to the holders of interests in the financial asset securitization investment trust as provided in sections 860H to 860L of the Internal Revenue Code. The income of the holders must be computed under the provisions of this chapter. 

290C.02 DEFINITIONS.Subd. 5.Current use value. 
"Current use value" means the statewide average annual income per acre, multiplied by 90 percent and divided by the capitalization rate determined under subdivision 9. The statewide net annual income shall be a weighted average based on the most recent data as of July 1 of the computation year on stumpage prices and annual tree growth rates and acreage by cover type provided by the Department of Natural Resources and the United States Department of Agriculture Forest Service North Central Research Station. 

Subd. 9.Capitalization rate. 
By July 1 of each year, the commissioner shall determine a statewide capitalization rate for use under this chapter. The rate shall be the average annual effective interest rate for St. Paul on new loans under the Farm Credit Bank system calculated under section 2032A(e)(7)(A) of the Internal Revenue Code. 

290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; MANAGED FOREST LAND.
The commissioner shall annually calculate a statewide average estimated market value per acre for class 2c managed forest land under section 273.13, subdivision 23. 

291.03 RATES.Subd. 8.Definitions. 
(a) For purposes of this section, the following terms have the meanings given in this subdivision. 

(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Code, or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Code. 

(c) "Qualified heir" means a family member who acquired qualified property upon the death of the decedent and satisfies the requirement under subdivision 9, clause (7), or subdivision 10, clause (5), for the property. 

(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10. 

Subd. 9.Qualified small business property. 
Property satisfying all of the following requirements is qualified small business property: 

(1) The value of the property was included in the federal adjusted taxable estate. 

(2) The property consists of the assets of a trade or business or shares of stock or other ownership interests in a corporation or other entity engaged in a trade or business. Shares of stock in a corporation or an ownership interest in another type of entity do not qualify under this subdivision if the shares or ownership interests are traded on a public stock exchange at any time during the three-year period ending on the decedent's date of death. For purposes of this subdivision, an ownership interest includes the interest the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code. 

(3) During the taxable year that ended before the decedent's death, the trade or business must not have been a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and the decedent or the decedent's spouse must have materially participated in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the taxable year that ended before the decedent's death. 

(4) The gross annual sales of the trade or business were $10,000,000 or less for the last taxable year that ended before the date of the death of the decedent. 

(5) The property does not consist of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business. For property consisting of shares of stock or other ownership interests in an entity, the value of cash, cash equivalents, publicly traded securities, or assets not used in the operation of the trade or business held by the corporation or other entity must be deducted from the value of the property qualifying under this subdivision in proportion to the decedent's share of ownership of the entity on the date of death. 

(6) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the property replaced similar property within the three-year period, the replacement property will be treated as having been owned for the three-year period ending on the date of death of the decedent. 

(7) For three years following the date of death of the decedent, the trade or business is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and a family member materially participates in the operation of the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the three years following the date of death of the decedent. 

(8) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable. 

Subd. 10.Qualified farm property. 
Property satisfying all of the following requirements is qualified farm property: 

(1) The value of the property was included in the federal adjusted taxable estate. 

(2) The property consists of agricultural land and is owned by a person or entity that is either not subject to or is in compliance with section 500.24. 

(3) For property taxes payable in the taxable year of the decedent's death, the property is classified as class 2a property under section 273.13, subdivision 23, and is classified as agricultural homestead, agricultural relative homestead, or special agricultural homestead under section 273.124. 

(4) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24. 

(5) The property is classified for property tax purposes as class 2a property under section 273.13, subdivision 23, for three years following the date of death of the decedent. 

(6) The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable. 

Subd. 11.Recapture tax. 
(a) If, within three years after the decedent's death and before the death of the qualified heir, the qualified heir disposes of any interest in the qualified property, other than by a disposition to a family member, or a family member ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces qualified small business property excluded under subdivision 9 with similar property, then the qualified heir will not be treated as having disposed of an interest in the qualified property. 

(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent. 

(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a). 

298.22 IRON RANGE RESOURCES AND REHABILITATION.Subd. 8.Spending priority. 
In making or approving any expenditures on programs or projects, the commissioner and the board shall give the highest priority to programs and projects that target relief to those areas of the taconite assistance area as defined in section 273.1341, that have the largest percentages of job losses and population losses directly attributable to the economic downturn in the taconite industry since the 1980s. The commissioner and the board shall compare the 1980 population and employment figures with the 2000 population and employment figures, and shall specifically consider the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, in making or approving expenditures consistent with this subdivision, as well as the areas of residence of persons who suffered job loss for which relief is to be targeted under this subdivision. The commissioner may lease, for a term not exceeding 50 years and upon the terms determined by the commissioner and approved by the board, surface and mineral interests owned or acquired by the state of Minnesota acting by and through the office of the commissioner of Iron Range resources and rehabilitation within those portions of the taconite assistance area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes. The payments and royalties from these leases must be deposited into the fund established in section 298.292. This subdivision supersedes any other conflicting provisions of law and does not preclude the commissioner and the board from making expenditures for programs and projects in other areas. 

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.Subd. 4.Project approval. 
The board and commissioner shall by August 1 each year prepare a list of projects to be funded from the money appropriated in this section with necessary supporting information including descriptions of the projects, plans, and cost estimates. A project must not be approved by the board unless it finds that: 

(1) the project will materially assist, directly or indirectly, the creation of additional long-term employment opportunities; 

(2) the prospective benefits of the expenditure exceed the anticipated costs; and 

(3) in the case of assistance to private enterprise, the project will serve a sound business purpose. 

Each project must be approved by the board and the commissioner of Iron Range resources and rehabilitation. The list of projects must be submitted to the governor, who shall, by November 15 of each year, approve, disapprove, or return for further consideration, each project. The money for a project may be spent only upon approval of the project by the governor. The board may submit supplemental projects for approval at any time. 

Subd. 5.Advisory committees. 
Before submission to the board of a proposal for a project for expenditure of money appropriated under this section, the commissioner of Iron Range resources and rehabilitation shall appoint a technical advisory committee consisting of at least seven persons who are knowledgeable in areas related to the objectives of the proposal. If the project involves investment in a scientific research proposal, at least four of the committee members must be knowledgeable in the specific scientific research area relating to the project. Members of the committees must be compensated as provided in section 15.059, subdivision 3. The board shall not act on a proposal until it has received the evaluation and recommendations of the technical advisory committee. 

Subd. 6.Use of repayments and earnings. 
Principal and interest received in repayment of loans made under this section must be deposited in the state treasury and are appropriated to the board for the purposes of this section. 

298.298 LONG-RANGE PLAN.
Consistent with the policy established in sections 298.291 to 298.298, the Iron Range Resources and Rehabilitation Board shall prepare and present to the governor and the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson economic protection trust fund for the economic development and diversification of the taconite assistance area defined in section 273.1341. No project shall be approved by the Iron Range Resources and Rehabilitation Board which is not consistent with the goals and objectives established in the long-range plan. 

8092.1400
[Repealed, L 2017 1Sp1 art 13 s 17] 

8092.2000
[Repealed, L 2017 1Sp1 art 13 s 17] 

8100.0700
[Repealed, L 2017 1Sp1 art 15 s 37] 

8125.1300REFUNDS AND CREDITS.   Subp. 3.
[Repealed, L 2017 1Sp1 art 11 s 23; art 21 s 10]