1.1 	A bill for an act
1.2 	relating to financing and operation of state and local government; providing 
1.3 	conformity and nonconformity to certain federal tax law changes; modifying 
1.4 	individual income and corporate franchise taxes, estate taxes, sales and use taxes,  
1.5 	property taxes, provisions related to local taxes, tax increment financing, and public 
1.6 	finance, and other miscellaneous taxes and tax provisions; modifying indexing 
1.7 	provisions; changing the starting point for state individual income tax calculation 
1.8 	from federal taxable income to federal adjusted gross income; providing for various 
1.9 	individual and corporate additions and subtractions to income; modifying certain 
1.10 	allowances and adjustments to income; modifying individual income tax rates; 
1.11 	modifying certain income tax credits; modifying and allowing certain exemptions 
1.12 	from sales and use taxes; modifying provisions relating to property tax records 
1.13 	and information; modifying certain property tax timelines; establishing property 
1.14 	tax exemptions;  modifying homestead provisions; modifying state general levy; 
1.15 	modifying approval requirements for certain local sales taxes; modifying and 
1.16 	authorizing certain local sales taxes; transferring occupation tax revenue; 
1.17 	establishing private letter ruling program; modifying referendum equalization; 
1.18 	requiring reports; appropriating money;amending Minnesota Statutes 2018, sections 
1.19 	6.495, subdivision 3; 37.31, subdivision 1; 38.27, by adding a subdivision; 
1.20 	103D.905, subdivisions 5, 9; 103E.611, subdivision 2; 116J.8737, subdivisions 1, 
1.21 	5, 12; 123B.595, subdivision 5; 126C.17, subdivision 6; 138.053; 144E.42, 
1.22 	subdivision 2; 162.145, subdivision 3; 197.603, subdivision 2; 270A.03, subdivision 
1.23 	5; 270B.08, subdivision 2; 270C.31, by adding a subdivision; 270C.33, by adding 
1.24 	subdivisions; 270C.34, subdivision 1; 270C.35, subdivision 4; 270C.445, 
1.25 	subdivision 6; 270C.85, subdivision 2; 270C.89, subdivisions 1, 2; 270C.91; 
1.26 	272.02, subdivisions 27, 49, 81, by adding subdivisions; 273.032; 273.061, 
1.27 	subdivision 9; 273.0755; 273.113, subdivision 3; 273.119, subdivision 2; 273.1231, 
1.28 	subdivision 3; 273.124, subdivisions 3a, 8, 13, 14, 21, by adding a subdivision; 
1.29 	273.1245, subdivision 2; 273.13, subdivisions 22, 25, 34, 35; 273.136, subdivision 
1.30 	2; 273.1384, subdivisions 2, 3; 273.1387, subdivision 3; 273.18; 273.371, 
1.31 	subdivision 1; 273.3711; 273.372, subdivision 3; 274.14; 274.16; 275.025, 
1.32 	subdivision 1, by adding a subdivision; 275.066; 276.131; 282.01, subdivision 6; 
1.33 	289A.02, subdivision 7; 289A.08, subdivisions 1, 6, 7, by adding a subdivision; 
1.34 	289A.12, subdivision 14; 289A.20, subdivision 4; 289A.25, subdivision 1; 289A.31, 
1.35 	subdivisions 1, 2; 289A.35; 289A.37, subdivisions 2, 6; 289A.38, subdivisions 7, 
1.36 	10; 289A.40, subdivision 1; 289A.42; 289A.60, subdivision 1; 290.01, subdivisions 
1.37 	4a, 19, 22, 29a, 31, by adding subdivisions; 290.0131, subdivisions 1, 3, 12, 13, 
1.38 	by adding subdivisions; 290.0132, subdivisions 1, 4, 7, 20, 21, 26, by adding 
2.1 	subdivisions; 290.0133, subdivision 6, by adding a subdivision; 290.0134, by 
2.2 	adding subdivisions; 290.0137; 290.032, subdivision 2; 290.05, subdivisions 1, 3; 
2.3 	290.06, subdivisions 2c, 2d, 22; 290.067, subdivision 2b; 290.0671, subdivision 
2.4 	7; 290.0672, subdivisions 1, 2; 290.0674, subdivisions 1, 2, by adding a subdivision; 
2.5 	290.0681, subdivisions 1, 2, 3, 4; 290.0802, subdivisions 2, 3; 290.091, subdivision 
2.6 	2; 290.0921, subdivisions 2, 3; 290.17, subdivisions 2, 4; 290.21, subdivision 4; 
2.7 	290.34, by adding a subdivision; 290.92, subdivisions 1, 4b, 4c, 28; 290A.03, 
2.8 	subdivisions 3, 4, 8, 12, 13, 15; 290A.04, subdivision 4; 290A.05; 290A.08; 
2.9 	290A.09; 290B.09, subdivision 1; 291.005, subdivision 1; 291.03, subdivisions 9, 
2.10 	10; 295.50, subdivisions 3, 4, 9b, 14, 15, by adding subdivisions; 295.53, 
2.11 	subdivision 1; 295.57, subdivision 5; 295.582, subdivision 1; 296A.03, subdivision 
2.12 	3; 296A.13; 297A.61, subdivision 18; 297A.67, subdivisions 6, 12, by adding 
2.13 	subdivisions; 297A.68, subdivisions 17, 25, 42, 44; 297A.70, subdivisions 3, 4, 
2.14 	10, 16, 20, by adding a subdivision; 297A.71, subdivisions 22, 45, by adding 
2.15 	subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3, by adding a 
2.16 	subdivision; 297A.84; 297A.85; 297A.99, subdivisions 1, 2, 3, by adding a 
2.17 	subdivision; 297A.993, subdivision 1, by adding a subdivision; 297B.01, 
2.18 	subdivisions 14, 16; 297B.03; 297E.02, subdivision 6; 297E.021, subdivisions 2, 
2.19 	3, 4, by adding a subdivision; 297F.01, subdivisions 19, 23, by adding subdivisions; 
2.20 	297F.05, by adding subdivisions; 297F.17, subdivision 6; 297G.16, subdivision 
2.21 	7; 297I.20, subdivision 3; 298.018, subdivision 1, by adding a subdivision; 298.17; 
2.22 	298.227; 298.28, subdivision 11; 298.282, subdivision 1; 349.15, subdivision 1; 
2.23 	349.151, subdivision 4; 353G.01, subdivision 9; 353G.05, subdivision 2; 353G.08, 
2.24 	subdivisions 1, 1a; 353G.17, subdivision 2; 356.20, subdivision 4a; 356.219, 
2.25 	subdivision 8; 423A.02, subdivisions 1b, 3; 423A.022, subdivisions 2, 4; 424A.016, 
2.26 	subdivisions 2, 4; 424A.02, subdivisions 1, 3a, 10; 424A.03, subdivision 2; 
2.27 	424A.05, subdivisions 2, 3, by adding a subdivision; 424A.07; 424A.091, 
2.28 	subdivision 3; 424A.092, subdivisions 3, 4; 424A.093, subdivision 5; 424B.09; 
2.29 	462A.38; 462D.03, subdivision 2; 462D.06, subdivisions 1, 2; 469.169, by adding 
2.30 	a subdivision; 469.177, subdivision 1; 469.316, subdivision 1; 469.319, subdivision 
2.31 	4; 471.831; 473H.08, subdivisions 1, 4, by adding a subdivision; 473H.09, by 
2.32 	adding a subdivision; 474A.02, subdivision 22b; 475.521, subdivision 1; 
2.33 	477A.0126, subdivisions 6, 7; 477A.016; Minnesota Statutes 2019 Supplement, 
2.34 	sections 289A.60, subdivision 24; 290.31, subdivision 1; Laws 1980, chapter 511, 
2.35 	section 1, subdivision 1; Laws 1986, chapter 396, section 5, as amended; Laws 
2.36 	1986, chapter 462, section 31, as amended; Laws 1994, chapter 587, article 9, 
2.37 	section 11; Laws 1998, chapter 389, article 8, section 45, subdivisions 1, 3, as 
2.38 	amended, 4, 5; Laws 2003, chapter 127, article 10, section 31, subdivision 1, as 
2.39 	amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 33, as 
2.40 	amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 
2.41 	2, 3, as amended, 4, 5; Laws 2011, First Special Session chapter 7, article 4, section 
2.42 	10, subdivision 3; Laws 2014, chapter 308, article 6, section 8, subdivision 1, as 
2.43 	amended; Laws 2017, First Special Session chapter 1, article 3, section 32; article 
2.44 	8, section 3; article 10, section 4; proposing coding for new law in Minnesota 
2.45 	Statutes, chapters 270C; 273; 289A; 290; 297A; 297I; 424A; 462A; proposing 
2.46 	coding for new law as Minnesota Statutes, chapters 299O; 477B; 477C; repealing 
2.47 	Minnesota Statutes 2018, sections 37.31, subdivision 8; 69.011, subdivisions 1, 
2.48 	2, 2b, 2c, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.022; 69.031, 
2.49 	subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.80; 
2.50 	270C.131; 275.29; 289A.38, subdivisions 7, 8, 9; 290.0131, subdivisions 7, 10, 
2.51 	11; 290.0133, subdivisions 12, 13, 14; 290.10, subdivision 2; 296A.03, subdivision 
2.52 	5; 296A.04, subdivision 2; 296A.05, subdivision 2; 297I.25, subdivision 2; 349.213, 
2.53 	subdivision 3; Minnesota Rules, part 8125.0410, subpart 1.
3.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.2 	ARTICLE 1
3.3 	FEDERAL CONFORMITY

3.4 	Section 1. Minnesota Statutes 2018, section 270A.03, subdivision 5, is amended to read:
3.5 		Subd. 5.Debt; debtor. (a) "Debt" means a legal obligation of a natural person to pay a 
3.6 	fixed and certain amount of money, which equals or exceeds $25 and which is due and 
3.7 	payable to a claimant agency. The term includes criminal fines imposed under section 609.10
3.8 	or 609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision 
3.9 	4a, and restitution. A debt may arise under a contractual or statutory obligation, a court 
3.10 	order, or other legal obligation, but need not have been reduced to judgment.
3.11 	A debt includes any legal obligation of a current recipient of assistance which is based 
3.12 	on overpayment of an assistance grant where that payment is based on a client waiver or 
3.13 	an administrative or judicial finding of an intentional program violation; or where the debt 
3.14 	is owed to a program wherein the debtor is not a client at the time notification is provided 
3.15 	to initiate recovery under this chapter and the debtor is not a current recipient of food support, 
3.16 	transitional child care, or transitional medical assistance.
3.17 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
3.18 	care, including hospitalization if the income of the debtor at the time when the medical care 
3.19 	was rendered does not exceed the following amount:
3.20 	(1) for an unmarried debtor, an income of $12,560 or less;
3.21 	(2) for a debtor with one dependent, an income of $16,080 or less;
3.22 	(3) for a debtor with two dependents, an income of $19,020 or less;
3.23 	(4) for a debtor with three dependents, an income of $21,580 or less;
3.24 	(5) for a debtor with four dependents, an income of $22,760 or less; and
3.25 	(6) for a debtor with five or more dependents, an income of $23,730 or less.
3.26 	For purposes of this paragraph, "debtor" means the individual whose income, together 
3.27 	with the income of the individual's spouse, other than a separated spouse, brings the 
3.28 	individual within the income provisions of this paragraph. For purposes of this paragraph, 
3.29 	a spouse, other than a separated spouse, shall be considered a dependent.
3.30 	(c) The commissioner shall annually adjust the income amounts in paragraph (b) by the 
3.31 	percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 
4.1 	Code, except that in section 1(f)(3)(B) the word "2014" shall be substituted for the word 
4.2 	"1992." For 2016, the commissioner shall then determine the percent change from the 12 
4.3 	months ending on August 31, 2014, to the 12 months ending on August 31, 2015, and in 
4.4 	each subsequent year, from the 12 months ending on August 31, 2014, to the 12 months 
4.5 	ending on August 31 of the year preceding the taxable year. The determination of the 
4.6 	commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be 
4.7 	subject to the Administrative Procedure Act contained in chapter 14. The income amount 
4.8 	as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
4.9 	is rounded up to the nearest $10 amount as provided in section 270C.22. The statutory year 
4.10 	is taxable year 2019.
4.11 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 
4.12 	dollar amount of the premium authorized under section 256L.15, subdivision 1a.

4.13 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
4.14 	years beginning after December 31, 2019.

4.15 	Sec. 2. [270C.22] COST OF LIVING ADJUSTMENT.
4.16 		Subdivision 1.Adjustment; definition; period; rounding. (a) The commissioner shall 
4.17 	annually make a cost of living adjustment to the dollar amounts noted in sections that 
4.18 	reference this section. The commissioner shall adjust the amounts based on the index as 
4.19 	provided in this section. For purposes of this section, "index" means the Chained Consumer 
4.20 	Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The 
4.21 	values of the index used to determine the adjustments under this section are the latest 
4.22 	published values when the Bureau of Labor Statistics publishes the initial value of the index 
4.23 	for August of the year preceding the year to which the adjustment applies.
4.24 	(b) For the purposes of this section, "statutory year" means the year preceding the first 
4.25 	year for which dollar amounts are to be adjusted for inflation under sections that reference 
4.26 	this section. For adjustments under chapter 290A, "statutory year" means the year in which 
4.27 	refunds are payable preceding the first year for which amounts in chapter 290A are indexed 
4.28 	under this section.
4.29 	(c) To determine the dollar amounts for taxable year 2020, the commissioner shall 
4.30 	determine the percentage change in the index for the 12-month period ending on August 
4.31 	31, 2019, and increase each of the unrounded dollar amounts in the sections referencing 
4.32 	this section by that percentage change. For each subsequent taxable year, the commissioner 
4.33 	shall increase the dollar amounts by the percentage change in the index from August 31 of 
4.34 	the year preceding the statutory year to August 31 of the year preceding the taxable year.
5.1 	(d) To determine the dollar amounts for refunds payable in 2021 under chapter 290A, 
5.2 	the commissioner shall determine the percentage change in the index for the 12-month 
5.3 	period ending on August 31, 2020, and increase each of the unrounded dollar amounts in 
5.4 	the sections referencing this section by that percentage change. For each subsequent year, 
5.5 	the commissioner shall increase the dollar amounts by the percentage change in the index 
5.6 	from August 31 of the year preceding the statutory year to August 31 of the year preceding 
5.7 	the year in which refunds are payable.
5.8 	(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted 
5.9 	to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest 
5.10 	$10 amount.
5.11 		Subd. 2.Publication. The commissioner shall announce and publish the adjusted dollar 
5.12 	amounts required by subdivision 1 on the Department of Revenue's website on or before 
5.13 	December 15 of each year.
5.14 		Subd. 3.Special provision. The determination of the commissioner under this subdivision 
5.15 	is not a rule and is not subject to the Administrative Procedure Act under chapter 14, 
5.16 	including section 14.386.

5.17 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
5.18 	years beginning after December 31, 2019, calendar years beginning after December 31, 
5.19 	2019, and for refunds based on rent paid in 2019 and property taxes payable in 2020.

5.20 	Sec. 3. Minnesota Statutes 2018, section 289A.02, subdivision 7, is amended to read:
5.21 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
5.22 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
5.23 	16, 2016 December 31, 2018.

5.24 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
5.25 	the changes incorporated by federal changes are effective retroactively at the same time the 
5.26 	changes become effective for federal purposes.

5.27 	Sec. 4. Minnesota Statutes 2018, section 289A.08, subdivision 1, is amended to read:
5.28 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
5.29 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
5.30 	Code or meets the requirements under paragraph (d) to file a return, except that:
5.31 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
5.32 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
6.1 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
6.2 	filing requirements for a single individual who is a full year resident of Minnesota; and
6.3 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
6.4 	tax return if the individual's gross income derived from Minnesota sources as determined 
6.5 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
6.6 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
6.7 	resident of Minnesota.
6.8 	(b) The decedent's final income tax return, and other income tax returns for prior years 
6.9 	where the decedent had gross income in excess of the minimum amount at which an 
6.10 	individual is required to file and did not file, must be filed by the decedent's personal 
6.11 	representative, if any. If there is no personal representative, the return or returns must be 
6.12 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
6.13 	of the decedent.
6.14 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
6.15 	in section 290.01, subdivision 20.
6.16 	(d) The commissioner of revenue shall annually determine the gross income levels at 
6.17 	which individuals are required to file a return for each taxable year based on the amounts 
6.18 	that may be deducted under section 290.0803 and the personal and dependent exemptions 
6.19 	under section 290.0138.

6.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.21 	31, 2018.

6.22 	Sec. 5. Minnesota Statutes 2018, section 289A.08, subdivision 7, is amended to read:
6.23 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
6.24 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
6.25 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
6.26 	other Minnesota source income. This composite return must include the names, addresses, 
6.27 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
6.28 	electing to be covered by the composite return.
6.29 	(b) The computation of a partner's tax liability must be determined by multiplying the 
6.30 	income allocated to that partner by the highest rate used to determine the tax liability for 
6.31 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
6.32 	deductions, or personal exemptions are not allowed.
7.1 	(c) The partnership must submit a request to use this composite return filing method for 
7.2 	nonresident partners. The requesting partnership must file a composite return in the form 
7.3 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
7.4 	a request to use the composite return filing method.
7.5 	(d) The electing partner must not have any Minnesota source income other than the 
7.6 	income from the partnership and other electing partnerships. If it is determined that the 
7.7 	electing partner has other Minnesota source income, the inclusion of the income and tax 
7.8 	liability for that partner under this provision will not constitute a return to satisfy the 
7.9 	requirements of subdivision 1. The tax paid for the individual as part of the composite return 
7.10 	is allowed as a payment of the tax by the individual on the date on which the composite 
7.11 	return payment was made. If the electing nonresident partner has no other Minnesota source 
7.12 	income, filing of the composite return is a return for purposes of subdivision 1.
7.13 	(e) This subdivision does not negate the requirement that an individual pay estimated 
7.14 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
7.15 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
7.16 	pays composite estimated tax in the manner prescribed in section 289A.25.
7.17 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
7.18 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
7.19 	is zero. However, a statement showing the partner's share of gross income must be included 
7.20 	as part of the composite return.
7.21 	(g) The election provided in this subdivision is only available to a partner who has no 
7.22 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
7.23 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
7.24 	Internal Revenue Code.
7.25 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
7.26 	make an election under this paragraph. The provisions covering the partnership apply to 
7.27 	the corporation and the provisions applying to the partner apply to the shareholder.
7.28 	(i) Estates and trusts distributing current income only and the nonresident individual 
7.29 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
7.30 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
7.31 	the partner apply to the beneficiary.
7.32 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
7.33 	adjusted gross income from the partnership modified by the additions provided in section 
7.34 	290.0131, subdivisions 8 to 11 10 and 15, and the subtractions provided in: (1) section 
8.1 	290.0132, subdivision 9, to the extent the amount is assignable or allocable to Minnesota 
8.2 	under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed 
8.3 	under section 290.0132, subdivision 9, is only allowed on the composite tax computation 
8.4 	to the extent the electing partner would have been allowed the subtraction.

8.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.6 	31, 2018.

8.7 	Sec. 6. Minnesota Statutes 2018, section 289A.12, subdivision 14, is amended to read:
8.8 		Subd. 14. Reporting exempt interest and exempt-interest dividends. (a) A regulated 
8.9 	investment company paying $10 or more in exempt-interest dividends to an individual who 
8.10 	is a resident of Minnesota, or any person receiving $10 or more of exempt interest or 
8.11 	exempt-interest dividends and paying as nominee to an individual who is a resident of 
8.12 	Minnesota, must make a return indicating the amount of the exempt interest or 
8.13 	exempt-interest dividends, the name, address, and Social Security number of the recipient, 
8.14 	and any other information that the commissioner specifies. The return must be provided to 
8.15 	the recipient by February 15 of the year following the year of the payment. The return 
8.16 	provided to the recipient must include a clear statement, in the form prescribed by the 
8.17 	commissioner, that the exempt interest or exempt-interest dividends must be included in 
8.18 	the computation of Minnesota taxable income. By June 1 of each year, the payer must file 
8.19 	a copy of the return with the commissioner.
8.20 	(b) For purposes of this subdivision, the following definitions apply.
8.21 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 
8.22 	852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 
8.23 	dividends that are not required to be added to federal taxable adjusted gross income under 
8.24 	section 290.0131, subdivision 2, paragraph (b).
8.25 	(2) "Regulated investment company" means regulated investment company as defined 
8.26 	in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 
8.27 	as defined in section 851(g) of the Internal Revenue Code.
8.28 	(3) "Exempt interest" means income on obligations of any state other than Minnesota, 
8.29 	or a political or governmental subdivision, municipality, or governmental agency or 
8.30 	instrumentality of any state other than Minnesota, and exempt from federal income taxes 
8.31 	under the Internal Revenue Code or any other federal statute.

8.32 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.33 	31, 2018.

9.1 	Sec. 7. Minnesota Statutes 2018, section 289A.35, is amended to read:
9.2 	289A.35 ASSESSMENTS ON RETURNS.
9.3 	(a) The commissioner may audit and adjust the taxpayer's computation of federal adjusted 
9.4 	gross income, federal taxable income, items of federal tax preferences, or federal credit 
9.5 	amounts to make them conform with the provisions of chapter 290 or section 298.01. If a 
9.6 	return has been filed, the commissioner shall enter the liability reported on the return and 
9.7 	may make any audit or investigation that is considered necessary.
9.8 	(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 
9.9 	best interest of the state, the commissioner may allow S corporations and partnerships to 
9.10 	receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 
9.11 	owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 
9.12 	be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
9.13 	(c) A taxpayer may petition the commissioner for the use of the method described in 
9.14 	paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 
9.15 	order of assessment has been issued.
9.16 	(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 
9.17 	of a taxpayer cannot be appealed to the Tax Court or any other court.
9.18 	(e) The commissioner may audit and adjust the taxpayer's computation of tax under 
9.19 	chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 
9.20 	shall notify the estate no later than nine months after the filing date, as provided by section 
9.21 	289A.38, subdivision 2, whether the return is under examination or the return has been 
9.22 	processed as filed.

9.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.24 	31, 2018.

9.25 	Sec. 8. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
9.26 	read:
9.27 		Subd. 14a.Surviving spouse. The term "surviving spouse" means an individual who is 
9.28 	a surviving spouse under section 2(a) of the Internal Revenue Code for the taxable year.

9.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.30 	31, 2018.

10.1 	Sec. 9. Minnesota Statutes 2018, section 290.01, subdivision 19, is amended to read:
10.2 		Subd. 19.Net income. (a) For a corporation taxable under section 290.02, and an estate 
10.3 	or a trust taxable under section 290.03, the term "net income" means the federal taxable 
10.4 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
10.5 	the date named in this subdivision, incorporating the federal effective dates of changes to 
10.6 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
10.7 	Internal Revenue Code in determining federal taxable income for federal income tax 
10.8 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
10.9 	(b) For an individual, the term "net income" means federal adjusted gross income with 
10.10 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
10.11 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
10.12 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
10.13 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
10.14 	except that:
10.15 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
10.16 	Revenue Code does not apply;
10.17 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
10.18 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
10.19 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
10.20 	and
10.21 	(3) the deduction for dividends paid must also be applied in the amount of any 
10.22 	undistributed capital gains which the regulated investment company elects to have treated 
10.23 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
10.24 	(d) The net income of a real estate investment trust as defined and limited by section 
10.25 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
10.26 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
10.27 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
10.28 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
10.29 	Revenue Code.
10.30 	(f) The Internal Revenue Code of 1986, as amended through December 16, 2016 31, 
10.31 	2018, shall be in effect for taxable years beginning after December 31, 1996.
11.1 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
11.2 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
11.3 	determining net income for the applicable year.

11.4 	EFFECTIVE DATE. (a) The amendments to paragraphs (a) and (b) are effective for 
11.5 	taxable years beginning after December 31, 2018.
11.6 	(b) This amendment to paragraph (f) is effective the day following final enactment, 
11.7 	except the changes incorporated by federal changes in Public Laws 115-63 and 115-123, 
11.8 	are effective retroactively at the same time as the changes were effective for federal purposes.

11.9 	Sec. 10. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
11.10 	read:
11.11 		Subd. 21a.Adjusted gross income; federal adjusted gross income. The terms "adjusted 
11.12 	gross income" and "federal adjusted gross income" mean adjusted gross income, as defined 
11.13 	in section 62 of the Internal Revenue Code, as amended through the date named in 
11.14 	subdivision 19, paragraph (f), incorporating the federal effective date of changes to the 
11.15 	Internal Revenue Code and any elections made by the taxpayer under the Internal Revenue 
11.16 	Code in determining federal adjusted gross income for federal income tax purposes.

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

11.18 	Sec. 11. Minnesota Statutes 2018, section 290.01, subdivision 22, is amended to read:
11.19 		Subd. 22.Taxable net income. For tax years beginning after December 31, 1986 2018, 
11.20 	the term "taxable net income" means:
11.21 	(1) for resident individuals the same as, net income less the deductions allowed under 
11.22 	section 290.0803;
11.23 	(2) for individuals who were not residents of Minnesota for less than the entire year, the 
11.24 	same as net income less the deductions allowed under section 290.0803, except that the tax 
11.25 	is imposed only on the Minnesota apportioned share of that income as determined pursuant 
11.26 	to section 290.06, subdivision 2c, paragraph (e);
11.27 	(3) for all other taxpayers, the part of net income that is allocable to Minnesota by 
11.28 	assignment or apportionment under one or more of sections 290.17, 290.191, 290.20, and 
11.29 	290.36, except that for nonresident individuals net income is reduced by the amount of the 
11.30 	standard deduction allowable under section 290.0803, subdivision 2, before allocation of 
11.31 	net income to Minnesota.

12.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.2 	31, 2018.

12.3 	Sec. 12. Minnesota Statutes 2018, section 290.01, subdivision 29a, is amended to read:
12.4 		Subd. 29a.State itemized deduction. "State itemized deduction" means federal itemized 
12.5 	deductions, as defined in section 63(d) of the Internal Revenue Code, disregarding any 
12.6 	limitation under section 68 of the Internal Revenue Code, and reduced by the amount of 
12.7 	the addition required under section 290.0131, subdivision 13. changes to itemized deductions 
12.8 	made by Public Law 115-97, except that:
12.9 	(1) section 13704 of Public Law 115-97 applies;
12.10 	(2) section 11043 of Public Law 115-97 applies;
12.11 	(3) for the purposes of calculating miscellaneous itemized deductions, under section 
12.12 	67(a) of the Internal Revenue Code, the number "5" is substituted for the number "2"; and
12.13 	(4) the deduction of taxes under section 164 of the Internal Revenue Code is limited to 
12.14 	state and local real property taxes and state and local personal property taxes up to $15,000, 
12.15 	or $7,500 for a married couple filing a separate return.

12.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.17 	31, 2018.

12.18 	Sec. 13. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
12.19 	read:
12.20 		Subd. 29b.State standard deduction. "State standard deduction" means the federal 
12.21 	standard deduction computed under section 63(c), (f), and (g) of the Internal Revenue Code, 
12.22 	as amended through December 16, 2016, except that for purposes of adjusting the amounts 
12.23 	under this subdivision, the provisions of section 270C.22, apply.

12.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.25 	31, 2018.

12.26 	Sec. 14. Minnesota Statutes 2018, section 290.01, subdivision 31, is amended to read:
12.27 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
12.28 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
12.29 	16, 2016 December 31, 2018. Internal Revenue Code also includes any uncodified provision 
12.30 	in federal law that relates to provisions of the Internal Revenue Code that are incorporated 
12.31 	into Minnesota law.

13.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
13.2 	applies to the same taxable years as the changes incorporated by federal changes are effective 
13.3 	for federal purposes, including any provisions that are retroactive to taxable years beginning 
13.4 	after December 31, 2016, but excluding the change made to the temporary reduction in 
13.5 	medical expense deduction floor in section 11027 of Public Law 115-97.

13.6 	Sec. 15. Minnesota Statutes 2018, section 290.0131, subdivision 1, is amended to read:
13.7 		Subdivision 1.Definition; scope. (a) For the purposes of this section, "addition" means 
13.8 	an amount that must be added to federal taxable adjusted gross income, or for estates and 
13.9 	trusts, federal taxable income, in computing net income for the taxable year to which the 
13.10 	amounts relate.
13.11 	(b) The additions in this section apply to individuals, estates, and trusts.
13.12 	(c) Unless specifically indicated or unless the context clearly indicates otherwise, only 
13.13 	amounts that were deducted or excluded in computing federal taxable adjusted gross income, 
13.14 	or for estates and trusts, federal taxable income, are an addition under this section.

13.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.16 	31, 2018.

13.17 	Sec. 16. Minnesota Statutes 2018, section 290.0131, subdivision 3, is amended to read:
13.18 		Subd. 3.Income, sales and use, motor vehicle sales, or excise taxes paid. (a) For trusts 
13.19 	and estates, the amount of income, sales and use, motor vehicle sales, or excise taxes paid 
13.20 	or accrued within the taxable year under this chapter and the amount of taxes based on net 
13.21 	income, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any 
13.22 	province or territory of Canada is an addition to the extent deducted under section 63(d) of 
13.23 	the Internal Revenue Code.
13.24 	(b) The addition under paragraph (a) may not be more than the amount by which the 
13.25 	state itemized deduction exceeds the amount of the standard deduction as defined in section 
13.26 	63(c) of the Internal Revenue Code. For the purpose of this subdivision, income, sales and 
13.27 	use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under 
13.28 	subdivision 12.

13.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.30 	31, 2018.

14.1 	Sec. 17. Minnesota Statutes 2018, section 290.0131, subdivision 12, is amended to read:
14.2 		Subd. 12.Disallowed itemized deductions. (a) The amount of disallowed itemized 
14.3 	deductions is an addition. The amount of disallowed itemized deductions, plus the addition 
14.4 	required under subdivision 3, may not be more than the amount by which the state itemized 
14.5 	deductions, as allowed under section 63(d) of the Internal Revenue Code, exceeds the amount 
14.6 	of the state standard deduction as defined in section 63(c) of the Internal Revenue Code.
14.7 	(b) The amount of disallowed itemized deductions is equal to the lesser of:
14.8 	(1) three percent of the excess of the taxpayer's federal adjusted gross income over the 
14.9 	applicable amount; or
14.10 	(2) 80 percent of the amount of the state itemized deductions otherwise allowable to the 
14.11 	taxpayer under the Internal Revenue Code for the taxable year.
14.12 	(c) "Applicable amount" means $100,000, or $50,000 for a married individual filing a 
14.13 	separate return. Each dollar amount is increased by an amount equal to:
14.14 	(1) that dollar amount, multiplied by
14.15 	(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue 
14.16 	Code for the calendar year in which the taxable year begins, by substituting "calendar year 
14.17 	1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3) 270C.22.
14.18 	(d) "Itemized deductions" excludes:
14.19 	(1) the deduction for medical expenses under section 213 of the Internal Revenue Code;
14.20 	(2) any deduction for investment interest as defined in section 163(d) of the Internal 
14.21 	Revenue Code; and
14.22 	(3) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft 
14.23 	losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or 
14.24 	for losses described in section 165(d) of the Internal Revenue Code.

14.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.26 	31, 2018.

14.27 	Sec. 18. Minnesota Statutes 2018, section 290.0131, subdivision 13, is amended to read:
14.28 		Subd. 13.Disallowed personal exemption amount. (a) The amount of disallowed 
14.29 	personal exemptions for taxpayers with federal adjusted gross income over the threshold 
14.30 	amount is an addition.
15.1 	(b) The disallowed personal exemption amount is equal to the number of personal 
15.2 	exemptions and dependent exemption subtraction allowed under section 151(b) and (c) of 
15.3 	the Internal Revenue Code 290.0132, subdivision 20, multiplied by the dollar amount for 
15.4 	personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as 
15.5 	adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the
15.6 	applicable percentage.
15.7 	(c) For a married individual filing a separate return, "applicable percentage" means two 
15.8 	percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal 
15.9 	adjusted gross income for the taxable year exceeds the threshold amount. For all other filers, 
15.10 	applicable percentage means two percentage points for each $2,500, or fraction of that 
15.11 	amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds 
15.12 	the threshold amount. The applicable percentage must not exceed 100 percent.
15.13 	(d) "Threshold amount" means:
15.14 	(1) $150,000 for a joint return or a surviving spouse;
15.15 	(2) $125,000 for a head of a household;
15.16 	(3) $100,000 for an individual who is not married and who is not a surviving spouse or 
15.17 	head of a household; and
15.18 	(4) $75,000 for a married individual filing a separate return.
15.19 	(e) The thresholds must be increased by an amount equal to:
15.20 	(1) the threshold dollar amount, multiplied by
15.21 	(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue 
15.22 	Code for the calendar year in which the taxable year begins, by substituting "calendar year 
15.23 	1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3) 270C.22.

15.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.25 	31, 2018.

15.26 	Sec. 19. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
15.27 	to read:
15.28 		Subd. 15.Qualified business income addition. For a trust or estate, the amount deducted 
15.29 	under section 199A of the Internal Revenue Code in computing the federal taxable income 
15.30 	of the trust or estate is an addition.

16.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.2 	31, 2018.

16.3 	Sec. 20. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
16.4 	to read:
16.5 		Subd. 16.Foreign-derived intangible income. The amount of foreign-derived intangible 
16.6 	income deducted under section 250 of the Internal Revenue Code for the taxable year is an 
16.7 	addition.

16.8 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
16.9 	after December 31, 2017.

16.10 	Sec. 21. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
16.11 	to read:
16.12 		Subd. 17.Special deductions. The amount of any deductions under section 250 of the 
16.13 	Internal Revenue Code is an addition.

16.14 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
16.15 	after December 31, 2017.

16.16 	Sec. 22. Minnesota Statutes 2018, section 290.0132, subdivision 1, is amended to read:
16.17 		Subdivision 1.Definition; scope. (a) For the purposes of this section, "subtraction" 
16.18 	means an amount that shall is allowed to be subtracted from federal taxable adjusted gross
16.19 	income, or for estates and trusts, federal taxable income, in computing net income for the 
16.20 	taxable year to which the amounts relate.
16.21 	(b) The subtractions in this section apply to individuals, estates, and trusts.
16.22 	(c) Unless specifically indicated or unless the context clearly indicates otherwise, no 
16.23 	amount deducted, subtracted, or otherwise excluded in computing federal taxable adjusted 
16.24 	gross income, or for estates and trusts, federal taxable income, is a subtraction under this 
16.25 	section.

16.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.27 	31, 2018.

16.28 	Sec. 23. Minnesota Statutes 2018, section 290.0132, subdivision 7, is amended to read:
16.29 		Subd. 7.Charitable contributions for taxpayers who do not itemize. To the extent 
16.30 	not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in 
17.1 	determining federal taxable income by For an individual who does not itemize deductions 
17.2 	for federal income tax purposes under section 290.0803 for the taxable year, an amount 
17.3 	equal to 50 percent of the excess of charitable contributions over $500 allowable as a state 
17.4 	itemized deduction for the taxable year under section 170(a) of the Internal Revenue Code
17.5 	is a subtraction. The subtraction under this subdivision must not include a distribution that 
17.6 	is excluded from federal adjusted gross income and that is not deductible under section 
17.7 	408(d)(8)(E) of the Internal Revenue Code.

17.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.9 	31, 2018.

17.10 	Sec. 24. Minnesota Statutes 2018, section 290.0132, subdivision 20, is amended to read:
17.11 		Subd. 20.Disallowed Personal and dependent exemption. The amount of the phaseout 
17.12 	of personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.
17.13 	The amount of personal and dependent exemptions calculated under section 290.0138 is a 
17.14 	subtraction.

17.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.16 	31, 2018.

17.17 	Sec. 25. Minnesota Statutes 2018, section 290.0132, subdivision 21, is amended to read:
17.18 		Subd. 21.Military service pension; retirement pay.  To the extent included in federal 
17.19 	taxable adjusted gross income, compensation received from a pension or other retirement 
17.20 	pay from the federal government for service in the military, as computed under United 
17.21 	States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The 
17.22 	subtraction is limited to individuals who do not claim the credit under section 290.0677.

17.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.24 	31, 2018.

17.25 	Sec. 26. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
17.26 	to read:
17.27 		Subd. 27.Global intangible low-taxed income. The taxpayer's global intangible 
17.28 	low-taxed income included under section 951A of the Internal Revenue Code for the taxable 
17.29 	year is a subtraction.

17.30 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
17.31 	after December 31, 2017.

18.1 	Sec. 27. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
18.2 	to read:
18.3 		Subd. 28.Deferred foreign income. The amount of deferred foreign income recognized 
18.4 	because of section 965 of the Internal Revenue Code, and before any deduction under section 
18.5 	965(c) of the Internal Revenue Code, is a subtraction.

18.6 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
18.7 	the changes incorporated by federal changes are effective retroactively at the same time the 
18.8 	changes become effective for federal purposes.

18.9 	Sec. 28. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
18.10 	to read:
18.11 		Subd. 29.Standard or itemized deduction. The amount allowed under section 290.0803 
18.12 	is a subtraction.

18.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
18.14 	31, 2018.

18.15 	Sec. 29. Minnesota Statutes 2018, section 290.0133, subdivision 6, is amended to read:
18.16 		Subd. 6.Special deductions. The amount of any special deductions under sections 241 
18.17 	to 247, 250, and 965 965(c) of the Internal Revenue Code is an addition.

18.18 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
18.19 	after December 31, 2017.

18.20 	Sec. 30. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
18.21 	to read:
18.22 		Subd. 17.Global intangible low-taxed income. The taxpayer's global intangible 
18.23 	low-taxed income included under section 951A of the Internal Revenue Code for the taxable 
18.24 	year is a subtraction.

18.25 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
18.26 	after December 31, 2017.

19.1 	Sec. 31. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
19.2 	to read:
19.3 		Subd. 18.Deferred foreign income. The amount of deferred foreign income recognized 
19.4 	because of section 965 of the Internal Revenue Code, and before any deduction under section 
19.5 	965(c) of the Internal Revenue Code, is a subtraction.

19.6 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
19.7 	the changes incorporated by federal changes are effective retroactively at the same time the 
19.8 	changes become effective for federal purposes.

19.9 	Sec. 32. [290.0138] PERSONAL AND DEPENDENT EXEMPTIONS.
19.10 	(a) A taxpayer is allowed: (1) a personal exemption in the amount of $4,250, and in the 
19.11 	case of a married couple filing a joint return an additional personal exemption of $4,250; 
19.12 	plus (2) a dependent exemption of $4,250 multiplied by the number of dependents of the 
19.13 	taxpayer, as defined under sections 151 and 152 of the Internal Revenue Code.
19.14 	(b) The personal and dependent exemptions are not allowed to an individual who is 
19.15 	eligible to be claimed as a dependent, as defined in sections 151 or 152 of the Internal 
19.16 	Revenue Code, by another taxpayer.
19.17 	(c) The commissioner shall annually adjust the amounts in this section under section 
19.18 	270C.22. The statutory year is taxable year 2019.

19.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
19.20 	31, 2019.

19.21 	Sec. 33. Minnesota Statutes 2018, section 290.032, subdivision 2, is amended to read:
19.22 		Subd. 2.Computation. The amount of tax imposed by subdivision 1 shall be computed 
19.23 	in the same way as the tax imposed under section 402(d) of the Internal Revenue Code of 
19.24 	1986, as amended through December 31, 1995, except that the initial separate tax shall be 
19.25 	an amount equal to five times the tax which would be imposed by section 290.06, subdivision 
19.26 	2c, if the recipient was an unmarried individual, and the taxable net income was an amount 
19.27 	equal to one-fifth of the excess of
19.28 	(i) the total taxable amount of the lump-sum distribution for the year, over
19.29 	(ii) the minimum distribution allowance, and except that references in section 402(d) of 
19.30 	the Internal Revenue Code of 1986, as amended through December 31, 1995, to paragraph 
19.31 	(1)(A) thereof shall instead be references to subdivision 1, and the excess, if any, of the 
20.1 	subtraction base amount over federal net taxable income for a qualified individual as provided 
20.2 	under section 290.0802, subdivision 2.

20.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.4 	31, 2018.

20.5 	Sec. 34. Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
20.6 		Subd. 2d.Inflation adjustment of brackets. (a) For taxable years beginning after 
20.7 	December 31, 2013, The commissioner shall annually adjust the minimum and maximum 
20.8 	dollar amounts for each rate bracket for which a tax is imposed in subdivision 2c shall be 
20.9 	adjusted for inflation by the percentage determined under paragraph (b). For the purpose 
20.10 	of making the adjustment as provided in this subdivision all of the rate brackets provided 
20.11 	in subdivision 2c shall be the rate brackets as they existed for taxable years beginning after 
20.12 	December 31, 2012, and before January 1, 2014 as provided in section 270C.22. The statutory 
20.13 	year is taxable year 2019. The rate applicable to any rate bracket must not be changed. The 
20.14 	dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets. 
20.15 	The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket 
20.16 	ends in $5, it must be rounded up to the nearest $10 amount.
20.17 	(b) The commissioner shall adjust the rate brackets and by the percentage determined 
20.18 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
20.19 	1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the 
20.20 	commissioner shall then determine the percent change from the 12 months ending on August 
20.21 	31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from 
20.22 	the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the 
20.23 	year preceding the taxable year. The determination of the commissioner pursuant to this 
20.24 	subdivision shall not be considered a "rule" and shall not be subject to the Administrative 
20.25 	Procedure Act contained in chapter 14.
20.26 	No later than December 15 of each year, the commissioner shall announce the specific 
20.27 	percentage that will be used to adjust the tax rate brackets.

20.28 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
20.29 	years beginning after December 31, 2019.

20.30 	Sec. 35. Minnesota Statutes 2018, section 290.067, subdivision 2b, is amended to read:
20.31 		Subd. 2b.Inflation adjustment. The commissioner shall annually adjust the dollar 
20.32 	amount of the income threshold at which the maximum credit begins to be reduced under 
21.1 	subdivision 1 by the percentage determined pursuant to the provisions of section 1(f) of the 
21.2 	Internal Revenue Code, except that in section 1(f)(3)(B) the word "2016" shall be substituted 
21.3 	for the word "1992." For 2018, the commissioner shall then determine the percent change 
21.4 	from the 12 months ending on August 31, 2016, to the 12 months ending on August 31, 
21.5 	2017, and in each subsequent year, from the 12 months ending on August 31, 2016, to the 
21.6 	12 months ending on August 31 of the year preceding the taxable year. The determination 
21.7 	of the commissioner pursuant to this subdivision must not be considered a "rule" and is not 
21.8 	subject to the Administrative Procedure Act contained in chapter 14. The threshold amount 
21.9 	as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
21.10 	is rounded up to the nearest $10 amount as provided in section 270C.22. The statutory year 
21.11 	is taxable year 2019.

21.12 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
21.13 	years beginning after December 31, 2019.

21.14 	Sec. 36. Minnesota Statutes 2018, section 290.0671, subdivision 7, is amended to read:
21.15 		Subd. 7.Inflation adjustment. The commissioner shall annually adjust the earned 
21.16 	income amounts used to calculate the credit and the income phase-out thresholds at which 
21.17 	the maximum credit begins to be reduced in subdivision 1 must be adjusted for inflation. 
21.18 	The commissioner shall adjust by the percentage determined pursuant to the provisions of 
21.19 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2013" 
21.20 	shall be substituted for the word "1992." For 2015, the commissioner shall then determine 
21.21 	the percent change from the 12 months ending on August 31, 2013, to the 12 months ending 
21.22 	on August 31, 2014, and in each subsequent year, from the 12 months ending on August 
21.23 	31, 2013, to the 12 months ending on August 31 of the year preceding the taxable year. The 
21.24 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10 
21.25 	amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount. The 
21.26 	determination of the commissioner under this subdivision is not a rule under the 
21.27 	Administrative Procedure Act as provided in section 270C.22. The statutory year is taxable 
21.28 	year 2019.

21.29 	EFFECTIVE DATE. This section is effective for adjustments for taxable years 
21.30 	beginning after December 31, 2019.

21.31 	Sec. 37. Minnesota Statutes 2018, section 290.0672, subdivision 1, is amended to read:
21.32 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
21.33 	the meanings given.
22.1 	(b) "Long-term care insurance" means a policy that:
22.2 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 
22.3 	the adjusted gross income test; or meets the requirements given in section 62A.46; or provides 
22.4 	similar coverage issued under the laws of another jurisdiction; and
22.5 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
22.6 	(3) has been offered in compliance with the inflation protection requirements of section 
22.7 	62S.23.
22.8 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
22.9 	(d) "Premiums deducted in determining federal taxable net income" means the lesser of 
22.10 	(1) long-term care insurance premiums that qualify as deductions under section 213 of the 
22.11 	Internal Revenue Code; and (2) the total amount deductible for medical care expenses under 
22.12 	section 213 of the Internal Revenue Code.

22.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.14 	31, 2018.

22.15 	Sec. 38. Minnesota Statutes 2018, section 290.0672, subdivision 2, is amended to read:
22.16 		Subd. 2.Credit. A taxpayer is allowed a credit against the tax imposed by this chapter 
22.17 	for long-term care insurance policy premiums paid during the tax year. The credit for each 
22.18 	policy equals 25 percent of premiums paid to the extent not deducted in determining federal
22.19 	taxable net income. A taxpayer may claim a credit for only one policy for each qualified 
22.20 	beneficiary. A maximum of $100 applies to each qualified beneficiary. The maximum total 
22.21 	credit allowed per year is $200 for married couples filing joint returns and $100 for all other 
22.22 	filers. For a nonresident or part-year resident, the credit determined under this section must 
22.23 	be allocated based on the percentage calculated under section 290.06, subdivision 2c, 
22.24 	paragraph (e).

22.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.26 	31, 2018.

22.27 	Sec. 39. Minnesota Statutes 2018, section 290.0681, subdivision 1, is amended to read:
22.28 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
22.29 	the meanings given.
22.30 	(b) "Account" means the historic credit administration account in the special revenue 
22.31 	fund.
23.1 	(c) "Office" means the State Historic Preservation Office of the Department of 
23.2 	Administration.
23.3 	(d) "Project" means rehabilitation of a certified historic structure, as defined in section 
23.4 	47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a 
23.5 	federal credit.
23.6 	(e) "Federal credit" means the credit allowed under section 47(a)(2) 47(a) of the Internal 
23.7 	Revenue Code, except that the amount allowed is deemed to be allocated in the taxable year 
23.8 	that the project is placed in service.
23.9 	(f) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.
23.10 	(g) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the 
23.11 	Internal Revenue Code.

23.12 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
23.13 	certificates submitted after December 31, 2017.

23.14 	Sec. 40. Minnesota Statutes 2018, section 290.0681, subdivision 2, is amended to read:
23.15 		Subd. 2.Credit or grant allowed; certified historic structure. (a) A credit is allowed 
23.16 	against the tax imposed under this chapter equal to not more than 100 percent of the credit 
23.17 	allowed under section 47(a)(2) 47(a) of the Internal Revenue Code for a project. The credit 
23.18 	is payable in five equal yearly installments beginning with the year the project is placed in 
23.19 	service. To qualify for the credit:
23.20 	(1) the project must receive Part 3 certification and be placed in service during the taxable 
23.21 	year; and
23.22 	(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for 
23.23 	the taxable year as provided in subdivision 4.
23.24 	(b) The commissioner of administration may pay a grant in lieu of the credit. The grant 
23.25 	equals 90 percent of the credit that would be allowed for the project. The grant is payable 
23.26 	in five equal yearly installments beginning with the year the project is placed in service.
23.27 	(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit 
23.28 	against the insurance premiums tax imposed under chapter 297I.

23.29 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
23.30 	certificates submitted after December 31, 2017.

24.1 	Sec. 41. Minnesota Statutes 2018, section 290.0681, subdivision 3, is amended to read:
24.2 		Subd. 3.Applications; allocations. (a) To qualify for a credit or grant under this section, 
24.3 	the developer of a project must apply to the office before the rehabilitation begins. The 
24.4 	application must contain the information and be in the form prescribed by the office. The 
24.5 	office may collect a fee for application of up to 0.5 percent of qualified rehabilitation 
24.6 	expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to 
24.7 	offset costs associated with personnel and administrative expenses related to administering 
24.8 	the credit and preparing the economic impact report in subdivision 9. Application fees are 
24.9 	deposited in the account. The application must indicate if the application is for a credit or 
24.10 	a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying 
24.11 	for the credit or the recipient of the grant.
24.12 	(b) Upon approving an application for credit, the office shall issue allocation certificates 
24.13 	that:
24.14 	(1) verify eligibility for the credit or grant;
24.15 	(2) state the amount of credit or grant anticipated with the project, with the credit amount 
24.16 	equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated 
24.17 	in the application;
24.18 	(3) state that the credit or grant allowed may increase or decrease if the federal credit 
24.19 	the project receives at the time it is placed in service is different than the amount anticipated 
24.20 	at the time the allocation certificate is issued; and
24.21 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or 
24.22 	grant recipient is entitled to receive one-fifth of the total amount of either the credit or the 
24.23 	grant at the time the project is placed in service, provided that date is within three calendar 
24.24 	years following the issuance of the allocation certificate.
24.25 	(c) The office, in consultation with the commissioner, shall determine if the project is 
24.26 	eligible for a credit or a grant under this section and must notify the developer in writing 
24.27 	of its determination. Eligibility for the credit is subject to review and audit by the 
24.28 	commissioner.
24.29 	(d) The federal credit recapture and repayment requirements under section 50 of the 
24.30 	Internal Revenue Code do not apply to the credit allowed under this section.
24.31 	(e) Any decision of the office under paragraph (c) may be challenged as a contested case 
24.32 	under chapter 14. The contested case proceeding must be initiated within 45 days of the 
24.33 	date of written notification by the office.

25.1 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
25.2 	certificates submitted after December 31, 2017.

25.3 	Sec. 42. Minnesota Statutes 2018, section 290.0681, subdivision 4, is amended to read:
25.4 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
25.5 	office has issued an allocation certificate must notify the office when the project is placed 
25.6 	in service. Upon verifying that the project has been placed in service, and was allowed a 
25.7 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
25.8 	application or must issue a grant to the recipient designated in the application. The credit 
25.9 	certificate must state the amount of the credit.
25.10 	(2) The credit amount equals the federal credit allowed for the project.
25.11 	(3) The grant amount equals 90 percent of the federal credit allowed for the project.
25.12 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer
25.13 	before the first one-fifth payment is claimed, which is then allowed the credit under this 
25.14 	section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee 
25.15 	notifies the commissioner within 30 days of the date that the assignment is made. The 
25.16 	commissioner shall prescribe the forms necessary for notifying the commissioner of the 
25.17 	assignment of a credit certificate and for claiming a credit by assignment.
25.18 	(c) Credits passed through to partners, members, shareholders, or owners pursuant to 
25.19 	subdivision 5 are not an assignment of a credit certificate under this subdivision.
25.20 	(d) A grant agreement between the office and the recipient of a grant may allow the 
25.21 	grant to be issued to another individual or entity.

25.22 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
25.23 	certificates submitted after December 31, 2017.

25.24 	Sec. 43. Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
25.25 		Subd. 2.Subtraction. (a) A qualified individual is allowed a subtraction from federal 
25.26 	taxable adjusted gross income of the individual's subtraction base amount. The excess of 
25.27 	the subtraction base amount over the taxable net income computed without regard to the 
25.28 	subtraction for the elderly or disabled under section 290.0132, subdivision 5, may be used 
25.29 	to reduce the amount of a lump sum distribution subject to tax under section 290.032.
25.30 	(b)(1) The initial subtraction base amount equals
25.31 	(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
26.1 	(ii) $9,600 for a single taxpayer, and
26.2 	(iii) $6,000 for a married taxpayer filing a separate federal return.
26.3 	(2) The qualified individual's initial subtraction base amount, then, must be reduced by 
26.4 	the sum of nontaxable retirement and disability benefits and one-half of the amount of 
26.5 	adjusted gross income in excess of the following thresholds:
26.6 	(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified 
26.7 	individuals,
26.8 	(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one 
26.9 	spouse is a qualified individual, and
26.10 	(iii) $9,000 for a married taxpayer filing a separate federal return.
26.11 	(3) In the case of a qualified individual who is under the age of 65, the maximum amount 
26.12 	of the subtraction base may not exceed the taxpayer's disability income.
26.13 	(4) The resulting amount is the subtraction base amount.

26.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
26.15 	31, 2018.

26.16 	Sec. 44. [290.0803] STANDARD OR ITEMIZED DEDUCTION.
26.17 		Subdivision 1.Election. An individual may elect to claim a state itemized deduction in 
26.18 	lieu of a state standard deduction. However, in the case of a married individual filing a 
26.19 	separate return, if one spouse elects to claim state itemized deductions, the other spouse is 
26.20 	not allowed a state standard deduction.
26.21 		Subd. 2.Subtraction. Based on the election under subdivision 1, individuals are allowed 
26.22 	to subtract from federal adjusted gross income the state standard deduction or the state 
26.23 	itemized deduction.

26.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
26.25 	31, 2018.

26.26 	Sec. 45. Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
26.27 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
26.28 	terms have the meanings given.
26.29 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
26.30 	year:
27.1 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
27.2 	55(b)(2) of the Internal Revenue Code;
27.3 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
27.4 	taxable income, but excluding:
27.5 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
27.6 	(ii) the medical expense deduction;
27.7 	(iii) the casualty, theft, and disaster loss deduction; and
27.8 	(iv) the impairment-related work expenses of a disabled person;
27.9 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
27.10 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
27.11 	to the extent not included in federal alternative minimum taxable income, the excess of the 
27.12 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
27.13 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
27.14 	without regard to the depletion deduction for the taxable year);
27.15 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
27.16 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
27.17 	Code determined without regard to subparagraph (E);
27.18 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
27.19 	of interest income as provided by section 290.0131, subdivision 2; and
27.20 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11 and 16;
27.21 	(7) the deduction allowed under section 199A of the Internal Revenue Code;
27.22 	less the sum of the amounts determined under the following:
27.23 	(i) interest income as defined in section 290.0132, subdivision 2;
27.24 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
27.25 	3, to the extent included in federal alternative minimum taxable income;
27.26 	(iii) the amount of investment interest paid or accrued within the taxable year on 
27.27 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
27.28 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
27.29 	in computing federal adjusted gross income;
27.30 	(iv) amounts subtracted from federal taxable adjusted gross income as provided by 
27.31 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 30; and
28.1 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
28.2 	paragraph (c).; and
28.3 	(vi) the amount that would have been an allowable deduction under section 165(h) of 
28.4 	the Internal Revenue Code, as amended through December 16, 2016, and that was taken as 
28.5 	a state itemized deduction under section 290.01, subdivision 29a.
28.6 	In the case of an estate or trust, alternative minimum taxable income must be computed 
28.7 	as provided in section 59(c) of the Internal Revenue Code, except that alternative minimum 
28.8 	taxable income must be increased by the amount of the addition under section 290.0131, 
28.9 	subdivision 15.
28.10 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
28.11 	the Internal Revenue Code.
28.12 	(c) "Net minimum tax" means the minimum tax imposed by this section.
28.13 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
28.14 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
28.15 	under this chapter.
28.16 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
28.17 	after subtracting the exemption amount determined under subdivision 3.

28.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.19 	31, 2018.

28.20 	Sec. 46. Minnesota Statutes 2018, section 290.0921, subdivision 2, is amended to read:
28.21 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
28.22 	meanings given them.
28.23 	(b) "Alternative minimum taxable net income" is alternative minimum taxable income,
28.24 	(1) less the exemption amount, and
28.25 	(2) apportioned or allocated to Minnesota under section 290.17, 290.191, or 290.20.
28.26 	(c) The "exemption amount" is $40,000, reduced, but not below zero, by 25 percent of 
28.27 	the excess of alternative minimum taxable income over $150,000.
28.28 	(d) "Minnesota alternative minimum taxable income" is alternative minimum taxable 
28.29 	net income, less the deductions for alternative tax net operating loss under subdivision 4; 
28.30 	and dividends received under subdivision 6. The sum of the deductions under this paragraph 
29.1 	may not exceed 90 percent of alternative minimum taxable net income. This limitation does 
29.2 	not apply to:
29.3 	(1) a deduction for dividends paid to or received from a corporation which is subject to 
29.4 	tax under section 290.36 and which is a member of an affiliated group of corporations as 
29.5 	defined by the Internal Revenue Code; or
29.6 	(2) a deduction for dividends received from a property and casualty insurer as defined 
29.7 	under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations 
29.8 	as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in 
29.9 	consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 
29.10 	1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal 
29.11 	Revenue Code.
29.12 	(e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended 
29.13 	through December 16, 2016.

29.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
29.15 	31, 2018.

29.16 	Sec. 47. Minnesota Statutes 2018, section 290.0921, subdivision 3, is amended to read:
29.17 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable income" 
29.18 	is Minnesota net income as defined in section 290.01, subdivision 19, and includes the 
29.19 	adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of 
29.20 	the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, 
29.21 	the minimum tax must be computed on a separate company basis. If a corporation is part 
29.22 	of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. 
29.23 	The following adjustments must be made.
29.24 	(1) The portion of the depreciation deduction allowed for federal income tax purposes 
29.25 	under section 168(k) of the Internal Revenue Code that is required as an addition under 
29.26 	section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable 
29.27 	income.
29.28 	(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is 
29.29 	allowed as a depreciation deduction in determining alternative minimum taxable income.
29.30 	(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
29.31 	of the Internal Revenue Code does not apply.
30.1 	(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
30.2 	Revenue Code does not apply.
30.3 	(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code 
30.4 	does not apply.
30.5 	(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
30.6 	Revenue Code does not apply.
30.7 	(7) The tax preference for charitable contributions of appreciated property under section 
30.8 	57(a)(6) of the Internal Revenue Code does not apply.
30.9 	(8) For purposes of calculating the adjustment for adjusted current earnings in section 
30.10 	56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it 
30.11 	is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable 
30.12 	income as defined in this subdivision, determined without regard to the adjustment for 
30.13 	adjusted current earnings in section 56(g) of the Internal Revenue Code.
30.14 	(9) For purposes of determining the amount of adjusted current earnings under section 
30.15 	56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4) 
30.16 	of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up 
30.17 	subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of 
30.18 	income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision 
30.19 	8.
30.20 	(10) Alternative minimum taxable income excludes the income from operating in a job 
30.21 	opportunity building zone as provided under section 469.317.
30.22 	Items of tax preference must not be reduced below zero as a result of the modifications 
30.23 	in this subdivision.
30.24 	(11) A subtraction is allowed for deferred foreign income as provided in section 290.0134, 
30.25 	subdivision 18.
30.26 	(12) A subtraction is allowed for global intangible low-taxed income as provided in 
30.27 	section 290.0134, subdivision 17.

30.28 	EFFECTIVE DATE. The addition of clause (11) is effective retroactively for taxable 
30.29 	years beginning after December 31, 2016. The addition of clause (12) is effective 
30.30 	retroactively for taxable years beginning after December 31, 2017.

31.1 	Sec. 48. Minnesota Statutes 2018, section 290.17, subdivision 2, is amended to read:
31.2 		Subd. 2.Income not derived from conduct of a trade or business. The income of a 
31.3 	taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 
31.4 	business must be assigned in accordance with paragraphs (a) to (f):
31.5 	(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 
31.6 	3401(a) and, (f), and (i) of the Internal Revenue Code is assigned to this state if, and to the 
31.7 	extent that, the work of the employee is performed within it; all other income from such 
31.8 	sources is treated as income from sources without this state.
31.9 	Severance pay shall be considered income from labor or personal or professional services.
31.10 	(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 
31.11 	or entertainer, income from compensation for labor or personal services performed within 
31.12 	this state shall be determined in the following manner:
31.13 	(i) the amount of income to be assigned to Minnesota for an individual who is a 
31.14 	nonresident salaried athletic team employee shall be determined by using a fraction in which 
31.15 	the denominator contains the total number of days in which the individual is under a duty 
31.16 	to perform for the employer, and the numerator is the total number of those days spent in 
31.17 	Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 
31.18 	at the team's facilities as part of a team imposed program, are not included in the total number 
31.19 	of duty days. Bonuses earned as a result of play during the regular season or for participation 
31.20 	in championship, play-off, or all-star games must be allocated under the formula. Signing 
31.21 	bonuses are not subject to allocation under the formula if they are not conditional on playing 
31.22 	any games for the team, are payable separately from any other compensation, and are 
31.23 	nonrefundable; and
31.24 	(ii) the amount of income to be assigned to Minnesota for an individual who is a 
31.25 	nonresident, and who is an athlete or entertainer not listed in item (i), for that person's athletic 
31.26 	or entertainment performance in Minnesota shall be determined by assigning to this state 
31.27 	all income from performances or athletic contests in this state.
31.28 	(3) For purposes of this section, amounts received by a nonresident as "retirement income" 
31.29 	as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 
31.30 	Law 104-95, are not considered income derived from carrying on a trade or business or 
31.31 	from wages or other compensation for work an employee performed in Minnesota, and are 
31.32 	not taxable under this chapter.
32.1 	(b) Income or gains from tangible property located in this state that is not employed in 
32.2 	the business of the recipient of the income or gains must be assigned to this state.
32.3 	(c) Income or gains from intangible personal property not employed in the business of 
32.4 	the recipient of the income or gains must be assigned to this state if the recipient of the 
32.5 	income or gains is a resident of this state or is a resident trust or estate.
32.6 	Gain on the sale of a partnership interest is allocable to this state in the ratio of the 
32.7 	original cost of partnership tangible property in this state to the original cost of partnership 
32.8 	tangible property everywhere, determined at the time of the sale. If more than 50 percent 
32.9 	of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 
32.10 	the partnership interest is allocated to this state in accordance with the sales factor of the 
32.11 	partnership for its first full tax period immediately preceding the tax period of the partnership 
32.12 	during which the partnership interest was sold.
32.13 	Gain on the sale of an interest in a single member limited liability company that is 
32.14 	disregarded for federal income tax purposes is allocable to this state as if the single member 
32.15 	limited liability company did not exist and the assets of the limited liability company are 
32.16 	personally owned by the sole member.
32.17 	Gain on the sale of goodwill or income from a covenant not to compete that is connected 
32.18 	with a business operating all or partially in Minnesota is allocated to this state to the extent 
32.19 	that the income from the business in the year preceding the year of sale was allocable to 
32.20 	Minnesota under subdivision 3.
32.21 	When an employer pays an employee for a covenant not to compete, the income allocated 
32.22 	to this state is in the ratio of the employee's service in Minnesota in the calendar year 
32.23 	preceding leaving the employment of the employer over the total services performed by the 
32.24 	employee for the employer in that year.
32.25 	(d) Income from winnings on a bet made by an individual while in Minnesota is assigned 
32.26 	to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 
32.27 	2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
32.28 	(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 
32.29 	taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
32.30 	(f) For the purposes of this section, working as an employee shall not be considered to 
32.31 	be conducting a trade or business.

32.32 	EFFECTIVE DATE. This section is effective for wages paid after December 31, 2018.

33.1 	Sec. 49. Minnesota Statutes 2018, section 290.21, subdivision 4, is amended to read:
33.2 		Subd. 4.Dividends received from another corporation. (a)(1) Eighty percent of 
33.3 	dividends received by a corporation during the taxable year from another corporation, in 
33.4 	which the recipient owns 20 percent or more of the stock, by vote and value, not including 
33.5 	stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate 
33.6 	stock with respect to which dividends are paid does not constitute the stock in trade of the 
33.7 	taxpayer or would not be included in the inventory of the taxpayer, or does not constitute 
33.8 	property held by the taxpayer primarily for sale to customers in the ordinary course of the 
33.9 	taxpayer's trade or business, or when the trade or business of the taxpayer does not consist 
33.10 	principally of the holding of the stocks and the collection of the income and gains therefrom; 
33.11 	and
33.12 	(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in 
33.13 	an affiliated company transferred in an overall plan of reorganization and the dividend is 
33.14 	eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended 
33.15 	through December 31, 1989;
33.16 	(ii) the remaining 20 percent of dividends if the dividends are received from a corporation 
33.17 	which is subject to tax under section 290.36 and which is a member of an affiliated group 
33.18 	of corporations as defined by the Internal Revenue Code and the dividend is eliminated in 
33.19 	consolidation under Treasury Department Regulation 1.1502-14(a), as amended through 
33.20 	December 31, 1989, or is deducted under an election under section 243(b) of the Internal 
33.21 	Revenue Code; or
33.22 	(iii) the remaining 20 percent of the dividends if the dividends are received from a 
33.23 	property and casualty insurer as defined under section 60A.60, subdivision 8, which is a 
33.24 	member of an affiliated group of corporations as defined by the Internal Revenue Code and 
33.25 	either: (A) the dividend is eliminated in consolidation under Treasury Regulation 
33.26 	1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted 
33.27 	under an election under section 243(b) of the Internal Revenue Code.
33.28 	(b) Seventy percent of dividends received by a corporation during the taxable year from 
33.29 	another corporation in which the recipient owns less than 20 percent of the stock, by vote 
33.30 	or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code 
33.31 	when the corporate stock with respect to which dividends are paid does not constitute the 
33.32 	stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily 
33.33 	for sale to customers in the ordinary course of the taxpayer's trade or business, or when the 
34.1 	trade or business of the taxpayer does not consist principally of the holding of the stocks 
34.2 	and the collection of income and gain therefrom.
34.3 	(c) The dividend deduction provided in this subdivision shall be allowed only with 
34.4 	respect to dividends that are included in a corporation's Minnesota taxable net income for 
34.5 	the taxable year.
34.6 	The dividend deduction provided in this subdivision does not apply to a dividend from 
34.7 	a corporation which, for the taxable year of the corporation in which the distribution is made 
34.8 	or for the next preceding taxable year of the corporation, is a corporation exempt from tax 
34.9 	under section 501 of the Internal Revenue Code.
34.10 	The dividend deduction provided in this subdivision does not apply to a dividend received 
34.11 	from a real estate investment trust as defined in section 856 of the Internal Revenue Code.
34.12 	The dividend deduction provided in this subdivision applies to the amount of regulated 
34.13 	investment company dividends only to the extent determined under section 854(b) of the 
34.14 	Internal Revenue Code.
34.15 	The dividend deduction provided in this subdivision shall not be allowed with respect 
34.16 	to any dividend for which a deduction is not allowed under the provisions of section 246(c)
34.17 	or 246A of the Internal Revenue Code.
34.18 	(d) If dividends received by a corporation that does not have nexus with Minnesota under 
34.19 	the provisions of Public Law 86-272 are included as income on the return of an affiliated 
34.20 	corporation permitted or required to file a combined report under section 290.17, subdivision 
34.21 	4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to 
34.22 	whether the trade or business of the corporation consists principally of the holding of stocks 
34.23 	and the collection of income and gains therefrom shall be made with reference to the trade 
34.24 	or business of the affiliated corporation having a nexus with Minnesota.
34.25 	(e) The deduction provided by this subdivision does not apply if the dividends are paid 
34.26 	by a FSC as defined in section 922 of the Internal Revenue Code.
34.27 	(f) If one or more of the members of the unitary group whose income is included on the 
34.28 	combined report received a dividend, the deduction under this subdivision for each member 
34.29 	of the unitary business required to file a return under this chapter is the product of: (1) 100 
34.30 	percent of the dividends received by members of the group; (2) the percentage allowed 
34.31 	pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income 
34.32 	apportionable to this state for the taxable year under section 290.191 or 290.20.

35.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
35.2 	31, 2018.

35.3 	Sec. 50. Minnesota Statutes 2018, section 290.34, is amended by adding a subdivision to 
35.4 	read:
35.5 		Subd. 5.Insurance companies; interest expense limitation. To be consistent with the 
35.6 	federal treatment of the interest expense limitation under section 163(j) of the Internal 
35.7 	Revenue Code for an affiliated group that includes an insurance company taxable under 
35.8 	chapter 297I and exempt from taxation under section 290.05, subdivision 1, clause (c), the 
35.9 	rules under this subdivision apply. In that case, the interest expense limitation under section 
35.10 	163(j) of the Internal Revenue Code must be computed for the corporation subject to tax 
35.11 	under this chapter using the adjusted taxable income of the insurance companies that are 
35.12 	part of the affiliated group and taxed under chapter 297I.

35.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
35.14 	31, 2018.

35.15 	Sec. 51. Minnesota Statutes 2018, section 290.92, subdivision 1, is amended to read:
35.16 		Subdivision 1.Definitions. (1) Wages. For purposes of this section, the term "wages" 
35.17 	means the same as that term is defined in section 3401(a) and, (f), and (i) of the Internal 
35.18 	Revenue Code.
35.19 	(2) Payroll period. For purposes of this section the term "payroll period" means a period 
35.20 	for which a payment of wages is ordinarily made to the employee by the employee's 
35.21 	employer, and the term "miscellaneous payroll period" means a payroll period other than a 
35.22 	daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll 
35.23 	period.
35.24 	(3) Employee. For purposes of this section the term "employee" means any resident 
35.25 	individual performing services for an employer, either within or without, or both within and 
35.26 	without the state of Minnesota, and every nonresident individual performing services within 
35.27 	the state of Minnesota, the performance of which services constitute, establish, and determine 
35.28 	the relationship between the parties as that of employer and employee. As used in the 
35.29 	preceding sentence, the term "employee" includes an officer of a corporation, and an officer, 
35.30 	employee, or elected official of the United States, a state, or any political subdivision thereof, 
35.31 	or the District of Columbia, or any agency or instrumentality of any one or more of the 
35.32 	foregoing.
36.1 	(4) Employer. For purposes of this section the term "employer" means any person, 
36.2 	including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies, 
36.3 	and corporations transacting business in or deriving any income from sources within the 
36.4 	state of Minnesota for whom an individual performs or performed any service, of whatever 
36.5 	nature, as the employee of such person, except that if the person for whom the individual 
36.6 	performs or performed the services does not have control of the payment of the wages for 
36.7 	such services, the term "employer," except for purposes of paragraph (1), means the person 
36.8 	having control of the payment of such wages. As used in the preceding sentence, the term 
36.9 	"employer" includes any corporation, individual, estate, trust, or organization which is 
36.10 	exempt from taxation under section 290.05 and further includes, but is not limited to, officers 
36.11 	of corporations who have control, either individually or jointly with another or others, of 
36.12 	the payment of the wages.
36.13 	(5) Number of withholding exemptions claimed. For purposes of this section, the term 
36.14 	"number of withholding exemptions claimed" means the number of withholding exemptions 
36.15 	claimed in a withholding exemption certificate in effect under subdivision 5, except that if 
36.16 	no such certificate is in effect, the number of withholding exemptions claimed shall be 
36.17 	considered to be zero.

36.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
36.19 	31, 2018.

36.20 	Sec. 52. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
36.21 		Subd. 3.Income. (a) "Income" means the sum of the following:
36.22 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
36.23 	(2) the sum of the following amounts to the extent not included in clause (1):
36.24 	(i) all nontaxable income;
36.25 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
36.26 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
36.27 	carryover allowed under section 469(b) of the Internal Revenue Code;
36.28 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
36.29 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
36.30 	Code;
36.31 	(iv) cash public assistance and relief;
37.1 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
37.2 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
37.3 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
37.4 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
37.5 	gross income in the years when the payments were made;
37.6 	(vi) interest received from the federal or a state government or any instrumentality or 
37.7 	political subdivision thereof;
37.8 	(vii) workers' compensation;
37.9 	(viii) nontaxable strike benefits;
37.10 	(ix) the gross amounts of payments received in the nature of disability income or sick 
37.11 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
37.12 	or otherwise;
37.13 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
37.14 	1986, as amended through December 31, 1995;
37.15 	(xi) contributions made by the claimant to an individual retirement account, including 
37.16 	a qualified voluntary employee contribution; simplified employee pension plan; 
37.17 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
37.18 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
37.19 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
37.20 	the claimant and spouse;
37.21 	(xii) to the extent not included in federal adjusted gross income, distributions received 
37.22 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
37.23 	(xiii) nontaxable scholarship or fellowship grants;
37.24 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code
37.25 	alimony received to the extent not included in the recipient's income;
37.26 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
37.27 	Code;
37.28 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
37.29 	Code; and
37.30 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
37.31 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
38.1 	In the case of an individual who files an income tax return on a fiscal year basis, the 
38.2 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
38.3 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
38.4 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
38.5 	or carryforward allowed for the year.
38.6 	(b) "Income" does not include:
38.7 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
38.8 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
38.9 	or spouse and which funding payments were not excluded from federal adjusted gross 
38.10 	income in the years when the payments were made;
38.11 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
38.12 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
38.13 	the retirement base amount reduced by the amount of contributions excluded from federal 
38.14 	adjusted gross income, but not less than zero;
38.15 	(4) surplus food or other relief in kind supplied by a governmental agency;
38.16 	(5) relief granted under this chapter;
38.17 	(6) child support payments received under a temporary or final decree of dissolution or 
38.18 	legal separation; or
38.19 	(7) restitution payments received by eligible individuals and excludable interest as 
38.20 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
38.21 	Public Law 107-16; or
38.22 	(8) alimony paid.
38.23 	(c) The sum of the following amounts may be subtracted from income:
38.24 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
38.25 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
38.26 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
38.27 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
38.28 	(5) for the claimant's fifth dependent, the exemption amount; and
38.29 	(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 
38.30 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
38.31 	amount.
39.1 	(d) For purposes of this subdivision, the following terms have the meanings given:
39.2 	(1) "exemption amount" means the exemption amount under section 151(d) of the Internal 
39.3 	Revenue Code the personal exemption amount under section 290.0138, paragraph (a), for 
39.4 	the taxable year for which the income is reported;
39.5 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
39.6 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
39.7 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
39.8 	to whether the claimant or spouse claimed a deduction; and
39.9 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
39.10 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

39.11 	EFFECTIVE DATE. This section is effective for property tax refunds based on property 
39.12 	taxes payable in 2020, and rent paid in 2019.

39.13 	Sec. 53. Minnesota Statutes 2018, section 290A.03, subdivision 12, is amended to read:
39.14 		Subd. 12.Gross rent. (a) "Gross rent" means rental paid for the right of occupancy, at 
39.15 	arm's length, of a homestead, exclusive of charges for any medical services furnished by 
39.16 	the landlord as a part of the rental agreement, whether expressly set out in the rental 
39.17 	agreement or not.
39.18 	(b) The gross rent of a resident of a nursing home or intermediate care facility is $350
39.19 	$490 per month. The gross rent of a resident of an adult foster care home is $550 $760 per 
39.20 	month. Beginning for rent paid in 2002 2019, the commissioner shall annually adjust for 
39.21 	inflation the gross rent amounts stated in this paragraph as provided under section 270C.22. 
39.22 	The statutory year is 2018. The adjustment must be made in accordance with section 1(f) 
39.23 	of the Internal Revenue Code, except that for purposes of this paragraph the percentage 
39.24 	increase shall be determined from the year ending on June 30, 2001, to the year ending on 
39.25 	June 30 of the year in which the rent is paid. The commissioner shall round the gross rents 
39.26 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to 
39.27 	the next $10 amount. The determination of the commissioner under this paragraph is not a 
39.28 	rule under the Administrative Procedure Act.
39.29 	(c) If the landlord and tenant have not dealt with each other at arm's length and the 
39.30 	commissioner determines that the gross rent charged was excessive, the commissioner may 
39.31 	adjust the gross rent to a reasonable amount for purposes of this chapter.
39.32 	(d) Any amount paid by a claimant residing in property assessed pursuant to section 
39.33 	273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from 
40.1 	gross rent for purposes of this chapter. However, property taxes imputed to the homestead 
40.2 	of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead 
40.3 	treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the 
40.4 	term "property taxes payable" as defined in subdivision 13, notwithstanding the fact that 
40.5 	ownership is not in the name of the claimant.

40.6 	EFFECTIVE DATE. This section is effective for adjustments beginning with refunds 
40.7 	based on rent paid in 2019.

40.8 	Sec. 54. Minnesota Statutes 2018, section 290A.03, subdivision 15, is amended to read:
40.9 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
40.10 	Code of 1986, as amended through December 16, 2016 31, 2018.

40.11 	EFFECTIVE DATE. This section is effective for property tax refunds based on property 
40.12 	taxes payable in 2020, and rent paid in 2019.

40.13 	Sec. 55. Minnesota Statutes 2018, section 290A.04, subdivision 4, is amended to read:
40.14 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in calendar 
40.15 	year 2002, The commissioner shall annually adjust the dollar amounts of the income 
40.16 	thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. The 
40.17 	commissioner shall make the inflation adjustments in accordance with section 1(f) of the 
40.18 	Internal Revenue Code, except that for purposes of this subdivision the percentage increase 
40.19 	shall be determined as provided in this subdivision as provided in section 270C.22. The 
40.20 	statutory year is 2018.
40.21 	(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
40.22 	under subdivision 2 for inflation, the percentage increase shall be determined from the year 
40.23 	ending on June 30, 2013, to the year ending on June 30 of the year preceding that in which 
40.24 	the refund is payable.
40.25 	(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
40.26 	under subdivision 2a for inflation, the percentage increase shall be determined from the 
40.27 	year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in 
40.28 	which the refund is payable.
40.29 	(d) The commissioner shall use the appropriate percentage increase to annually adjust 
40.30 	the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation 
40.31 	without regard to whether or not the income tax brackets are adjusted for inflation in that 
40.32 	year. The commissioner shall round the thresholds and the maximum amounts, as adjusted 
41.1 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to 
41.2 	the next $10 amount.
41.3 	(e) The commissioner shall annually announce the adjusted refund schedule at the same 
41.4 	time provided under section 290.06. The determination of the commissioner under this 
41.5 	subdivision is not a rule under the Administrative Procedure Act.

41.6 	EFFECTIVE DATE. This section is effective for refunds based on rent paid in 2020, 
41.7 	and property taxes paid in 2021.

41.8 	Sec. 56. Minnesota Statutes 2018, section 291.005, subdivision 1, is amended to read:
41.9 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
41.10 	used in this chapter shall have the following meanings:
41.11 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
41.12 	commissioner has delegated functions under this chapter.
41.13 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
41.14 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
41.15 	increased by the value of any property in which the decedent had a qualifying income interest 
41.16 	for life and for which an election was made under section 291.03, subdivision 1d, for 
41.17 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
41.18 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
41.19 	as amended through December 16, 2016 31, 2018.
41.20 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
41.21 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
41.22 	and (b) including any property omitted from the federal gross estate which is includable in 
41.23 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
41.24 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
41.25 	was not in Minnesota.
41.26 	(6) "Personal representative" means the executor, administrator or other person appointed 
41.27 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
41.28 	administrator or other person appointed, qualified, and acting within this state, then any 
41.29 	person in actual or constructive possession of any property having a situs in this state which 
41.30 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
41.31 	representative to the extent of the property and the Minnesota estate tax due with respect 
41.32 	to the property.
42.1 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
42.2 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
42.3 	to determinations of domicile under this chapter.
42.4 	(8) "Situs of property" means, with respect to:
42.5 	(i) real property, the state or country in which it is located;
42.6 	(ii) tangible personal property, the state or country in which it was normally kept or 
42.7 	located at the time of the decedent's death or for a gift of tangible personal property within 
42.8 	three years of death, the state or country in which it was normally kept or located when the 
42.9 	gift was executed;
42.10 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
42.11 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
42.12 	because it is on loan to an organization, qualifying as exempt from taxation under section 
42.13 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
42.14 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
42.15 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
42.16 	at death or for a gift of intangible personal property within three years of death, the state or 
42.17 	country in which the decedent was domiciled when the gift was executed.
42.18 	For a nonresident decedent with an ownership interest in a pass-through entity with 
42.19 	assets that include real or tangible personal property, situs of the real or tangible personal 
42.20 	property, including qualified works of art, is determined as if the pass-through entity does 
42.21 	not exist and the real or tangible personal property is personally owned by the decedent. If 
42.22 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
42.23 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
42.24 	share of the pass-through entity.
42.25 	(9) "Pass-through entity" includes the following:
42.26 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
42.27 	Code;
42.28 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
42.29 	(iii) a single-member limited liability company or similar entity, regardless of whether 
42.30 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
42.31 	of Federal Regulations, title 26, section 301.7701-3; or
43.1 	(iv) a trust to the extent the property is includible includable in the decedent's federal 
43.2 	gross estate; but excludes
43.3 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
43.4 	by the Securities and Exchange Commission as a national securities exchange under section 
43.5 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

43.6 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
43.7 	the changes incorporated by federal changes are effective retroactively at the same time the 
43.8 	changes become effective for federal purposes.

43.9 	Sec. 57. Minnesota Statutes 2018, section 297A.68, subdivision 25, is amended to read:
43.10 		Subd. 25.Sale of property used in a trade or business. (a) The sale of tangible personal 
43.11 	property primarily used in a trade or business is exempt if the sale is not made in the normal 
43.12 	course of business of selling that kind of property and if one of the following conditions is 
43.13 	satisfied:
43.14 	(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336, 
43.15 	337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Code, as amended 
43.16 	through December 16, 2016;
43.17 	(2) the sale is between members of a controlled group as defined in section 1563(a) of 
43.18 	the Internal Revenue Code;
43.19 	(3) the sale is a sale of farm machinery;
43.20 	(4) the sale is a farm auction sale;
43.21 	(5) the sale is a sale of substantially all of the assets of a trade or business; or
43.22 	(6) the total amount of gross receipts from the sale of trade or business property made 
43.23 	during the calendar month of the sale and the preceding 11 calendar months does not exceed 
43.24 	$1,000.
43.25 	The use, storage, distribution, or consumption of tangible personal property acquired as 
43.26 	a result of a sale exempt under this subdivision is also exempt.
43.27 	(b) For purposes of this subdivision, the following terms have the meanings given.
43.28 	(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially 
43.29 	all of the property sold consists of property used in the trade or business of farming and 
43.30 	property not used primarily in a trade or business.
44.1 	(2) "Trade or business" includes the assets of a separate division, branch, or identifiable 
44.2 	segment of a trade or business if, before the sale, the income and expenses attributable to 
44.3 	the separate division, branch, or identifiable segment could be separately ascertained from 
44.4 	the books of account or record (the lease or rental of an identifiable segment does not qualify 
44.5 	for the exemption).
44.6 	(3) A "sale of substantially all of the assets of a trade or business" must occur as a single 
44.7 	transaction or a series of related transactions within the 12-month period beginning on the 
44.8 	date of the first sale of assets intended to qualify for the exemption provided in paragraph 
44.9 	(a), clause (5).

44.10 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
44.11 	made after December 31, 2018.

44.12 	Sec. 58. Minnesota Statutes 2018, section 297B.03, is amended to read:
44.13 	297B.03 EXEMPTIONS.
44.14 	There is specifically exempted from the provisions of this chapter and from computation 
44.15 	of the amount of tax imposed by it the following:
44.16 	(1) purchase or use, including use under a lease purchase agreement or installment sales 
44.17 	contract made pursuant to section 465.71, of any motor vehicle by the United States and its 
44.18 	agencies and instrumentalities and by any person described in and subject to the conditions 
44.19 	provided in section 297A.67, subdivision 11;
44.20 	(2) purchase or use of any motor vehicle by any person who was a resident of another 
44.21 	state or country at the time of the purchase and who subsequently becomes a resident of 
44.22 	Minnesota, provided the purchase occurred more than 60 days prior to the date such person 
44.23 	began residing in the state of Minnesota and the motor vehicle was registered in the person's 
44.24 	name in the other state or country;
44.25 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
44.26 	taxed under the provisions of section 297A.90;
44.27 	(4) purchase or use of any motor vehicle previously registered in the state of Minnesota 
44.28 	when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 
44.29 	337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code, 
44.30 	as amended through December 16, 2016;
44.31 	(5) purchase or use of any vehicle owned by a resident of another state and leased to a 
44.32 	Minnesota-based private or for-hire carrier for regular use in the transportation of persons 
45.1 	or property in interstate commerce provided the vehicle is titled in the state of the owner or 
45.2 	secured party, and that state does not impose a sales tax or sales tax on motor vehicles used 
45.3 	in interstate commerce;
45.4 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
45.5 	institution for use as an instructional aid in automotive training programs operated by the 
45.6 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
45.7 	repair courses but does not include driver education programs;
45.8 	(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
45.9 	when that vehicle is equipped and specifically intended for emergency response or for 
45.10 	providing ambulance service;
45.11 	(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, 
45.12 	subdivision 2, as a bookmobile or library delivery vehicle;
45.13 	(9) purchase of a ready-mixed concrete truck;
45.14 	(10) purchase or use of a motor vehicle by a town for use exclusively for road 
45.15 	maintenance, including snowplows and dump trucks, but not including automobiles, vans, 
45.16 	or pickup trucks;
45.17 	(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, 
45.18 	or institution organized and operated exclusively for charitable, religious, or educational 
45.19 	purposes, except a public school, university, or library, but only if the vehicle is:
45.20 	(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
45.21 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
45.22 	for carrying more than nine persons including the driver; and
45.23 	(ii) intended to be used primarily to transport tangible personal property or individuals, 
45.24 	other than employees, to whom the organization provides service in performing its charitable, 
45.25 	religious, or educational purpose;
45.26 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
45.27 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
45.28 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
45.29 	473.388, or 473.405;
45.30 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
45.31 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
45.32 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
45.33 	support of the person's operations carried on in the job opportunity building zone. The 
46.1 	exemption under this clause applies to sales, if the purchase was made and delivery received 
46.2 	during the duration of the job opportunity building zone. The exemption under this clause 
46.3 	also applies to any local sales and use tax;
46.4 	(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own 
46.5 	program from a charitable organization that is:
46.6 	(i) described in section 501(c)(3) of the Internal Revenue Code; and
46.7 	(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
46.8 	(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the 
46.9 	provision of medical or dental services by a federally qualified health center, as defined 
46.10 	under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget 
46.11 	Reconciliation Act of 1990.

46.12 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
46.13 	made after December 31, 2018.

46.14 	Sec. 59. Minnesota Statutes 2018, section 462D.06, subdivision 1, is amended to read:
46.15 		Subdivision 1.Subtraction. (a) As provided in section 290.0132, subdivision 25, an 
46.16 	account holder is allowed a subtraction from the federal taxable adjusted gross income equal 
46.17 	to interest or dividends earned on the first-time home buyer savings account during the 
46.18 	taxable year.
46.19 	(b) The subtraction under paragraph (a) is allowed each year for the taxable years 
46.20 	including and following the taxable year in which the account was established. No person 
46.21 	other than the account holder is allowed a subtraction under this section.

46.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
46.23 	31, 2018.

46.24 	Sec. 60. Minnesota Statutes 2018, section 462D.06, subdivision 2, is amended to read:
46.25 		Subd. 2.Addition. (a) As provided in section 290.0131, subdivision 14, an account 
46.26 	holder must add to federal taxable adjusted gross income the following amounts:
46.27 	(1) the amount in excess of the total contributions for all taxable years that is withdrawn 
46.28 	and used for other than eligible costs, or for a transfer permitted under section 462D.04, 
46.29 	subdivision 2; and
46.30 	(2) the amount remaining in the first-time home buyer savings account at the close of 
46.31 	the tenth taxable year that exceeds the total contributions to the account for all taxable years.
47.1 	(b) For an account that received a transfer under section 462D.04, subdivision 2, the 
47.2 	ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year 
47.3 	that applies to either account under that clause.

47.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
47.5 	31, 2018.

47.6 	Sec. 61. Minnesota Statutes 2018, section 469.316, subdivision 1, is amended to read:
47.7 		Subdivision 1.Application. An individual, estate, or trust operating a trade or business 
47.8 	in a job opportunity building zone, and an individual, estate, or trust making a qualifying 
47.9 	investment in a qualified business operating in a job opportunity building zone qualifies for 
47.10 	the exemptions from taxes imposed under chapter 290, as provided in this section. The 
47.11 	exemptions provided under this section apply only to the extent that the income otherwise 
47.12 	would be taxable under chapter 290. Subtractions under this section from federal adjusted 
47.13 	gross income, federal taxable income, alternative minimum taxable income, or any other 
47.14 	base subject to tax are limited to the amount that otherwise would be included in the tax 
47.15 	base absent the exemption under this section. This section applies only to taxable years 
47.16 	beginning during the duration of the job opportunity building zone.

47.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
47.18 	31, 2018.

47.19 	Sec. 62. REVISOR INSTRUCTION.
 47.20 	The commissioner of revenue must promptly notify the revisor of statutes in writing of 
47.21 	the adjusted statutory year amounts for each of the statutory sections that are indexed for 
47.22 	inflation under Minnesota Statutes, section 270C.22. The revisor shall publish the updated 
47.23 	statutory amounts in the 2019 Supplement of Minnesota Statutes.

47.24 	Sec. 63.  REPEALER.
 47.25 	Minnesota Statutes 2018, sections 290.0131, subdivisions 7, 10, and 11; 290.0133, 
47.26 	subdivisions 12, 13, and 14; and 290.10, subdivision 2, are repealed.

47.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
47.28 	31, 2019.

48.1 	ARTICLE 2
48.2 	INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

48.3 	Section 1. Minnesota Statutes 2018, section 116J.8737, subdivision 1, is amended to read:
48.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
48.5 	the meanings given.
48.6 	(b) "Qualified small business" means a business that has been certified by the 
48.7 	commissioner under subdivision 2.
48.8 	(c) "Qualified investor" means an investor who has been certified by the commissioner 
48.9 	under subdivision 3.
48.10 	(d) "Qualified fund" means a pooled angel investment network fund that has been certified 
48.11 	by the commissioner under subdivision 4.
48.12 	(e) "Qualified investment" means a cash investment in a qualified small business of a 
48.13 	minimum of:
48.14 	(1) $10,000 in a calendar year by a qualified investor; or
48.15 	(2) $30,000 in a calendar year by a qualified fund.
48.16 	A qualified investment must be made in exchange for common stock, a partnership or 
48.17 	membership interest, preferred stock, debt with mandatory conversion to equity, or an 
48.18 	equivalent ownership interest as determined by the commissioner.
48.19 	(f) "Family" means a family member within the meaning of the Internal Revenue Code, 
48.20 	section 267(c)(4).
48.21 	(g) "Pass-through entity" means a corporation that for the applicable taxable year is 
48.22 	treated as an S corporation or a general partnership, limited partnership, limited liability 
48.23 	partnership, trust, or limited liability company and which for the applicable taxable year is 
48.24 	not taxed as a corporation under chapter 290.
48.25 	(h) "Intern" means a student of an accredited institution of higher education, or a former 
48.26 	student who has graduated in the past six months from an accredited institution of higher 
48.27 	education, who is employed by a qualified small business in a nonpermanent position for 
48.28 	a duration of nine months or less that provides training and experience in the primary 
48.29 	business activity of the business.
48.30 	(i) "Liquidation event" means a conversion of qualified investment for cash, cash and 
48.31 	other consideration, or any other form of equity or debt interest.
49.1 	(j) "Qualified greater Minnesota business" means a qualified small business that is also 
49.2 	certified by the commissioner as a qualified greater Minnesota business under subdivision 
49.3 	2, paragraph (h).
49.4 	(k) "Minority group member" means a United States citizen who is Asian, Pacific 
49.5 	Islander, Black, Hispanic, or Native American.
49.6 	(l) "Minority-owned business" means a business for which one or more minority group 
49.7 	members:
49.8 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
49.9 	own at least 51 percent of the stock; and
49.10 	(2) manage the business and control the daily business operations.
49.11 	(m) "Women" means persons of the female gender.
49.12 	(n) "Women-owned business" means a business for which one or more women:
49.13 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
49.14 	own at least 51 percent of the stock; and
49.15 	(2) manage the business and control the daily business operations.
49.16 	(o) "Veteran" has the meaning given in section 197.447.
49.17 	(p) "Veteran-owned business" means a business for which one or more veterans:
49.18 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
49.19 	own at least 51 percent of the stock; and
49.20 	(2) manage the business and control the daily business operations.
49.21 	(q) "Officer" means a person elected or appointed by the board of directors to manage 
49.22 	the daily operations of the qualified small business.
49.23 	(p) (r) "Principal" means a person having authority to act on behalf of the qualified small 
49.24 	business.

49.25 	Sec. 2. Minnesota Statutes 2018, section 116J.8737, subdivision 5, is amended to read:
49.26 		Subd. 5.Credit allowed. (a)(1) A qualified investor or qualified fund is eligible for a 
49.27 	credit equal to 25 percent of the qualified investment in a qualified small business. 
49.28 	Investments made by a pass-through entity qualify for a credit only if the entity is a qualified 
49.29 	fund. The commissioner must not allocate more than $15,000,000 $5,000,000 in credits to 
49.30 	qualified investors or qualified funds for taxable years beginning after December 31, 2013
50.1 	2018, and before January 1, 2017, and must not allocate more than $10,000,000 in credits 
50.2 	to qualified investors or qualified funds for taxable years beginning after December 31, 
50.3 	2016, and before January 1, 2018 January 1, 2020; and
50.4 	(2) for taxable years beginning after December 31, 2014, and before January 1, 2018,
50.5 	50 percent must be allocated to credits for qualifying investments in qualified greater 
50.6 	Minnesota businesses and minority- orminority-owned, women-owned, or veteran-owned
50.7 	qualified small businesses in Minnesota. Any portion of a taxable year's credits that is 
50.8 	reserved for qualifying investments in greater Minnesota businesses and minority- or
50.9 	minority-owned, women-owned, or veteran-owned qualified small businesses in Minnesota 
50.10 	that is not allocated by September 30 of the taxable year is available for allocation to other 
50.11 	credit applications beginning on October 1. Any portion of a taxable year's credits that is 
50.12 	not allocated by the commissioner does not cancel and may be carried forward to subsequent 
50.13 	taxable years until all credits have been allocated.
50.14 	(b) The commissioner may not allocate more than a total maximum amount in credits 
50.15 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
50.16 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
50.17 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
50.18 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
50.19 	over all taxable years for qualified investments in any one qualified small business.
50.20 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
50.21 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
50.22 	is proposed:
50.23 	(1) the investor is an officer or principal of the qualified small business; or
50.24 	(2) the investor, either individually or in combination with one or more members of the 
50.25 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
50.26 	outstanding securities of the qualified small business.
50.27 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
50.28 	credit under this section. For a married couple filing a joint return, the limitations in this 
50.29 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
50.30 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
50.31 	267(e) of the Internal Revenue Code apply.
50.32 	(d) Applications for tax credits for 2010 must be made available on the department's 
50.33 	website by September 1, 2010, and the department must begin accepting applications by 
51.1 	September 1, 2010. Applications for subsequent years must be made available by November 
51.2 	1 of the preceding year.
51.3 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
51.4 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
51.5 	tax credit request applications are filed with the department. The commissioner must approve 
51.6 	or reject tax credit request applications within 15 days of receiving the application. The 
51.7 	investment specified in the application must be made within 60 days of the allocation of 
51.8 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
51.9 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
51.10 	specified in the application, within 60 days of allocation of the credits, must notify the 
51.11 	commissioner of the failure to invest within five business days of the expiration of the 
51.12 	60-day investment period.
51.13 	(f) All tax credit request applications filed with the department on the same day must 
51.14 	be treated as having been filed contemporaneously. If two or more qualified investors or 
51.15 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
51.16 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
51.17 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
51.18 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
51.19 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
51.20 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
51.21 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
51.22 	denominator of which is the total of all credit allocation claims filed on behalf of all 
51.23 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
51.24 	taxable year.
51.25 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
51.26 	behalf, must notify the commissioner when an investment for which credits were allocated 
51.27 	has been made, and the taxable year in which the investment was made. A qualified fund 
51.28 	must also provide the commissioner with a statement indicating the amount invested by 
51.29 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
51.30 	fund at the time of the qualified investment. After receiving notification that the investment 
51.31 	was made, the commissioner must issue credit certificates for the taxable year in which the 
51.32 	investment was made to the qualified investor or, for an investment made by a qualified 
51.33 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
51.34 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
51.35 	hold the investment in the qualified small business for at least three years, consisting of the 
52.1 	calendar year in which the investment was made and the two following years. The three-year 
52.2 	holding period does not apply if:
52.3 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
52.4 	the end of the three-year period;
52.5 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
52.6 	of the three-year period;
52.7 	(3) the qualified small business is sold before the end of the three-year period;
52.8 	(4) the qualified small business's common stock begins trading on a public exchange 
52.9 	before the end of the three-year period; or
52.10 	(5) the qualified investor dies before the end of the three-year period.
52.11 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
52.12 	issued under this section.

52.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
52.14 	31, 2018.

52.15 	Sec. 3. Minnesota Statutes 2018, section 116J.8737, subdivision 12, is amended to read:
52.16 		Subd. 12.Sunset. This section expires for taxable years beginning after December 31, 
52.17 	2017 2019, except that reporting requirements under subdivision 6 and revocation of credits 
52.18 	under subdivision 7 remain in effect through 2019 2021 for qualified investors and qualified 
52.19 	funds, and through 2021 2023 for qualified small businesses, reporting requirements under 
52.20 	subdivision 9 remain in effect through 2022 2024, and the appropriation in subdivision 11 
52.21 	remains in effect through 2021 2023.

52.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
52.23 	31, 2018.

52.24 	Sec. 4. Minnesota Statutes 2018, section 289A.08, is amended by adding a subdivision to 
52.25 	read:
52.26 		Subd. 7a.Election to file as a C corporation. (a) A qualifying entity may elect to file 
52.27 	a return as a C-option corporation and calculate its tax liability as a corporation. The election 
52.28 	to file a return as a C-option corporation must be made on or before the due date or extended 
52.29 	due date of its return as a C-option corporation. The election is binding for the four taxable 
52.30 	years following the taxable year of the election.
52.31 	(b) For purposes of this subdivision:
53.1 	(1) "qualifying entity" means a:
53.2 	(i) partnership;
53.3 	(ii) limited liability company; or
53.4 	(iii) corporation organized under subchapter S of the Internal Revenue Code for federal 
53.5 	income tax purposes including a qualified subsidiary also organized under subchapter S of 
53.6 	the Internal Revenue Code; and
53.7 	(2) "C-option corporation" means a qualifying entity that has made the election under 
53.8 	paragraph (a).
53.9 	(c) The election to file as a C-option corporation may only be made by persons who 
53.10 	hold more than 50 percent ownership interest in a qualifying entity. The election to file as 
53.11 	a C-option corporation is binding on all of the persons who have an ownership interest in 
53.12 	the entity.
53.13 	(d) Tax liability must be calculated by multiplying the Minnesota taxable income of the 
53.14 	qualifying entity by 9.85 percent.
53.15 	(e) A member's, partner's, or shareholder's adjusted basis in the member's, partner's, or 
53.16 	shareholder's interest in the limited liability company, partnership, or S-corporation is 
53.17 	determined as if the election under this subdivision is not made.
53.18 	(f) The provisions of subdivision 17 apply to the election under this subdivision.

53.19 	EFFECTIVE DATE. This section is effective for an election made in taxable years 
53.20 	beginning after December 31, 2018.

53.21 	Sec. 5. Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
53.22 		Subd. 2.Joint income tax returns. (a) If a joint income tax return is made by a husband 
53.23 	and wife, the liability for the tax is joint and several. A spouse who qualifies for relief from 
53.24 	a liability attributable to an underpayment under section 6015 subsection (b) or (f) of the 
53.25 	Internal Revenue Code is relieved of the state income tax liability on the underpayment.
53.26 	(b) In the case of individuals who were a husband and wife prior to the dissolution of 
53.27 	their marriage or their legal separation, or prior to the death of one of the individuals, for 
53.28 	tax liabilities reported on a joint or combined return, the liability of each person is limited 
53.29 	to the proportion of the tax due on the return that equals that person's proportion of the total 
53.30 	tax due if the husband and wife filed separate returns for the taxable year. This provision 
53.31 	is effective only when the commissioner receives written notice of the marriage dissolution, 
53.32 	legal separation, or death of a spouse from the husband or wife. No refund may be claimed 
54.1 	by an ex-spouse, legally separated or widowed spouse for any taxes paid more than 60 days 
54.2 	before receipt by the commissioner of the written notice.
54.3 	(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes 
54.4 	reported on a return must be made within six years after the due date of the return. For 
54.5 	calculation of separate liability for taxes assessed by the commissioner under section 289A.35
54.6 	or 289A.37, the request must be made within six years after the date of assessment. The 
54.7 	commissioner is not required to calculate separate liability pursuant to paragraph (b) if the 
54.8 	remaining unpaid liability for which recalculation is requested is $100 or less.

54.9 	EFFECTIVE DATE. This section is effective for returns first due for taxable years 
54.10 	beginning after December 31, 2018.

54.11 	Sec. 6. Minnesota Statutes 2018, section 290.01, subdivision 4a, is amended to read:
54.12 		Subd. 4a.Financial institution. (a) "Financial institution" means:
54.13 	(1) any corporation or other business entity registered (i) under state law as a bank 
54.14 	holding company; (ii) under the federal Bank Holding Company Act of 1956, as amended; 
54.15 	or (iii) as a savings and loan holding company under the federal National Housing Act, as 
54.16 	amended;
54.17 	(2) a national bank organized and existing as a national bank association pursuant to the 
54.18 	provisions of United States Code, title 12, chapter 2;
54.19 	(3) a savings association or federal savings bank as defined in United States Code, title 
54.20 	12, section 1813(b)(1);
54.21 	(4) any bank or thrift institution incorporated or organized under the laws of any state;
54.22 	(5) any corporation organized under United States Code, title 12, sections 611 to 631;
54.23 	(6) any agency or branch of a foreign depository as defined under United States Code, 
54.24 	title 12, section 3101;
54.25 	(7) any corporation or other business entity that is more than 50 percent owned, directly 
54.26 	or indirectly, by any person or business entity described in clauses (1) to (6), other than an 
54.27 	insurance company taxable under chapter 297I;
54.28 	(8) a corporation or other business entity that derives more than 50 percent of its total 
54.29 	gross income for financial accounting purposes from finance leases. For the purposes of 
54.30 	this clause, "gross income" means the average from the current tax year and immediately 
54.31 	preceding two years and excludes gross income from incidental or occasional transactions. 
54.32 	For purposes of this clause, "finance lease" means any lease transaction that is the functional 
55.1 	equivalent of an extension of credit and that transfers substantially all the benefits and risks 
55.2 	incident to the ownership of property, including any direct financing lease or leverage lease 
55.3 	that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting 
55.4 	for leases, or any other lease that is accounted for as financing by a lessor under generally 
55.5 	accepted accounting principles; or
55.6 	(9) any other person or business entity, other than an insurance company taxable under 
55.7 	chapter 297I, that derives more than 50 percent of its gross income from activities that an 
55.8 	entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this 
55.9 	clause, gross income does not include income from nonrecurring, extraordinary items.
55.10 	(b) The commissioner is authorized to exclude any person from the application of 
55.11 	paragraph (a), clause (9), if the person proves by clear and convincing evidence that the 
55.12 	person's income-producing activity is not in substantial competition with any person described 
55.13 	in paragraph (a), clauses (2) to (6) or (8).

55.14 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
55.15 	after December 31, 2016.

55.16 	Sec. 7. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
55.17 	read:
55.18 		Subd. 5c.Disqualified captive insurance company. (a) "Captive insurance company" 
55.19 	means a company that:
55.20 	(1) is licensed as a captive insurance company under the laws of any state or foreign 
55.21 	country; or
55.22 	(2) derives less than 50 percent of its total premiums for the taxable year from sources 
55.23 	outside of the unitary business, as that term is used in section 290.17.
55.24 	(b) A captive insurance company is a "disqualified captive insurance company" if the 
55.25 	company:
55.26 	(1) pays less than 0.5 percent of its total premiums for the taxable year in tax under 
55.27 	chapter 297I or a comparable tax of another state; or
55.28 	(2) receives less than 50 percent of its gross receipts for the taxable year from premiums.
55.29 	(c) For purposes of this subdivision, "premiums" means amounts paid for arrangements 
55.30 	that constitute insurance for federal income tax purposes, but excludes return premiums, 
55.31 	premiums for reinsurance assumed from other insurance companies, and any other premiums 
56.1 	that are or would be exempt from taxation under section 297I.05 as a result of their type or 
56.2 	character, if the insurance was for business in Minnesota.

56.3 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
56.4 	after December 31, 2016.

56.5 	Sec. 8. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
56.6 	to read:
56.7 		Subd. 17.Equity and opportunity donations to qualified foundations and qualified 
56.8 	public school foundations. The amount of the deduction under section 170 of the Internal 
56.9 	Revenue Code that represents contributions to a qualified foundation under section 290.0693 
56.10 	is an addition.

56.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.12 	31, 2019.

56.13 	Sec. 9. Minnesota Statutes 2018, section 290.0132, subdivision 4, is amended to read:
56.14 		Subd. 4.Education expenses. (a) Subject to the limits in paragraph (b), the following 
56.15 	amounts paid to others for each qualifying child are a subtraction:
56.16 	(1) education-related expenses; plus
56.17 	(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 
56.18 	1, clause (4), that are not included in education-related expenses; less
56.19 	(3) any amount amounts used to claim the credit credits under section 290.067 or
56.20 	290.0674.
56.21 	(b) The maximum subtraction allowed under this subdivision is:
56.22 	(1) $1,625 for each qualifying child in a prekindergarten educational program or in 
56.23 	kindergarten through grade 6; and
56.24 	(2) $2,500 for each qualifying child in grades 7 through 12.
56.25 	(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.

56.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.27 	31, 2019.

57.1 	Sec. 10. Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
57.2 		Subd. 26.Social Security benefits. (a) A portion of taxable Social Security benefits is 
57.3 	allowed as a subtraction. The subtraction equals the lesser of taxable Social Security benefits 
57.4 	or a maximum subtraction subject to the limits under paragraphs (b), (c), and (d).
57.5 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
57.6 	subtraction equals $4,500 $6,150. The maximum subtraction is reduced by 20 percent of 
57.7 	provisional income over $77,000. In no case is the subtraction less than zero.
57.8 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500
57.9 	$4,800. The maximum subtraction is reduced by 20 percent of provisional income over 
57.10 	$60,200. In no case is the subtraction less than zero.
57.11 	(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250
57.12 	$3,075. The maximum subtraction is reduced by 20 percent of provisional income over 
57.13 	$38,500. In no case is the subtraction less than zero.
57.14 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
57.15 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
57.16 	the Social Security benefits received during the taxable year, and "Social Security benefits" 
57.17 	has the meaning given in section 86(d)(1) of the Internal Revenue Code.
57.18 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
57.19 	paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section 
57.20 	1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue 
57.21 	Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner 
57.22 	shall then determine the percentage change from the 12 months ending on August 31, 2016, 
57.23 	to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12 
57.24 	months ending on August 31, 2016, to the 12 months ending on August 31 of the year 
57.25 	preceding the taxable year. The determination of the commissioner pursuant to this 
57.26 	subdivision must not be considered a rule and is not subject to the Administrative Procedure 
57.27 	Act contained in chapter 14, including section 14.386 as provided in section 270C.22. The 
57.28 	statutory year is taxable year 2019. The maximum subtraction and threshold amounts as 
57.29 	adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
57.30 	is rounded up to the nearest $10 amount.

57.31 	EFFECTIVE DATE. (a) The amendments to paragraphs (a) to (e) are effective 
57.32 	retroactively for taxable years beginning after December 31, 2018.
58.1 	(b) The amendment to paragraph (f) is effective for adjustments beginning with taxable 
58.2 	years beginning after December 31, 2019.

58.3 	Sec. 11. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
58.4 	to read:
58.5 		Subd. 30.Disallowed section 280E expenses; medical cannabis manufacturers. The 
58.6 	amount of expenses of a medical cannabis manufacturer, as defined under section 152.22, 
58.7 	subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37, 
58.8 	and not allowed for federal income tax purposes under section 280E of the Internal Revenue 
58.9 	Code is a subtraction.

58.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
58.11 	31, 2018.

58.12 	Sec. 12. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
58.13 	to read:
58.14 		Subd. 31.Income of partners, members, or shareholders. The amount of net income 
58.15 	determined, after allowable deductions and the additions and subtraction required under 
58.16 	this chapter, received from a qualifying entity, as defined under section 289A.08, subdivision 
58.17 	7a, for purposes of calculating federal taxable income by a partner, member, or shareholder 
58.18 	of a qualifying entity that has elected to file as a C-option corporation under section 289A.08, 
58.19 	subdivision 7a, is a subtraction. The amount of net income as adjusted under this subdivision 
58.20 	must not be less than zero.

58.21 	EFFECTIVE DATE. This section is effective for an election made in taxable years 
58.22 	beginning after December 31, 2018.

58.23 	Sec. 13. Minnesota Statutes 2018, section 290.0133, is amended by adding a subdivision 
58.24 	to read:
58.25 		Subd. 16.Equity and opportunity donations to qualified foundations and qualified 
58.26 	public school foundations. The amount of the deductions under sections 170 and 162 of 
58.27 	the Internal Revenue Code that represent contributions to a qualified foundation under 
58.28 	section 290.0693 are an addition.

58.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
58.30 	31, 2019.

59.1 	Sec. 14. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
59.2 	to read:
59.3 		Subd. 19.Disallowed section 280E expenses; medical cannabis manufacturers. The 
59.4 	amount of expenses of a medical cannabis manufacturer, as defined under section 152.22, 
59.5 	subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37, 
59.6 	and not allowed for federal income tax purposes under section 280E of the Internal Revenue 
59.7 	Code is a subtraction.

59.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
59.9 	31, 2018.

59.10 	Sec. 15. Minnesota Statutes 2018, section 290.05, subdivision 1, is amended to read:
59.11 		Subdivision 1.Exempt entities. The following corporations, individuals, estates, trusts, 
59.12 	and organizations shall be exempted from taxation under this chapter, provided that every 
59.13 	such person or corporation claiming exemption under this chapter, in whole or in part, must 
59.14 	establish to the satisfaction of the commissioner the taxable status of any income or activity:
59.15 	(a) corporations, individuals, estates, and trusts engaged in the business of mining or 
59.16 	producing iron ore and mining, producing, or refining other ores, metals, and minerals, the 
59.17 	mining, production, or refining of which is subject to the occupation tax imposed by section 
59.18 	298.01; but if any such corporation, individual, estate, or trust engages in any other business 
59.19 	or activity or has income from any property not used in such business it shall be subject to 
59.20 	this tax computed on the net income from such property or such other business or activity. 
59.21 	Royalty shall not be considered as income from the business of mining or producing iron 
59.22 	ore within the meaning of this section;
59.23 	(b) the United States of America, the state of Minnesota or any political subdivision of 
59.24 	either agencies or instrumentalities, whether engaged in the discharge of governmental or 
59.25 	proprietary functions; and
59.26 	(c) any insurance company, as defined in section 290.17, subdivision 4, paragraph (j), 
59.27 	but including any insurance company licensed and domiciled in another state that grants, 
59.28 	on a reciprocal basis, exemption from retaliatory taxes other than a disqualified captive 
59.29 	insurance company.

59.30 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
59.31 	after December 31, 2016.

60.1 	Sec. 16. Minnesota Statutes 2018, section 290.05, subdivision 3, is amended to read:
60.2 		Subd. 3.Taxes imposed on exempt entities. (a) An organization exempt from taxation 
60.3 	under subdivision 2 shall, nevertheless, be subject to tax under this chapter to the extent 
60.4 	provided in the following provisions of the Internal Revenue Code:
60.5 	(1) section 527 (dealing with political organizations);
60.6 	(2) section 528 (dealing with certain homeowners associations);
60.7 	(3) sections 511 to 515 (dealing with unrelated business income);
60.8 	(4) section 521 (dealing with farmers' cooperatives); and
60.9 	(5) section 6033(e)(2) (dealing with lobbying expense); but notwithstanding this 
60.10 	subdivision, shall be considered an organization exempt from income tax for the purposes 
60.11 	of any law which refers to organizations exempt from income taxes.
60.12 	(b) The tax shall be imposed on the taxable income of political organizations or 
60.13 	homeowner associations or the unrelated business taxable income, as defined in section 512 
60.14 	of the Internal Revenue Code, of organizations defined in section 511 of the Internal Revenue 
60.15 	Code, provided that the tax is not imposed on:
60.16 	(1) advertising revenues from a newspaper published by an organization described in 
60.17 	section 501(c)(4) of the Internal Revenue Code; or
60.18 	(2) revenues from lawful gambling authorized under chapter 349 that are expended for 
60.19 	purposes that qualify for the deduction for charitable contributions under section 170 of the 
60.20 	Internal Revenue Code, disregarding the limitation under section 170(b)(2), but only to the 
60.21 	extent the contributions are not deductible in computing federal taxable income.; or
60.22 	(3) amounts included in unrelated business taxable income under section 512(a)(7) of 
60.23 	the Internal Revenue Code.
60.24 	The tax shall be at the corporate rates. The tax shall only be imposed on income and 
60.25 	deductions assignable to this state under sections 290.17 to 290.20. To the extent deducted 
60.26 	in computing federal taxable income, the deductions contained in section 290.21 shall not 
60.27 	be allowed in computing Minnesota taxable net income.
60.28 	(c) The tax shall be imposed on organizations subject to federal tax under section 
60.29 	6033(e)(2) of the Internal Revenue Code, in an amount equal to the corporate tax rate 
60.30 	multiplied by the amount of lobbying expenses taxed under section 6033(e)(2) which are 
60.31 	attributable to lobbying the Minnesota state government.
61.1 	(d) Section 512(a)(6) of the Internal Revenue Code shall not apply for the purposes of 
61.2 	calculating the tax under this subdivision.

61.3 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
61.4 	after December 31, 2017.

61.5 	Sec. 17. Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
61.6 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
61.7 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
61.8 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
61.9 	their taxable net income the following schedule of rates:
61.10 	(1) On the first $35,480, 5.35 percent;
61.11 	(2) On all over $35,480, but not over $140,960, 7.05 6.8 percent;
61.12 	(3) On all over $140,960, but not over $250,000, 7.85 percent;
61.13 	(4) On all over $250,000, 9.85 percent.
61.14 	Married individuals filing separate returns, estates, and trusts must compute their income 
61.15 	tax by applying the above rates to their taxable income, except that the income brackets 
61.16 	will be one-half of the above amounts.
61.17 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
61.18 	computed by applying to taxable net income the following schedule of rates:
61.19 	(1) On the first $24,270, 5.35 percent;
61.20 	(2) On all over $24,270, but not over $79,730, 7.05 6.8 percent;
61.21 	(3) On all over $79,730, but not over $150,000, 7.85 percent;
61.22 	(4) On all over $150,000, 9.85 percent.
61.23 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
61.24 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
61.25 	computed by applying to taxable net income the following schedule of rates:
61.26 	(1) On the first $29,880, 5.35 percent;
61.27 	(2) On all over $29,880, but not over $120,070, 7.05 6.8 percent;
61.28 	(3) On all over $120,070, but not over $200,000, 7.85 percent;
61.29 	(4) On all over $200,000, 9.85 percent.
62.1 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
62.2 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
62.3 	amount determined by the commissioner must be computed in accordance with tables 
62.4 	prepared and issued by the commissioner of revenue based on income brackets of not more 
62.5 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
62.6 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
62.7 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
62.8 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
62.9 	individual's Minnesota income tax as provided in this subdivision. After the application of 
62.10 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
62.11 	by a fraction in which:
62.12 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
62.13 	defined in section 62 of the Internal Revenue Code and increased by the additions required 
62.14 	under section 290.0131, subdivisions 2and , 6, 8 to 11, and 15, and reduced by the Minnesota 
62.15 	assignable portion of the subtraction for United States government interest under section 
62.16 	290.0132, subdivision 2, and the subtractions under section 290.0132, subdivisions 9, 10, 
62.17 	14, 15, 17, and 18, 27, and 28, after applying the allocation and assignability provisions of 
62.18 	section 290.081, clause (a), or 290.17; and
62.19 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
62.20 	62 of the Internal Revenue Code, increased by the amounts specified in section 290.0131, 
62.21 	subdivisions 2and, 6, 8 to 11, and 15, and reduced by the amounts specified in section 
62.22 	290.0132, subdivisions 2, 9, 10, 14, 15, 17, and 18, 27, and 28.
62.23 	(f) For taxable years beginning after December 31, 2021, a rate of 6.67 percent applies 
62.24 	instead of the 6.8 percent in paragraphs (a) to (c).

62.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
62.26 	31, 2018.

62.27 	Sec. 18. Minnesota Statutes 2018, section 290.06, subdivision 22, is amended to read:
62.28 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
62.29 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
62.30 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
62.31 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
62.32 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
63.1 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
63.2 	this credit unless the state of domicile does not allow a similar credit.
63.3 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
63.4 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
63.5 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
63.6 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
63.7 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
63.8 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
63.9 	or assigned to Minnesota under sections 290.081 and 290.17.
63.10 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
63.11 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
63.12 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
63.13 	state by the taxpayer's Minnesota taxable income.
63.14 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
63.15 	tax so paid to the other state on the gross income earned within the other state subject to 
63.16 	tax under this chapter; and
63.17 	(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 
63.18 	amount less than what would be assessed if the gross income earned within the other state 
63.19 	were excluded from taxable net income.
63.20 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
63.21 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
63.22 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
63.23 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
63.24 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
63.25 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
63.26 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
63.27 	properly apportioned to that distribution.
63.28 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
63.29 	in such other state on that same income after the Minnesota statute of limitations has expired, 
63.30 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
63.31 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
63.32 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
63.33 	proof to show entitlement to a credit.
64.1 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
64.2 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
64.3 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
64.4 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
64.5 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
64.6 	income.
64.7 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
64.8 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
64.9 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
64.10 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
64.11 	income" tax means any tax imposed on or measured by a partnership's net income.
64.12 	(i) For the purposes of this subdivision, "another state":
64.13 	(1) includes:
64.14 	(i) the District of Columbia; and
64.15 	(ii) a province or territory of Canada; but
64.16 	(2) excludes Puerto Rico and the several territories organized by Congress.
64.17 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
64.18 	by state basis.
64.19 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
64.20 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
64.21 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
64.22 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
64.23 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
64.24 	tax that qualifies for the credit under this subdivision.
64.25 	(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 
64.26 	qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 
64.27 	calculated by multiplying:
64.28 	(i) the difference between the preliminary credit and the credit calculated under paragraphs 
64.29 	(b) and (d), by
64.30 	(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 
64.31 	consists of compensation for performance of personal or professional services by the total 
64.32 	amount of income subject to tax in the qualifying state.
65.1 	(2) If the amount of the credit that a qualifying individual is eligible to receive under 
65.2 	clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 
65.3 	the application of the credit calculated under clause (1), the commissioner shall refund the 
65.4 	excess to the qualifying individual. An amount sufficient to pay the refunds required by this 
65.5 	subdivision is appropriated to the commissioner from the general fund.
65.6 	(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 
65.7 	individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 
65.8 	state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 
65.9 	means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 
65.10 	compensation during the taxable year for the performance of personal or professional services 
65.11 	within a qualifying state; and "qualifying state" means a state with which an agreement 
65.12 	under section 290.081 is not in effect for the taxable year but was in effect for a taxable 
65.13 	year beginning before January 1, 2010.
65.14 	(m) An entity making an election to be taxed as a C-option corporation under section 
65.15 	289A.08, subdivision 7a, may claim a credit for the amount of any net income tax paid to 
65.16 	another state on a composite return filed with that state on behalf of its Minnesota resident 
65.17 	shareholders or partners. For purposes of the preceding sentence, "net income tax" means 
65.18 	any tax imposed on or measured by net income.

65.19 	EFFECTIVE DATE. This section is effective for an election made in taxable years 
65.20 	beginning after December 31, 2018.

65.21 	Sec. 19. Minnesota Statutes 2018, section 290.0674, subdivision 1, is amended to read:
65.22 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the tax 
65.23 	imposed by this chapter in an amount equal to 75 percent of the amount paid for 
65.24 	education-related expenses for a qualifying child in a prekindergarten educational program 
65.25 	or in kindergarten through grade 12.
65.26 	(b) For purposes of this section, "education-related expenses" means:
65.27 	(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision 
65.28 	10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association, 
65.29 	and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular 
65.30 	school day or school year, including tutoring, driver's education offered as part of school 
65.31 	curriculum, regardless of whether it is taken from a public or private entity or summer 
65.32 	camps, in grade or age appropriate curricula that supplement curricula and instruction 
65.33 	available during the regular school year, that assists a dependent to improve knowledge of 
66.1 	core curriculum areas or to expand knowledge and skills under the required academic 
66.2 	standards under section 120B.021, subdivision 1, and the elective standard under section 
66.3 	120B.022, subdivision 1, clause (2), and that do not include the teaching of religious tenets, 
66.4 	doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;
66.5 	(2) expenses for textbooks, including books and other instructional materials and 
66.6 	equipment purchased or leased for use in elementary and secondary schools in teaching 
66.7 	only those subjects legally and commonly taught in public elementary and secondary schools 
66.8 	in this state. "Textbooks" does not include instructional books and materials used in the 
66.9 	teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
66.10 	tenets, doctrines, or worship, nor does it include books or materials for extracurricular 
66.11 	activities including sporting events, musical or dramatic events, speech activities, driver's 
66.12 	education, or similar programs;
66.13 	(3) a maximum expense of $200 per family for personal computer hardware, excluding 
66.14 	single purpose processors, and educational software that assists a dependent to improve 
66.15 	knowledge of core curriculum areas or to expand knowledge and skills under the required 
66.16 	academic standards under section 120B.021, subdivision 1, and the elective standard under 
66.17 	section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and 
66.18 	not used in a trade or business regardless of whether the computer is required by the 
66.19 	dependent's school; and
66.20 	(4) the amount paid to others for transportation of a qualifying child attending an 
66.21 	elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, 
66.22 	or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory 
66.23 	attendance laws, which is not operated for profit, and which adheres to the provisions of 
66.24 	the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any 
66.25 	expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.; and
66.26 	(5) fees charged for enrollment in a prekindergarten educational program, to the extent 
66.27 	not used to claim the credit under section 290.067.
66.28 	(c) For purposes of this section, "qualifying child" has the meaning given in section 
66.29 	32(c)(3) of the Internal Revenue Code.
66.30 	(d) For purposes of this section, "prekindergarten educational program" means:
66.31 	(1) prekindergarten programs established by a school district under chapter 124D;
67.1 	(2) preschools, nursery schools, and early childhood development programs licensed by 
67.2 	the Department of Human Services and accredited by the National Association for the 
67.3 	Education of Young Children or National Early Childhood Program Accreditation;
67.4 	(3) Montessori programs affiliated with or accredited by the American Montessori 
67.5 	Society or American Montessori International; and
67.6 	(4) child care programs provided by family day care providers holding a current early 
67.7 	childhood development credential approved by the commissioner of human services.

67.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
67.9 	31, 2019.

67.10 	Sec. 20. Minnesota Statutes 2018, section 290.0674, subdivision 2, is amended to read:
67.11 		Subd. 2.Limitations. (a) For claimants with income not greater than $33,500 $39,000, 
67.12 	the maximum credit allowed for a family is $1,000 multiplied by the number of qualifying 
67.13 	children in kindergartenprekindergarten through grade 12 in the family. The maximum 
67.14 	credit for families with one qualifying child in kindergartenprekindergarten through grade 
67.15 	12 is reduced by $1 for each $4 of household income over $33,500 $39,000, and the 
67.16 	maximum credit for families with two or more qualifying children in kindergarten
67.17 	prekindergarten through grade 12 is reduced by $2 for each $4 of household income over 
67.18 	$33,500 $39,000, but in no case is the credit less than zero.
67.19 	(b) In the case of a married claimant, a credit is not allowed unless a joint income tax 
67.20 	return is filed.
67.21 	(c) For a nonresident or part-year resident, the credit determined under subdivision 1 
67.22 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
67.23 	calculated in section 290.06, subdivision 2c, paragraph (e).

67.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
67.25 	31, 2019.

67.26 	Sec. 21. Minnesota Statutes 2018, section 290.0674, is amended by adding a subdivision 
67.27 	to read:
67.28 		Subd. 2b.Inflation adjustment. The commissioner shall annually adjust the income 
67.29 	amounts in subdivision 2, paragraph (a), as provided in section 270C.22. The statutory year 
67.30 	is taxable year 2020.

68.1 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
68.2 	years beginning after December 31, 2020.

68.3 	Sec. 22. [290.0683] MINNESOTA HOUSING TAX CREDIT PROGRAM; 
68.4 	DEFINITIONS.
68.5 	(a) For the purposes of this section, the following terms have the meanings given.
68.6 	(b) "Agency" means the Minnesota Housing Finance Agency.
68.7 	(c) "Minnesota housing tax credit contribution fund" means the fund established in 
68.8 	section 462A.40.
68.9 	(d) "Qualified project" means a project that qualifies for a grant or loan under section 
68.10 	462A.40, subdivision 2.
68.11 	(e) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer 
68.12 	as defined in section 297I.01, subdivision 16.

68.13 	Sec. 23. [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.
68.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
68.15 	the meanings given.
68.16 	(b) "Eligible student" means a student who:
68.17 	(1) resides in Minnesota;
68.18 	(2) is either:
68.19 	(i) a member of a household that has total annual income during the year prior to initial 
68.20 	receipt of a qualified scholarship or a qualified transportation scholarship, without 
68.21 	consideration of the benefits under this program, that does not exceed an amount equal to 
68.22 	two times the income standard used to qualify for a reduced-price meal under the National 
68.23 	School Lunch Program; or
68.24 	(ii) is a child with a disability as defined in section 125A.02; and
68.25 	(3) meets one of the following criteria:
68.26 	(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester 
68.27 	preceding initial receipt of a qualified scholarship or a qualified transportation scholarship;
68.28 	(ii) is younger than age seven and not enrolled in kindergarten or first grade in the 
68.29 	semester preceding initial receipt of a qualified scholarship or a qualified transportation 
68.30 	scholarship;
69.1 	(iii) previously received a qualified scholarship or a qualified transportation scholarship 
69.2 	under this section; or
69.3 	(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified scholarship 
69.4 	or a qualified transportation scholarship.
69.5 	(c) "Equity and opportunity in education donation" means a donation to a qualified public 
69.6 	school foundation or to a qualified foundation that awards qualified scholarships, awards 
69.7 	qualified transportation scholarships, or makes qualified grants.
69.8 	(d) "Household" means household as used to determine eligibility under the National 
69.9 	School Lunch Program.
69.10 	(e) "National School Lunch Program" means the program in United States Code, title 
69.11 	42, section 1758.
69.12 	(f) "Qualified charter school" means a charter elementary or secondary school in 
69.13 	Minnesota at which at least 30 percent of students qualify for a free or reduced-price meal 
69.14 	under the National School Lunch Program.
69.15 	(g) "Qualified school" means a school operated in Minnesota that is a nonpublic 
69.16 	elementary or secondary school in Minnesota wherein a resident may legally fulfill the 
69.17 	state's compulsory attendance laws that:
69.18 	(1) is not operated for profit;
69.19 	(2) adheres to the provisions of United States Code, title 42, section 1981, and Minnesota 
69.20 	Statutes, chapter 363A;
69.21 	(3) administers the Minnesota Comprehensive Assessments or a norm-referenced test 
69.22 	in reading and math approved by a qualified foundation to all students in grades 3 to 8 and 
69.23 	once in high school; and
69.24 	(4) reports annual student performance on the test on the school's website, including the 
69.25 	number of students who opt out of the test, the aggregate test results, and the test results 
69.26 	disaggregated by student category listed in section 120B.31, subdivision 4, unless the cell 
69.27 	count data is insufficient to protect student identity.
69.28 	(h) "Qualified foundation" means a nonprofit organization granted an exemption from 
69.29 	the federal income tax under section 501(c)(3) of the Internal Revenue Code formed for the 
69.30 	primary purpose of granting qualified scholarships or qualified transportation scholarships, 
69.31 	and that has been approved as a qualified foundation by the commissioner of revenue under 
69.32 	subdivision 5.
70.1 	(i) "Qualified grant" means a grant from a qualified foundation to a qualified charter 
70.2 	school for use in support of the school's mission of educating students in academics, arts, 
70.3 	or athletics, including transportation.
70.4 	(j) "Qualified public school foundation" means a qualified foundation formed for the 
70.5 	primary purpose of supporting one or more public schools or school districts in Minnesota 
70.6 	in which at least 30 percent of students qualify for a free or reduced-price meal under the 
70.7 	National School Lunch Program.
70.8 	(k) "Qualified scholarship" means a payment from a qualified foundation to or on behalf 
70.9 	of the parent or guardian of an eligible student for payment of tuition for enrollment in 
70.10 	grades kindergarten through 12 at a qualified school. A qualified scholarship must not 
70.11 	exceed an amount greater than 70 percent of the state average general education revenue 
70.12 	under section 126C.10, subdivision 1, per pupil unit.
70.13 	(l) "Qualified transportation scholarship" means a payment from a qualified foundation 
70.14 	to or on behalf of a parent or guardian of an eligible student for payment of transportation 
70.15 	to a school, as defined in section 120A.22, subdivision 4. A qualified transportation 
70.16 	scholarship must not exceed an amount greater than 70 percent of the state average general 
70.17 	education revenue under section 126C.10, subdivision 1, per pupil unit.
70.18 	(m) "Total annual income" means the income measure used to determine eligibility 
70.19 	under the National School Lunch Program in United States Code, title 42, section 1758.
70.20 		Subd. 2.Credit allowed. (a) An individual or corporate taxpayer who has been issued 
70.21 	a credit certificate under subdivision 3 is allowed a credit against the tax due under this 
70.22 	chapter equal to 70 percent of the amount donated during the taxable year to the qualified 
70.23 	foundation or qualified public school foundation designated on the taxpayer's credit 
70.24 	certificate. No credit is allowed if the taxpayer designates a specific child as the beneficiary 
70.25 	of the contribution. No credit is allowed to a taxpayer for an equity and opportunity in 
70.26 	education donation made before the taxpayer was issued a credit certificate as provided in 
70.27 	subdivision 3.
70.28 	(b) The maximum annual credit allowed is:
70.29 	(1) $21,000 for married joint filers for a one-year donation of $30,000;
70.30 	(2) $10,500 for other individual filers for a one-year donation of $15,000; and
70.31 	(3) $105,000 for corporate filers for a one-year donation of $150,000.
71.1 	(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation 
71.2 	or qualified public school foundation when claiming the credit for the donation if requested 
71.3 	by the commissioner.
71.4 	(d) The credit is limited to the liability for tax under this chapter, including the tax 
71.5 	imposed by sections 290.0921 and 290.0922.
71.6 	(e) If the amount of the credit under this subdivision for any taxable year exceeds the 
71.7 	limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding 
71.8 	taxable years. The entire amount of the excess unused credit for the taxable year must be 
71.9 	carried first to the earliest of the taxable years to which the credit may be carried. The 
71.10 	amount of the unused credit that may be added under this paragraph may not exceed the 
71.11 	taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to 
71.12 	a taxable year more than five years after the taxable year in which the credit was earned.
71.13 		Subd. 3.Application for credit certificate. (a) The commissioner must make applications 
71.14 	for tax credits for 2020 available on the department's website by January 1, 2020. 
71.15 	Applications for subsequent years must be made available by January 1 of the taxable year.
71.16 	(b) A taxpayer must apply to the commissioner for an equity and opportunity in education 
71.17 	tax credit certificate. The application must be in the form and manner specified by the 
71.18 	commissioner and must designate the qualified foundation or qualified public school 
71.19 	foundation to which the taxpayer intends to make a donation. The commissioner must begin 
71.20 	accepting applications for a taxable year on January 1. The commissioner must issue tax 
71.21 	credit certificates under this section on a first-come, first-served basis until the maximum 
71.22 	statewide credit amount has been reached. The certificates must list the qualified foundation 
71.23 	or qualified public school foundation the taxpayer designated on the application. The 
71.24 	maximum statewide credit amount is $26,500,000 per taxable year, excluding any amounts 
71.25 	carried forward from a previous taxable year under subdivision 2.
71.26 	(c) The commissioner must not issue a tax credit certificate for an amount greater than 
71.27 	the limits in subdivision 2.
71.28 	(d) The commissioner must not issue a credit certificate for an application that designates 
71.29 	a qualified foundation or qualified public school foundation that the commissioner has 
71.30 	barred from participation as provided in subdivision 5.
71.31 		Subd. 4.Responsibilities of qualified foundations and qualified public school 
71.32 	foundations. (a) A qualified foundation that awards qualified scholarships or qualified 
71.33 	transportation scholarships must:
72.1 	(1) award qualified scholarships or qualified transportation scholarships to eligible 
72.2 	students;
72.3 	(2) not restrict the availability of scholarships to students of one qualified school;
72.4 	(3) not charge a fee of any kind for a child to be considered for a scholarship;
72.5 	(4) require a qualified school receiving payment of tuition through a scholarship funded 
72.6 	by contributions qualifying for the tax credit under this section to sign an agreement that it 
72.7 	will not use different admissions standards for a student with a qualified scholarship; and
72.8 	(5) in awarding scholarships, give priority to a student in a household that has total 
72.9 	annual income during the year prior to initial receipt of a qualified scholarship, without 
72.10 	consideration of the benefits under this program, that does not exceed an amount equal to 
72.11 	two times the income standard used to qualify for a reduced-price meal under the National 
72.12 	School Lunch Program.
72.13 	(b) An entity that is eligible to be a qualified foundation or qualified public school 
72.14 	foundation must apply to the commissioner by September 15 of the year preceding the year 
72.15 	in which it will first receive equity and opportunity in education donations. The application 
72.16 	must be in the form and manner prescribed by the commissioner. The application must:
72.17 	(1) demonstrate to the commissioner that the entity has been granted an exemption from 
72.18 	the federal income tax as an organization described in section 501(c)(3) of the Internal 
72.19 	Revenue Code; and
72.20 	(2) demonstrate the entity's financial accountability by submitting its most recent audited 
72.21 	financial statement prepared by a certified public accountant firm licensed under chapter 
72.22 	326A using the Statements on Auditing Standards issued by the Audit Standards Board of 
72.23 	the American Institute of Certified Public Accountants.
72.24 	(c) A qualified foundation or qualified public school foundation must provide to taxpayers 
72.25 	who make donations or commitments to donate a receipt or verification on a form approved 
72.26 	by the commissioner.
72.27 	(d) A qualified foundation that awards qualified scholarships or qualified transportation 
72.28 	scholarships must, in each year it awards qualified scholarships or qualified transportation 
72.29 	scholarships to eligible students to enroll in a qualified school, obtain from the qualified 
72.30 	school documentation that the school:
72.31 	(1) complies with all health and safety laws or codes that apply to nonpublic schools;
72.32 	(2) holds a valid occupancy permit if required by its municipality;
73.1 	(3) certifies that it adheres to the provisions of chapter 363A and United States Code, 
73.2 	title 42, section 1981; and
73.3 	(4) administers the Minnesota Comprehensive Assessment or a foundation approved 
73.4 	norm-referenced test by providing the foundation a report on student performance on the 
73.5 	test, including the number of students who opt out of the test, the aggregate test results, and 
73.6 	the test results disaggregated by student category listed in section 120B.31, subdivision 4, 
73.7 	unless the cell count data is insufficient to protect student identity.
73.8 	A qualified foundation must make the documentation available to the commissioner on 
73.9 	request, and report student performance on the Minnesota Comprehensive Assessment or 
73.10 	norm-referenced test, by qualified school, on its website.
73.11 	(e) A qualified foundation or qualified public school foundation must, by June 1 of each 
73.12 	year following a year in which it receives donations, provide the following information to 
73.13 	the commissioner:
73.14 	(1) financial information that demonstrates the financial viability of the qualified 
73.15 	foundation or qualified public school foundation;
73.16 	(2) documentation that it has conducted criminal background checks on all of its 
73.17 	employees and board members and has excluded from employment or governance any 
73.18 	individuals who might reasonably pose a risk to the appropriate use of contributed funds;
73.19 	(3) consistent with paragraph (f), document that it has used amounts received as donations 
73.20 	to provide qualified scholarships, to provide qualified transportation scholarships, to make 
73.21 	qualified grants, or in support of the mission of one or more public schools or school districts 
73.22 	of educating students in academics, arts, or athletics, including transportation within one 
73.23 	calendar year of the calendar year in which it received the donation;
73.24 	(4) if the qualified foundation awards qualified scholarships or qualified transportation 
73.25 	scholarships, a list of qualified schools that enrolled eligible students to whom the qualified 
73.26 	foundation awarded qualified scholarships;
73.27 	(5) if the qualified foundation makes qualified grants, a list of qualified charter schools 
73.28 	to which the qualified foundation made qualified grants;
73.29 	(6) if the qualified foundation is a qualified public school foundation, a list of expenditures 
73.30 	made in support of the mission of one or more public schools or school districts of educating 
73.31 	students in academics, arts, or athletics, including transportation; and
73.32 	(7) the following information prepared by a certified public accountant regarding 
73.33 	donations received in the previous calendar year:
74.1 	(i) the total number and total dollar amount of donations received from taxpayers;
74.2 	(ii) the dollar amount of donations used for administrative expenses, as allowed by 
74.3 	paragraph (f);
74.4 	(iii) if the qualified foundation awarded qualified scholarships, the total number and 
74.5 	dollar amount of qualified scholarships awarded;
74.6 	(iv) if the qualified foundation awarded qualified transportation scholarships, the total 
74.7 	number and dollar amount of qualified transportation scholarships awarded;
74.8 	(v) if the qualified foundation made qualified grants, the total number and dollar amount 
74.9 	of qualified grants made; and
74.10 	(vi) if the qualified foundation is a qualified public school foundation, the total number 
74.11 	and dollar amount of expenditures made in support of the mission of one or more public 
74.12 	schools or school districts of educating students in academics, arts, or athletics, including 
74.13 	transportation.
74.14 	(f) The qualified foundation or qualified public school foundation may use up to five 
74.15 	percent of the amounts received as donations for reasonable administrative expenses, 
74.16 	including but not limited to fund-raising, scholarship tracking, and reporting requirements.
74.17 		Subd. 5.Responsibilities of commissioner. (a) The commissioner must make 
74.18 	applications for an entity to be approved as a qualified foundation or qualified public school 
74.19 	foundation for a taxable year available on the department's website by August 1 of the year 
74.20 	preceding the taxable year. The commissioner must approve an application that provides 
74.21 	the documentation required in subdivision 4, paragraph (b), clauses (1) and (2), within 60 
74.22 	days of receiving the application. The commissioner must notify a qualified foundation or 
74.23 	qualified public school foundation that provides incomplete documentation and the foundation 
74.24 	may resubmit its application within 30 days.
74.25 	(b) By November 15 of each year, the commissioner must post on the department's 
74.26 	website the names and addresses of qualified foundations and qualified public school 
74.27 	foundations for the next taxable year. The commissioner must regularly update the names 
74.28 	and addresses of any qualified foundations or qualified public school foundations that have 
74.29 	been barred from participating in the program.
74.30 	(c) The commissioner must prescribe a standardized format for a receipt to be issued by 
74.31 	a qualified foundation or qualified public school foundation to a taxpayer to indicate the 
74.32 	value of a donation received and of a commitment to make a donation.
75.1 	(d) The commissioner must prescribe a standardized format for qualified foundations 
75.2 	and qualified public school foundations to report the information required under subdivision 
75.3 	4, paragraph (e).
75.4 	(e) The commissioner may conduct either a financial review or audit of a qualified 
75.5 	foundation or qualified public school foundation upon finding evidence of fraud or 
75.6 	misreporting. If the commissioner determines that the qualified foundation or qualified 
75.7 	public school foundation committed fraud or intentionally misreported information, the 
75.8 	qualified foundation is barred from further program participation.
75.9 	(f) If a qualified foundation or qualified public school foundation fails to submit the 
75.10 	documentation required under subdivision 4, paragraph (c), by June 1, the commissioner 
75.11 	must notify the qualified foundation or qualified public school foundation by July 1. A 
75.12 	qualified foundation that fails to submit the required information by August 1 is barred from 
75.13 	participation for the next taxable year.
75.14 	(g) If a qualified foundation or qualified public school foundation fails to comply with 
75.15 	the requirements of subdivision 4, paragraph (c), the commissioner must by September 1 
75.16 	notify the qualified foundation that it has until November 1 to document that it has remedied 
75.17 	its noncompliance. A qualified foundation or qualified public school foundation that fails 
75.18 	to document that it has remedied its noncompliance by November 1 is barred from 
75.19 	participation for the next taxable year.
75.20 	(h) A qualified foundation or qualified public school foundation barred under paragraph 
75.21 	(f) or (g) may become eligible to participate by submitting the required information in future 
75.22 	years.
75.23 		Subd. 6.Special education services. A student's receipt of a qualified scholarship or 
75.24 	qualified transportation scholarship does not affect the student's eligibility for instruction 
75.25 	and service under chapter 125A or otherwise affect the student's status under federal special 
75.26 	education laws.
75.27 		Subd. 7.Mandatory inclusion for people with disabilities. No otherwise qualified 
75.28 	individual with a disability, as defined in Minnesota Statutes, shall, solely by reason of the 
75.29 	individual's disability, be excluded from the participation in, be denied the benefits of, or 
75.30 	be subjected to discrimination under any program or activity receiving funding from tax 
75.31 	credits defined within this section.

75.32 	EFFECTIVE DATE. This section is effective the day following final enactment for 
75.33 	donations made and credits allowed in taxable years beginning after December 31, 2019.

76.1 	Sec. 24. Minnesota Statutes 2018, section 290.0921, subdivision 3, is amended to read:
76.2 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable income" 
76.3 	is Minnesota net income as defined in section 290.01, subdivision 19, and includes the 
76.4 	adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of 
76.5 	the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, 
76.6 	the minimum tax must be computed on a separate company basis. If a corporation is part 
76.7 	of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. 
76.8 	The following adjustments must be made.
76.9 	(1) The portion of the depreciation deduction allowed for federal income tax purposes 
76.10 	under section 168(k) of the Internal Revenue Code that is required as an addition under 
76.11 	section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable 
76.12 	income.
76.13 	(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is 
76.14 	allowed as a depreciation deduction in determining alternative minimum taxable income.
76.15 	(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
76.16 	of the Internal Revenue Code does not apply.
76.17 	(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
76.18 	Revenue Code does not apply.
76.19 	(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code 
76.20 	does not apply.
76.21 	(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
76.22 	Revenue Code does not apply.
76.23 	(7) The tax preference for charitable contributions of appreciated property under section 
76.24 	57(a)(6) of the Internal Revenue Code does not apply.
76.25 	(8) For purposes of calculating the adjustment for adjusted current earnings in section 
76.26 	56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it 
76.27 	is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable 
76.28 	income as defined in this subdivision, determined without regard to the adjustment for 
76.29 	adjusted current earnings in section 56(g) of the Internal Revenue Code.
76.30 	(9) For purposes of determining the amount of adjusted current earnings under section 
76.31 	56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4) 
76.32 	of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up 
76.33 	subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of 
77.1 	income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision 
77.2 	8.
77.3 	(10) Alternative minimum taxable income excludes the income from operating in a job 
77.4 	opportunity building zone as provided under section 469.317.
77.5 	(11) The subtraction for disallowed section 280E expenses of medical cannabis 
77.6 	manufacturers allowed under section 290.0134, subdivision 19, is allowed as a deduction 
77.7 	in determining alternative minimum taxable income.
77.8 	Items of tax preference must not be reduced below zero as a result of the modifications 
77.9 	in this subdivision.

77.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
77.11 	31, 2018.

77.12 	Sec. 25. Minnesota Statutes 2018, section 290.17, subdivision 4, is amended to read:
77.13 		Subd. 4.Unitary business principle. (a) If a trade or business conducted wholly within 
77.14 	this state or partly within and partly without this state is part of a unitary business, the entire 
77.15 	income of the unitary business is subject to apportionment pursuant to section 290.191. 
77.16 	Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is 
77.17 	considered to be derived from any particular source and none may be allocated to a particular 
77.18 	place except as provided by the applicable apportionment formula. The provisions of this 
77.19 	subdivision do not apply to business income subject to subdivision 5, income of an insurance 
77.20 	company, or income of an investment company determined under section 290.36.
77.21 	(b) The term "unitary business" means business activities or operations which result in 
77.22 	a flow of value between them. The term may be applied within a single legal entity or 
77.23 	between multiple entities and without regard to whether each entity is a sole proprietorship, 
77.24 	a corporation, a partnership or a trust.
77.25 	(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced 
77.26 	by centralized management or executive force, centralized purchasing, advertising, 
77.27 	accounting, or other controlled interaction, but the absence of these centralized activities 
77.28 	will not necessarily evidence a nonunitary business. Unity is also presumed when business 
77.29 	activities or operations are of mutual benefit, dependent upon or contributory to one another, 
77.30 	either individually or as a group.
77.31 	(d) Where a business operation conducted in Minnesota is owned by a business entity 
77.32 	that carries on business activity outside the state different in kind from that conducted within 
77.33 	this state, and the other business is conducted entirely outside the state, it is presumed that 
78.1 	the two business operations are unitary in nature, interrelated, connected, and interdependent 
78.2 	unless it can be shown to the contrary.
78.3 	(e) Unity of ownership does not exist when two or more corporations are involved unless 
78.4 	more than 50 percent of the voting stock of each corporation is directly or indirectly owned 
78.5 	by a common owner or by common owners, either corporate or noncorporate, or by one or 
78.6 	more of the member corporations of the group. For this purpose, the term "voting stock" 
78.7 	shall include membership interests of mutual insurance holding companies formed under 
78.8 	section 66A.40.
78.9 	(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign 
78.10 	corporations and other foreign entities, but excluding a disqualified captive insurance 
78.11 	company, which are part of a unitary business shall not be included in the net income or 
78.12 	the apportionment factors of the unitary business; except that the income and apportionment 
78.13 	factors of a foreign entity, other than an entity treated as a C corporation for federal income 
78.14 	tax purposes, that are included in the federal taxable income, as defined in section 63 of the 
78.15 	Internal Revenue Code as amended through the date named in section 290.01, subdivision 
78.16 	19, of a domestic corporation, domestic entity, or individual must be included in determining 
78.17 	net income and the factors to be used in the apportionment of net income pursuant to section 
78.18 	290.191 or 290.20. A foreign corporation or other foreign entity which is not included on 
78.19 	a combined report and which is required to file a return under this chapter shall file on a 
78.20 	separate return basis.
78.21 	(g) For purposes of determining the net income of a unitary business and the factors to 
78.22 	be used in the apportionment of net income pursuant to section 290.191 or 290.20, there 
78.23 	must be included only the income and apportionment factors of domestic corporations or 
78.24 	other domestic entities that are determined to be part of the unitary business pursuant to this 
78.25 	subdivision, notwithstanding that foreign corporations or other foreign entities might be 
78.26 	included in the unitary business; except that the income and apportionment factors of a 
78.27 	foreign entity, other than an entity treated as a C corporation for federal income tax purposes, 
78.28 	that is included in the federal taxable income, as defined in section 63 of the Internal Revenue 
78.29 	Code as amended through the date named in section 290.01, subdivision 19, of a domestic 
78.30 	corporation, domestic entity, or individual must be included in determining net income and 
78.31 	the factors to be used in the apportionment of net income pursuant to section 290.191 or 
78.32 	290.20.
78.33 	(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary 
78.34 	business must file combined reports as the commissioner determines. On the reports, all 
78.35 	intercompany transactions between entities included pursuant to paragraph (g) must be 
79.1 	eliminated and the entire net income of the unitary business determined in accordance with 
79.2 	this subdivision is apportioned among the entities by using each entity's Minnesota factors 
79.3 	for apportionment purposes in the numerators of the apportionment formula and the total 
79.4 	factors for apportionment purposes of all entities included pursuant to paragraph (g) in the 
79.5 	denominators of the apportionment formula. Except as otherwise provided by paragraph 
79.6 	(f), all sales of the unitary business made within this state pursuant to section 290.191 or 
79.7 	290.20 must be included on the combined report of a corporation or other entity that is a 
79.8 	member of the unitary business and is subject to the jurisdiction of this state to impose tax 
79.9 	under this chapter.
79.10 	(i) If a corporation has been divested from a unitary business and is included in a 
79.11 	combined report for a fractional part of the common accounting period of the combined 
79.12 	report:
79.13 	(1) its income includable in the combined report is its income incurred for that part of 
79.14 	the year determined by proration or separate accounting; and
79.15 	(2) its sales, property, and payroll included in the apportionment formula must be prorated 
79.16 	or accounted for separately.
79.17 	(j) For purposes of this subdivision, "insurance company" means an insurance company, 
79.18 	as defined in section 290.01, subdivision 5b, that is:
79.19 	(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter 
79.20 	60A; or
79.21 	(2) domiciled and licensed to engage in the business of insurance in another state or 
79.22 	country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that 
79.23 	does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance 
79.24 	companies or their agents domiciled in Minnesota.
79.25 	(k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance 
79.26 	companies organized in another state or country that result from the fact that an insurance 
79.27 	company organized in the taxing jurisdiction and doing business in the other jurisdiction is 
79.28 	subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that 
79.29 	imposed by the taxing jurisdiction upon an insurance company organized in the other state 
79.30 	or country and doing business to the same extent in the taxing jurisdiction not a disqualified 
79.31 	captive insurance company.

79.32 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
79.33 	after December 31, 2016.

80.1 	Sec. 26. Minnesota Statutes 2018, section 290.92, subdivision 4b, is amended to read:
80.2 		Subd. 4b.Withholding by partnerships. (a) A partnership shall deduct and withhold 
80.3 	a tax as provided in paragraph (b) for nonresident individual partners based on their 
80.4 	distributive shares of partnership income for a taxable year of the partnership.
80.5 	(b) The amount of tax withheld is determined by multiplying the partner's distributive 
80.6 	share allocable to Minnesota under section 290.17, paid or credited during the taxable year 
80.7 	by the highest rate used to determine the income tax liability for an individual under section 
80.8 	290.06, subdivision 2c, except that the amount of tax withheld may be determined by the 
80.9 	commissioner if the partner submits a withholding exemption certificate under subdivision 
80.10 	5.
80.11 	(c) The commissioner may reduce or abate the tax withheld under this subdivision if the 
80.12 	partnership had reasonable cause to believe that no tax was due under this section.
80.13 	(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold 
80.14 	tax for a nonresident partner if:
80.15 	(1) the partner elects to have the tax due paid as part of the partnership's composite return 
80.16 	under section 289A.08, subdivision 7;
80.17 	(2) the partner has Minnesota assignable federal adjusted gross income from the 
80.18 	partnership of less than $1,000; or
80.19 	(3) the partnership is liquidated or terminated, the income was generated by a transaction 
80.20 	related to the termination or liquidation, and no cash or other property was distributed in 
80.21 	the current or prior taxable year;
80.22 	(4) the distributive shares of partnership income are attributable to:
80.23 	(i) income required to be recognized because of discharge of indebtedness;
80.24 	(ii) income recognized because of a sale, exchange, or other disposition of real estate, 
80.25 	depreciable property, or property described in section 179 of the Internal Revenue Code; 
80.26 	or
80.27 	(iii) income recognized on the sale, exchange, or other disposition of any property that 
80.28 	has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of 
80.29 	the Internal Revenue Code
80.30 	to the extent that the income does not include cash received or receivable or, if there is cash 
80.31 	received or receivable, to the extent that the cash is required to be used to pay indebtedness 
80.32 	by the partnership or a secured debt on partnership property; or
81.1 	(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the 
81.2 	Internal Revenue Code; or
81.3 	(6) the partnership has elected to be taxed as a C-option corporation under section 
81.4 	289A.08, subdivision 7a.
81.5 	(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
81.6 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an 
81.7 	employer.
81.8 	(f) To the extent that income is exempt from withholding under paragraph (d), clause 
81.9 	(4), the commissioner has a lien in an amount up to the amount that would be required to 
81.10 	be withheld with respect to the income of the partner attributable to the partnership interest, 
81.11 	but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
81.12 	from the date of assessment of the tax against the partner, and attaches to that partner's share 
81.13 	of the profits and any other money due or to become due to that partner in respect of the 
81.14 	partnership. Notice of the lien may be sent by mail to the partnership, without the necessity 
81.15 	for recording the lien. The notice has the force and effect of a levy under section 270C.67, 
81.16 	and is enforceable against the partnership in the manner provided by that section. Upon 
81.17 	payment in full of the liability subsequent to the notice of lien, the partnership must be 
81.18 	notified that the lien has been satisfied.

81.19 	EFFECTIVE DATE. This section is effective for an election made in taxable years 
81.20 	beginning after December 31, 2018.

81.21 	Sec. 27. Minnesota Statutes 2018, section 290.92, subdivision 4c, is amended to read:
81.22 		Subd. 4c.Withholding by S corporations. (a) A corporation having a valid election in 
81.23 	effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b) 
81.24 	for nonresident individual shareholders their share of the corporation's income for the taxable 
81.25 	year.
81.26 	(b) The amount of tax withheld is determined by multiplying the amount of income 
81.27 	allocable to Minnesota under section 290.17 by the highest rate used to determine the income 
81.28 	tax liability of an individual under section 290.06, subdivision 2c, except that the amount 
81.29 	of tax withheld may be determined by the commissioner if the shareholder submits a 
81.30 	withholding exemption certificate under subdivision 5.
81.31 	(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold 
81.32 	tax for a nonresident shareholder, if:
82.1 	(1) the shareholder elects to have the tax due paid as part of the corporation's composite 
82.2 	return under section 289A.08, subdivision 7;
82.3 	(2) the shareholder has Minnesota assignable federal adjusted gross income from the 
82.4 	corporation of less than $1,000; or
82.5 	(3) the corporation is liquidated or terminated, the income was generated by a transaction 
82.6 	related to the termination or liquidation, and no cash or other property was distributed in 
82.7 	the current or prior taxable year; or
82.8 	(4) the S-corporation has elected to be taxed as a C-option corporation under section 
82.9 	289A.08, subdivision 7a.
82.10 	(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
82.11 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an 
82.12 	employer.

82.13 	EFFECTIVE DATE. This section is effective for an election made in taxable years 
82.14 	beginning after December 31, 2018.

82.15 	Sec. 28. Minnesota Statutes 2018, section 291.03, subdivision 9, is amended to read:
82.16 		Subd. 9.Qualified small business property. Property satisfying all of the following 
82.17 	requirements is qualified small business property:
82.18 	(1) The value of the property was included in the federal adjusted taxable estate.
82.19 	(2) The property consists of the assets of a trade or business or shares of stock or other 
82.20 	ownership interests in a corporation or other entity engaged in a trade or business. Shares 
82.21 	of stock in a corporation or an ownership interest in another type of entity do not qualify 
82.22 	under this subdivision if the shares or ownership interests are traded on a public stock 
82.23 	exchange at any time during the three-year period ending on the decedent's date of death. 
82.24 	For purposes of this subdivision, an ownership interest includes the interest the decedent is 
82.25 	deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal Revenue 
82.26 	Code.
82.27 	(3) During the taxable year that ended before the decedent's death, the trade or business 
82.28 	must not have been a passive activity within the meaning of section 469(c) of the Internal 
82.29 	Revenue Code, and the decedent or the decedent's spouse must have materially participated 
82.30 	in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 
82.31 	excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 
82.32 	by United States Treasury Department regulation that substitutes material participation in 
83.1 	prior taxable years for material participation in the taxable year that ended before the 
83.2 	decedent's death.
83.3 	(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 
83.4 	taxable year that ended before the date of the death of the decedent.
83.5 	(5) The property does not include:
83.6 	(i) cash;
83.7 	(ii) cash equivalents;
83.8 	(iii) publicly traded securities; or
83.9 	(iv) any assets not used in the operation of the trade or business.
83.10 	(6) For property consisting of shares of stock or other ownership interests in an entity, 
83.11 	the value of items described in clause (5) must be excluded in the valuation of the decedent's 
83.12 	interest in the entity.
83.13 	(7) The decedent or the decedent's spouse continuously owned the property, or an 
83.14 	undivided or joint interest in the property, including property the decedent or the decedent's 
83.15 	spouse is deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal 
83.16 	Revenue Code, or under subdivision 1d, for the three-year period ending on the date of 
83.17 	death of the decedent. In the case of a sole proprietor, if the property replaced similar property 
83.18 	within the three-year period, the replacement property will be treated as having been owned 
83.19 	for the three-year period ending on the date of death of the decedent. For the purposes of 
83.20 	the three-year holding period under this clause, any ownership by the decedent's spouse, 
83.21 	whether the spouse predeceases or survives the decedent, is attributed to the decedent.
83.22 	(8) For three years following the date of death of the decedent, the trade or business is 
83.23 	not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 
83.24 	and a family member materially participates in the operation of the trade or business within 
83.25 	the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 
83.26 	of the Internal Revenue Code and any other provision provided by United States Treasury 
83.27 	Department regulation that substitutes material participation in prior taxable years for 
83.28 	material participation in the three years following the date of death of the decedent.
83.29 	(9) The estate and the qualified heir elect to treat the property as qualified small business 
83.30 	property and agree, in the form prescribed by the commissioner, to pay the recapture tax 
83.31 	under subdivision 11, if applicable.

84.1 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
84.2 	dying after December 31, 2017.

84.3 	Sec. 29. Minnesota Statutes 2018, section 291.03, subdivision 10, is amended to read:
84.4 		Subd. 10.Qualified farm property. Property satisfying all of the following requirements 
84.5 	is qualified farm property:
84.6 	(1) The value of the property was included in the federal adjusted taxable estate.
84.7 	(2) The property consists of agricultural land and is owned by a person or entity that is 
84.8 	either not subject to or is in compliance with section 500.24.
84.9 	(3) For property taxes payable in the taxable year of the decedent's death, the property 
84.10 	is classified as class 2a property under section 273.13, subdivision 23, and is classified as 
84.11 	agricultural homestead, agricultural relative homestead, or special agricultural homestead 
84.12 	under section 273.124.
84.13 	(4) The decedent or the decedent's spouse continuously owned the property, or an 
84.14 	undivided or joint interest in the property, including property the decedent or the decedent's 
84.15 	spouse is deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal 
84.16 	Revenue Code, or under subdivision 1d, for the three-year period ending on the date of 
84.17 	death of the decedent either by ownership of the agricultural land or pursuant to holding an 
84.18 	interest in an entity that is not subject to or is in compliance with section 500.24. For the 
84.19 	purposes of the three-year holding period under this clause, any ownership by the decedent's 
84.20 	spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.
84.21 	(5) The property is classified for property tax purposes as class 2a property under section 
84.22 	273.13, subdivision 23, for three years following the date of death of the decedent.
84.23 	(6) The estate and the qualified heir elect to treat the property as qualified farm property 
84.24 	and agree, in a form prescribed by the commissioner, to pay the recapture tax under 
84.25 	subdivision 11, if applicable.

84.26 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
84.27 	dying after December 31, 2017.

84.28 	Sec. 30. [462A.40] MINNESOTA HOUSING TAX CREDIT CONTRIBUTION 
84.29 	FUND.
84.30 		Subdivision 1.Fund created. If a Minnesota housing tax credit is established, the 
84.31 	Minnesota housing tax credit contribution fund is created to be a revolving fund at the 
85.1 	agency and administered by the commissioner. Amounts contributed to the fund are 
85.2 	appropriated to the commissioner. The commissioner may use the amounts appropriated to 
85.3 	direct disbursements from the fund as loans or grants to eligible recipients.
85.4 		Subd. 2.Use of funds; grant and loan program. (a) The commissioner may award 
85.5 	grants and loans to be used for multifamily and single family developments for persons and 
85.6 	families of low and moderate income, or developments for persons experiencing 
85.7 	homelessness, including youth. Allowable use of the funds include: gap financing, as defined 
85.8 	in section 462A.33, subdivision 1, new construction, acquisition, rehabilitation, demolition 
85.9 	or removal of existing structures, construction financing, permanent financing, interest rate 
85.10 	reduction, and refinancing.
85.11 	(b) The commissioner may give preference for grants and loans to comparable proposals 
85.12 	that include regulatory changes or waivers that result in identifiable cost avoidance or cost 
85.13 	reductions, including but not limited to increased density, flexibility in site development 
85.14 	standards, or zoning code requirements.
85.15 	(c) To the extent practicable, grants and loans shall be made so that an approximately 
85.16 	equal number of housing units are financed in the metropolitan area, as defined in section 
85.17 	473.121, subdivision 2, and in greater Minnesota.
85.18 	(d) The commissioner shall set aside 50 percent of the financing under this section for 
85.19 	households at or below the greater of 50 percent of state or area median income. If by June 
85.20 	1 each year the commissioner does not receive requests to use all of the financing set aside 
85.21 	under this paragraph, the commissioner may use any remaining financing for other projects 
85.22 	eligible under this section.
85.23 		Subd. 3.Eligible recipients. (a) The commissioner may award grants or loans to a city, 
85.24 	a federally recognized American Indian tribe or subdivision located in Minnesota, a tribal 
85.25 	housing corporation, a private developer, a nonprofit organization, a housing and 
85.26 	redevelopment authority under sections 469.001 to 469.047, a public housing authority or 
85.27 	agency authorized by law to exercise any of the powers granted by sections 469.001 to 
85.28 	469.047, or the owner of the housing, excluding individuals who own the housing and are 
85.29 	using it as their domicile.
85.30 	(b) Eligible recipients must use the funds to serve households that meet the income limits 
85.31 	as provided in section 462A.33, subdivision 5.
85.32 	(c) For the purpose of this subdivision, "city" has the meaning given it in section 462A.03, 
85.33 	subdivision 21.
86.1 		Subd. 4.Recapture. A loan or grant awarded under this section is subject to repayment 
86.2 	or recapture under the guidelines adopted by the commissioner. Any loan or grant that is 
86.3 	repaid or recaptured must be redeposited in the fund.
86.4 		Subd. 5.Report. The commissioners of housing finance, revenue, and management and 
86.5 	budget shall report by January 15, 2021, to the chairs and ranking minority members of the 
86.6 	legislative tax committees on: whether a tax credit would stimulate private sector and 
86.7 	individual participation in the development and preservation of affordable housing; to what 
86.8 	extent a tax credit could increase unit production targeted at households at below 50 percent 
86.9 	of area median income; what additional economic activity the tax credit would generate; 
86.10 	and provide a recommendation on the value of the credit.

86.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
86.12 	31, 2019.

86.13 	Sec. 31. SPECIAL WAIVER OF INCOME TAX PENALTIES FOR TAX YEARS 
86.14 	2018 AND 2019.
 86.15 	(a) For taxable years beginning after December 31, 2017, and before January 1, 2020, 
86.16 	no addition to tax is imposed under Minnesota Statutes, section 289A.25, subdivision 2, if 
86.17 	the tax shown on the return for the taxable year or, if no return is filed, the tax, reduced by 
86.18 	the credits allowable, is less than $1,000. This paragraph applies only to taxpayers who 
86.19 	submit a request for a waiver of addition to tax due under Minnesota Statutes, section 
86.20 	289A.25, subdivision 2. The request for waiver must attest that the underpayment of estimated 
86.21 	tax for the taxable year is due to uncertainties in tax planning resulting from the enactment 
86.22 	of Public Law 115-97. The request for waiver must be in a form and manner prescribed by 
86.23 	the commissioner of revenue.
86.24 	(b) In the case of taxpayers who do not timely submit a request for a waiver under 
86.25 	paragraph (a), the provisions of Minnesota Statutes, section 289A.25, subdivision 4, apply 
86.26 	for taxable years beginning after December 31, 2017, and before January 1, 2020.

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

86.28 	Sec. 32. APPLICATION OF ANGEL TAX CREDIT FOR TAXABLE YEAR 2019.
 86.29 	Applications for (1) certification as a qualified small business, qualified investor, or 
86.30 	qualified fund under Minnesota Statutes, section 116J.8737, subdivisions 2, 3, and 4, and 
86.31 	(2) the credit under Minnesota Statutes, section 116J.8737, subdivision 5, for taxable year 
86.32 	2019 must be made available on the Department of Employment and Economic 
87.1 	Development's website by September 1, 2019. The provisions of Minnesota Statutes, section 
87.2 	116J.8737, generally apply to the taxable year 2019 extension of the credit in sections 1 
87.3 	and 2.

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

87.5 	ARTICLE 3
87.6 	SALES AND USE TAXES

87.7 	Section 1. Minnesota Statutes 2018, section 38.27, is amended by adding a subdivision 
87.8 	to read:
87.9 		Subd. 4.Use of a portion of county fair revenues. A county agricultural society must 
87.10 	annually determine the amount of sales tax savings attributable to section 297A.70, 
87.11 	subdivision 21. If the county agricultural society owns its own fairgrounds, it must use the 
87.12 	amount equal to the sales tax savings to maintain, improve, or expand society owned 
87.13 	buildings and facilities on the fairgrounds; otherwise it must transfer this amount to the 
87.14 	owner of the fairgrounds. An owner that receives a transfer of money under this subdivision 
87.15 	must use the transferred amount to maintain, improve, and expand entity owned buildings 
87.16 	and facilities on the county fairgrounds.

87.17 	EFFECTIVE DATE. This section is effective July 1, 2019.

87.18 	Sec. 2. Minnesota Statutes 2018, section 289A.20, subdivision 4, is amended to read:
87.19 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
87.20 	to the commissioner monthly on or before the 20th day of the month following the month 
87.21 	in which the taxable event occurred, or following another reporting period as the 
87.22 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
87.23 	or (g), except that use taxes due on an annual use tax return as provided under section 
87.24 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
87.25 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30, 
87.26 	except a vendor of construction materials as defined in paragraph (e), must remit the June 
87.27 	liability for the next year in the following manner:
87.28 	(1) Two business days before June 30 of the year, the vendor must remit 81.4 percent 
87.29 	of the estimated June liability to the commissioner.
87.30 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
87.31 	tax not remitted in June.
88.1 	(c) A vendor having a liability of:
88.2 	(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013, 
88.3 	and fiscal years thereafter, must remit by electronic means all liabilities on returns due for 
88.4 	periods beginning in all subsequent calendar years on or before the 20th day of the month 
88.5 	following the month in which the taxable event occurred, or on or before the 20th day of 
88.6 	the month following the month in which the sale is reported under section 289A.18, 
88.7 	subdivision 4; or
88.8 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
88.9 	thereafter, must remit by electronic means all liabilities in the manner provided in paragraph 
88.10 	(a) on returns due for periods beginning in the subsequent calendar year, except for 81.4 
88.11 	percent of the estimated June liability, which is due two business days before June 30. The 
88.12 	remaining amount of the June liability is due on August 20.
88.13 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
88.14 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
88.15 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
88.16 	form prescribed by the commissioner. No extra fee may be charged to a person making 
88.17 	payment by mail under this paragraph. The payment must be postmarked at least two business 
88.18 	days before the due date for making the payment in order to be considered paid on a timely 
88.19 	basis.
88.20 	(e) For the purposes of paragraph (b), "vendor of construction materials" means a business 
88.21 	that is classified in the following business groups according to the North American Industrial 
88.22 	Classification System:
88.23 	(1) 3211 - sawmills and wood preservation;
88.24 	(2) 3212 - veneer, plywood, and wood products manufacturing;
88.25 	(3) 32191 - millwork manufacturing;
88.26 	(4) 3273 - cement and concrete product manufacturing; and
88.27 	(5) 4233 - lumber and other construction materials merchant wholesalers.

88.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
88.29 	30, 2019.

89.1 	Sec. 3. Minnesota Statutes 2018, section 297A.67, is amended by adding a subdivision to 
89.2 	read:
89.3 		Subd. 37.Ticket purchasing rights to collegiate events. The sale of the privilege of 
89.4 	admission under section 297A.61, subdivision 3, paragraph (g), clause (1), does not include 
89.5 	consideration paid for the right to purchase a ticket to a collegiate athletic event in a preferred 
89.6 	area, and the sale of the right to purchase a ticket is exempt provided that:
89.7 	(1) the consideration paid for the right to purchase in the preferred area is used entirely 
89.8 	to support student scholarship costs;
89.9 	(2) the consideration paid for the right to purchase in the preferred area is separately 
89.10 	stated from the admission price; and
89.11 	(3) the admission price is equal to or greater than the highest priced general admission 
89.12 	ticket for the closest seat not in the preferred area.

89.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
89.14 	30, 2019.

89.15 	Sec. 4. Minnesota Statutes 2018, section 297A.67, is amended by adding a subdivision to 
89.16 	read:
89.17 		Subd. 38.Certain herbicides. Purchases of herbicides authorized for use pursuant to 
89.18 	an invasive aquatic plant management permit as defined under section 103G.615 are exempt 
89.19 	if purchased by a lakeshore property owner or an association of lakeshore property owners 
89.20 	organized under chapter 317A.

89.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
89.22 	30, 2019.

89.23 	Sec. 5. Minnesota Statutes 2018, section 297A.70, subdivision 10, is amended to read:
89.24 		Subd. 10.Nonprofit tickets or admissions. (a) Tickets or admissions to an event are 
89.25 	exempt if all the gross receipts are recorded as such, in accordance with generally accepted 
89.26 	accounting principles, on the books of one or more organizations whose primary mission 
89.27 	is to provide an opportunity for citizens of the state to participate in the creation, performance, 
89.28 	or appreciation of the arts, and provided that each organization is:
89.29 	(1) an organization described in section 501(c)(3) of the Internal Revenue Code in which 
89.30 	voluntary contributions make up at least five percent of the organization's annual revenue 
90.1 	in its most recently completed 12-month fiscal year, or in the current year if the organization 
90.2 	has not completed a 12-month fiscal year;
90.3 	(2) a municipal board that promotes cultural and arts activities; or
90.4 	(3) the University of Minnesota, a state college and university, or a private nonprofit 
90.5 	college or university provided that the event is held at a facility owned by the educational 
90.6 	institution holding the event.
90.7 	The exemption only applies if the entire proceeds, after reasonable expenses, are used solely 
90.8 	to provide opportunities for citizens of the state to participate in the creation, performance, 
90.9 	or appreciation of the arts.
90.10 	(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are exempt, 
90.11 	provided that the exemption under this paragraph does not apply to tickets or admissions 
90.12 	to performances or events held on the premises unless the performance or event is sponsored 
90.13 	and conducted exclusively by the Minnesota Zoological Board or employees of the Minnesota 
90.14 	Zoological Garden.
90.15 	(c) Tickets or admissions to a performance or event on the premises of a tax-exempt 
90.16 	organization under section 501(c)(3) of the Internal Revenue Code are exempt if:
90.17 	(1) the nonprofit organization was established to preserve Minnesota's rural agricultural 
90.18 	heritage and focuses on educating the public about rural history and how farms in Minnesota 
90.19 	helped to provide food for the nation and the world;
90.20 	(2) the premises of the nonprofit organization is at least 115 acres;
90.21 	(3) the performance or event is sponsored and conducted exclusively by volunteers, 
90.22 	employees of the nonprofit organization, or members of the board of directors of the nonprofit 
90.23 	organization; and
90.24 	(4) the performance or event is consistent with the nonprofit organization's purposes 
90.25 	under section 501(c)(3) of the Internal Revenue Code.

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

90.27 	Sec. 6. Minnesota Statutes 2018, section 297A.70, subdivision 20, is amended to read:
90.28 		Subd. 20.Ice arenas and rinks. Sales to organizations that exist primarily for the purpose 
90.29 	of owning or operating ice arenas or rinks that are (1) part of either the Duluth Heritage 
90.30 	Sports Center or the David M. Thaler Sports Center; and (2) are used for youth and high 
90.31 	school programs, are exempt if the organization is a private, nonprofit corporation exempt 
90.32 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

91.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
91.2 	30, 2019.

91.3 	Sec. 7. Minnesota Statutes 2018, section 297A.70, is amended by adding a subdivision to 
91.4 	read:
91.5 		Subd. 21.County agricultural society sales at county fairs. Sales by a county 
91.6 	agricultural society during a regularly scheduled county fair are exempt. For purposes of 
91.7 	this subdivision, sales include admissions to and parking at the county fairgrounds, 
91.8 	admissions to separately ticketed events run by the county agricultural society, and 
91.9 	concessions and other sales made by employees or volunteers of the county agricultural 
91.10 	society on the county fairgrounds. This exemption does not apply to sales or events by a 
91.11 	county agricultural society held at a time other than at the time of the regularly scheduled 
91.12 	county fair, or events not held on the county fairgrounds.

91.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
91.14 	30, 2019.

91.15 	Sec. 8. Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision to 
91.16 	read:
91.17 		Subd. 51.Properties destroyed by fire. (a) Building materials and supplies used or 
91.18 	consumed in, and equipment incorporated into, the construction or replacement of real 
91.19 	property affected by, and capital equipment to replace equipment destroyed in, the fire on 
91.20 	March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected 
91.21 	as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner 
91.22 	provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes 
91.23 	durable equipment used in a restaurant for food storage, preparation, and serving.
91.24 	(b) The exemption under this subdivision applies to sales and purchases made after 
91.25 	March 11, 2018, and before January 1, 2022.

91.26 	EFFECTIVE DATE. This section is effective retroactively from March 11, 2018.

91.27 	Sec. 9. Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision to 
91.28 	read:
91.29 		Subd. 52.Construction; certain local government facilities. (a) Materials and supplies 
91.30 	used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, 
91.31 	or remodeling of the following local government owned facilities are exempt:
92.1 	(1) a new fire station, which includes firefighting, emergency management, public safety 
92.2 	training, and other public safety facilities in the city of Monticello if materials, supplies, 
92.3 	and equipment are purchased after January 31, 2019, and before January 1, 2022;
92.4 	(2) a new fire station, which includes firefighting and public safety training facilities 
92.5 	and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and 
92.6 	equipment are purchased after June 30, 2018, and before January 1, 2021;
92.7 	(3) a fire station and police station, including access roads, lighting, sidewalks, and 
92.8 	utility components, on or adjacent to the property on which the fire station or police station 
92.9 	are located that are necessary for safe access to and use of those buildings, in the city of 
92.10 	Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and 
92.11 	before January 1, 2021; and
92.12 	(4) the school building in Independent School District No. 414, Minneota, if materials, 
92.13 	supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021.
92.14 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
92.15 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
92.16 	(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed 
92.17 	$850,000.

92.18 	EFFECTIVE DATE. This section is effective the day following final enactment and 
92.19 	applies retroactively to sales and purchases made during the time periods listed for each 
92.20 	project in paragraph (a).

92.21 	Sec. 10. Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
92.22 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
92.23 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
92.24 	section 297A.62, subdivision 1, applied. The exempt items include:
92.25 	(1) building materials for an agricultural processing facility exempt under section 
92.26 	297A.71, subdivision 13;
92.27 	(2) building materials for mineral production facilities exempt under section 297A.71, 
92.28 	subdivision 14;
92.29 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
92.30 	(4) building materials used in a residence for disabled veterans exempt under section 
92.31 	297A.71, subdivision 11;
93.1 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
93.2 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
93.3 	subdivision 23;
93.4 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
93.5 	section 297A.71, subdivision 35;
93.6 	(8) equipment and materials used for the generation, transmission, and distribution of 
93.7 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
93.8 	37;
93.9 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
93.10 	(a), clause (10);
93.11 	(10) materials, supplies, and equipment for construction or improvement of projects and 
93.12 	facilities under section 297A.71, subdivision 40;
93.13 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
93.14 	of:
93.15 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
93.16 	section 297A.71, subdivision 42;
93.17 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
93.18 	45;
93.19 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
93.20 	297A.71, subdivision 46; and
93.21 	(iv) an industrial measurement manufacturing and controls facility exempt under 
93.22 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
93.23 	(12) enterprise information technology equipment and computer software for use in a 
93.24 	qualified data center exempt under section 297A.68, subdivision 42;
93.25 	(13) materials, supplies, and equipment for qualifying capital projects under section 
93.26 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
93.27 	(14) items purchased for use in providing critical access dental services exempt under 
93.28 	section 297A.70, subdivision 7, paragraph (c);
93.29 	(15) items and services purchased under a business subsidy agreement for use or 
93.30 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
93.31 	44;
94.1 	(16) building materials, equipment, and supplies for constructing or replacing real 
94.2 	property exempt under section 297A.71, subdivision 49; and
94.3 	(17) building materials, equipment, and supplies for constructing or replacing real 
94.4 	property exempt under section 297A.71, subdivision 50, paragraph (b), and subdivision 51; 
94.5 	and
94.6 	(18) building materials, equipment, and supplies for constructing, remodeling, expanding, 
94.7 	or improving public safety facilities exempt under section 297A.71, subdivision 52.

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

94.9 	Sec. 11. Minnesota Statutes 2018, section 297A.75, subdivision 2, is amended to read:
94.10 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
94.11 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
94.12 	be paid to the applicant. Only the following persons may apply for the refund:
94.13 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
94.14 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
94.15 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
94.16 	provided in United States Code, title 38, chapter 21;
94.17 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
94.18 	property;
94.19 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
94.20 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
94.21 	joint venture of municipal electric utilities;
94.22 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
94.23 	business;
94.24 	(8) for subdivision 1, clauses (9), (10), and (13), and (18), the applicant must be the 
94.25 	governmental entity that owns or contracts for the project or facility;
94.26 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
94.27 	building or project; and
94.28 	(10) for subdivision 1, clause (17), the applicant must be the owner or developer of the 
94.29 	building or project.

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

95.1 	Sec. 12. Minnesota Statutes 2018, section 297A.75, subdivision 3, is amended to read:
95.2 		Subd. 3.Application. (a) The application must include sufficient information to permit 
95.3 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
95.4 	or builder, under subdivision 1, clauses (3) to (13) or (15) to (17) (18), the contractor, 
95.5 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
95.6 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
95.7 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
95.8 	this section.
95.9 	(b) An applicant may not file more than two applications per calendar year for refunds 
95.10 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

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

95.12 	Sec. 13. Minnesota Statutes 2018, section 297A.77, subdivision 3, is amended to read:
95.13 		Subd. 3.Tax must be remitted. The tax collected by a retailer under this section, except 
95.14 	for the amount allowed to be retained by the seller under section 297A.816, must be remitted 
95.15 	to the commissioner as provided in chapter 289A and this chapter.

95.16 	EFFECTIVE DATE. This section is effective for sales taxes remitted after June 30, 
95.17 	2019.

95.18 	Sec. 14. [297A.816] VENDOR ALLOWANCE.
95.19 		Subdivision 1.Eligibility. (a) A qualified retailer may retain a portion of sales tax 
95.20 	collected as a vendor allowance in compensation for the costs of collecting and administering 
95.21 	the tax under this chapter. This section applies only if the tax minus the vendor allowance 
95.22 	is both reported and remitted to the commissioner in a timely fashion as required under 
95.23 	chapter 289A.
95.24 	(b) For purposes of this section, "qualified retailer" means a retailer not subject to the 
95.25 	remittance requirements under section 289A.20, subdivision 4, paragraph (b), but does not 
95.26 	include a vendor of construction materials as defined under section 289A.20, subdivision 
95.27 	4, paragraph (e).
95.28 		Subd. 2.Tax not eligible for allowance. Use taxes paid by the qualified retailer on the 
95.29 	qualified retailer's own purchases and local sales and use taxes collected by the qualified 
95.30 	retailer are not included in calculating the vendor allowance under this section.
96.1 		Subd. 3.Calculation of allowance; minimum amount. The amount of the vendor 
96.2 	allowance is equal to the greater of the following amounts, calculated for each reporting 
96.3 	period, provided that the vendor allowance must not reduce the tax owed in the reporting 
96.4 	period to less than zero:
96.5 	(1) $5; or
96.6 	(2) one-half of one percent of the tax collected in the reporting period.
96.7 		Subd. 4.Transfer to legacy fund. The commissioner shall determine the amount of tax 
96.8 	deposited under the Minnesota Constitution, article XI, section 15, without regard to the 
96.9 	allowance under this section.

96.10 	EFFECTIVE DATE. This section is effective for sales taxes remitted after June 30, 
96.11 	2019.

96.12 	Sec. 15. Laws 2017, First Special Session chapter 1, article 3, section 32, the effective 
96.13 	date, is amended to read:

96.14 	EFFECTIVE DATE. Paragraph (a) is effective retroactively for sales and purchases 
96.15 	made after September 30, 2016, and before January 1, 2019 2023. Paragraph (b) is effective 
96.16 	for sales and purchases made after September 30, 2016, and before July 1, 2017.

96.17 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2019.

96.18 	ARTICLE 4
96.19 	PROPERTY TAX

96.20 	Section 1. Minnesota Statutes 2018, section 103D.905, subdivision 5, is amended to read:
96.21 		Subd. 5.Construction or implementation fund. (a) A construction or implementation 
96.22 	fund consists of:
96.23 	(1) the proceeds of watershed district bonds or notes or of the sale of county bonds;
96.24 	(2) construction or implementation loans or grants from the Pollution Control Agency 
96.25 	under sections 103F.701 to 103F.755, state or from any agency of the federal government; 
96.26 	and
96.27 	(3) special assessments, storm water charges, loan repayments, and ad valorem tax levies 
96.28 	levied or to be levied to supply funds for the construction or implementation of the projects 
96.29 	of the watershed district, including reservoirs, ditches, dikes, canals, channels, storm water 
96.30 	facilities, sewage treatment facilities, wells, and other works, and the expenses incident to 
96.31 	and connected with the construction or implementation.
97.1 	(b) Construction or implementation loans or grants from the Pollution Control Agency 
97.2 	under sections 103F.701 to 103F.755, state or from an agency of the federal government 
97.3 	may be repaid from the proceeds of watershed district bonds or notes or from the collections 
97.4 	of storm water charges, loan repayments, ad valorem tax levies, or special assessments on 
97.5 	properties benefited by the project.

97.6 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
97.7 	and thereafter.

97.8 	Sec. 2. Minnesota Statutes 2018, section 103D.905, subdivision 9, is amended to read:
97.9 		Subd. 9.Project tax levy. (a) In addition to other tax levies provided in this section or 
97.10 	in any other law, a watershed district may levy a tax:
97.11 	(1) to pay the costs of projects undertaken by the watershed district which that are to be
97.12 	funded, in whole or in part, with the proceeds of money appropriated by law for grants or 
97.13 	construction or implementation loans under sections 103F.701 to 103F.755 to the district;
97.14 	(2) to pay the principal of, or premium or administrative surcharge, if any, and interest 
97.15 	on, the bonds and or notes issued by the watershed district pursuant to section 103F.725 to 
97.16 	repay such loans; or
97.17 	(3) to repay the construction or implementation such loans under sections 103F.701 to 
97.18 	103F.755.
97.19 	(b) Taxes levied with respect to payment of bonds and notes shall must comply with 
97.20 	section 475.61.

97.21 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
97.22 	and thereafter.

97.23 	Sec. 3. Minnesota Statutes 2018, section 138.053, is amended to read:
97.24 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
97.25 	The governing body of any home rule charter or statutory city or town may annually 
97.26 	appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 
97.27 	market value, derived from ad valorem taxes on property or other revenues, to be paid to 
97.28 	the historical society of its respective city, town, or county to be used for the promotion of 
97.29 	historical work and to aid in defraying the expenses of carrying on the historical work in 
97.30 	the city, town, or county. No city or town may appropriate any funds for the benefit of any 
98.1 	historical society unless the society is affiliated with and approved by the Minnesota 
98.2 	Historical Society.

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

98.4 	Sec. 4. Minnesota Statutes 2018, section 197.603, subdivision 2, is amended to read:
98.5 		Subd. 2.Records; data privacy. Pursuant to chapter 13 the county veterans service 
98.6 	officer is the responsible authority with respect to all records in the officer's custody. The 
98.7 	data on clients' applications for assistance is private data on individuals, as defined in section 
98.8 	13.02, subdivision 12. The county veterans service officer may disclose to the county or 
98.9 	local assessor private data necessary to determine a client's eligibility for the disabled 
98.10 	veteran's homestead market value exclusion under section 273.13, subdivision 34.

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

98.12 	Sec. 5. Minnesota Statutes 2018, section 272.02, subdivision 49, is amended to read:
98.13 		Subd. 49.Agricultural historical society property. Property is exempt from taxation 
98.14 	if it is owned by a nonprofit charitable or educational organization that qualifies for 
98.15 	exemption under section 501(c)(3) of the Internal Revenue Code and meets the following 
98.16 	criteria:
98.17 	(1) the property is primarily used for storing and exhibiting tools, equipment, and artifacts 
98.18 	useful in providing an understanding of local or regional agricultural history. Primary use 
98.19 	is determined each year based on the number of days the property is used solely for storage 
98.20 	and exhibition purposes;
98.21 	(2) the property is limited to a maximum of 20 40 acres per owner per county, but 
98.22 	includes the land and any taxable structures, fixtures, and equipment on the land;
98.23 	(3) the property is not used for a revenue-producing activity for more than ten days in 
98.24 	each calendar year; and
98.25 	(4) the property is not used for residential purposes on either a temporary or permanent 
98.26 	basis.
98.27 	For assessment year 2019 only, an exemption application under this subdivision must be 
98.28 	filed with the county assessor by July 1, 2019.

98.29 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
98.30 	for taxes payable in 2020, and thereafter.

99.1 	Sec. 6. Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to 
99.2 	read:
99.3 		Subd. 102.Certain property owned by an Indian tribe. (a) Property is exempt that:
99.4 	(1) is located in a city of the first class with a population of more than 380,000 as of the 
99.5 	2010 federal census;
99.6 	(2) was on January 1, 2016, and is for the current assessment, owned by a federally 
99.7 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
99.8 	and
99.9 	(3) is used exclusively as a pharmacy, as defined in section 151.01, subdivision 2.
99.10 	(b) Property that qualifies for the exemption under this subdivision is limited to parcels 
99.11 	and structures that do not exceed, in the aggregate, 4,000 square feet. Property acquired for 
99.12 	single-family housing, market-rate apartments, agriculture, or forestry does not qualify for 
99.13 	this exemption.
99.14 	For assessment year 2019 only, an exemption application under this subdivision must be 
99.15 	filed with the county assessor by July 1, 2019. The exemption created by this subdivision 
99.16 	expires with taxes payable in 2029.

99.17 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
99.18 	and thereafter.

99.19 	Sec. 7. Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to 
99.20 	read:
99.21 		Subd. 103.Licensed child care facility. Property used as a licensed child care facility 
99.22 	that accepts families participating in the child care assistance program under chapter 119B, 
99.23 	and that is owned and operated by a nonprofit charitable organization that qualifies for tax 
99.24 	exemption under section 501(c)(3) of the Internal Revenue Code, is exempt. For the purposes 
99.25 	of this subdivision, "licensed child care facility" means a child care center licensed under 
99.26 	Minnesota Rules, chapter 9503, or a facility used to provide licensed family day care or 
99.27 	group family day care as defined under Minnesota Rules, chapter 9502.
99.28 	For assessment year 2019 only, an exemption application under this subdivision must be 
99.29 	filed with the county assessor by July 1, 2019.

99.30 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
99.31 	for taxes payable in 2020.

100.1 	Sec. 8. Minnesota Statutes 2018, section 273.124, subdivision 3a, is amended to read:
100.2 		Subd. 3a.Manufactured home park cooperative. (a) When a manufactured home park 
100.3 	is owned by a corporation or association organized under chapter 308A or 308B, and each 
100.4 	person who owns a share or shares in the corporation or association is entitled to occupy a 
100.5 	lot within the park, the corporation or association may claim homestead treatment for the 
100.6 	park. Each lot must be designated by legal description or number, and each lot is limited to 
100.7 	not more than one-half acre of land.
100.8 	(b) The manufactured home park shall be entitled to homestead treatment if all of the 
100.9 	following criteria are met:
100.10 	(1) the occupant or the cooperative corporation or association is paying the ad valorem 
100.11 	property taxes and any special assessments levied against the land and structure either 
100.12 	directly, or indirectly through dues to the corporation or association; and
100.13 	(2) the corporation or association organized under chapter 308A or 308B is wholly 
100.14 	owned by persons having a right to occupy a lot owned by the corporation or association.
100.15 	(c) A charitable corporation, organized under the laws of Minnesota with no outstanding 
100.16 	stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, 
100.17 	qualifies for homestead treatment with respect to a manufactured home park if its members 
100.18 	hold residential participation warrants entitling them to occupy a lot in the manufactured 
100.19 	home park.
100.20 	(d) "Homestead treatment" under this subdivision means the classification rate provided 
100.21 	for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause 
100.22 	(5), item (ii)., and the homestead market value exclusion under section 273.13, subdivision 
100.23 	35, does not apply and the property taxes assessed against the park shall not be included in 
100.24 	the determination of taxes payable for rent paid under section 290A.03.

100.25 	EFFECTIVE DATE. This section is effective beginning with claims for taxes payable 
100.26 	in 2020.

100.27 	Sec. 9. Minnesota Statutes 2018, section 273.124, subdivision 8, is amended to read:
100.28 		Subd. 8.Homestead owned by or leased to family farm corporation, joint farm 
100.29 	venture, limited liability company, or partnership. (a) Each family farm corporation; 
100.30 	each joint family farm venture; and each limited liability company or partnership which 
100.31 	operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph 
100.32 	(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner 
100.33 	thereof who is residing on the land, and actively engaged in farming of the land owned by 
101.1 	the family farm corporation, joint family farm venture, limited liability company, or 
101.2 	partnership. Homestead treatment applies even if:
101.3 	(1) legal title to the property is in the name of the family farm corporation, joint family 
101.4 	farm venture, limited liability company, or partnership, and not in the name of the person 
101.5 	residing on it.; or
101.6 	(2) the family farm is operated by a family farm corporation, joint family farm venture, 
101.7 	or limited liability company other than the family farm corporation, joint family farm venture, 
101.8 	or limited liability company that owns the land, provided that:
101.9 	(i) the shareholder, member, or partner residing on and actively engaged in farming the 
101.10 	land is a shareholder, member, or partner of the family farm corporation, joint family farm 
101.11 	venture, or limited liability company that is operating the farm and;
101.12 	(ii) more than half of the shareholders, members, or partners of each family farm 
101.13 	corporation, joint family farm venture, or limited liability company are persons or spouses 
101.14 	of persons who are a qualifying relative under section 273.124, subdivision 1, paragraphs 
101.15 	(c) and (d).
101.16 	"Family farm corporation," "family farm," and "partnership operating a family farm" 
101.17 	have the meanings given in section 500.24, except that the number of allowable shareholders, 
101.18 	members, or partners under this subdivision shall not exceed 12. "Limited liability company" 
101.19 	has the meaning contained in sections 322C.0102, subdivision 12, and 500.24, subdivision 
101.20 	2, paragraphs (l) and (m). "Joint family farm venture" means a cooperative agreement among 
101.21 	two or more farm enterprises authorized to operate a family farm under section 500.24.
101.22 	(b) In addition to property specified in paragraph (a), any other residences owned by 
101.23 	family farm corporations, joint family farm ventures, limited liability companies, or 
101.24 	partnerships described in paragraph (a) which are located on agricultural land and occupied 
101.25 	as homesteads by its shareholders, members, or partners who are actively engaged in farming 
101.26 	on behalf of that corporation, joint farm venture, limited liability company, or partnership 
101.27 	must also be assessed as class 2a property or as class 1b property under section 273.13.
101.28 	(c) Agricultural property that is owned by a member, partner, or shareholder of a family 
101.29 	farm corporation or joint family farm venture, limited liability company operating a family 
101.30 	farm, or by a partnership operating a family farm and leased to the family farm corporation, 
101.31 	limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is 
101.32 	eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually 
101.33 	residing on the property, and is actually engaged in farming the land on behalf of that 
101.34 	corporation, joint farm venture, limited liability company, or partnership. This paragraph 
102.1 	applies without regard to any legal possession rights of the family farm corporation, joint 
102.2 	family farm venture, limited liability company, or partnership under the lease.
102.3 	(d) Nonhomestead agricultural property that is owned by a family farm corporation, 
102.4 	joint farm venture, limited liability company, or partnership; and located not farther than 
102.5 	four townships or cities, or combination thereof, from agricultural land that is owned, and 
102.6 	used for the purposes of a homestead by an individual who is a shareholder, member, or 
102.7 	partner of the corporation, venture, company, or partnership; is entitled to receive the first 
102.8 	tier homestead classification rate on any remaining market value in the first homestead class 
102.9 	tier that is in excess of the market value of the shareholder's, member's, or partner's class 2 
102.10 	agricultural homestead property, if the owner, or someone acting on the owner's behalf 
102.11 	notifies the county assessor by July 1 that the property may be eligible under this paragraph 
102.12 	for the current assessment year, for taxes payable in the following year. As used in this 
102.13 	paragraph, "agricultural property" means property classified as 2a under section 273.13, 
102.14 	along with any contiguous property classified as 2b under section 273.13, if the contiguous 
102.15 	2a and 2b properties are under the same ownership.

102.16 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

102.17 	Sec. 10. Minnesota Statutes 2018, section 273.124, subdivision 14, is amended to read:
102.18 		Subd. 14.Agricultural homesteads; special provisions.  (a) Real estate of less than ten 
102.19 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
102.20 	subdivision 23, paragraph (a), if:
102.21 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
102.22 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
102.23 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
102.24 	taxes are paid under sections 477A.11 to 477A.14;
102.25 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
102.26 	acres;
102.27 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
102.28 	combination of townships or cities from the homestead; and
102.29 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
102.30 	at least 50 percent of the market value of the house, garage, and one acre of land.
102.31 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
102.32 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
102.33 	properties, as long as the homestead remains under the same ownership, the owner owns a 
103.1 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
103.2 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
103.3 	to property that qualified under this paragraph for the 1998 assessment.
103.4 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
103.5 	extent as other agricultural homestead property, if all of the following criteria are met:
103.6 	(1) the agricultural property consists of at least 40 acres including undivided government 
103.7 	lots and correctional 40's;
103.8 	(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 
103.9 	or of the owner's spouse, is actively farming the agricultural property, either on the person's 
103.10 	own behalf as an individual or on behalf of a partnership operating a family farm, family 
103.11 	farm corporation, joint family farm venture, or limited liability company of which the person 
103.12 	is a partner, shareholder, or member;
103.13 	(3) both the owner of the agricultural property and the person who is actively farming 
103.14 	the agricultural property under clause (2), are Minnesota residents;
103.15 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
103.16 	in Minnesota; and
103.17 	(5) neither the owner nor the person actively farming the agricultural property lives 
103.18 	farther than four townships or cities, or a combination of four townships or cities, from the 
103.19 	agricultural property, except that if the owner or the owner's spouse is required to live in 
103.20 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
103.21 	the agricultural property, may live more than four townships or cities, or combination of 
103.22 	four townships or cities from the agricultural property.
103.23 	The relationship under this paragraph may be either by blood or marriage.
103.24 	(ii) Agricultural property held by a trustee under a trust is eligible for agricultural 
103.25 	homestead classification under this paragraph if the qualifications in clause (i) are met, 
103.26 	except that "owner" means the grantor of the trust.
103.27 	(iii) Property containing the residence of an owner who owns qualified property under 
103.28 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
103.29 	is also used for noncommercial storage or drying of agricultural crops.
103.30 	(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and 
103.31 	any class 2b property that is contiguous to and under the same ownership as the class 2a 
103.32 	property.
104.1 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
104.2 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
104.3 	land is located in the same township or city, or not farther than four townships or cities or 
104.4 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
104.5 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
104.6 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
104.7 	of the other county.
104.8 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
104.9 	holding a vested remainder interest in it must be classified as a homestead under section 
104.10 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
104.11 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
104.12 	interests who are actively engaged in farming the property, and up to one acre of the land 
104.13 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
104.14 	must also be assessed class 2a.
104.15 	(e) Agricultural land and buildings that were class 2a homestead property under section 
104.16 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
104.17 	agricultural homesteads for subsequent assessments if:
104.18 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
104.19 	homestead as a result of the April 1997 floods;
104.20 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
104.21 	Wilkin;
104.22 	(3) the agricultural land and buildings remain under the same ownership for the current 
104.23 	assessment year as existed for the 1997 assessment year and continue to be used for 
104.24 	agricultural purposes;
104.25 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
104.26 	of one of the parcels of agricultural land that is owned by the taxpayer; and
104.27 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
104.28 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
104.29 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
104.30 	property continues to meet all the requirements in this paragraph and any dwellings on the 
104.31 	agricultural land remain uninhabited.
105.1 	(f) Agricultural land and buildings that were class 2a homestead property under section 
105.2 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
105.3 	agricultural homesteads for subsequent assessments if:
105.4 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
105.5 	homestead as a result of damage caused by a March 29, 1998, tornado;
105.6 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 
105.7 	Nicollet, Nobles, or Rice;
105.8 	(3) the agricultural land and buildings remain under the same ownership for the current 
105.9 	assessment year as existed for the 1998 assessment year;
105.10 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
105.11 	one of the parcels of agricultural land that is owned by the taxpayer; and
105.12 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
105.13 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
105.14 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
105.15 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
105.16 	are not required if the property continues to meet all the requirements in this paragraph and 
105.17 	any dwellings on the agricultural land remain uninhabited.
105.18 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
105.19 	farm limited liability company, or partnership operating a family farm as described under 
105.20 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
105.21 	property, if all of the following criteria are met:
105.22 	(1) the property consists of at least 40 acres including undivided government lots and 
105.23 	correctional 40's;
105.24 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
105.25 	property;
105.26 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
105.27 	is a Minnesota resident;
105.28 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
105.29 	member, or partner claims another agricultural homestead in Minnesota; and
105.30 	(5) that shareholder, member, or partner does not live farther than four townships or 
105.31 	cities, or a combination of four townships or cities, from the agricultural property.
106.1 	Homestead treatment applies under this paragraph for property leased to a family farm 
106.2 	corporation, joint farm venture, limited liability company, or partnership operating a family 
106.3 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
106.4 	or partner in the entity.
106.5 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
106.6 	full application must be submitted to the county assessor where the property is located. 
106.7 	Owners and the persons who are actively farming the property shall be required to complete 
106.8 	only a one-page abbreviated version of the application in each subsequent year provided 
106.9 	that none of the following items have changed since the initial application:
106.10 	(1) the day-to-day operation, administration, and financial risks remain the same;
106.11 	(2) the owners and the persons actively farming the property continue to live within the 
106.12 	four townships or city criteria and are Minnesota residents;
106.13 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
106.14 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
106.15 	(5) the property's acreage is unchanged; and
106.16 	(6) none of the property's acres have been enrolled in a federal or state farm program 
106.17 	since the initial application.
106.18 	The owners and any persons who are actively farming the property must include the 
106.19 	appropriate Social Security numbers, and sign and date the application. If any of the specified 
106.20 	information has changed since the full application was filed, the owner must notify the 
106.21 	assessor, and must complete a new application to determine if the property continues to 
106.22 	qualify for the special agricultural homestead. The commissioner of revenue shall prepare 
106.23 	a standard reapplication form for use by the assessors.
106.24 	(i) Agricultural land and buildings that were class 2a homestead property under section 
106.25 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
106.26 	agricultural homesteads for subsequent assessments if:
106.27 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
106.28 	homestead as a result of damage caused by the August 2007 floods;
106.29 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
106.30 	Wabasha, or Winona;
106.31 	(3) the agricultural land and buildings remain under the same ownership for the current 
106.32 	assessment year as existed for the 2007 assessment year;
107.1 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
107.2 	one of the parcels of agricultural land that is owned by the taxpayer; and
107.3 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
107.4 	floods, and the owner furnishes the assessor any information deemed necessary by the 
107.5 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
107.6 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
107.7 	are not required if the property continues to meet all the requirements in this paragraph and 
107.8 	any dwellings on the agricultural land remain uninhabited.
107.9 	(j) Agricultural land and buildings that were class 2a homestead property under section 
107.10 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
107.11 	agricultural homesteads for subsequent assessments if:
107.12 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
107.13 	homestead as a result of the March 2009 floods;
107.14 	(2) the property is located in the county of Marshall;
107.15 	(3) the agricultural land and buildings remain under the same ownership for the current 
107.16 	assessment year as existed for the 2008 assessment year and continue to be used for 
107.17 	agricultural purposes;
107.18 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
107.19 	of one of the parcels of agricultural land that is owned by the taxpayer; and
107.20 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
107.21 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
107.22 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
107.23 	property continues to meet all the requirements in this paragraph and any dwellings on the 
107.24 	agricultural land remain uninhabited.

107.25 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

107.26 	Sec. 11. Minnesota Statutes 2018, section 273.124, subdivision 21, is amended to read:
107.27 		Subd. 21.Trust property; homestead. Real or personal property, including agricultural 
107.28 	property, held by a trustee under a trust is eligible for classification as homestead property 
107.29 	if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e).
107.30 	(a) The grantor or surviving spouse of the grantor of the trust occupies and uses the 
107.31 	property as a homestead.
108.1 	(b) A relative or surviving relative of the grantor who meets the requirements of 
108.2 	subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph 
108.3 	(d), in the case of agricultural property, occupies and uses the property as a homestead.
108.4 	(c) A family farm corporation, joint farm venture, limited liability company, or partnership 
108.5 	operating a family farm in which the grantor or the grantor's surviving spouse is a 
108.6 	shareholder, member, or partner rents the property; and, either (1) a shareholder, member, 
108.7 	or partner of the corporation, joint farm venture, limited liability company, or partnership 
108.8 	occupies and uses the property as a homestead; or (2) the property is at least 40 acres, 
108.9 	including undivided government lots and correctional 40's, and a shareholder, member, or 
108.10 	partner of the tenant-entity is actively farming the property on behalf of the corporation, 
108.11 	joint farm venture, limited liability company, or partnership.
108.12 	(d) A person who has received homestead classification for property taxes payable in 
108.13 	2000 on the basis of an unqualified legal right under the terms of the trust agreement to 
108.14 	occupy the property as that person's homestead and who continues to use the property as a 
108.15 	homestead; or, a person who received the homestead classification for taxes payable in 2005 
108.16 	under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or 
108.17 	thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable 
108.18 	in 2005.
108.19 	(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For 
108.20 	purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse 
108.21 	of the grantor.
108.22 	(f) For purposes of this subdivision, the following terms have the meanings given them:
108.23 	(1) "agricultural property" means the house, garage, other farm buildings and structures, 
108.24 	and agricultural land;
108.25 	(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except 
108.26 	that the phrases "owned by same person" or "under the same ownership" as used in that 
108.27 	subdivision mean and include contiguous tax parcels owned by:
108.28 	(i) an individual and a trust of which the individual, the individual's spouse, or the 
108.29 	individual's deceased spouse is the grantor; or
108.30 	(ii) different trusts of which the grantors of each trust are any combination of an 
108.31 	individual, the individual's spouse, or the individual's deceased spouse; and
109.1 	For purposes of this subdivision, (3) "grantor" is defined as means the person creating 
109.2 	or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
109.3 	instrument or through the exercise of a power of appointment.
109.4 	(g) Noncontiguous agricultural land is included as part of a homestead under this 
109.5 	subdivision, only if the homestead is classified as class 2a, as defined in section 273.13, 
109.6 	subdivision 23, and the detached land is located in the same township or city, or not farther 
109.7 	than four townships or cities or combination thereof from the homestead. Any taxpayer of 
109.8 	these noncontiguous lands must notify the county assessor that the noncontiguous land is 
109.9 	part of the taxpayer's homestead, and, if the homestead is located in another county, the 
109.10 	taxpayer must also notify the assessor of the other county.

109.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

109.12 	Sec. 12. Minnesota Statutes 2018, section 273.124, is amended by adding a subdivision 
109.13 	to read:
109.14 		Subd. 23.Fractional homesteads. In the case of property that is classified as part 
109.15 	homestead and part nonhomestead solely because not all the owners occupy or farm the 
109.16 	property, not all the owners have qualifying relatives occupying or farming the property, 
109.17 	or not all the spouses of owners occupy the property, the portions of property classified as 
109.18 	part homestead and part nonhomestead must correspond to the ownership percentages that 
109.19 	each owner has in the property, as determined by the land records in the county recorder's 
109.20 	office or registrar of titles. If the ownership percentages of each owner cannot be determined 
109.21 	by reference to the land records, the portions of property classified as part homestead and 
109.22 	part nonhomestead must correspond to the ownership percentages each owner would have 
109.23 	if they each owned an equal share of the property.

109.24 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

109.25 	Sec. 13. Minnesota Statutes 2018, section 273.1245, subdivision 2, is amended to read:
109.26 		Subd. 2.Disclosure. The assessor shall disclose the data described in subdivision 1 to 
109.27 	the commissioner of revenue as provided by law. The assessor shall also disclose all or 
109.28 	portions of the data described in subdivision 1 to:
109.29 	(1) the county treasurer solely for the purpose of proceeding under the Revenue Recapture 
109.30 	Act to recover personal property taxes owing.; and
110.1 	(2) the county veterans service officer for the purpose of determining a person's eligibility 
110.2 	for the disabled veteran's homestead market value exclusion under section 273.13, subdivision 
110.3 	34.

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

110.5 	Sec. 14. Minnesota Statutes 2018, section 273.13, subdivision 25, is amended to read:
110.6 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
110.7 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
110.8 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
110.9 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
110.10 	under section 272.02, and contiguous property used for hospital purposes, without regard 
110.11 	to whether the property has been platted or subdivided. The market value of class 4a property 
110.12 	has a classification rate of 1.25 percent.
110.13 	(b) Class 4b includes:
110.14 	(1) residential real estate containing less than four units that does not qualify as class 
110.15 	4bb, other than seasonal residential recreational property;
110.16 	(2) manufactured homes not classified under any other provision;
110.17 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
110.18 	classified under subdivision 23, paragraph (b) containing two or three units; and
110.19 	(4) unimproved property that is classified residential as determined under subdivision 
110.20 	33.
110.21 	The market value of class 4b property has a classification rate of 1.25 percent.
110.22 	(c) Class 4bb includes:
110.23 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
110.24 	residential recreational property;
110.25 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
110.26 	nonhomestead farm classified under subdivision 23, paragraph (b); and
110.27 	(3) a condominium-type storage unit having an individual property identification number 
110.28 	that is not used for a commercial purpose.
110.29 	Class 4bb property has the same classification rates as class 1a property under subdivision 
110.30 	22.
111.1 	Property that has been classified as seasonal residential recreational property at any time 
111.2 	during which it has been owned by the current owner or spouse of the current owner does 
111.3 	not qualify for class 4bb.
111.4 	(d) Class 4c property includes:
111.5 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
111.6 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
111.7 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
111.8 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
111.9 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
111.10 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
111.11 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
111.12 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
111.13 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
111.14 	under this clause regardless of the term of the rental agreement, as long as the use of the 
111.15 	camping pad does not exceed 250 days. In order for a property to be classified under this 
111.16 	clause, either (i) the business located on the property must provide recreational activities, 
111.17 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
111.18 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
111.19 	bookings by lodging guests during the year must be for periods of at least two consecutive 
111.20 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
111.21 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
111.22 	and must be located in a township or a city with a population of 2,500 or less located outside 
111.23 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
111.24 	of a state trail administered by the Department of Natural Resources. For purposes of item 
111.25 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
111.26 	property also includes commercial use real property used exclusively for recreational 
111.27 	purposes in conjunction with other class 4c property classified under this clause and devoted 
111.28 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
111.29 	two acres, provided the property is not devoted to commercial recreational use for more 
111.30 	than 250 days in the year preceding the year of assessment and is located within two miles 
111.31 	of the class 4c property with which it is used. In order for a property to qualify for 
111.32 	classification under this clause, the owner must submit a declaration to the assessor 
111.33 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
111.34 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
111.35 	share of the land on which they are located must be designated class 4c under this clause 
112.1 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
112.2 	the land on which they are located will be designated as class 3a. The owner of property 
112.3 	desiring designation as class 4c property under this clause must provide guest registers or 
112.4 	other records demonstrating that the units for which class 4c designation is sought were not 
112.5 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
112.6 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
112.7 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
112.8 	directly related to temporary and seasonal residential occupancy for recreation purposes 
112.9 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
112.10 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
112.11 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
112.12 	and fishing tackle;
112.13 	(2) qualified property used as a golf course if:
112.14 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
112.15 	but a membership fee may not be required in order to use the property for golfing, and its 
112.16 	green fees for golfing must be comparable to green fees typically charged by municipal 
112.17 	courses; and
112.18 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
112.19 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
112.20 	the golf course is classified as class 3a property;
112.21 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
112.22 	community service oriented organization and not used for residential purposes on either a 
112.23 	temporary or permanent basis, provided that:
112.24 	(i) the property is not used for a revenue-producing activity for more than six days in 
112.25 	the calendar year preceding the year of assessment; or
112.26 	(ii) the organization makes annual charitable contributions and donations at least equal 
112.27 	to the property's previous year's property taxes and the property is allowed to be used for 
112.28 	public and community meetings or events for no charge, as appropriate to the size of the 
112.29 	facility.
112.30 	For purposes of this clause:
112.31 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
112.32 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
112.33 	payment of taxes, assessments, fees, auditing costs, and utility payments;
113.1 	(B) "property taxes" excludes the state general tax;
113.2 	(C) a "nonprofit community service oriented organization" means any corporation, 
113.3 	society, association, foundation, or institution organized and operated exclusively for 
113.4 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
113.5 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
113.6 	Revenue Code; and
113.7 	(D) "revenue-producing activities" shall include but not be limited to property or that 
113.8 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
113.9 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
113.10 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
113.11 	insurance business, or office or other space leased or rented to a lessee who conducts a 
113.12 	for-profit enterprise on the premises.
113.13 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
113.14 	use of the property for social events open exclusively to members and their guests for periods 
113.15 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
113.16 	the organization shall not be considered a revenue-producing activity.
113.17 	The organization shall maintain records of its charitable contributions and donations 
113.18 	and of public meetings and events held on the property and make them available upon 
113.19 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
113.20 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
113.21 	current year's assessment. The commissioner shall prescribe a uniform application form 
113.22 	and instructions;
113.23 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
113.24 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
113.25 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
113.26 	miles of the border of a college campus;
113.27 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
113.28 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
113.29 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
113.30 	3a, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision 
113.31 	13;
113.32 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
113.33 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
113.34 	located within the metropolitan area as defined in section 473.121, subdivision 2;
114.1 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
114.2 	section 272.01, subdivision 2, and the land on which it is located, provided that:
114.3 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
114.4 	Airports Commission, or group thereof; and
114.5 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
114.6 	premise, prohibits commercial activity performed at the hangar.
114.7 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
114.8 	filed by the new owner with the assessor of the county where the property is located within 
114.9 	60 days of the sale;
114.10 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
114.11 	272.01, subdivision 2, and the land on which it is located, provided that:
114.12 	(i) the land abuts a public airport; and
114.13 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
114.14 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
114.15 	hangar; and
114.16 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
114.17 	and that is also a place of lodging, if all of the following criteria are met:
114.18 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
114.19 	or fewer days;
114.20 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
114.21 	the basic room rate;
114.22 	(iii) meals are not provided to the general public except for special events on fewer than 
114.23 	seven days in the calendar year preceding the year of the assessment; and
114.24 	(iv) the owner is the operator of the property.
114.25 	The market value subject to the 4c classification under this clause is limited to five rental 
114.26 	units. Any rental units on the property in excess of five, must be valued and assessed as 
114.27 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
114.28 	be classified as class 1a property under subdivision 22;
114.29 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
114.30 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
114.31 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
114.32 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
115.1 	of its annual gross receipts from business conducted during four consecutive months. Gross 
115.2 	receipts from the sale of alcoholic beverages must be included in determining the property's 
115.3 	qualification under item (ii). The property's primary business must be as a restaurant and 
115.4 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
115.5 	Owners of real property desiring 4c classification under this clause must submit an annual 
115.6 	declaration to the assessor by February 1 of the current assessment year, based on the 
115.7 	property's relevant information for the preceding assessment year;
115.8 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
115.9 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
115.10 	and devoted to recreational use for marina services. The marina owner must annually provide 
115.11 	evidence to the assessor that it provides services, including lake or river access to the public 
115.12 	by means of an access ramp or other facility that is either located on the property of the 
115.13 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
115.14 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
115.15 	a marina for marina services, including but not limited to buildings used to provide food 
115.16 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
115.17 	as class 3a property; and
115.18 	(12) real and personal property devoted to noncommercial temporary and seasonal 
115.19 	residential occupancy for recreation purposes.
115.20 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
115.21 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
115.22 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
115.23 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
115.24 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
115.25 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
115.26 	shareholders in the cooperative corporation or association and a classification rate of one 
115.27 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
115.28 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, 
115.29 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
115.30 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
115.31 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
115.32 	property described in clause (4) has a classification rate of one percent, (v) the market value 
115.33 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
115.34 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
115.35 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
116.1 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
116.2 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
116.3 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
116.4 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
116.5 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
116.6 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
116.7 	the units in the building qualify as low-income rental housing units as certified under section 
116.8 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
116.9 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
116.10 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
116.11 	the qualifying low-income rental housing units are to the total units in the building. For all 
116.12 	properties qualifying as class 4d, the market value determined by the assessor must be based 
116.13 	on the normal approach to value using normal unrestricted rents. Class 4d property has a 
116.14 	classification rate of 0.25 percent.
116.15 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
116.16 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
116.17 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
116.18 	the market value of each housing unit up to the first tier limit. For the purposes of this 
116.19 	paragraph, all class 4d property value must be assigned to individual housing units. The 
116.20 	first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 
116.21 	adjusted each year by the average statewide change in estimated market value of property 
116.22 	classified as class 4a and 4d under this section for the previous assessment year, excluding 
116.23 	valuation change due to new construction, rounded to the nearest $1,000, provided, however, 
116.24 	that the limit may never be less than $100,000. Beginning with assessment year 2015, the 
116.25 	commissioner of revenue must certify the limit for each assessment year by November 1 
116.26 	of the previous year.

116.27 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

116.28 	Sec. 15. Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
116.29 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a portion of 
116.30 	the market value of property owned by a veteran and serving as the veteran's homestead 
116.31 	under this section is excluded in determining the property's taxable market value if the 
116.32 	veteran has a service-connected disability of 70 percent or more as certified by the United 
116.33 	States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 
116.34 	veteran must have been honorably discharged from the United States armed forces, as 
117.1 	indicated by United States Government Form DD214 or other official military discharge 
117.2 	papers.
117.3 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
117.4 	except as provided in clause (2); and
117.5 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
117.6 	excluded.
117.7 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 
117.8 	(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 
117.9 	the legal or beneficial title to the homestead and permanently resides there, the exclusion 
117.10 	shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 
117.11 	for eight additional taxes payable years or until such time as the spouse remarries, or sells, 
117.12 	transfers, or otherwise disposes of the property, whichever comes first. Qualification under 
117.13 	this paragraph requires an application under paragraph (h), and a spouse must notify the 
117.14 	assessor if there is a change in the spouse's marital status, ownership of the property, or use 
117.15 	of the property as a permanent residence.
117.16 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
117.17 	who dies due to a service-connected cause while serving honorably in active service, as 
117.18 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
117.19 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
117.20 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
117.21 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
117.22 	whichever comes first.
117.23 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
117.24 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
117.25 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
117.26 	for under paragraph (b).
117.27 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
117.28 	of the house and garage and immediately surrounding one acre of land qualifies for the 
117.29 	valuation exclusion under this subdivision.
117.30 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
117.31 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
117.32 	paragraph (b).
118.1 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
118.2 	apply to the assessor by July 1December 15 of the first assessment year for which the 
118.3 	exclusion is sought. For an application received after July 1 December 15, the exclusion 
118.4 	shall become effective for the following assessment year. Except as provided in paragraph 
118.5 	(c), the owner of a property that has been accepted for a valuation exclusion must notify 
118.6 	the assessor if there is a change in ownership of the property or in the use of the property 
118.7 	as a homestead.
118.8 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
118.9 	paragraph (d) must be made any time within two years of the death of the service member.
118.10 	(j) For purposes of this subdivision:
118.11 	(1) "active service" has the meaning given in section 190.05;
118.12 	(2) "own" means that the person's name is present as an owner on the property deed;
118.13 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
118.14 	United States Department of Veterans Affairs for assistance as the primary provider of 
118.15 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
118.16 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
118.17 	(4) "veteran" has the meaning given the term in section 197.447.
118.18 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
118.19 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
118.20 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
118.21 	or sells, transfers, or otherwise disposes of the property if:
118.22 	(1) the spouse files a first-time application within two years of the death of the service 
118.23 	member or by June 1, 2019, whichever is later;
118.24 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
118.25 	homestead and permanently resides there;
118.26 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
118.27 	(4) the United States Department of Veterans Affairs certifies that:
118.28 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
118.29 	paragraph (b), clause (2); or
118.30 	(ii) the spouse has been awarded dependency and indemnity compensation.
119.1 	(l) The purpose of this provision of law providing a level of homestead property tax 
119.2 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
119.3 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
119.4 	those burdens most heavily.
119.5 	(m) By July 1, the county veterans service officer must certify the disability rating and 
119.6 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

119.7 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
119.8 	for taxes payable in 2020 and thereafter.

119.9 	Sec. 16. Minnesota Statutes 2018, section 273.13, subdivision 35, is amended to read:
119.10 		Subd. 35.Homestead market value exclusion. (a) Prior to determining a property's 
119.11 	net tax capacity under this section, property classified as class 1a or 1b under subdivision 
119.12 	22, and the portion of property classified as class 2a under subdivision 23 consisting of the 
119.13 	house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion 
119.14 	as determined under paragraph (b).
119.15 	(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market 
119.16 	value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 
119.17 	minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or 
119.18 	more, there is no valuation exclusion. The valuation exclusion shall be rounded to the nearest 
119.19 	whole dollar, and may not be less than zero.
119.20 	(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior 
119.21 	to determining the amount of the valuation exclusion under this subdivision.
119.22 	(d) In the case of a property that is classified as part homestead and part nonhomestead, 
119.23 	(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion 
119.24 	of a property is classified as nonhomestead solely because not all the owners occupy the 
119.25 	property, not all the owners have qualifying relatives occupying the property, or solely 
119.26 	because not all the spouses of owners occupy the property, the exclusion amount shall be 
119.27 	initially computed as if that nonhomestead portion were also in the homestead class and 
119.28 	then prorated to the owner-occupant's percentage of ownership, as determined by the land 
119.29 	records in the county recorder's office or registrar of titles. If ownership percentages of each 
119.30 	owner cannot be determined by reference to the land records, the ownership percentages 
119.31 	must be determined as if each owner owned an equal share of the property. For the purpose 
119.32 	of this section, when an owner-occupant's spouse does not occupy the property, the 
120.1 	percentage of ownership for the owner-occupant spouse is one-half of the couple's ownership 
120.2 	percentage.

120.3 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
120.4 	and thereafter.

120.5 	Sec. 17. Minnesota Statutes 2018, section 273.1384, subdivision 2, is amended to read:
120.6 		Subd. 2.Agricultural homestead market value credit. Property classified as agricultural 
120.7 	homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural 
120.8 	credit. The credit is computed using the property's agricultural credit market value, defined 
120.9 	for this purpose as the property's market value excluding the market value of the house, 
120.10 	garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of 
120.11 	the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the 
120.12 	property's agricultural credit market value in excess of $115,000, subject to a maximum 
120.13 	credit of $490. In the case of property that is classified as part homestead and part 
120.14 	nonhomestead solely because not all the owners occupy or farm the property, not all the 
120.15 	owners have qualifying relatives occupying or farming the property, or solely because not 
120.16 	all the spouses of owners occupy the property, the credit is computed on the amount of 
120.17 	agricultural credit market value corresponding to the owner-occupant's percentage of 
120.18 	homestead. the percentage of homestead is equal to 100 divided by the number of owners 
120.19 	of the property, or, in the case of a trust, the number of grantors of the trust that owns the 
120.20 	property ownership, as determined by the land records in the county recorder's office or 
120.21 	registrar of titles. If ownership percentages of each owner cannot be determined by reference 
120.22 	to the land records, the ownership percentages must be determined as if each owner owned 
120.23 	an equal share of the property.

120.24 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
120.25 	and thereafter.

120.26 	Sec. 18. Minnesota Statutes 2018, section 273.371, subdivision 1, is amended to read:
120.27 		Subdivision 1.Report required. Every electric light, power, gas, water, express, stage, 
120.28 	transportation, and pipeline company doing business in Minnesota shall annually file with 
120.29 	the commissioner on or before March 31 a report under oath setting forth the information 
120.30 	prescribed by the commissioner to enable the commissioner to make valuations, 
120.31 	recommended valuations, and equalization required under sections 273.33, 273.35, 273.36, 
120.32 	273.37, and 273.3711. The commissioner shall prescribe the content, format, and manner 
120.33 	of the report pursuant to section 270C.30, except that for cooperative associations defined 
121.1 	in section 273.40, the information provided in the report must be aggregated to the unique 
121.2 	taxing jurisdiction level and exclude information related to property subject to the in-lieu 
121.3 	tax under section 273.41, and that a "law administered by the commissioner" includes the 
121.4 	property tax laws. If all the required information is not available on March 31, the company 
121.5 	shall file the information that is available on or before March 31, and the balance of the 
121.6 	information as soon as it becomes available. If a report is made by electronic means, the 
121.7 	taxpayer's signature is defined pursuant to section 270C.304, except that a "law administered 
121.8 	by the commissioner" includes the property tax laws. For purposes of this subdivision, 
121.9 	"unique taxing jurisdiction" means the geographic area subject to the same set of local tax 
121.10 	rates.

121.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2020 
121.12 	and thereafter.

121.13 	Sec. 19. Minnesota Statutes 2018, section 273.3711, is amended to read:
121.14 	273.3711 RECOMMENDED AND ORDERED VALUES.
121.15 	For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, all 
121.16 	preliminary values not required to be listed and assessed by the commissioner of revenue 
121.17 	are recommended values. If the commissioner provides preliminary recommended values, 
121.18 	the values must be certified to the auditor of each county in which the property is located 
121.19 	on or before August 1 June 15. If the commissioner determines that the certified 
121.20 	recommended value is in error the commissioner may issue a corrected certification on or 
121.21 	before October 1. The commissioner may correct errors that are merely clerical in nature 
121.22 	until December 31.

121.23 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019 
121.24 	and thereafter.

121.25 	Sec. 20. Minnesota Statutes 2018, section 273.372, subdivision 3, is amended to read:
121.26 		Subd. 3.Notice. Upon filing of any appeal in court under this section by a utility company 
121.27 	or railroad against the commissioner pursuant to this section, the commissioner shall give 
121.28 	notice by first class mail to the county auditor of each county where property included in 
121.29 	the petition is located.

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

122.1 	Sec. 21. [273.3722] NOTIFICATION.
122.2 	The commissioner of revenue shall develop an electronic means to inform each city, 
122.3 	county, and taxing jurisdiction where property included in an appeal filed under section 
122.4 	273.372 is located. The notification must contain the following information:
122.5 	(1) notice that an appeal was filed pursuant to section 273.372;
122.6 	(2) a copy of the petition filed under section 273.372, subdivision 2, or of the appeal 
122.7 	filed under section 273.372, subdivision 4;
122.8 	(3) notice that a final, written agreement was entered into pursuant to section 273.372, 
122.9 	subdivision 5, and a copy of the agreement within ten days of its signing; and
122.10 	(4) any additional information, as available, that provides the city, county, and taxing 
122.11 	jurisdictions with information relative to the status of the appeal and settlement negotiations.

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

122.13 	Sec. 22. Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
122.14 		Subdivision 1.Levy amount. The state general levy is levied against 
122.15 	commercial-industrial property and seasonal residential recreational property, as defined 
122.16 	in this section. The state general levy for commercial-industrial property is $784,590,000
122.17 	$737,090,000 for taxes payable in 20182020 and thereafter. The state general levy for 
122.18 	seasonal-recreational property is $44,190,000$41,690,000 for taxes payable in 20182020 
122.19 	and thereafter. The tax under this section is not treated as a local tax rate under section 
122.20 	469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
122.21 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
122.22 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
122.23 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
122.24 	information is available to the commissioner at the time the rates for a year must be certified, 
122.25 	and for the following reasons:
122.26 	(1) an erroneous report of taxable value by a local official;
122.27 	(2) an erroneous calculation by the commissioner; and
122.28 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
122.29 	residential recreational property reported on the abstracts of tax lists submitted under section 
122.30 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 
122.31 	for the same year.
123.1 	The commissioner may, but need not, make adjustments if the total difference in the tax 
123.2 	levied for the year would be less than $100,000.

123.3 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020.

123.4 	Sec. 23. Minnesota Statutes 2018, section 275.025, is amended by adding a subdivision 
123.5 	to read:
123.6 		Subd. 6.Natural gas pipeline. (a) The county must abate the state general levy on 
123.7 	personal property that is part of an intrastate natural gas transportation or distribution pipeline 
123.8 	system if:
123.9 	(1) construction of the pipeline system commenced after January 1, 2018; and
123.10 	(2) the pipeline system provides service to an area:
123.11 	(i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision 
123.12 	4; and
123.13 	(ii) in which more than half of the households or businesses lacked access to natural gas 
123.14 	distribution systems as of January 1, 2018.
123.15 	(b) In the first year that a taxpayer seeks an abatement under this subdivision, the taxpayer 
123.16 	must file an application with the commissioner of revenue by March 1 of the assessment 
123.17 	year on a form prescribed by the commissioner.
123.18 	(c) The commissioner of revenue must notify any affected county in the first year that 
123.19 	a pipeline system becomes eligible for an abatement under this subdivision.
123.20 	(d) The abatement under this subdivision applies for a period not to exceed 12 taxable 
123.21 	years, provided that once a property no longer qualifies, it may not subsequently qualify 
123.22 	for an abatement under this subdivision.

123.23 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2021.

123.24 	Sec. 24. Minnesota Statutes 2018, section 275.066, is amended to read:
123.25 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
123.26 	For the purposes of property taxation and property tax state aids, the term "special taxing 
123.27 	districts" includes the following entities:
123.28 	(1) watershed districts under chapter 103D;
123.29 	(2) sanitary districts under sections 442A.01 to 442A.29;
124.1 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
124.2 	(4) regional public library districts under section 134.201;
124.3 	(5) park districts under chapter 398;
124.4 	(6) regional railroad authorities under chapter 398A;
124.5 	(7) hospital districts under sections 447.31 to 447.38;
124.6 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
124.7 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
124.8 	(10) regional development commissions under sections 462.381 to 462.398;
124.9 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
124.10 	(12) port authorities under sections 469.048 to 469.068;
124.11 	(13) economic development authorities under sections 469.090 to 469.1081;
124.12 	(14) Metropolitan Council under sections 473.123 to 473.549;
124.13 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
124.14 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
124.15 	(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 
124.16 	437, section 1;
124.17 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
124.18 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 
124.19 	1 to 6;
124.20 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 
124.21 	section 39;
124.22 	(21) Middle Mississippi River Watershed Management Organization under sections 
124.23 	103B.211 and 103B.241;
124.24 	(22) emergency medical services special taxing districts under section 144F.01;
124.25 	(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
124.26 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
124.27 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
124.28 	(25) an airport authority created under section 360.0426; and
125.1 	(26) fire protection special taxing districts under section 299O.01; and
125.2 	(27) any other political subdivision of the state of Minnesota, excluding counties, school 
125.3 	districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 
125.4 	county auditor, as determined by the commissioner of revenue.

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

125.6 	Sec. 25. Minnesota Statutes 2018, section 276.131, is amended to read:
125.7 	276.131 DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.
125.8 		Subdivision 1.Distribution. Except as provided in subdivision 2, the penalties, interest, 
125.9 	and costs collected on special assessments and real and personal property taxes must be 
125.10 	distributed as follows:
125.11 	(1) all penalties and interest collected on special assessments against real or personal 
125.12 	property must be distributed to the taxing jurisdiction that levied the assessment;
125.13 	(2) 50 percent of all penalties collected on real and personal property taxes must be 
125.14 	distributed to the school districts within the county, and the remaining 50 percent must be 
125.15 	distributed to the county;
125.16 	(3) in the case of interest on taxes that have been delinquent for a period of one year or 
125.17 	less, (a) 50 percent of the interest must be distributed to the school districts within the county 
125.18 	and (b) the remaining 50 percent shall be distributed to the county;
125.19 	(4) in the case of interest on taxes that have been delinquent for a period of more than 
125.20 	one year, (a) 50 percent of the interest must be distributed to the school districts within the 
125.21 	county and (b) the remaining 50 percent must be distributed as follows: (i) the city or town 
125.22 	where the property is located shall receive a share of the amount of interest equal to the 
125.23 	proportion that the city's or town's local tax rate for the year that the interest was collected, 
125.24 	is to the sum of the city's or town's local tax rate and the county's local tax rate for the year 
125.25 	that the interest was collected and (ii) the balance must be distributed to the county; and
125.26 	(5) all costs collected by the county on special assessments and on delinquent real and 
125.27 	personal property taxes must be distributed to the county in which the property is located.
125.28 		Subd. 2.Distribution of certain production taxes. The penalties, interest, and costs 
125.29 	collected on taxes imposed under sections 272.029 and 272.0295 must be distributed to the 
125.30 	same local taxing jurisdictions and in the same percentages as provided for the revenues of 
125.31 	the original taxes imposed under sections 272.029 and 272.0295.
126.1 		Subd. 3.Distribution to school district. The distribution of all penalties and interest 
126.2 	to the school district must be in accordance with the provisions of section 127A.34.

126.3 	EFFECTIVE DATE. This section is effective for penalties, interest, and costs collected 
126.4 	on taxes payable in 2020 and thereafter.

126.5 	Sec. 26. Minnesota Statutes 2018, section 282.01, subdivision 6, is amended to read:
126.6 		Subd. 6.Duties of commissioner after sale. (a) When any sale has been made by the 
126.7 	county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the 
126.8 	commissioner of revenue such information relating to such sale, on such forms as the 
126.9 	commissioner of revenue may prescribe as will enable the commissioner of revenue to 
126.10 	prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is 
126.11 	on terms; and not later than October 31 of each year the county auditor shall submit to the 
126.12 	commissioner of revenue a statement of all instances wherein any payment of principal, 
126.13 	interest, or current taxes on lands held under certificate, due or to be paid during the preceding 
126.14 	calendar years, are still outstanding at the time such certificate is made. When such statement 
126.15 	shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue 
126.16 	may instruct the county board of the county in which the land is located to cancel said 
126.17 	certificate of sale in the manner provided by subdivision 5, provided that upon 
126.18 	recommendation of the county board, and where the circumstances are such that the 
126.19 	commissioner of revenue after investigation is satisfied that the purchaser has made every 
126.20 	effort reasonable to make payment of both the annual installment and said taxes, and that 
126.21 	there has been no willful neglect on the part of the purchaser in meeting these obligations, 
126.22 	then the commissioner of revenue may extend the time for the payment for such period as 
126.23 	the commissioner may deem warranted, not to exceed one year. On payment in full of the 
126.24 	purchase price, appropriate conveyance in fee, in such form as may be prescribed by the 
126.25 	attorney general, shall be issued by the commissioner of revenue, which conveyance must 
126.26 	be recorded by the county and shall have the force and effect of a patent from the state 
126.27 	subject to easements and restrictions of record at the date of the tax judgment sale, including, 
126.28 	but without limitation, permits for telephone and electric power lines either by underground 
126.29 	cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for 
126.30 	gas, liquids, or solids in suspension.
126.31 	(b) The commissioner of revenue shall issue an appropriate conveyance in fee (1) upon 
126.32 	the approval from the county auditor, or (2) when approval from the county auditor is given 
126.33 	based upon written confirmation from a licensed closing agent, title insurer, or title insurance 
126.34 	agent as specified in section 82.641. For purposes of this paragraph, "written confirmation" 
127.1 	means a written commitment or approval that the funding for the conveyance is held in an 
127.2 	escrow account available for disbursement upon delivery of a conveyance. The county 
127.3 	recorder or registrar of titles must not record or file a conveyance issued under this paragraph 
127.4 	unless the conveyance contains a certification signed by the county auditor where the land 
127.5 	is located that the recorder or registrar of titles can accept the conveyance for recording or 
127.6 	filing. The conveyance issued by the commissioner of revenue shall not be effective as a 
127.7 	conveyance until it is recorded. The conveyance shall be issued to the county auditor where 
127.8 	the land is located. Upon receipt of the conveyance, the county auditor shall hold the 
127.9 	conveyance until the conveyance is requested from a licensed closing agent, title insurer, 
127.10 	or title insurance agent to settle and close on the conveyance. If a request for the conveyance 
127.11 	is not made within 30 days of the date the conveyance is issued by the commissioner of 
127.12 	revenue, the county auditor shall return the conveyance to the commissioner. If the 
127.13 	conveyance is delivered to the licensed closing agent, title insurer, or title insurance agent 
127.14 	and the closing does not occur within ten days of the request, the licensed closing agent, 
127.15 	title insurer, or title insurance agent shall immediately return the conveyance to the county 
127.16 	auditor and, upon receipt, the county auditor shall return the conveyance to the commissioner 
127.17 	of revenue. The commissioner of revenue shall cancel and destroy all conveyances returned 
127.18 	by the county auditor pursuant to this subdivision. The licensed closing agent, title insurer, 
127.19 	or title insurance agent must promptly record the conveyance after the closing and must 
127.20 	deliver an attested or certified copy to the county auditor and to the grantee or grantees 
127.21 	named on the conveyance.

127.22 	EFFECTIVE DATE. This section is effective for conveyances issued by the 
127.23 	commissioner of revenue after December 31, 2019.

127.24 	Sec. 27. Minnesota Statutes 2018, section 290A.03, subdivision 13, is amended to read:
127.25 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
127.26 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
127.27 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
127.28 	and any other state paid property tax credits in any calendar year, and after any refund 
127.29 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
127.30 	year that the property tax is payable. In the case of a claimant who makes ground lease 
127.31 	payments, "property taxes payable" includes the amount of the payments directly attributable 
127.32 	to the property taxes assessed against the parcel on which the house is located. Regardless 
127.33 	of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes 
127.34 	payable" must be apportioned or reduced for the use of a portion of the claimant's homestead 
127.35 	for a business purpose if the claimant deducts any business depreciation expenses for the 
128.1 	use of a portion of the homestead or deducts expenses under section 280A of the Internal 
128.2 	Revenue Code for a business operated in the claimant's homestead. For homesteads which 
128.3 	are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads 
128.4 	which are including manufactured homes located in a manufactured home community owned 
128.5 	by a cooperative organized under chapter 308A or 308B, and park trailers taxed as 
128.6 	manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall 
128.7 	also include 17 percent of the gross rent paid in the preceding year for the site on which the 
128.8 	homestead is located. When a homestead is owned by two or more persons as joint tenants 
128.9 	or tenants in common, such tenants shall determine between them which tenant may claim 
128.10 	the property taxes payable on the homestead. If they are unable to agree, the matter shall 
128.11 	be referred to the commissioner of revenue whose decision shall be final. Property taxes 
128.12 	are considered payable in the year prescribed by law for payment of the taxes.
128.13 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
128.14 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
128.15 	property must have been classified as homestead property pursuant to section 273.124, on 
128.16 	or before December 15 of the assessment year to which the "property taxes payable" relate; 
128.17 	or (ii) the claimant must provide documentation from the local assessor that application for 
128.18 	homestead classification has been made on or before December 15 of the year in which the 
128.19 	"property taxes payable" were payable and that the assessor has approved the application.

128.20 	EFFECTIVE DATE. This section is effective beginning with claims for taxes payable 
128.21 	in 2020.

128.22 	Sec. 28. [299O.01] FIRE PROTECTION SPECIAL TAXING DISTRICTS.
128.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
128.24 	the meanings given unless the context clearly requires otherwise.
128.25 	(b) "City" means a statutory or home rule charter city.
128.26 	(c) "Governing body" means for a city, its city council; for a county, its county board; 
128.27 	and for a town, the board of supervisors.
128.28 	(d) "Political subdivision" means a county, a city, or a township organized to provide 
128.29 	town government.
128.30 		Subd. 2.Authority to establish. (a) Two or more political subdivisions may establish, 
128.31 	by resolution of their governing bodies, a special taxing district to provide fire protection 
128.32 	or emergency medical services, or both, in the area of the district, comprising the jurisdiction 
128.33 	of each of the political subdivisions forming the district. For a county that participates in 
129.1 	establishing a district, the county's jurisdiction comprises the unorganized territory of the 
129.2 	county that it designates in its resolution for inclusion in the district. The area of the special 
129.3 	taxing district does not need to be contiguous or its boundaries continuous.
129.4 	(b) Before establishing a district under this section, the participating political subdivisions 
129.5 	must enter into an agreement that specifies how any liabilities, other than debt issued under 
129.6 	subdivision 6, and assets of the district will be distributed if the district is dissolved. The 
129.7 	agreement may also include other terms, including a method for apportioning the levy of 
129.8 	the district among participating political subdivisions under subdivision 4, paragraph (b), 
129.9 	as the political subdivisions determine appropriate. The agreement must be adopted no later 
129.10 	than upon passage of the resolution establishing the district under paragraph (a), but may 
129.11 	be later amended by agreement of each of the political subdivisions participating in the 
129.12 	district.
129.13 		Subd. 3.Board. The special taxing district established under this section is governed 
129.14 	by a board made up initially of representatives of each participating political subdivision 
129.15 	in the proportions set out in the establishing resolution, subject to change as provided in the 
129.16 	district's charter, if any, or in the district's bylaws. Each participating political subdivision's 
129.17 	representative must be an elected member of the governing body of the political subdivision 
129.18 	and serves at the pleasure of that participant's governing body.
129.19 		Subd. 4.Property tax levy. (a) The board may levy a tax on the taxable real and personal 
129.20 	property in the district. The tax levy may not exceed 0.096 percent of the estimated market 
129.21 	value of the district, or $1,100,000, whichever is less. The proceeds of the levy must be 
129.22 	used as provided in subdivision 5. The board shall certify the levy at the times provided 
129.23 	under section 275.07. The board shall provide the county with information as necessary to 
129.24 	identify the property that is located within the district. If the boundaries include a part of a 
129.25 	parcel, the entire parcel is included in the district. The county auditors must spread, collect, 
129.26 	and distribute the proceeds of the tax at the same time and in the same manner as provided 
129.27 	by law for all other property taxes.
129.28 	(b) As an alternative to paragraph (a), the board may apportion its levy among the political 
129.29 	subdivisions that are members of the district under a formula or method, such as population, 
129.30 	number of service calls, cost of providing service, the market value of improvements, or 
129.31 	other measure or measures, that was approved by the governing body of each of the political 
129.32 	subdivisions that is a member of the district. The amount of the levy allocated to each 
129.33 	political subdivision must be added to that political subdivision's levy and spread at the 
129.34 	same time and in the same manner as provided by law for other taxes. The proceeds of the 
129.35 	levy must be collected and remitted to the district and used as provided in subdivision 5.
130.1 		Subd. 5.Use of levy proceeds. The proceeds of property taxes levied under this section 
130.2 	must be used to provide fire protection or emergency medical services to residents of the 
130.3 	district and property located in the district, as well as to pay debt issued under subdivision 
130.4 	6. Services may be provided by employees of the district or by contracting for services 
130.5 	provided by other governmental or private entities.
130.6 		Subd. 6.Debt. (a) The district may incur debt under chapter 475 when the board 
130.7 	determines doing so is necessary to accomplish its duties.
130.8 	(b) In addition, the board of the district may issue certificates of indebtedness or capital 
130.9 	notes under section 412.301 to purchase capital equipment. In applying section 412.301, 
130.10 	paragraph (e), to the district the following rules apply:
130.11 	(1) the taxable property of the entire district must be used to calculate the percent of 
130.12 	estimated market value; and
130.13 	(2) "the number of voters at the last municipal election" means the sum of the number 
130.14 	of voters at the last municipal election for each of the cities that is a member of the district 
130.15 	plus the number of registered voters in each town that is a participating member of the 
130.16 	district.
130.17 		Subd. 7.Powers. (a) In addition to authority expressly granted in this section, a special 
130.18 	taxing district may exercise any power that may be exercised by any of its participating 
130.19 	political subdivisions and that is necessary or reasonable to support the services set out in 
130.20 	subdivision 5. The district may only levy the taxes authorized in subdivision 4. These powers 
130.21 	include, without limitation, the authority to participate in state programs and to enforce or 
130.22 	carry out state laws related to fire protection or emergency medical services, including 
130.23 	programs providing state aid, reimbursement or funding of employee benefits, authorizing 
130.24 	local enforcement of state standards, and similar. These include but are not limited to fire 
130.25 	protection related programs and political subdivision powers or responsibilities under 
130.26 	chapters 299A and 424A; sections 6.495, 69.011, and 353.64; and any administrative rules 
130.27 	related to the fire code.
130.28 	(b) To the extent that the district's authority under this subdivision overlaps with or may 
130.29 	conflict with the authority of the participating political subdivision, the agreement under 
130.30 	subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities 
130.31 	between the participating political subdivisions and the district and may provide for resolution 
130.32 	of conflicts in the exercise of those powers.
130.33 		Subd. 8.Additions and withdrawals. (a) Additional eligible political subdivisions may 
130.34 	be added to a special taxing district under this section as provided by the board of the district 
131.1 	and agreed to in a resolution of the governing body of the political subdivision proposed to 
131.2 	be added.
131.3 	(b) A political subdivision may withdraw from a special taxing district under this section 
131.4 	by resolution of its governing body. The political subdivision must notify the board of the 
131.5 	special taxing district of the withdrawal by providing a copy of the resolution at least two 
131.6 	years in advance of the proposed withdrawal. The taxable property of the withdrawing 
131.7 	member is subject to the property tax levy under subdivision 4 for the two taxes payable 
131.8 	years following the notice of the withdrawal, unless the board and the withdrawing member 
131.9 	agree otherwise by a resolution adopted by each of their governing bodies. If a political 
131.10 	subdivision withdraws from a district for which debt was issued under subdivision 6 when 
131.11 	the political subdivision was a participating member of the district and which is outstanding 
131.12 	when the political subdivision withdraws from the district, the taxable property of the 
131.13 	withdrawing political subdivision remains subject to the special taxing district debt levy 
131.14 	until that outstanding debt has been paid or defeased. If the district's property levy to repay 
131.15 	the debt was apportioned among the political subdivisions under an alternative formula or 
131.16 	method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject 
131.17 	to the same percentage of the debt levy as applied in the taxes payable year immediately 
131.18 	before its withdrawal from the district.
131.19 	(c) Notwithstanding subdivision 2, a special taxing district comprised of two political 
131.20 	subdivisions continues to exist even if one of the political subdivisions withdraws.
131.21 		Subd. 9.Dissolution. The special taxing district may be dissolved by resolution approved 
131.22 	by majority vote of the board. If the special taxing district is dissolved, the assets and 
131.23 	liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public 
131.24 	purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or 
131.25 	otherwise agreed to by the participating political subdivisions. A district may not be dissolved 
131.26 	until all debt issued under subdivision 6 has been paid or defeased.

131.27 	EFFECTIVE DATE. (a) Subdivisions 1 to 3, and 5 to 9, are effective the day following 
131.28 	final enactment.
131.29 	(b) Subdivision 4 shall be effective beginning with property taxes payable in 2020 and 
131.30 	thereafter.

132.1 	Sec. 29. Minnesota Statutes 2018, section 473H.08, subdivision 1, is amended to read:
132.2 		Subdivision 1.Till expiration started. Agricultural preserves shall continue until either 
132.3 	the landowner or, the authority, or a state agency or governmental unit initiates expiration 
132.4 	as provided in this section.

132.5 	EFFECTIVE DATE. This section is effective the day following final enactment and 
132.6 	applies to any agricultural preserve where the previously required eight-year termination 
132.7 	period under Minnesota Statutes, section 473H.08, has not yet expired.

132.8 	Sec. 30. Minnesota Statutes 2018, section 473H.08, is amended by adding a subdivision 
132.9 	to read:
132.10 		Subd. 3a.Expiration for park and trail purposes. (a) An agricultural preserve expires 
132.11 	immediately when a state agency or other governmental unit purchases the property or 
132.12 	obtains an easement over the property for the purpose of creating or expanding a public 
132.13 	trail or public park. This subdivision applies only to the portion of the agricultural preserve 
132.14 	acquired for trail or park purposes, and any portion of the property not acquired for trail or 
132.15 	park purposes shall remain an agricultural preserve, even if the total acreage is reduced 
132.16 	below 40 acres.
132.17 	(b) The acquiring state agency or governmental unit shall give notice to the authority as 
132.18 	provided in subdivision 4. The notice must specify the portion of the property being removed 
132.19 	from the agricultural preserve and the date on which that portion expires.

132.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
132.21 	applies to any agricultural preserve where the previously required eight-year termination 
132.22 	period under Minnesota Statutes, section 473H.08, has not yet expired.

132.23 	Sec. 31. Minnesota Statutes 2018, section 473H.08, subdivision 4, is amended to read:
132.24 		Subd. 4.Notice to others. Upon receipt of the notice provided in subdivision 2 or 3a, 
132.25 	or upon notice served by the authority as provided in subdivision 3, the authority shall 
132.26 	forward the original notice to the county recorder for recording, or to the registrar of titles 
132.27 	if the land is registered, and shall notify the county auditor, county assessor, the Metropolitan 
132.28 	Council, and the county soil and water conservation district of the date of expiration. 
132.29 	Designation as an agricultural preserve and all benefits and limitations accruing through 
132.30 	sections 473H.02 to 473H.17 for the preserve shall cease on the date of expiration. The 
132.31 	restrictive covenant contained in the application shall terminate on the date of expiration.

133.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
133.2 	applies to any agricultural preserve where the previously required eight-year termination 
133.3 	period under Minnesota Statutes, section 473H.08, has not yet expired.

133.4 	Sec. 32. Minnesota Statutes 2018, section 473H.09, is amended by adding a subdivision 
133.5 	to read:
133.6 		Subd. 3.Approval of authority. Termination of an agricultural preserve earlier than 
133.7 	the date derived through the application in section 473H.08 may be requested by the owner 
133.8 	eight years after commencement of the preserve. An owner seeking termination under this 
133.9 	subdivision must provide notice to the authority exercising planning and zoning authority 
133.10 	for the land on a form provided by the commissioner of agriculture. The notice must describe 
133.11 	the property for which termination is desired and the date of termination. Termination of 
133.12 	the agricultural preserve and covenant pursuant to this subdivision shall become effective 
133.13 	only upon approval by a majority vote of the authority.

133.14 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
133.15 	applies to any agricultural preserve where the previously required eight-year termination 
133.16 	period under Minnesota Statutes, section 473H.08, has not expired.

133.17 	Sec. 33. Laws 2008, chapter 366, article 5, section 33, the effective date, as amended by 
133.18 	Laws 2013, chapter 143, article 4, section 35, is amended to read:

133.19 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable in 2009, 
133.20 	and is repealed effective for taxes levied in 2018 2023, payable in 2019 2024, and thereafter.

133.21 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2019.

133.22 	Sec. 34. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws 
133.23 	2013, chapter 143, article 4, section 36, is amended to read:
133.24 		Subdivision 1.Agreement. The city of Cloquet and Perch Lake Township, by resolution 
133.25 	of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance 
133.26 	Special Taxing District for the purpose of providing fire or ambulance services, or both, 
133.27 	throughout the district. In this section, "municipality" means home rule charter and statutory 
133.28 	cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and 
133.29 	ambulance services of the municipalities that receive fire or ambulance services, or both, 
133.30 	from the district. Upon application, any other municipality may join the district with the 
133.31 	agreement of the municipalities that comprise the district at the time of its application to 
133.32 	join.

134.1 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
134.2 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
134.3 	subdivision 3.

134.4 	Sec. 35. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
134.5 		Subd. 2.Board. The Cloquet Area Fire and Ambulance Special Taxing District Board 
134.6 	is governed by a board made up initially of one or more elected officials of the governing 
134.7 	body of each participating municipality in the proportions set out in the establishing 
134.8 	resolution, subject to change as provided in the district's charter, if any, or in the district's 
134.9 	bylaws. Each municipality's representatives serve at the pleasure of that municipality's 
134.10 	governing body.

134.11 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
134.12 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
134.13 	subdivision 3.

134.14 	Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 
134.15 	2013, chapter 143, article 4, section 37, is amended to read:
134.16 		Subd. 3.Tax. The district board may impose a property tax on taxable property as 
134.17 	provided in this subdivision to pay the costs of providing fire or ambulance services, or 
134.18 	both, throughout the district. The board shall annually determine the total amount of the 
134.19 	levy that is attributable to the cost of providing fire services and the cost of providing 
134.20 	ambulance services within the primary service area. For those municipalities that only 
134.21 	receive ambulance services, the costs for the provision of ambulance services shall be levied 
134.22 	against taxable property within those municipalities at a rate necessary not to exceed 0.019 
134.23 	percent of the estimated market value. For those municipalities that receive both fire and 
134.24 	ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent 
134.25 	of estimated market value.
134.26 	When a member municipality opts to receive fire service from the district or an additional 
134.27 	municipality becomes a member of the district, the cost of providing fire services to that 
134.28 	community shall be determined by the board and added to the maximum levy amount.
134.29 	Each county auditor of a county that contains a municipality subject to the tax under 
134.30 	this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. 
134.31 	The district may also impose other fees or charges as allowed by law for the provision of 
134.32 	fire and ambulance services.

135.1 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
135.2 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
135.3 	subdivision 3.

135.4 	Sec. 37. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
135.5 		Subd. 4.Public indebtedness. The district may incur debt in the manner provided for 
135.6 	in Minnesota Statutes, chapter 475, and the district is a municipality by Minnesota Statutes, 
135.7 	chapter 475, when necessary to accomplish its duties., as defined in Minnesota Statutes, 
135.8 	sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c), and may issue 
135.9 	certificates of indebtedness or capital notes as provided for a city under Minnesota Statutes, 
135.10 	section 412.301, when necessary to accomplish its duties. Any tax levied to pay debt of the 
135.11 	district must be levied in the amounts required and in accordance with Minnesota Statutes, 
135.12 	section 475.61. The debt service for debt, the proceeds of which financed capital costs for 
135.13 	ambulance service, must be levied against taxable property within those municipalities in 
135.14 	the primary service area. The debt service for debt, the proceeds of which financed capital 
135.15 	costs for fire service, must be levied against taxable property within those municipalities 
135.16 	receiving fire services.

135.17 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
135.18 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
135.19 	subdivision 3.

135.20 	Sec. 38. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
135.21 		Subd. 5.Withdrawal. Notice of intent to withdraw from participation in the district 
135.22 	may be given only in the month of January, with a minimum of twelve months notice of 
135.23 	intent to withdraw. Withdrawal becomes effective for taxes levied under subdivision 3 in 
135.24 	the year when the notice is given. A property tax levied by the district on taxable property 
135.25 	located in a withdrawing municipality to make debt service payments for obligations issued 
135.26 	by the district under subdivision 4 remains in effect until the obligations outstanding on the 
135.27 	date of withdrawal are satisfied, including any property tax levied in connection with a 
135.28 	refunding of the obligations. The district and its members may develop and agree upon 
135.29 	other continuing obligations after withdrawal of a municipality.

135.30 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
135.31 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
135.32 	subdivision 3.

136.1 	Sec. 39. Laws 2017, First Special Session chapter 1, article 10, section 4, the effective 
136.2 	date, is amended to read:

136.3 	EFFECTIVE DATE; APPLICATION. This section is effective for applications and 
136.4 	certifications made in 2018 and thereafter, except the repeal of the exclusion of land under 
136.5 	item (iii) is effective retroactively for payments due under Minnesota Statutes, section 
136.6 	290C.08, beginning for payments due to be made in 2014. In order to qualify for retroactive 
136.7 	payments, the following requirements must be met: (1) the owner of land exceeding 60,000 
136.8 	acres that is subject to a single conservation easement funded under Minnesota Statutes, 
136.9 	section 97A.056 or a comparable permanent easement conveyed to a governmental or 
136.10 	nonprofit entity, must submit an application to the commissioner of revenue, in a form and 
136.11 	manner and at a time acceptable to the commissioner, establishing that the affected property 
136.12 	and its use met the requirement of Minnesota Statutes, chapter 290C, as amended by this 
136.13 	section; (2) the owner and each county in which the land is located must certify to the 
136.14 	commissioner that no petitions challenging the market value of the property are pending 
136.15 	under Minnesota Statutes, chapter 278; and (3) the requirements of clauses (1) and (2) must 
136.16 	be satisfied by October 1, 2017. No interest accrues on payment under this section for 
136.17 	periods before November 1, 2017.

136.18 	EFFECTIVE DATE. This section is effective retroactively for certifications made in 
136.19 	2018 and thereafter.

136.20 	Sec. 40. PLACEMENT OF LAND INTO FEDERAL TRUST; REPORT.
 136.21 		Subdivision 1.County certification. By October 1, 2019, each county must certify to 
136.22 	the commissioner of revenue the following:
136.23 	(1) the parcel identification number, property classification, and parcel size for each 
136.24 	parcel of property in the county that was placed into trust by the United States Department 
136.25 	of the Interior Bureau of Indian Affairs between January 1, 2009, and January 1, 2019;
136.26 	(2) the amount of property tax paid on each parcel to each taxing jurisdiction in the 
136.27 	county in the year prior to the parcel being placed into trust;
136.28 	(3) the total percentage of land in the county placed into trust as of October 1, 2019; and
136.29 	(4) the parcel identification number, property classification, parcel size, and the amount 
136.30 	of property tax paid to each taxing jurisdiction for the most recent taxes payable year for 
136.31 	each parcel in the county for which an application for placement into trust was filed between 
136.32 	January 1, 2019, and July 1, 2019.
137.1 		Subd. 2.Verification. The commissioner of revenue may request additional information 
137.2 	from each county that the commissioner deems necessary to verify the certifications as 
137.3 	reported by each county pursuant to subdivision 1.
137.4 		Subd. 3.Report. By February 15, 2020, the commissioner of revenue must issue a report 
137.5 	and provide a copy of the report to the chairs and ranking minority members of the legislative 
137.6 	committees with jurisdiction over taxes. The report must include the following:
137.7 	(1) a listing, by each county, of each parcel of property in the county that was placed 
137.8 	into trust by the United States Department of the Interior Bureau of Indian Affairs between 
137.9 	January 1, 2009, and January 1, 2019, including the parcel's identification number, property 
137.10 	classification, and total parcel size;
137.11 	(2) the amount of property tax paid on each parcel to each taxing jurisdiction in the 
137.12 	county in the year prior to the parcel being placed into trust;
137.13 	(3) the total percentage of land in each county placed into trust as of October 1, 2019, 
137.14 	and the total percentage of land placed into trust statewide as of October 1, 2019; and
137.15 	(4) a listing, by each county, of each parcel, including its identification number, property 
137.16 	classification, parcel size, and the amount of property tax paid for the most recent taxes 
137.17 	payable year for which an application for placement into trust was filed between January 
137.18 	1, 2019, and July 1, 2019.

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

137.20 	ARTICLE 5
137.21 	AIDS AND CREDITS

137.22 	Section 1. Minnesota Statutes 2018, section 126C.17, subdivision 6, is amended to read:
137.23 		Subd. 6.Referendum equalization levy. (a) A district's referendum equalization levy 
137.24 	equals the sum of the first tier referendum equalization levy, the second tier referendum 
137.25 	equalization levy, and the third tier referendum equalization levy.
137.26 	(b) A district's first tier referendum equalization levy equals the district's first tier 
137.27 	referendum equalization revenue times the lesser of one or the ratio of the district's 
137.28 	referendum market value per resident pupil unit to $880,000 $900,000.
137.29 	(c) A district's second tier referendum equalization levy equals the district's second tier 
137.30 	referendum equalization revenue times the lesser of (1) one or, (2) the ratio of the district's 
137.31 	referendum market value per resident pupil unit to $510,000 $550,000, or (3) the ratio of 
137.32 	the district's referendum market value per adjusted pupil unit to $550,000.
138.1 	(d) A district's third tier referendum equalization levy equals the district's third tier 
138.2 	referendum equalization revenue times the lesser of (1) one or, (2) the ratio of the district's 
138.3 	referendum market value per resident pupil unit to $290,000 $440,000, or (3) the ratio of 
138.4 	the district's referendum market value per adjusted pupil unit to $440,000.

138.5 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2021 and later.

138.6 	Sec. 2. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
138.7 		Subd. 3.Income. (a) "Income" means the sum of the following:
138.8 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
138.9 	(2) the sum of the following amounts to the extent not included in clause (1):
138.10 	(i) all nontaxable income;
138.11 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
138.12 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
138.13 	carryover allowed under section 469(b) of the Internal Revenue Code;
138.14 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
138.15 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
138.16 	Code;
138.17 	(iv) cash public assistance and relief;
138.18 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
138.19 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
138.20 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
138.21 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
138.22 	gross income in the years when the payments were made;
138.23 	(vi) interest received from the federal or a state government or any instrumentality or 
138.24 	political subdivision thereof;
138.25 	(vii) workers' compensation;
138.26 	(viii) nontaxable strike benefits;
138.27 	(ix) the gross amounts of payments received in the nature of disability income or sick 
138.28 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
138.29 	or otherwise;
138.30 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
138.31 	1986, as amended through December 31, 1995;
139.1 	(xi) contributions made by the claimant to an individual retirement account, including 
139.2 	a qualified voluntary employee contribution; simplified employee pension plan; 
139.3 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
139.4 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
139.5 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
139.6 	the claimant and spouse;
139.7 	(xii) to the extent not included in federal adjusted gross income, distributions received 
139.8 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
139.9 	(xiii) nontaxable scholarship or fellowship grants;
139.10 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
139.11 	(xv)(xiv) the amount of deduction allowed under section 220 or 223 of the Internal 
139.12 	Revenue Code;
139.13 	(xvi) (xv) the amount deducted for tuition expenses under section 222 of the Internal 
139.14 	Revenue Code; and
139.15 	(xvii) (xvi) the amount deducted for certain expenses of elementary and secondary school 
139.16 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
139.17 	In the case of an individual who files an income tax return on a fiscal year basis, the 
139.18 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
139.19 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
139.20 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
139.21 	or carryforward allowed for the year.
139.22 	(b) "Income" does not include:
139.23 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
139.24 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
139.25 	or spouse and which funding payments were not excluded from federal adjusted gross 
139.26 	income in the years when the payments were made;
139.27 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
139.28 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
139.29 	the retirement base amount reduced by the amount of contributions excluded from federal 
139.30 	adjusted gross income, but not less than zero;
139.31 	(4) surplus food or other relief in kind supplied by a governmental agency;
139.32 	(5) relief granted under this chapter;
140.1 	(6) child support payments received under a temporary or final decree of dissolution or 
140.2 	legal separation; or
140.3 	(7) restitution payments received by eligible individuals and excludable interest as 
140.4 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
140.5 	Public Law 107-16; or
140.6 	(8) nontaxable scholarship or fellowship grants, or the cash value of any tuition discount 
140.7 	provided by a postsecondary education institution.
140.8 	(c) The sum of the following amounts may be subtracted from income:
140.9 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
140.10 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
140.11 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
140.12 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
140.13 	(5) for the claimant's fifth dependent, the exemption amount; and
140.14 	(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 
140.15 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
140.16 	amount.
140.17 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
140.18 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
140.19 	the income is reported; "retirement base amount" means the deductible amount for the 
140.20 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
140.21 	Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue 
140.22 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
140.23 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
140.24 	408, 408A, and 457 of the Internal Revenue Code.

140.25 	EFFECTIVE DATE. This section is effective beginning with refunds based on property 
140.26 	taxes payable in 2020 and rent paid in 2019.

140.27 	Sec. 3. Minnesota Statutes 2018, section 469.169, is amended by adding a subdivision to 
140.28 	read:
140.29 		Subd. 21.Additional border city allocations. (a) In addition to the tax reductions 
140.30 	authorized in subdivisions 12 to 20, the commissioner shall allocate $2,000,000 for tax 
140.31 	reductions to border city enterprise zones in cities located on the western border of the state. 
141.1 	The commissioner shall allocate this amount among cities on a per capita basis. Allocations 
141.2 	under this subdivision may be used for tax reductions under sections 469.171, 469.1732, 
141.3 	and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in 
141.4 	the enterprise zone, but only if the municipality determines that the granting of the tax 
141.5 	reduction or offset is necessary to retain a business within or attract a business to the zone.
141.6 	(b) The allocations under this subdivision do not cancel or expire, but remain available 
141.7 	until used by the city.

141.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

141.9 	Sec. 4. Minnesota Statutes 2018, section 477A.0126, subdivision 6, is amended to read:
141.10 		Subd. 6.Indian Child Welfare Act compliance system review. (a) By January 1, 2018, 
141.11 	the commissioner of human services, in consultation with counties and tribes, shall develop 
141.12 	a system to review county compliance with the Indian Child Welfare Act and the Minnesota 
141.13 	Indian Family Preservation Act. The system may include, but is not limited to, the cases to 
141.14 	be reviewed, the criteria to be reviewed to demonstrate compliance, the rate of noncompliance 
141.15 	and the coordinating penalty, the program improvement plan, and training.
141.16 	(b) The commissioner of human services shall provide continuous review of cases 
141.17 	reported by counties for aid payments under this section for compliance with the Indian 
141.18 	Child Welfare Act and the Minnesota Indian Family Preservation Act.
141.19 	(c) The commissioner of human services must initiate a contested case proceeding under 
141.20 	chapter 14 if a county notifies the commissioner that the county disputes the determination 
141.21 	made by the commissioner of human services regarding a county's compliance or 
141.22 	noncompliance with the Indian Child Welfare Act and the Minnesota Indian Family 
141.23 	Preservation Act shall be final.

141.24 	EFFECTIVE DATE. This section is effective beginning with aids payable in calendar 
141.25 	year 2020 and thereafter.

141.26 	Sec. 5. Minnesota Statutes 2018, section 477A.0126, subdivision 7, is amended to read:
141.27 		Subd. 7.Appropriation. (a) $5,000,000$7,000,000 is annually appropriated to the 
141.28 	commissioner of revenue from the general fund to pay aid under this section.
141.29 	(b) $390,000 is appropriated annually from the general fund to the commissioner of 
141.30 	human services to implement subdivision 6.

142.1 	EFFECTIVE DATE. This section is effective beginning with aids payable in calendar 
142.2 	year 2020 and thereafter.

142.3 	Sec. 6. LOCAL GOVERNMENT GRANTS.
 142.4 	$1,255,000 in fiscal year 2020 only is appropriated from the general fund to the 
142.5 	commissioner of revenue for grants that shall be paid by August 1, 2019, and allocated as 
142.6 	follows:
142.7 	(1) $750,000 to Mahnomen County. Of this amount, $250,000 must be used by the 
142.8 	county for the Mahnomen Health Center, and $250,000 must be paid from the county to 
142.9 	the White Earth Band of Ojibwe to reimburse the band for costs of delivering child welfare 
142.10 	services;
142.11 	(2) $500,000 to Otter Tail County to be used by the county for debt service on a building 
142.12 	located in the city of Fergus Falls and formerly leased by the state to provide residential 
142.13 	treatment services; and
142.14 	(3) $2,600 to the city of Mazeppa and $2,400 to Wabasha County, to be used by the city 
142.15 	and county for property tax abatements and other costs incurred by public and private entities 
142.16 	as a result of a fire in the city of Mazeppa on March 11, 2018.
142.17 	The appropriations under this section are onetime and are not added to the base.

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

142.19 	Sec. 7. APPROPRIATION OF LAPSED AMOUNTS; FIRE REMEDIATION 
142.20 	GRANTS.
 142.21 	(a) $643,729 in fiscal year 2020 is appropriated from the general fund to the commissioner 
142.22 	of public safety for grants to remediate the effects of fires in the city of Melrose on September 
142.23 	8, 2016. The grants shall be paid by August 1, 2019. This appropriation represents the 
142.24 	amounts that lapsed by the terms of the appropriation in Laws 2017, First Special Session 
142.25 	chapter 1, article 4, section 31.
142.26 	(b) A grant recipient must use the money appropriated under this section for remediation 
142.27 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
142.28 	costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 
142.29 	incurred by public or private entities as a result of the fires. This is a onetime appropriation 
142.30 	and is available until June 30, 2021.

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

143.1 	Sec. 8. APPROPRIATION.
 143.2 	For fiscal year 2021, $14,850,000 is appropriated from the general fund to the Department 
143.3 	of Education for referendum equalization aid under Minnesota Statutes, section 126C.17. 
143.4 	This amount is in addition to other appropriations for the same purpose.

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

143.6 	ARTICLE 6
143.7 	LOCAL SALES TAXES

143.8 	Section 1. Minnesota Statutes 2018, section 297A.99, subdivision 1, is amended to read:
143.9 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
143.10 	a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted 
143.11 	by special law, or (4) if the political subdivision enacted and imposed the tax before January 
143.12 	1, 1982, and its predecessor provision.
143.13 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
143.14 	The provisions of this section preempt the provisions of any special law:
143.15 	(1) enacted before June 2, 1997, or
143.16 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
143.17 	provision from this section's rules by reference.
143.18 	(c) This section does not apply to or preempt a sales tax on motor vehicles or . Beginning 
143.19 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
143.20 	under this section.
143.21 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
143.22 	referendum to support imposing a local option sales tax.
143.23 	(e) Notwithstanding paragraph (d), a political subdivision may expend funds to, and 
143.24 	may only spend funds related to imposing a local sales tax to:
143.25 	(1) conduct the referendum;
143.26 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
143.27 	only if the disseminated information includes a list of specific projects and the expected 
143.28 	cost of each individual project;
143.29 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
143.30 	the merits of the referendum are given equal time to express their opinions on the merits of 
143.31 	the referendum;
144.1 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
144.2 	purchases; and
144.3 	(5) provide facts and data related to the programs and projectseach individual project 
144.4 	to be funded with the local sales tax.

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

144.6 	Sec. 2. Minnesota Statutes 2018, section 297A.99, is amended by adding a subdivision to 
144.7 	read:
144.8 		Subd. 1a.Requirements. Local sales taxes may be used instead of traditional local 
144.9 	revenues only for construction and rehabilitation of capital projects when a clear regional 
144.10 	benefit beyond the taxing jurisdiction can be demonstrated. To impose a local sales tax, a 
144.11 	political subdivision must have a population of at least 1,000 as of the date the resolution 
144.12 	under subdivision 2 is adopted.

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

144.14 	Sec. 3. Minnesota Statutes 2018, section 297A.99, subdivision 2, is amended to read:
144.15 		Subd. 2.Local resolution before application for authority. (a) Before the governing 
144.16 	body of a political subdivision requests legislative approval ofto impose a local sales tax 
144.17 	authorized by a special law for a local sales tax that is administered under this section, it 
144.18 	shall adopt a resolution indicating its approval of the tax. The resolution must include, at a 
144.19 	minimum,the following information on:
144.20 	(1) the proposed tax rate, how the revenues will be used,;
144.21 	(2) a detailed description of no more than five capital projects that will be funded with 
144.22 	revenue from the tax;
144.23 	(3) documentation of the regional significance of each project, including the share of 
144.24 	the economic benefit to or use of each project by persons residing, or businesses located, 
144.25 	outside of the jurisdiction;
144.26 	(4) the amount of local sales tax revenue that would be used for each project and the 
144.27 	estimated time needed to raise that amount of revenue; and
144.28 	(5) the total revenue that will be raised for all projects before the tax expires, and the 
144.29 	estimated length of time that the tax will be in effect. This subdivision applies to local laws 
144.30 	enacted after June 30, 1998 if all proposed projects are funded.
145.1 	(b) The jurisdiction seeking authority to impose a local sales tax by special law must 
145.2 	submit the resolution in paragraph (a) along with underlying documentation indicating how 
145.3 	the benefits under paragraph (a), clause (3), were determined, to the chairs and ranking 
145.4 	minority members of the legislative committees with jurisdiction over taxes no later than 
145.5 	January 31 of the year in which the jurisdiction is seeking a special law authorizing the tax.
145.6 	(c) The special legislation granting local sales tax authority is not required to allow 
145.7 	funding for all projects listed in the resolution with the revenue from the local sales tax, but 
145.8 	must not include any projects not contained in the resolution.

145.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
145.10 	applies to all local sales taxes not authorized by the legislature before July 1, 2019.

145.11 	Sec. 4. Minnesota Statutes 2018, section 297A.99, subdivision 3, is amended to read:
145.12 		Subd. 3.Requirements for adoption, use, termination. (a) Imposition of a local sales 
145.13 	tax is subject to approval by voters of the political subdivision at a general election. The 
145.14 	election must be conducted no more than four years before the governing body of the political 
145.15 	subdivision requests legislative approval of the tax. The question put to voters must include:
145.16 	(1) the specific project or projects to be funded with the local sales tax;
145.17 	(2) the amount of local sales tax revenue that would be used for each project and, if more 
145.18 	than one project is proposed, the total amount of revenue raised for all projects, and the 
145.19 	estimated length of time that tax will be imposed; and
145.20 	(3) the notice in boldface type: "BY VOTING YES ON THIS BALLOT QUESTION, 
145.21 	YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
145.22 	(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a
145.23 	construction and rehabilitation costs and associated bonding costs related to the specific 
145.24 	capital improvement which is designated at least 90 days before the referendum on imposition 
145.25 	of the tax is conducted projects approved by the voters under paragraph (a).
145.26 	(c) The tax must terminate after the improvement designated under paragraph (b) has 
145.27 	been completed the revenues raised are sufficient to fund the projects approved by the voters 
145.28 	under paragraph (a).
145.29 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
145.30 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
145.31 	year. Notwithstanding subdivision 13, this paragraph applies to all local sales taxes in effect 
145.32 	at the time of or imposed after May 26, 1999.
146.1 	(e) After a tax has terminated, any amount collected by the political subdivision that is 
146.2 	greater than the average quarterly revenues collected over the immediately preceding 12 
146.3 	calendar months must be remitted to the commissioner for deposit to the general fund.

146.4 	EFFECTIVE DATE. (a) The changes to paragraphs (a) to (d) are effective the day 
146.5 	following final enactment and apply to all local sales taxes not authorized by the legislature 
146.6 	before July 1, 2019.
146.7 	(b) The addition of paragraph (e) is effective the day following final enactment and 
146.8 	applies retroactively to all currently imposed local sales taxes.

146.9 	Sec. 5. Minnesota Statutes 2018, section 477A.016, is amended to read:
146.10 	477A.016 NEW TAXES PROHIBITED.
146.11 	(a) No county, city, town or other taxing authority shall increase a present tax or impose 
146.12 	a new tax on sales or income.
146.13 	(b) No county, city, town, or other taxing authority shall increase a present excise tax 
146.14 	or fee or impose a new excise tax or fee on either:
146.15 	(1) the manufacture, distribution, wholesale, or retail sale of food, based on volume of 
146.16 	product sold, product sales value, or the type of product manufactured, distributed, or sold; 
146.17 	or
146.18 	(2) any container or instrument used for transporting, protecting, or consuming food.
146.19 	(c) For purposes of this section:
146.20 	(1) "food" has the meaning given in section 34A.01, subdivision 4; and
146.21 	(2) "container or instrument" means a bottle, cup, can, bag, drinking straw, or other 
146.22 	packaging that is made from plastic, aluminum, glass, paper, cardboard, or other material.
146.23 	(d) This section does not apply to reasonable license fees lawfully imposed by a county, 
146.24 	city, town, or other licensing authority in the exercise of its regulatory authority to license 
146.25 	a trade, profession, or business.

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

146.27 	Sec. 6. Laws 1980, chapter 511, section 1, subdivision 1, is amended to read:
146.28 		Subdivision 1.(a) Minnesota Statutes, section 477A.01, Subdivision 18 477A.016, shall 
146.29 	not be deemed to prohibit the city of Duluth from amending its sales and use tax ordinances 
146.30 	so as to impose a sales or and use tax at the rate of one percent upon any or all sales or uses 
147.1 	which are taxed by the state of Minnesota pursuant to Minnesota Statutes, chapter 297A or 
147.2 	297B.
147.3 	(b) Notwithstanding Minnesota Statutes, section 477A.016, or any ordinance, city charter, 
147.4 	or other provision of law, pursuant to the approval of the voters at the election on November 
147.5 	7, 2017, the city of Duluth may impose by ordinance an additional sales and use tax of 
147.6 	one-half of one percent for the purposes specified in paragraph (c). The provisions of 
147.7 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
147.8 	enforcement of the taxes authorized under this paragraph.
147.9 	(c) Revenues received from the tax authorized by paragraph (b) must be used to pay all 
147.10 	or part of the capital and administrative costs of street, curb, gutter, sidewalk, and bridge 
147.11 	improvements including related lighting and signals in the city of Duluth as outlined in the 
147.12 	Duluth Street Improvement Program 2017, developed by the engineer of the city of Duluth 
147.13 	as designated August 8, 2017.
147.14 	(d) The city of Duluth, pursuant to the approval of the voters at the November 7, 2017, 
147.15 	referendum authorizing the imposition of the taxes in this section, may issue bonds under 
147.16 	Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects 
147.17 	described in paragraph (c), until the tax terminates as provided in paragraph (e). A separate 
147.18 	election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
147.19 	(e) The tax authorized under this subdivision terminates at the earlier of: (1) 25 years 
147.20 	after the date of initial imposition of the tax; or (2) when the city council determines that 
147.21 	sufficient funds have been raised from the tax to finance the capital and administrative costs 
147.22 	of the improvements described in paragraph (c), plus the additional amount needed to pay 
147.23 	the costs related to issuance of bonds under paragraph (d), including interest bonds. Any 
147.24 	funds remaining after completion of the projects specified in paragraph (c) and retirement 
147.25 	or redemption of bonds in paragraph (d) shall be placed in the general fund of the city. The 
147.26 	tax imposed under paragraph (b) may expire at an earlier time if the city so determines by 
147.27 	ordinance.

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

148.1 	Sec. 7. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session 
148.2 	chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, is amended 
148.3 	to read:
148.4 	Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
 148.5 	The city may, by resolution, levy in addition to taxes authorized by other law:
148.6 	(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of 
148.7 	intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor 
148.8 	establishments located within the downtown taxing area, provided that this tax may not be 
148.9 	imposed if sales of intoxicating liquor and fermented malt beverages are exempt from 
148.10 	taxation under chapter 297A;
148.11 	(2) a sales tax of not more than three percent on the gross receipts from the furnishing 
148.12 	for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming 
148.13 	house, tourist court, or trailer camp located within the city by a hotel or motel which has 
148.14 	more than 50 rooms available for lodging; the tax imposed under this clause shall be at a 
148.15 	rate that, when added to the sum of the rate of the sales tax imposed under Minnesota 
148.16 	Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any 
148.17 	other taxes on lodging in the city of Minneapolis, equals 13 13.875 percent; and
148.18 	(3) a sales tax of not more than three percent on the gross receipts on all sales of food 
148.19 	primarily for consumption on or off the premises by restaurants and places of refreshment 
148.20 	as defined by resolution of the city that occur within the downtown taxing area.
148.21 	The taxes authorized by this section must not be terminated before January 1, 2047. The 
148.22 	taxes shall be imposed and may be adjusted periodically by the city council such that the 
148.23 	rates imposed produce revenue sufficient, together with the tax imposed under section 4, 
148.24 	to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4, 
148.25 	subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes, 
148.26 	section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain, 
148.27 	and fund the payment of any principal of, premium on, and interest on any bonds or any 
148.28 	other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter 
148.29 	into appropriate agreements with the city to provide for the collection of these taxes by the 
148.30 	state on behalf of the city. These taxes shall be subject to the same interest, penalties, and 
148.31 	enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.

148.32 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
148.33 	September 30, 2019.

149.1 	Sec. 8. Laws 1986, chapter 462, section 31, as amended by Laws 1991, chapter 291, article 
149.2 	8, section 24, and Laws 2011, chapter 112, article 4, section 6, is amended to read:
149.3 	Sec. 31. AUTHORITY FOR TAXATION.
 149.4 	Notwithstanding Minnesota Statutes, section 477A.016, or any other law, and 
149.5 	supplemental to the tax imposed by Laws 1982, chapter 523, article 25, section 1, the city 
149.6 	of St. Paul may impose, by ordinance, a tax, at a rate not greater than three four percent, on 
149.7 	the gross receipts from the furnishing for consideration of lodging and related services at a 
149.8 	hotel, rooming house, tourist court, motel, or resort, other than the renting or leasing of 
149.9 	space for a continuous period of 30 days or more. The tax does not apply to the furnishing 
149.10 	of lodging and related services by a business having less than 50 lodging rooms. The tax 
149.11 	shall be collected by and its proceeds paid to the city. Ninety-five percent of the revenues 
149.12 	generated by this tax shall be used to fund a convention bureau to market and promote the 
149.13 	city as a tourist or convention center.

149.14 	EFFECTIVE DATE. This section is effective the first day of the calendar quarter 
149.15 	beginning at least 30 days after the governing body of the city of St. Paul and its chief 
149.16 	clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

149.17 	Sec. 9. Laws 1994, chapter 587, article 9, section 11, is amended to read:
149.18 	Sec. 11. TWO HARBORS LODGING TAX.
 149.19 	Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a 
149.20 	tax authorized in Minnesota Statutes, section 469.190, the city of Two Harbors may impose, 
149.21 	by ordinance, a tax of up to one percent on the gross receipts subject to the lodging tax 
149.22 	under Minnesota Statutes, section 469.190. The proceeds of the tax shall be dedicated and 
149.23 	used to provide preservation, display, and interpretation of the tug boat Edna G. The total 
149.24 	tax imposed by the city under this section, by Lake County under section 24, and under 
149.25 	Minnesota Statutes, section 469.190, shall not exceed three five percent.

149.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
149.27 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
149.28 	645.021, subdivisions 2 and 3.

149.29 	Sec. 10. Laws 1998, chapter 389, article 8, section 45, subdivision 1, is amended to read:
149.30 		Subdivision 1.Sales and use taxes. (a) Notwithstanding Minnesota Statutes, section 
149.31 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the voters 
150.1 	of the city at the next general election held after the date of final enactment of this act, the 
150.2 	city of Two Harbors may impose by ordinance, a sales and use tax at a rate of up to one-half 
150.3 	of one percent for the purposes specified in subdivision 3, paragraph (a).
150.4 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
150.5 	sections 297A.99 and 477A.016, or any other law, ordinance, or city charter, and as approved 
150.6 	by the voters at the November 6, 2018, general election, the city of Two Harbors may, by 
150.7 	ordinance, impose an additional sales and use tax at a rate of one-half of one percent for 
150.8 	the purposes specified in subdivision 3, paragraph (b).
150.9 	(c) The provisions of Minnesota Statutes, section 297A.48 297A.99, govern the 
150.10 	imposition, administration, collection, and enforcement of the tax authorized under this 
150.11 	subdivision.

150.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
150.13 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
150.14 	645.021, subdivisions 2 and 3.

150.15 	Sec. 11. Laws 1998, chapter 389, article 8, section 45, subdivision 3, as amended by Laws 
150.16 	2008, chapter 366, article 7, section 11, is amended to read:
150.17 		Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized under 
150.18 	subdivision 1, paragraph (a), must be used for sanitary sewer separation, wastewater 
150.19 	treatment, water system improvements, and harbor refuge development projects.
150.20 	(b) Revenues from the tax authorized under subdivision 1, paragraph (b), must be used 
150.21 	by the city of Two Harbors to pay the costs of collecting and administering the tax and to 
150.22 	finance the capital and administrative costs of water and sewer infrastructure projects 
150.23 	including gravity-fed sewer mains, water mains, drain tile, service lines, street patching, 
150.24 	acquiring property, related engineering, and construction expenses.

150.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
150.26 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
150.27 	645.021, subdivisions 2 and 3.

150.28 	Sec. 12. Laws 1998, chapter 389, article 8, section 45, subdivision 4, is amended to read:
150.29 		Subd. 4.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
150.30 	chapter 475, to finance the capital expenditure and improvement projects under subdivision 
150.31 	1, paragraph (a). An election to approve the bonds under Minnesota Statutes, section 475.58, 
150.32 	may be held in combination with the election to authorize imposition of the tax under 
151.1 	subdivision 1, paragraph (a). Whether to permit imposition of the tax and issuance of bonds 
151.2 	may be posed to the voters as a single question. The question must state that the sales tax 
151.3 	revenues are pledged to pay the bonds, but that the bonds are general obligations and will 
151.4 	be guaranteed by the city's property taxes.
151.5 	(b) The city may issue bonds under Minnesota Statutes, chapter 475, to pay capital and 
151.6 	administrative expenses for the projects described in subdivision 3, paragraph (b), in an 
151.7 	amount that does not exceed $30,000,000. An election to approve the bonds under Minnesota 
151.8 	Statutes, section 475.58, is not required.
151.9 	(c) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
151.10 	section 275.60.
151.11 	(c) (d) The bonds are not included in computing any debt limitation applicable to the 
151.12 	city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
151.13 	interest on the bonds is not subject to any levy limitation.
151.14 	The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to 
151.15 	pay eligible capital expenditures and improvements under subdivision 3, paragraph (a), may 
151.16 	not exceed $20,000,000, plus an amount equal to the costs related to issuance of the bonds.
151.17 	(d) (e) The taxes may be pledged to and used for the payment of the bonds and any bonds 
151.18 	issued to refund them, only if the bonds and any refunding bonds are general obligations 
151.19 	of the city.

151.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
151.21 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
151.22 	645.021, subdivisions 2 and 3.

151.23 	Sec. 13. Laws 1998, chapter 389, article 8, section 45, subdivision 5, is amended to read:
151.24 		Subd. 5.Termination of taxes. (a) The authority granted under subdivision 1, paragraph 
151.25 	(a), to the city of Two Harbors to impose sales and use taxes expires when the costs of the 
151.26 	projects described in subdivision 3, paragraph (a), have been paid.
151.27 	(b) The authority granted under subdivision 1, paragraph (b), expires at the earlier of: 
151.28 	(1) 25 years after the tax is first imposed; or (2) when the city council determines that the 
151.29 	amount of revenues received from the taxes first equals or exceeds $30,000,000, plus the 
151.30 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
151.31 	4, paragraph (b), including interest on the bonds. Any funds remaining after completion of 
151.32 	the project and retirement or redemption of the bonds may be placed in the general fund of 
152.1 	the city. The taxes imposed under subdivision 1, paragraph (b), may expire at an earlier 
152.2 	time if the city so determines by ordinance.

152.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
152.4 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
152.5 	645.021, subdivisions 2 and 3.

152.6 	Sec. 14. Laws 2011, First Special Session chapter 7, article 4, section 10, subdivision 3, 
152.7 	is amended to read:
152.8 		Subd. 3.Use of revenues. Revenues received from taxes authorized by subdivisions 1 
152.9 	and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the 
152.10 	following projects:
152.11 	(1) $4,500,000 for construction and completion of park improvement projects, including 
152.12 	St. Louis River riverfront improvements; Veteran's Park construction and improvements; 
152.13 	improvements to the Hilltop Park soccer complex and Braun Park baseball complex; capital 
152.14 	equipment and building and grounds improvements at the Pine Valley Park/Pine Valley 
152.15 	Hockey Arena/Cloquet Area Recreation Center; and development of pedestrian trails within 
152.16 	the city;
152.17 	(2) $5,800,00 for extension of utilities and the construction of all improvements associated 
152.18 	with the development of property adjacent to Highway 33 and Interstate Highway 35, 
152.19 	including payment of all debt service on bonds issued for these; and
152.20 	(3) $6,200,000 for engineering and construction of infrastructure improvements, 
152.21 	including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as 
152.22 	part of the city's comprehensive land use plan.
152.23 	Authorized expenses include, but are not limited to, acquiring property and paying 
152.24 	construction expenses related to these improvements, and paying debt service on bonds or 
152.25 	other obligations issued to finance acquisition and construction of these improvements.
152.26 	Notwithstanding the revenue allocations in clauses (1) and (3), if the amount spent for the 
152.27 	improvements under clause (2) are less than the $5,800,000 allowed under that clause, the 
152.28 	total amount spent for the purposes listed in clauses (1) and (3) may be increased by the 
152.29 	difference between $5,800,000 and the amount actually spent under clause (2). However, 
152.30 	the total expenditures for projects under this subdivision may not exceed $16,500,000, 
152.31 	excluding any costs related to issuance of bonds under subdivision 4.

153.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
153.2 	city of Cloquet and its chief clerical officer comply with the provisions of section 645.021, 
153.3 	subdivisions 2 and 3.

153.4 	Sec. 15. CITY OF AVON; TAXES AUTHORIZED.
 153.5 		Subdivision 1.Sales and use tax; authorization. Notwithstanding Minnesota Statutes, 
153.6 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
153.7 	charter, the city of Avon, pursuant to approval by the voters at the general election on 
153.8 	November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of one 
153.9 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
153.10 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
153.11 	administration, collection, and enforcement of the tax authorized under this subdivision.
153.12 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
153.13 	must be used by the city to:
153.14 	(1) pay the costs of collecting and administering the tax;
153.15 	(2) pay the capital and administrative costs of transportation improvement projects as 
153.16 	adopted in the city of Avon's street priority improvement plan; and
153.17 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
153.18 	finance the improvements listed in this subdivision in the city.
153.19 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
153.20 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
153.21 	principal amount of bonds issued under this subdivision may not exceed $1,500,000 plus 
153.22 	an amount to be applied to the payment of the costs of issuing the bonds. The bonds may 
153.23 	be paid from or secured by any funds available to the city, including the tax authorized 
153.24 	under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
153.25 	Statutes, sections 275.60 and 275.61.
153.26 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
153.27 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
153.28 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
153.29 	under Minnesota Statutes, section 475.58, is not required.
153.30 		Subd. 4.Termination of taxes. (a) The tax imposed under subdivision 1 expires at the 
153.31 	earlier of: (1) December 31, 2045; or (2) when the city council determines that $1,500,000 
153.32 	has been received from the tax to pay for the cost of the projects authorized under subdivision 
154.1 	2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized 
154.2 	under subdivision 3, including interest on the bonds.
154.3 	(b) Any funds remaining after payment of all such costs and retirement or redemption 
154.4 	of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 
154.5 	1 may expire at an earlier time if the city so determines by ordinance.

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

154.9 	Sec. 16. CITY OF BLUE EARTH; LOCAL TAX AUTHORIZED.
 154.10 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
154.11 	section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters 
154.12 	at the general election of November 6, 2018, the city of Blue Earth may impose by ordinance 
154.13 	a sales and use tax of one-half of one percent for the purposes specified in subdivision 2. 
154.14 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
154.15 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
154.16 	authorized under this subdivision.
154.17 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
154.18 	under subdivision 1 must be used by the city of Blue Earth to pay the costs of collecting 
154.19 	and administering the tax and to finance the capital and administrative costs of constructing 
154.20 	and funding sewer plant improvements, street reconstruction projects, and recreational 
154.21 	amenities. The total that may be raised from the tax to pay for these projects is limited to 
154.22 	$5,000,000, plus the costs related to the issuance and paying debt service on bonds for these 
154.23 	projects.
154.24 		Subd. 3.Bonding authority. (a) The city of Blue Earth may issue bonds under Minnesota 
154.25 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
154.26 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
154.27 	not exceed $5,000,000, plus an amount to be applied to the payment of the costs of issuing 
154.28 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
154.29 	Blue Earth, including the tax authorized under subdivision 1. The issuance of bonds under 
154.30 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
154.31 	(b) The bonds are not included in computing any debt limitation applicable to the city 
154.32 	of Blue Earth, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
155.1 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
155.2 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
155.3 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
155.4 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
155.5 	that $5,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
155.6 	authorized under subdivision 3, including interest on the bonds, has been received from the 
155.7 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
155.8 	after payment of all such costs and retirement or redemption of the bonds due to timing of 
155.9 	the termination under Minnesota Statutes, section 297A.99, shall be placed in the general 
155.10 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
155.11 	city so determines by ordinance.

155.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
155.13 	city of Blue Earth and its chief clerical officer comply with Minnesota Statutes, section 
155.14 	645.021, subdivisions 2 and 3.

155.15 	Sec. 17. CITY OF CAMBRIDGE; TAX AUTHORIZED.
 155.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
155.17 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
155.18 	and as approved by the voters at the November 6, 2018, general election, the city of 
155.19 	Cambridge may impose, by ordinance, a sales and use tax of one-half of one percent for 
155.20 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
155.21 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
155.22 	collection, and enforcement of the tax authorized under this subdivision.
155.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
155.24 	under subdivision 1 must be used by the city of Cambridge to pay the costs of collecting 
155.25 	and administering the tax and paying for the following infrastructure projects in the city, 
155.26 	including securing and paying debt service on bonds issued to finance all or part of the 
155.27 	following projects:
155.28 	(1) $8,000,000 plus associated bonding costs for construction of a new facility to house 
155.29 	the Cambridge Public Library and the East Central Regional Library Headquarters; and
155.30 	(2) $14,000,000 plus associated bonding costs for street improvements outlined in the 
155.31 	Street Capital Improvement Program approved by the city council as of January 22, 2019, 
155.32 	and outdoor park improvements described in the park master plan as of January 22, 2019.
156.1 		Subd. 3.Bonding authority. (a) The city of Cambridge may issue bonds under Minnesota 
156.2 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
156.3 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
156.4 	not exceed: (1) $8,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
156.5 	applied to the payment of costs of issuing the bonds; and (2) $14,000,000 for the projects 
156.6 	listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing 
156.7 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
156.8 	Cambridge, including the tax authorized under subdivision 1. The issuance of bonds under 
156.9 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
156.10 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
156.11 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
156.12 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
156.13 	under Minnesota Statutes, section 475.58, is not required.
156.14 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
156.15 	earlier of: (1) December 31, 2043; or (2) when the city council determines that the city has 
156.16 	received from this tax $22,000,000 to fund the projects listed in subdivision 2 plus an amount 
156.17 	sufficient to pay costs, including interest costs, related to the issuance of the bonds authorized 
156.18 	in subdivision 3. Any funds remaining after payment of the allowed costs due to timing of 
156.19 	the termination under Minnesota Statutes, section 297A.99, shall be placed in the city's 
156.20 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
156.21 	so determines by ordinance.

156.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
156.23 	city of Cambridge and its chief clerical officer comply with Minnesota Statutes, section 
156.24 	645.021, subdivisions 2 and 3.

156.25 	Sec. 18. CITY OF DETROIT LAKES; LOCAL SALES AND USE TAX 
156.26 	AUTHORIZED.
 156.27 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
156.28 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
156.29 	and as approved by the voters at the November 6, 2018, general election, the city of Detroit 
156.30 	Lakes may impose, by ordinance, a sales and use tax of one-half of one percent for the 
156.31 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
156.32 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
156.33 	collection, and enforcement of the tax authorized under this subdivision.
157.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
157.2 	under subdivision 1 must be used by the city of Detroit Lakes to pay the costs of collecting 
157.3 	and administering the tax, and construction of a new police department facility in the city, 
157.4 	including securing and paying debt service on bonds issued to finance all or part of this 
157.5 	project. The total amount of the police department facility to be funded with the tax imposed 
157.6 	under subdivision 1 shall not exceed $6,700,000, excluding associated debt service costs.
157.7 		Subd. 3.Bonding authority. (a) The city of Detroit Lakes may issue bonds under 
157.8 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
157.9 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
157.10 	subdivision may not exceed $6,700,000, plus an amount applied to the payment of costs of 
157.11 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
157.12 	city of Detroit Lakes, including the tax authorized under subdivision 1. The issuance of 
157.13 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
157.14 	275.61.
157.15 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
157.16 	Detroit Lakes and are not included in computing any debt limitation applicable to the city. 
157.17 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
157.18 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
157.19 	under Minnesota Statutes, section 475.58, is not required.
157.20 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
157.21 	earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines 
157.22 	that the city has received $6,700,000 from this tax to fund the projects listed in subdivision 
157.23 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
157.24 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
157.25 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
157.26 	placed in the city's general fund. The tax imposed under subdivision 1 may expire at an 
157.27 	earlier time if the city so determines by ordinance.

157.28 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
157.29 	city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section 
157.30 	645.021, subdivisions 2 and 3.

157.31 	Sec. 19. CITY OF ELK RIVER; TAX AUTHORIZED.
 157.32 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
157.33 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and as approved 
157.34 	by the voters at the November 6, 2018, general election, the city of Elk River may impose, 
158.1 	by ordinance, a sales and use tax of one-half of one percent for the purposes specified in 
158.2 	subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
158.3 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
158.4 	of the tax authorized under this subdivision.
158.5 		Subd. 2.Use of sales and use tax revenues. (a) The revenues derived from the tax 
158.6 	authorized under subdivision 1 must be used by the city of Elk River to:
158.7 	(1) pay the costs of collecting and administering the tax;
158.8 	(2) pay the capital and administrative costs of various recreational facility and park 
158.9 	improvements including any or all of the following: a multipurpose recreational facility 
158.10 	such as an ice arena, a community meeting and activity space, and a synthetic turf field 
158.11 	house; senior center facility improvements; Lion John Weicht Park improvements, Lions 
158.12 	Park Center space improvements, and a community picnic pavilion addition; youth athletic 
158.13 	complex improvements; Orono Park improvements; dredging Lake Orono; and citywide 
158.14 	trail connection improvements; and
158.15 	(3) secure and pay debt service on bonds issued to finance all or part of the projects 
158.16 	listed in clause (2).
158.17 	(b) The total that may be raised from the tax to pay for these projects is limited to 
158.18 	$35,000,000, plus the costs related to the issuance and paying debt service on bonds for 
158.19 	these projects.
158.20 		Subd. 3.Bonding authority. (a) The city of Elk River may issue bonds under Minnesota 
158.21 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
158.22 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
158.23 	not exceed $35,000,000, plus an amount applied to the payment of costs of issuing the 
158.24 	bonds. The bonds may be paid from or secured by any funds available to the city of Elk 
158.25 	River, including the tax authorized under subdivision 1. The issuance of bonds under this 
158.26 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
158.27 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
158.28 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
158.29 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
158.30 	under Minnesota Statutes, section 475.58, is not required.
158.31 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
158.32 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
158.33 	that the city has received $35,000,000 from this tax to fund the projects listed in subdivision 
159.1 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
159.2 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
159.3 	costs due to timing of the termination under section 297A.99 shall be placed in the city's 
159.4 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
159.5 	so determines by ordinance.

159.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
159.7 	city of Elk River and its chief clerical officer comply with Minnesota Statutes, section 
159.8 	645.021, subdivisions 2 and 3.

159.9 	Sec. 20. CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.
 159.10 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
159.11 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
159.12 	charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half 
159.13 	of one percent for the purposes specified in subdivision 2, as approved by the voters at the 
159.14 	November 4, 2014, general election. Except as otherwise provided in this section, the 
159.15 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
159.16 	collection, and enforcement of the tax authorized under this subdivision.
159.17 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
159.18 	under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and 
159.19 	administering the tax and to finance the capital and administrative costs of improvements 
159.20 	to the commons as indicated in the Commons Master Plan as adopted by the city council 
159.21 	on November 20, 2017. Authorized expenses include, but are not limited to, improvements 
159.22 	for walkability and accessibility, enhancement of beach area and facilities, prevention and 
159.23 	management of shoreline erosion, redesign of the port and band shell, improvement of 
159.24 	playground equipment, and securing and paying debt service on bonds issued under 
159.25 	subdivision 3 or other obligations issued to the improvements listed in this subdivision in 
159.26 	the city of Excelsior.
159.27 		Subd. 3.Bonding authority. (a) If the imposition of the tax is approved by the voters 
159.28 	under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter 
159.29 	475, to finance all or a portion of the costs of the projects authorized in subdivision 2, 
159.30 	without a second vote. The aggregate principal amount of bonds issued under this subdivision 
159.31 	may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of 
159.32 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
159.33 	city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds 
159.34 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
160.1 	(b) The bonds are not included in computing any debt limitation applicable to the city 
160.2 	of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
160.3 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
160.4 	the bonds under Minnesota Statutes, section 475.58, is not required.
160.5 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
160.6 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
160.7 	that $7,000,000 has been received from the tax to pay for the cost of the projects authorized 
160.8 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
160.9 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
160.10 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
160.11 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
160.12 	time if the city so determines by ordinance.

160.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
160.14 	city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section 
160.15 	645.021, subdivisions 2 and 3.

160.16 	Sec. 21. CITY OF GLENWOOD; TAX AUTHORIZED.
 160.17 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
160.18 	section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters 
160.19 	at the November 6, 2018, general election, the city of Glenwood may impose, by ordinance, 
160.20 	a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 
160.21 	2. Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
160.22 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
160.23 	authorized under this subdivision.
160.24 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
160.25 	under subdivision 1 must be used by the city of Glenwood to pay the costs of collecting and 
160.26 	administering the tax and to finance, including securing and paying debt service on, all or 
160.27 	part of the following projects:
160.28 	(1) the capital costs of the Phases II and III improvements to 2nd Street SE as set forth 
160.29 	in the city's capital improvement plan;
160.30 	(2) the development and expansion of, and improvements to, city parks, trails, and 
160.31 	recreational facilities; and
160.32 	(3) improvements to Glenwood City Hall and police station.
161.1 		Subd. 3.Bonding authority. (a) The city of Glenwood may issue bonds under Minnesota 
161.2 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
161.3 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
161.4 	not exceed $2,800,000, plus an amount applied to the payment of costs of issuing the bonds. 
161.5 	The bonds may be paid from or secured by any funds available to the city of Glenwood, 
161.6 	including the tax authorized under subdivision 1. The issuance of bonds under this 
161.7 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
161.8 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
161.9 	Glenwood and are not included in computing any debt limitation applicable to the city. Any 
161.10 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
161.11 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
161.12 	under Minnesota Statutes, section 475.58, is not required.
161.13 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
161.14 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
161.15 	that the city has received $2,800,000 from this tax to fund the projects listed in subdivision 
161.16 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
161.17 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
161.18 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
161.19 	placed in the city's general fund. The tax imposed under subdivision 1 may expire at an 
161.20 	earlier time if the city so determines by ordinance.

161.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
161.22 	city of Glenwood and its chief clerical officer comply with Minnesota Statutes, section 
161.23 	645.021, subdivisions 2 and 3.

161.24 	Sec. 22. CITY OF INTERNATIONAL FALLS; TAX AUTHORIZED.
 161.25 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
161.26 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
161.27 	and as approved by the voters at the November 6, 2018, general election, the city of 
161.28 	International Falls may impose, by ordinance, a sales and use tax of up to one percent for 
161.29 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
161.30 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
161.31 	collection, and enforcement of the tax authorized under this subdivision.
161.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
161.33 	under subdivision 1 must be used by the city of International Falls to pay the costs of 
161.34 	collecting and administering the tax, and paying for transportation and other public 
162.1 	infrastructure projects in the city, including securing and paying debt service on bonds 
162.2 	issued to finance all or part of these projects. The total amount of transportation and other 
162.3 	public infrastructure projects to be funded with the tax imposed under subdivision 1 shall 
162.4 	not exceed $30,000,000, excluding associated debt service costs.
162.5 		Subd. 3.Bonding authority. (a) The city of International Falls may issue bonds under 
162.6 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
162.7 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
162.8 	subdivision may not exceed $30,000,000, plus an amount applied to the payment of costs 
162.9 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
162.10 	city of International Falls, including the tax authorized under subdivision 1. The issuance 
162.11 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
162.12 	275.61.
162.13 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
162.14 	International Falls and are not included in computing any debt limitation applicable to the 
162.15 	city. Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
162.16 	interest on the bonds is not subject to any levy limitation. A separate election to approve 
162.17 	the bonds under Minnesota Statutes, section 475.58, is not required.
162.18 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
162.19 	earlier of: (1) 30 years after the tax is first imposed; or (2) when the city council determines 
162.20 	that the city has received $30,000,000 from this tax to fund the projects listed in subdivision 
162.21 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
162.22 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
162.23 	costs due to timing of the termination under section 297A.99 shall be placed in the general 
162.24 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
162.25 	city so determines by ordinance.

162.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
162.27 	city of International Falls and its chief clerical officer comply with Minnesota Statutes, 
162.28 	section 645.021, subdivisions 2 and 3.

162.29 	Sec. 23. CITY OF LA CRESCENT; LOCAL LODGING TAX AUTHORIZED.
 162.30 	Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a 
162.31 	tax authorized in Minnesota Statutes, section 469.190, the city of La Crescent may impose 
162.32 	by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under 
162.33 	Minnesota Statutes, section 469.190. The proceeds of the tax must be used for the same 
162.34 	purposes as required under Minnesota Statutes, section 469.190. The total tax imposed 
163.1 	under this section, and under Minnesota Statutes, section 469.190, must not exceed five 
163.2 	percent.

163.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
163.4 	city of La Crescent and its chief clerical officer comply with Minnesota Statutes, section 
163.5 	645.021, subdivisions 2 and 3.

163.6 	Sec. 24. LAKE COUNTY; LOCAL LODGING TAX AUTHORIZED.
 163.7 		Subdivision 1.Lodging tax. (a) Notwithstanding Minnesota Statutes, section 477A.016, 
163.8 	or any other provision of law, ordinance, or city charter, the Board of Commissioners of 
163.9 	Lake County may impose, by ordinance, a tax of up to four percent on the gross receipts 
163.10 	subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition 
163.11 	to any tax imposed under Minnesota Statutes, section 469.190. The total tax imposed by 
163.12 	the county under this section, by the city of Two Harbors under Laws 1994, chapter 587, 
163.13 	article 9, section 11, and under Minnesota Statutes, section 469.190, must not exceed seven 
163.14 	percent.
163.15 	(b) No other city or town located in Lake County that did not impose a local lodging tax 
163.16 	under Minnesota Statutes, section 469.190, prior to May 1, 2019, may impose a tax under 
163.17 	Minnesota Statutes, section 469.190, while a tax is in effect under this section.
163.18 		Subd. 2.Allowed use of revenues. The revenues derived from the taxes imposed in 
163.19 	subdivision 1 must be used to fund a new Lake County Event and Visitors Bureau as 
163.20 	established by or contracted with the Board of Commissioners of Lake County. The Board 
163.21 	of Commissioners must use 75 percent of revenues for marketing the county and 25 percent 
163.22 	of revenues to fund and promote community events and festivals in the county. The Board 
163.23 	of Commissioners of Lake County must annually review the budget of the Lake County 
163.24 	Event and Visitors Bureau. The event and visitors bureau may not receive revenues raised 
163.25 	from the taxes imposed in subdivision 1 until the Board of Commissioners approves the 
163.26 	annual budget.

163.27 	EFFECTIVE DATE. This section is effective the day after the governing body of Lake 
163.28 	County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
163.29 	subdivisions 2 and 3.

164.1 	Sec. 25. CITY OF NORTH MANKATO; LOCAL FOOD AND BEVERAGE TAX 
164.2 	AUTHORIZED.
 164.3 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
164.4 	section 477A.016, or any ordinance, city charter, or other provision of law, the city of North 
164.5 	Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts 
164.6 	on all sales of food and beverages by a restaurant or place of refreshment, as defined by 
164.7 	resolution of the city, that are located within the city. For purposes of this section, "food 
164.8 	and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.
164.9 		Subd. 2.Use of proceeds from tax. (a) The proceeds of any tax imposed under 
164.10 	subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
164.11 	(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting 
164.12 	Complex; and
164.13 	(2) for costs related to regional tourism events.
164.14 	(b) Authorized capital expenses include securing or paying debt service on bonds or 
164.15 	other obligations issued to finance the construction of the Caswell Park Regional Sporting 
164.16 	Complex facilities.
164.17 		Subd. 3.Collection, administration, and enforcement. If the city desires, it may enter 
164.18 	into an agreement with the commissioner of revenue to administer, collect, and enforce the 
164.19 	taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax, 
164.20 	the provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 
164.21 	and enforcement apply.

164.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
164.23 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
164.24 	645.021, subdivisions 2 and 3.

164.25 	Sec. 26. CITY OF PERHAM; LOCAL SALES AND USE TAX AUTHORIZED.
 164.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
164.27 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and 
164.28 	based on the approval by the voters at the November 6, 2018, election, the city of Perham 
164.29 	may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes 
164.30 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
164.31 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
164.32 	enforcement of the tax authorized under this subdivision.
165.1 		Subd. 2.Use of revenues. The revenues derived from the tax authorized under subdivision 
165.2 	1 must be used by the city of Perham to:
165.3 	(1) pay the costs of collecting and administering the tax;
165.4 	(2) finance the capital costs of site preparation, redevelopment, renovation, and 
165.5 	construction of buildings, land, and infrastructure at the site of the Perham Area Community 
165.6 	Center; and
165.7 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
165.8 	the improvements listed in this subdivision in the city of Perham.
165.9 		Subd. 3.Bonding authority. (a) The city of Perham may issue bonds under Minnesota 
165.10 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
165.11 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
165.12 	not exceed $5,200,000, plus an amount to be applied to the payment of the costs of issuing 
165.13 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
165.14 	Perham, including the tax authorized under subdivision 1. The issuance of bonds under this 
165.15 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
165.16 	(b) The bonds are not included in computing any debt limitation applicable to the city 
165.17 	of Perham, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
165.18 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
165.19 	the bonds under Minnesota Statutes, section 475.58, is not required.
165.20 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
165.21 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
165.22 	that $5,200,000 has been received from the tax to pay for the cost of the projects authorized 
165.23 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
165.24 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
165.25 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
165.26 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
165.27 	time if the city so determines by ordinance.

165.28 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
165.29 	city of Perham and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
165.30 	subdivisions 2 and 3.

165.31 	Sec. 27. CITY OF ROGERS; LOCAL TAXES AUTHORIZED.
 165.32 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
165.33 	sections 297A.99 and 477A.016, or any other law or ordinance, and as approved by the 
166.1 	voters at the general election of November 6, 2018, the city of Rogers may impose, by 
166.2 	ordinance, a sales and use tax of one-quarter of one percent for the purposes specified in 
166.3 	subdivision 3. Except as otherwise provided in this section, the provisions of Minnesota 
166.4 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
166.5 	of the taxes authorized under this subdivision.
166.6 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, 
166.7 	or any other contrary provision of law, or ordinance, the city of Rogers may impose by 
166.8 	ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 per motor 
166.9 	vehicle, as defined by ordinance, purchased or acquired from any person engaged within 
166.10 	the city of Rogers in the business of selling motor vehicles at retail.
166.11 		Subd. 3.Use of sales and use tax and excise tax revenues. (a) The revenues derived 
166.12 	from the taxes authorized under subdivisions 1 and 2 must be used by the city of Rogers to 
166.13 	pay the costs of collecting and administering the taxes and the capital and administrative 
166.14 	costs of any or all of the following projects:
166.15 	(1) trail and pedestrian facilities including an I-94 pedestrian crossing, a County Road 
166.16 	144 pedestrian tunnel, and other new trails and trail connections;
166.17 	(2) aquatics facilities consisting of either or both of a splash pad and any contribution 
166.18 	toward the community portion of a school pool; and
166.19 	(3) community athletic facilities including construction of South Community park, site 
166.20 	improvements for future recreation facilities, and a multipurpose indoor turf facility.
166.21 	(b) The total that may be raised from the taxes to pay for these projects is limited to 
166.22 	$16,500,000, plus the costs related to the issuance and paying debt service on bonds for 
166.23 	these projects.
166.24 		Subd. 4.Bonding authority. (a) The city of Rogers may issue bonds under Minnesota 
166.25 	Statutes, chapter 475, pursuant to approval by the voters at the general election of November 
166.26 	6, 2018, to finance all or a portion of the costs of the projects authorized in subdivision 3. 
166.27 	The aggregate principal amount of bonds issued under this subdivision may not exceed 
166.28 	$16,500,000, plus an amount equal to interest on and the costs of issuing the bonds. The 
166.29 	bonds may be paid from or secured by any funds available to the city of Rogers, including 
166.30 	the taxes authorized under subdivisions 1 and 2.
166.31 	(b) The bonds are not included in computing any debt limitation applicable to the city 
166.32 	of Rogers, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
167.1 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
167.2 	the bonds under Minnesota Statutes, section 475.58, is not required.
167.3 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
167.4 	at the earlier of: (1) 20 years after the taxes are first imposed; or (2) when the city council 
167.5 	determines that $16,500,000, plus an amount sufficient to pay interest on and the costs of 
167.6 	issuing the bonds authorized under subdivision 4, has been received from the taxes to pay 
167.7 	for the cost of the projects authorized under subdivision 3. Any funds remaining after 
167.8 	payment of all such costs and payment of the bonds in full shall be placed in the general 
167.9 	fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time 
167.10 	if the city so determines by ordinance.

167.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
167.12 	city of Rogers and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
167.13 	subdivisions 2 and 3.

167.14 	Sec. 28. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
 167.15 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
167.16 	section 297A.99 or 477A.016, or any ordinance or other provision of law, the city of Sartell 
167.17 	may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food 
167.18 	and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the 
167.19 	city, that is located within the city. For purposes of this section, "food and beverages" include 
167.20 	retail on-sale of intoxicating liquor and fermented malt beverages.
167.21 		Subd. 2.Use of proceeds from authorized taxes. The proceeds of the taxes imposed 
167.22 	under subdivision 1 must be used by the city to fund capital or operational costs for new 
167.23 	and existing recreational facilities and related amenities within the city. Authorized expenses 
167.24 	include securing or paying debt service on bonds or other obligations issued to finance 
167.25 	construction and improvement projects.
167.26 		Subd. 3.Termination of taxes. The tax imposed under subdivision 1 expires five years 
167.27 	after the tax is first imposed.
167.28 		Subd. 4.Collection, administration, and enforcement. The city may enter into an 
167.29 	agreement with the commissioner of revenue to administer, collect, and enforce the taxes 
167.30 	under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota 
167.31 	Statutes, sections 270C.171 and 297A.99, related to collection, administration, and 
167.32 	enforcement apply.

168.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
168.2 	city of Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
168.3 	subdivisions 2 and 3.

168.4 	Sec. 29. CITY OF SAUK CENTRE; TAXES AUTHORIZED.
 168.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
168.6 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
168.7 	charter, the city of Sauk Centre, pursuant to approval by the voters at the general election 
168.8 	on November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of 
168.9 	one percent and a $20 motor vehicle excise tax for the purposes specified in subdivision 2. 
168.10 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
168.11 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
168.12 	authorized under this subdivision.
168.13 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
168.14 	must be used by the city to:
168.15 	(1) pay the costs of collecting and administering the tax;
168.16 	(2) pay the capital costs of city infrastructure improvement projects directly related to 
168.17 	the reconstruction of Trunk Highway 71; and
168.18 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
168.19 	finance the improvements listed in this subdivision in the city.
168.20 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
168.21 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
168.22 	principal amount of bonds issued under this subdivision may not exceed $10,000,000 plus 
168.23 	an amount to be applied to the payment of the costs of issuing the bonds. The bonds may 
168.24 	be paid from or secured by any funds available to the city, including the tax authorized 
168.25 	under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
168.26 	Statutes, sections 275.60 and 275.61.
168.27 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
168.28 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
168.29 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
168.30 	under Minnesota Statutes, section 475.58, is not required.
168.31 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
168.32 	earlier of: (1) December 31, 2045; or (2) when the city council determines that $10,000,000 
168.33 	has been received from the tax to pay for the cost of the projects authorized under subdivision 
169.1 	2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized 
169.2 	under subdivision 3, including interest on the bonds. Any funds remaining after payment 
169.3 	of all such costs and retirement or redemption of the bonds shall be placed in the general 
169.4 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
169.5 	city so determines by ordinance.

169.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
169.7 	city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section 
169.8 	645.021, subdivisions 2 and 3.

169.9 	Sec. 30. CITY OF SCANLON; TAXES AUTHORIZED.
 169.10 		Subdivision 1.Sales and use tax; authorization. Notwithstanding Minnesota Statutes, 
169.11 	section 297A.99, subdivision 3, paragraph (b), or 477A.016, or any other law or ordinance, 
169.12 	the city of Scanlon, pursuant to approval by the voters at the general election on November 
169.13 	6, 2018, may impose by ordinance a sales and use tax of up to one-half of one percent for 
169.14 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
169.15 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
169.16 	collection, and enforcement of the tax authorized under this subdivision.
169.17 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
169.18 	must be used by the city to:
169.19 	(1) pay the costs of collecting and administering the tax;
169.20 	(2) pay the capital and administrative costs of city street improvements and utility 
169.21 	infrastructure, including storm sewer and sanitary sewer improvements; and
169.22 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
169.23 	finance the improvements listed in this subdivision in the city.
169.24 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
169.25 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
169.26 	principal amount of bonds issued under this subdivision may not exceed $400,000 plus an 
169.27 	amount to be applied to the payment of the costs of issuing the bonds. The bonds may be 
169.28 	paid from or secured by any funds available to the city, including the tax authorized under 
169.29 	subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
169.30 	Statutes, sections 275.60 and 275.61.
169.31 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
169.32 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
170.1 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
170.2 	under Minnesota Statutes, section 475.58, is not required.
170.3 		Subd. 4.Termination of taxes. (a) The tax imposed under subdivision 1 expires at the 
170.4 	earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines 
170.5 	that $400,000 has been received from the tax to pay for the cost of the projects authorized 
170.6 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
170.7 	bonds authorized under subdivision 3, including interest on the bonds.
170.8 	(b) Any funds remaining after payment of all such costs and retirement or redemption 
170.9 	of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 
170.10 	1 may expire at an earlier time if the city so determines by ordinance.

170.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
170.12 	city of Scanlon and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
170.13 	subdivisions 2 and 3.

170.14 	Sec. 31. CITY OF VIRGINIA; LOCAL SALES AND USE TAX AUTHORIZED.
 170.15 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
170.16 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
170.17 	and as approved by the voters at the November 6, 2018, general election, the city of Virginia 
170.18 	may impose, by ordinance, a sales and use tax of up to one percent for the purposes specified 
170.19 	in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
170.20 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
170.21 	of the tax authorized under this subdivision.
170.22 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
170.23 	under subdivision 1 must be used by the city of Virginia to pay the costs of collecting and 
170.24 	administering the tax, and to finance the costs of renovation, reconstruction, expansion, and 
170.25 	improvements of the Miner's Memorial recreation complex and convention center. Authorized 
170.26 	costs include engineering and construction costs and associated bond issuance costs.
170.27 		Subd. 3.Bonding authority. (a) The city of Virginia may issue bonds under Minnesota 
170.28 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
170.29 	subdivision 2.  The aggregate principal amount of bonds issued under this subdivision may 
170.30 	not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the 
170.31 	bonds. The bonds may be paid from or secured by any funds available to the city of Virginia, 
170.32 	including the tax authorized under subdivision 1. The issuance of bonds under this 
170.33 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
171.1 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
171.2 	Virginia and are not included in computing any debt limitation applicable to the city. Any 
171.3 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
171.4 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
171.5 	under Minnesota Statutes, section 475.58, is not required.
171.6 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
171.7 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
171.8 	that the city has received $30,000,000 from this tax to fund the projects listed in subdivision 
171.9 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
171.10 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
171.11 	costs due to timing of the termination under section 297A.99 shall be placed in the city's 
171.12 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
171.13 	so determines by ordinance.

171.14 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
171.15 	city of Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
171.16 	subdivisions 2 and 3.

171.17 	Sec. 32. CITY OF WEST ST. PAUL; LOCAL TAX AUTHORIZED.
 171.18 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
171.19 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
171.20 	charter, and as approved by the voters at the general election of November 6, 2018, the city 
171.21 	of West St. Paul may impose, by ordinance, a sales and use tax of one-half of one percent 
171.22 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
171.23 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
171.24 	collection, and enforcement of the tax authorized under this subdivision.
171.25 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
171.26 	under subdivision 1 must be used by the city of West St. Paul to pay the costs of collecting 
171.27 	and administering the tax and to finance the capital and administrative costs of rebuilding 
171.28 	and repair of essential transportation corridors and related ancillary roads within the city, 
171.29 	including but not limited to Annapolis Street which borders both Ramsey and Dakota County, 
171.30 	the cultural corridor of Smith Avenue, historic Dodd Road, and other essential corridors. 
171.31 	The total that may be raised from the tax to pay for these projects is limited to $28,000,000, 
171.32 	plus the costs related to the issuance and paying debt service on bonds for these projects.
171.33 		Subd. 3.Bonding authority. (a) The city of West St. Paul may issue bonds under 
171.34 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
172.1 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
172.2 	subdivision may not exceed $28,000,000, plus an amount to be applied to the payment of 
172.3 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
172.4 	to the city of West St. Paul, including the tax authorized under subdivision 1. The issuance 
172.5 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
172.6 	275.61.
172.7 	(b) The bonds are not included in computing any debt limitation applicable to the city 
172.8 	of West St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
172.9 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
172.10 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
172.11 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
172.12 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
172.13 	that $28,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
172.14 	authorized under subdivision 3, including interest on the bonds, has been received from the 
172.15 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
172.16 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
172.17 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
172.18 	time if the city so determines by ordinance.

172.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
172.20 	city of West St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
172.21 	645.021, subdivisions 2 and 3.

172.22 	Sec. 33. CITY OF WILLMAR; TAX AUTHORIZED.
 172.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
172.24 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
172.25 	and as approved by the voters at the November 6, 2018, general election, the city of Willmar 
172.26 	may impose, by ordinance, a sales and use tax of up to one-half of one percent for the 
172.27 	purposes specified in subdivision 3. Except as otherwise provided in this section, the 
172.28 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
172.29 	collection, and enforcement of the tax authorized under this subdivision.
172.30 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, 
172.31 	or any other contrary provision of law, ordinance, or city charter, the city of Willmar may 
172.32 	impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 
172.33 	per motor vehicle, as defined by ordinance, purchased or acquired from any person engaged 
172.34 	within the city of Willmar in the business of selling motor vehicles at retail.
173.1 		Subd. 3.Use of revenues. (a) The revenues derived from the taxes authorized under 
173.2 	subdivisions 1 and 2 must be used by the city of Willmar to pay the costs of collecting and 
173.3 	administering the taxes, and to pay for the projects listed in this subdivision, including 
173.4 	securing and paying debt service on bonds issued to finance all or part of these projects. 
173.5 	The total amount of projects to be funded with the taxes imposed under subdivisions 1 and 
173.6 	2 shall not exceed $30,000,000 plus the costs related to the issuance and paying debt service 
173.7 	on bonds for these projects. The amount that may be spent on each project is limited to:
173.8 	(1) $2,000,000 for a community center replacement;
173.9 	(2) $6,000,000 for new athletic fields;
173.10 	(3) $3,000,000 for infrastructure improvements at Robins Island Regional Park;
173.11 	(4) $2,000,000 for a new playground and spectator amenities at Swansson Field Regional 
173.12 	Park;
173.13 	(5) $7,000,000 for storm water management infrastructure improvements; and
173.14 	(6) $10,000,000 for a new recreation and event center.
173.15 	(b) Notwithstanding the limits listed in paragraph (a) the city may by ordinance reallocate 
173.16 	up to ten percent of the funds designated for one or more projects listed in that paragraph 
173.17 	to other projects listed in that paragraph.
173.18 		Subd. 4.Bonding authority. (a) The city of Willmar may issue bonds under Minnesota 
173.19 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
173.20 	subdivision 3. The aggregate principal amount of bonds issued under this subdivision may 
173.21 	not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the 
173.22 	bonds. The bonds may be paid from or secured by any funds available to the city of Willmar, 
173.23 	including the taxes authorized under subdivisions 1 and 2. The issuance of bonds under this 
173.24 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
173.25 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
173.26 	Willmar and are not included in computing any debt limitation applicable to the city. Any 
173.27 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
173.28 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
173.29 	under Minnesota Statutes, section 475.58, is not required.
173.30 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
173.31 	at the earlier of: (1) 13 years after the taxes are first imposed; or (2) when the city council 
173.32 	determines that the city has received $30,000,000 from this tax to fund the projects listed 
173.33 	in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance 
174.1 	of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed 
174.2 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
174.3 	placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire 
174.4 	at an earlier time if the city so determines by ordinance.

174.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
174.6 	city of Willmar and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
174.7 	subdivisions 2 and 3.

174.8 	Sec. 34. CITY OF WORTHINGTON; TAX AUTHORIZED.
 174.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
174.10 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
174.11 	and as approved by the voters at the November 6, 2018, general election, the city of 
174.12 	Worthington may impose, by ordinance, a sales and use tax of one-half of one percent for 
174.13 	the purposes specified in subdivision 3. Except as otherwise provided in this section, the 
174.14 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
174.15 	collection, and enforcement of the tax authorized under this subdivision.
174.16 		Subd. 2.Use of tax revenues. (a) The revenues derived from the taxes authorized under 
174.17 	subdivision 1 must be used by the city of Worthington to pay the costs of collecting and 
174.18 	administering the tax and paying for the projects listed in this subdivision, including securing 
174.19 	and paying debt service on bonds issued to finance all or part of the following projects:
174.20 	(1) improvements to the aquatic center;
174.21 	(2) improvements to the field house;
174.22 	(3) improvements to the ice arena;
174.23 	(4) other park and recreation capital projects and improvements;
174.24 	(5) lake quality improvement; and
174.25 	(6) improvements to the 10th Street plaza.
174.26 	(b) The total amount of projects to be funded with the taxes imposed under subdivisions 
174.27 	1 and 2 shall not exceed $25,000,000 plus the costs related to the issuance of and paying 
174.28 	debt service on bonds for these projects.
174.29 		Subd. 3.Bonding authority. (a) The city of Worthington may issue bonds under 
174.30 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
174.31 	authorized in subdivision 3. The aggregate principal amount of bonds issued under this 
174.32 	subdivision may not exceed $25,000,000 plus an amount applied to the payment of costs 
175.1 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
175.2 	city of Worthington, including the taxes authorized under subdivisions 1 and 2. The issuance 
175.3 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
175.4 	275.61.
175.5 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
175.6 	Worthington and are not included in computing any debt limitation applicable to the city. 
175.7 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
175.8 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
175.9 	under Minnesota Statutes, section 475.58, is not required.
175.10 		Subd. 4.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
175.11 	at the earlier of: (1) 15 years after the taxes are first imposed; or (2) when the city council 
175.12 	determines that the city has received $25,000,000 from this tax to fund the projects listed 
175.13 	in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance 
175.14 	of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed 
175.15 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
175.16 	placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire 
175.17 	at an earlier time if the city so determines by ordinance.

175.18 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
175.19 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
175.20 	645.021, subdivisions 2 and 3.

175.21 	ARTICLE 7
175.22 	TAX INCREMENT FINANCING

175.23 	Section 1. Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended by 
175.24 	Laws 2008, chapter 366, article 5, section 21, is amended to read:
175.25 		Subdivision 1. District extension. (a) The governing body of the city of Hopkins may 
175.26 	elect to extend the duration of its redevelopment tax increment financing district 2-11 by 
175.27 	up to four additional years.
175.28 	(b) Notwithstanding any law to the contrary Minnesota Statutes, section 469.1763, 
175.29 	subdivision 2, effective upon approval of this subdivision, no increments may be spent on 
175.30 	activities located outside of the area of the district, other than:
175.31 	(1) to pay administrative expenses, not to exceed ten percent of the total tax increments 
175.32 	from the district; or
176.1 	(2) to pay the costs of housing or redevelopment activities that are consistent with 
176.2 	Minnesota Statutes, section 469.176, subdivision 4j, provided that expenditures under this 
176.3 	clause may not exceed 20 percent of the total tax increments from the district.
176.4 	The total amount of increment that may be spent on activities located outside the area of 
176.5 	the district under this section shall be limited to 25 percent.

176.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
176.7 	city of Hopkins and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
176.8 	subdivisions 2 and 3.

176.9 	Sec. 2. Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter 
176.10 	143, article 9, section 11, is amended to read:
176.11 	Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
 176.12 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
176.13 	activities must be undertaken within a five-year period from the date of certification of a 
176.14 	tax increment financing district, are increased to a 15-year17-year period for the Port 
176.15 	Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 
176.16 	Bloomington Central Station.
176.17 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
176.18 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
176.19 	limits of the district for a period through December 31, 2039.
176.20 	(c) Effective for taxes payable in 2014, tax increment for the district must be computed 
176.21 	using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section 
176.22 	469.177, subdivision 1a.

176.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
176.24 	city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section 
176.25 	645.021, subdivisions 2 and 3.

176.26 	Sec. 3. Laws 2014, chapter 308, article 6, section 8, subdivision 1, as amended by Laws 
176.27 	2017, First Special Session chapter 1, article 6, section 11, is amended to read:
176.28 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
176.29 	Edina or its development authority may establish one or more tax increment financing 
176.30 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
176.31 	exist on March 31, 2014.
177.1 	(b) The authority to request certification of districts under this section expires on 
177.2 	December 31, 2019 2021.

177.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.4 	city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
177.5 	subdivisions 2 and 3.

177.6 	Sec. 4. CITY OF ALEXANDRIA; TIF DISTRICT NO. 50; FIVE-YEAR RULE 
177.7 	EXTENSION.
 177.8 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
177.9 	must be undertaken within a five-year period from the date of certification of a tax increment 
177.10 	financing district, is considered to be met for TIF District No. 50, administered by the city 
177.11 	of Alexandria, or its economic development authority, if the activities are undertaken prior 
177.12 	to July 16, 2023.

177.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.14 	city of Alexandria and its chief clerical officer comply with Minnesota Statutes, section 
177.15 	645.021, subdivisions 2 and 3.

177.16 	Sec. 5. CITY OF ANOKA; COMMUTER RAIL TRANSIT VILLAGE TIF 
177.17 	DISTRICT; FIVE-YEAR RULE EXTENSION.
 177.18 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
177.19 	must be undertaken within a five-year period from the date of certification of a tax increment 
177.20 	financing district, is considered to be met for the Commuter Rail Transit Village tax 
177.21 	increment financing district, administered by the city of Anoka, if the activities are undertaken 
177.22 	prior to April 7, 2023.

177.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.24 	city of Anoka and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
177.25 	subdivisions 2 and 3.

177.26 	Sec. 6. CITY OF CHAMPLIN; MISSISSIPPI CROSSINGS TIF DISTRICT; 
177.27 	FIVE-YEAR RULE EXTENSION; DURATION EXTENSION.
 177.28 		Subdivision 1.Five-year rule. The requirement of Minnesota Statutes, section 469.1763, 
177.29 	subdivision 3, that activities must be undertaken within a five-year period from the date of 
177.30 	certification of a tax increment financing district, is extended to a ten-year period for the 
177.31 	Mississippi Crossings Tax Increment Financing District administered by the city of Champlin.
178.1 		Subd. 2.Duration. Notwithstanding Minnesota Statutes, section 469.176, subdivision 
178.2 	1b, or any other law to the contrary, the city of Champlin may elect to extend the duration 
178.3 	of the Mississippi Crossings Tax Increment Financing District by five years.

178.4 	EFFECTIVE DATE. This section is effective upon compliance by the governing bodies 
178.5 	of the city of Champlin, Hennepin County, and Independent School District No. 11 
178.6 	(Anoka-Hennepin), with the requirements of Minnesota Statutes, sections 469.1782, 
178.7 	subdivision 2; and 645.021, subdivisions 2 and 3.

178.8 	Sec. 7. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL 
178.9 	RULES AUTHORIZATION.
 178.10 		Subdivision 1.Establishment. The city of Duluth or the Duluth Economic Development 
178.11 	Authority may establish, by resolution, one redevelopment tax increment financing district 
178.12 	located in the city of Duluth, St. Louis County, Minnesota, within the area bordered on the 
178.13 	northeast by Slip 3 and the Pier B Resort property line extended northwest to Interstate 35, 
178.14 	on the southeast by the Duluth Harbor, on the southwest by the Compass Minerals property 
178.15 	line extended northwest to Interstate 35, and on the northwest by Interstate 35, together 
178.16 	with adjacent roads and rights-of-way; and such property is deemed to meet the requirements 
178.17 	of Minnesota Statutes, section 469.174, subdivision 10.
178.18 		Subd. 2.Eligible expenditures. Expenditures incurred in connection with the 
178.19 	development of the property described in subdivision 1 are deemed to meet the requirements 
178.20 	of Minnesota Statutes, section 469.176, subdivision 4j. Eligible expenditures for any tax 
178.21 	increment financing district established in the area described in subdivision 1 include, 
178.22 	without limitation, seawalls and pier facings adjacent to the boundaries of such district.

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

178.26 	Sec. 8. CITY OF MINNEAPOLIS; UPPER HARBOR TERMINAL 
178.27 	REDEVELOPMENT TIF DISTRICT; SPECIAL RULES AUTHORIZATION.
 178.28 		Subdivision 1.Qualifying rules. Notwithstanding Minnesota Statutes, section 469.174, 
178.29 	subdivision 10, the governing body of the city of Minneapolis may establish, by resolution, 
178.30 	one or more redevelopment tax increment financing districts within that portion of the North 
178.31 	Washington Industrial Park Redevelopment Project Area as its boundaries existed on January 
178.32 	1, 2019, located north of Lowry Avenue. In each resolution, the city must find that each 
178.33 	parcel in the district was part of property that was formerly used as a municipally owned 
179.1 	intermodal barge shipping facility that can no longer be used for such purpose due to the 
179.2 	closure of the Upper St. Anthony Falls Lock under the federal Water Resources Reform 
179.3 	and Development Act of 2014. Except as provided in this section, the provisions of Minnesota 
179.4 	Statutes, sections 469.174 to 469.1794, apply to each district created under this section.
179.5 		Subd. 2.Use of increments. Minnesota Statutes, section 469.176, subdivision 4j, does 
179.6 	not apply to any district established under this section.
179.7 		Subd. 3.Pooling authority. Notwithstanding Minnesota Statutes, section 469.1763, 
179.8 	subdivision 2, the permitted percentage of increments that may be expended on activities 
179.9 	outside the district, but within the project area, is increased to 35 percent for districts 
179.10 	established under this section.

179.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.12 	city of Minneapolis and its chief clerical officer comply with Minnesota Statutes, section 
179.13 	645.021, subdivisions 2 and 3.

179.14 	Sec. 9. CITY OF ROSEVILLE; HAZARDOUS SUBSTANCE SUBDISTRICT NO. 
179.15 	17A; EXPENDITURE OF TAX INCREMENT.
 179.16 	Notwithstanding Minnesota Statutes, section 469.1763, or any other law to the contrary, 
179.17 	the city of Roseville and the Roseville Economic Development Authority may use any or 
179.18 	all increment generated from Hazardous Substance Subdistrict No. 17A for the purpose of 
179.19 	financing environmental remediation pursuant to one or more response action plans on the 
179.20 	parcels within the subdistrict as originally certified, regardless of the date of approval of 
179.21 	the response action plan by the Pollution Control Agency.

179.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.23 	city of Roseville and its chief clerical officer comply with the requirements of Minnesota 
179.24 	Statutes, section 645.021, subdivisions 2 and 3.

179.25 	ARTICLE 8
179.26 	PUBLIC FINANCE

179.27 	Section 1. Minnesota Statutes 2018, section 37.31, subdivision 1, is amended to read:
179.28 		Subdivision 1.Bonding authority. The society may issue negotiable bonds in a principal 
179.29 	amount that the society determines necessary to provide sufficient money for achieving its 
179.30 	purposes, including the payment of interest on bonds of the society, the establishment of 
179.31 	reserves to secure its bonds, the payment of fees to a third party providing credit 
179.32 	enhancement, and the payment of all other expenditures of the society incident to and 
180.1 	necessary or convenient to carry out its corporate purposes and powers. Bonds of the society 
180.2 	may be issued as bonds or notes or in any other form authorized by law. The principal 
180.3 	amount of bonds issued and outstanding under this section at any time may not exceed 
180.4 	$20,000,000 $30,000,000, excluding bonds for which refunding bonds or crossover refunding 
180.5 	bonds have been issued.

180.6 	Sec. 2. Minnesota Statutes 2018, section 103E.611, subdivision 2, is amended to read:
180.7 		Subd. 2.Interest. (a) Interest is an additional drainage lien on all property until paid. 
180.8 	The interest rate on the drainage lien principal from the date the drainage lien statement is 
180.9 	recorded must be set by the board but may not exceed the rate determined by the state court 
180.10 	administrator for judgments under section 549.09, or six percent, whichever is greater.
180.11 	(b) Before the tax lists for the year are given to the county treasurer, the auditor shall 
180.12 	compute the interest on the unpaid balance of the drainage lien at the rate set by the board. 
180.13 	The amount of interest must be computed on the entire unpaid principal from the date the 
180.14 	drainage lien was recorded to August 15 of the next calendar year, and afterwards from 
180.15 	August 15 to August 15 of each year.
180.16 	(c) Interest is due and payable after November 1 of each year the drainage lien principal 
180.17 	or interest is due and unpaid.

180.18 	Sec. 3. Minnesota Statutes 2018, section 123B.595, subdivision 5, is amended to read:
180.19 		Subd. 5.Bond authorization. (a) A school district may issue general obligation bonds 
180.20 	under this section to finance facilities plans approved by its board and the commissioner. 
180.21 	Chapter 475, except sections 475.58 and 475.59, must be complied with. The authority to 
180.22 	issue bonds under this section is in addition to any bonding authority authorized by this 
180.23 	chapter or other law. The amount of bonding authority authorized under this section must 
180.24 	be disregarded in calculating the bonding or net debt limits of this chapter, or any other law 
180.25 	other than section 475.53, subdivision 4.
180.26 	(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds, or 
180.27 	the final certification of levies under subdivision 6, the district must publish notice of the 
180.28 	intended projects, the amount of the bond issue, and the total amount of district indebtedness.
180.29 	(c) The portion of revenue under this section for bonded debt must be recognized in the 
180.30 	debt service fund.

181.1 	Sec. 4. Minnesota Statutes 2018, section 297A.993, subdivision 1, is amended to read:
181.2 		Subdivision 1.Authorization; rates. Notwithstanding section 297A.99, subdivisions 
181.3 	1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside the 
181.4 	metropolitan transportation area, as defined under section 297A.992, subdivision 1, or more 
181.5 	than one county outside the metropolitan transportation area acting under a joint powers 
181.6 	agreement, may by resolution of the county board, or each of the county boards, following 
181.7 	a public hearing impose (1) a transportation sales tax at a rate of up to one-half of one percent 
181.8 	on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor 
181.9 	vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any 
181.10 	person engaged in the business of selling motor vehicles at retail, occurring within the 
181.11 	jurisdiction of the taxing authority.

181.12 	Sec. 5. Minnesota Statutes 2018, section 297A.993, is amended by adding a subdivision 
181.13 	to read:
181.14 		Subd. 4.Bonds. (a) A county may, by resolution, authorize, issue, and sell its bonds, 
181.15 	notes, or other obligations for the purposes specified in subdivision 2. The county may also, 
181.16 	by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.
181.17 	(b) The bonds may be limited obligations, payable solely from or secured by taxes levied 
181.18 	under this section, and the county may also pledge its full faith, credit, and taxing power as 
181.19 	additional security for the bonds. A regional railroad authority within the county may also 
181.20 	pledge its taxing powers as additional security for the bonds.
181.21 	(c) Bonds may be issued in one or more series and sold without an election. The bonds 
181.22 	shall be secured, bear the interest rate or rates or a variable rate, have the rank or priority, 
181.23 	be executed in the manner, be payable in the manner, mature, and be subject to the defaults, 
181.24 	redemptions, repurchases, tender options, or other terms, and shall be sold in such manner 
181.25 	as the county may determine.
181.26 	(d) The county may enter into and perform all contracts deemed necessary or desirable 
181.27 	by it to issue and secure the bonds, including an indenture of trust with a trustee within or 
181.28 	without the state.
181.29 	(e) Except as otherwise provided in this subdivision, the bonds must be issued and sold 
181.30 	in the manner provided under chapter 475.

182.1 	Sec. 6. Minnesota Statutes 2018, section 471.831, is amended to read:
182.2 	471.831 MUNICIPALITY MAY FILE BANKRUPTCY PETITION.
182.3 		Subdivision 1.Any relief under bankruptcy code. A municipality, as defined in 
182.4 	subdivision 2, may file a petition and seek any relief available to it under United States 
182.5 	Code, title 11, as amended through December 31, 1996.
182.6 		Subd. 2.Municipality defined. In this section, "municipality" means a municipality as 
182.7 	defined in United States Code, title 11, section 101, as amended through December 31, 
182.8 	1996, but limited to a county, statutory or home rule charter city, or town; or a housing and 
182.9 	redevelopment authority, economic development authority, or rural development financing 
182.10 	authority established under chapter 469, a home rule charter, or special law.

182.11 	Sec. 7. Minnesota Statutes 2018, section 474A.02, subdivision 22b, is amended to read:
182.12 		Subd. 22b.Public facilities project. "Public facilities project" means any publicly owned 
182.13 	facility, or a facility owned by a nonprofit organization that is used for district heating or 
182.14 	cooling, whether publicly or privately owned, that is eligible to be financed with the proceeds 
182.15 	of public facilities bonds as defined under section 474A.02, subdivision 23a.

182.16 	Sec. 8. Minnesota Statutes 2018, section 475.521, subdivision 1, is amended to read:
182.17 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
182.18 	meanings given.
182.19 	(a) "Bonds" mean an obligation defined under section 475.51.
182.20 	(b) "Capital improvement" means acquisition or betterment of public lands, buildings 
182.21 	or other improvements for the purpose of a city hall, town hall, library, public safety facility, 
182.22 	and public works facility. An improvement must have an expected useful life of five years 
182.23 	or more to qualify. Capital improvement does not include light rail transit or any activity 
182.24 	related to it, or a park, road, bridge, administrative building other than a city or town hall, 
182.25 	or land for any of those facilities. For purposes of this section, "capital improvement" 
182.26 	includes expenditures for purposes described in this paragraph that have been incurred by 
182.27 	a municipality before approval of a capital improvement plan, if such expenditures are 
182.28 	included in a capital improvement plan approved on or before the date of the public hearing 
182.29 	under subdivision 2 regarding issuance of bonds for such expenditures.
182.30 	(c) "Municipality" means a home rule charter or statutory city or a town described in 
182.31 	section 368.01, subdivision 1 or 1a.

183.1 	Sec. 9.  REPEALER.
 183.2 	Minnesota Statutes 2018, section 37.31, subdivision 8, is repealed.

183.3 	Sec. 10. EFFECTIVE DATE.
 183.4 	Sections 1 to 9 are effective July 1, 2019.

183.5 	ARTICLE 9
183.6 	MISCELLANEOUS

183.7 	Section 1. [270C.075] PRIVATE LETTER RULINGS.
183.8 		Subdivision 1.Program established. By January 1, 2020, the commissioner shall, by 
183.9 	administrative rule adopted under chapter 14, establish and implement a program for issuing 
183.10 	private letter rulings to taxpayers to provide guidance as to how the commissioner will apply 
183.11 	Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other 
183.12 	fact situation of the applying taxpayer. The commissioner must include in each ruling an 
183.13 	explanation of the reasoning for the determination. In establishing the terms of the program, 
183.14 	the commissioner may provide that rulings will not be issued in specified subject areas, for 
183.15 	categories of transactions, or under specified provisions of law, if the commissioner 
183.16 	determines doing so is in the best interests of the state and sound tax administration. The 
183.17 	program must include a process for the representative of a taxpayer to apply for a private 
183.18 	letter ruling and to communicate with the commissioner regarding the requested ruling.
183.19 		Subd. 2.Application procedure; fees. (a) The commissioner shall establish an 
183.20 	application procedure and forms for a taxpayer or the taxpayer's appointed representative 
183.21 	to request a private letter ruling. The commissioner may require the taxpayer to provide any 
183.22 	supporting factual information and certifications that the commissioner determines necessary 
183.23 	or appropriate to issue a private letter ruling. The requirements may vary based on the type 
183.24 	of ruling requested.
183.25 	(b) The commissioner may, in the administrative rule, establish a fee schedule to recover 
183.26 	the department's actual cost of preparing private letter rulings. The maximum fee per private 
183.27 	letter ruling is $1,000. The commissioner may require the applicant to pay the required fee 
183.28 	for a private letter ruling before the application is considered. If the administrative rule 
183.29 	provides for payment of a fee as a condition for providing a private letter ruling, the rule 
183.30 	must provide a fee structure that varies the amount of the fee by the complexity of the request 
183.31 	or the number and type of issues or both.
184.1 	(c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the 
184.2 	taxpayer's filing of a completed application, the commissioner must refund the application 
184.3 	fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the 
184.4 	taxpayer withdraws the request.
184.5 	(d) Any fees collected under this section must be deposited in the Revenue Department 
184.6 	service and recovery special revenue fund established under section 270C.15, and are 
184.7 	appropriated to the commissioner to offset the cost of issuing private letter rulings and 
184.8 	related administrative costs.
184.9 		Subd. 3.Effect. (a) A private letter ruling is binding on the commissioner with respect 
184.10 	to the taxpayer to whom the ruling is issued if:
184.11 	(1) there was no misstatement or omission of material facts in the application or other 
184.12 	information provided to the commissioner;
184.13 	(2) the facts that subsequently developed were not materially different from the facts 
184.14 	upon which the ruling was based;
184.15 	(3) the applicable statute, administrative rule, federal law referenced by state law, or 
184.16 	other relevant law has not changed; and
184.17 	(4) the taxpayer acted in good faith in applying for and relying on the ruling.
184.18 	(b) Private letter rulings have no precedential effect and may not be relied upon by a 
184.19 	taxpayer other than as provided in paragraph (a).
184.20 		Subd. 4.Public access. The commissioner shall make private letter rulings issued under 
184.21 	this section available to the public on the department's website. The commissioner must 
184.22 	organize the private letter rulings by tax type and must make them available in a searchable 
184.23 	format. The published rulings must redact any information that would permit identification 
184.24 	of the requesting taxpayer.
184.25 		Subd. 5.Legislative report. (a) By January 31 of each odd-numbered year, the 
184.26 	commissioner shall report in writing to the legislature the following information for the 
184.27 	immediately preceding two calendar years:
184.28 	(1) the number of applications for private letter rulings;
184.29 	(2) the number of private letter rulings issued, including the number issued within the 
184.30 	90-day time period under subdivision 2, paragraph (c);
184.31 	(3) the amount of application fees refunded by tax type;
184.32 	(4) the tax types for which rulings were requested;
185.1 	(5) the types and characteristics of taxpayers applying for rulings; and
185.2 	(6) any other information that the commissioner considers relevant to legislative oversight 
185.3 	of the private letter ruling program.
185.4 	(b) The report must be filed as provided in section 3.195, and copies must be provided 
185.5 	to the chairs and ranking minority members of the committees of the house of representatives 
185.6 	and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.

185.7 	EFFECTIVE DATE. This section is effective July 1, 2021, except that the first 
185.8 	legislative report under subdivision 5 is due January 31, 2024.

185.9 	Sec. 2. Minnesota Statutes 2018, section 270C.31, is amended by adding a subdivision to 
185.10 	read:
185.11 		Subd. 8.Authority to request dual examination. (a) A qualified taxpayer that is subject 
185.12 	to an on-site examination or audit under this section of the amount of tax due under chapter 
185.13 	290 or 297A may request in writing that the commissioner conduct the examination or audit 
185.14 	of the taxpayer's tax due under both chapters at the same time. The request must be made 
185.15 	within 30 days of the receipt of the commissioner's notice of intent to conduct the on-site 
185.16 	audit or examination in the form prescribed by the commissioner. If a qualified taxpayer 
185.17 	files a timely written request under this subdivision and the commissioner elects to audit or 
185.18 	examine the tax due under only one of the two chapters, the commissioner may not audit 
185.19 	or examine the tax due under the other chapter for each taxable year or period that includes 
185.20 	the taxable year or the period covered by the audit or examination that was conducted.
185.21 	(b) For purposes of this subdivision, "qualified taxpayer" means a taxpayer that has been 
185.22 	issued a permit to collect tax under section 297A.84.
185.23 	(c) The commissioner must have audited or examined the taxpayer's return filed under 
185.24 	chapter 290 or 297A or both for a period that ended no more than five years prior to the 
185.25 	taxable year or the period for which the qualified taxpayer made the request under this 
185.26 	subdivision, and the commissioner must have determined that no more than $1,000.

185.27 	EFFECTIVE DATE. This section is effective for examinations and audits commenced 
185.28 	after June 30, 2021.

185.29 	Sec. 3. Minnesota Statutes 2018, section 270C.33, is amended by adding a subdivision to 
185.30 	read:
185.31 		Subd. 4a.Limitations; sales taxes. (a) The provisions of this subdivision are a limitation 
185.32 	on the assessment authority of the commissioner under this section.
186.1 	(b) The commissioner must not assess additional tax under chapter 297A if each of the 
186.2 	following requirements are met:
186.3 	(1) the tax reported by the taxpayer is consistent with and based on past reporting or 
186.4 	other practices of the taxpayer that were fully disclosed to the commissioner and were 
186.5 	specifically reviewed by the commissioner, including by issuing an audit assessing no 
186.6 	additional tax liability with respect to that item for a prior taxable period; and
186.7 	(2) effective for a taxable period beginning after the period covered by clause (1), neither 
186.8 	the statute or administrative rule on which the reporting or other practice is based has been 
186.9 	materially changed, nor has the commissioner issued a revenue notice or directly notified 
186.10 	the taxpayer in writing of a change in the commissioner's position as to the proper reporting 
186.11 	or other treatment of the relevant income, transaction, deduction, or other item.
186.12 	(c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1), 
186.13 	applies only to issues within the scope of and specifically addressed by the audit.

186.14 	EFFECTIVE DATE. This section is effective for assessments made after June 30, 
186.15 	2021.

186.16 	Sec. 4. Minnesota Statutes 2018, section 270C.33, is amended by adding a subdivision to 
186.17 	read:
186.18 		Subd. 4b.Limit on assessments; reasonable cause for failure to collect or withhold. (a) 
186.19 	An assessment issued under subdivision 4 is reduced or eliminated to the extent that the 
186.20 	amount that would otherwise be assessed arose from the taxpayer's failure to collect or 
186.21 	withhold a tax from another individual or entity and the taxpayer had reasonable cause for 
186.22 	not collecting or withholding the tax. A taxpayer may raise this ground for prohibition of 
186.23 	an assessment during an audit, upon appeal from an assessment, or by refund claim following 
186.24 	payment of the assessment.
186.25 	(b) For purposes of this subdivision and section 270C.35, subdivision 4:
186.26 	(1) ignorance of the law is not reasonable cause;
186.27 	(2) lack of clarity as to whether the law requires collection or withholding under the 
186.28 	circumstances may be reasonable cause; and
186.29 	(3) failure to collect or withhold in accordance with prior written advice from the 
186.30 	commissioner on the specific question of the requirement to collect or withhold under the 
186.31 	same or similar circumstances that has not been superseded or preempted by a change in 
186.32 	statute or administrative rule or a subsequent written notice from the commissioner to the 
187.1 	taxpayer prior to commencement of the period for which the failure to collect or withhold 
187.2 	occurred is reasonable cause.

187.3 	EFFECTIVE DATE. This section is effective for assessments made after June 30, 
187.4 	2021.

187.5 	Sec. 5. Minnesota Statutes 2018, section 270C.34, subdivision 1, is amended to read:
187.6 		Subdivision 1.Authority. (a) The commissioner may abate, reduce, or refund any penalty 
187.7 	or interest that is imposed by a law administered by the commissioner, or imposed by section 
187.8 	270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late payment of 
187.9 	tax or late filing of a return, or any part of an additional tax charge under section 289A.25, 
187.10 	subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to 
187.11 	timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially 
187.12 	declared disaster or in a presidentially declared state of emergency area or in an area declared 
187.13 	to be in a state of emergency by the governor under section 12.31.
187.14 	(b) The commissioner shall abate any part of a penalty or additional tax charge under 
187.15 	section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice 
187.16 	given to the taxpayer in writing by an employee of the department acting in an official 
187.17 	capacity, if the advice:
187.18 	(1) was reasonably relied on and was in response to a specific written request of the 
187.19 	taxpayer; and
187.20 	(2) was not the result of failure by the taxpayer to provide adequate or accurate 
187.21 	information.
187.22 	(c) In addition to the authority under paragraphs (a) and (b), the commissioner may 
187.23 	decline to impose or may abate any penalty under section 289A.60 or other law, or an 
187.24 	additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4.

187.25 	EFFECTIVE DATE. This section is effective July 1, 2021.

187.26 	Sec. 6. Minnesota Statutes 2018, section 270C.35, subdivision 4, is amended to read:
187.27 		Subd. 4.Time and content for administrative appeal. Within 60 days after the notice 
187.28 	date, the taxpayer must file a written appeal with the commissioner. The appeal need not 
187.29 	be in any particular form but must contain the following information:
187.30 	(1) name and address of the taxpayer;
188.1 	(2) if a corporation, the state of incorporation of the taxpayer, and the principal place of 
188.2 	business of the corporation;
188.3 	(3) the Minnesota identification number or Social Security number of the taxpayer;
188.4 	(4) the type of tax involved;
188.5 	(5) the date;
188.6 	(6) the tax years or periods involved and the amount of tax involved for each year or 
188.7 	period;
188.8 	(7) the findings in the notice that the taxpayer disputes;
188.9 	(8) for a request to reduce or eliminate an assessment under section 270C.33, subdivision 
188.10 	4b, a statement of the taxpayer's grounds, along with a brief statement of the supporting 
188.11 	facts, for the assertion of reasonable cause for the failure to collect or withhold tax from 
188.12 	another individual or entity;
188.13 	(9) a summary statement that the taxpayer relies on for each exception; and
188.14 	(9) (10) the taxpayer's signature or signature of the taxpayer's duly authorized agent.

188.15 	EFFECTIVE DATE. This section is effective for assessments made after June 30, 
188.16 	2021.

188.17 	Sec. 7. Minnesota Statutes 2018, section 289A.40, subdivision 1, is amended to read:
188.18 		Subdivision 1.Time limit; generally. (a) Unless otherwise provided in this chapter, a 
188.19 	claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the 
188.20 	date prescribed for filing the return, plus any extension of time granted for filing the return, 
188.21 	but only if filed within the extended time, or one year from the date of an order assessing 
188.22 	tax under section 270C.33 or an order determining an appeal under section 270C.35, 
188.23 	subdivision 8, or one year from the date of a return made by the commissioner under section 
188.24 	270C.33, subdivision 3, upon payment in full of the tax, penalties, and interest shown on 
188.25 	the order or return made by the commissioner two years from the time the tax was paid, 
188.26 	whichever period expires later. Claims for refund, except for taxes under chapter 297A, 
188.27 	filed after the 3-1/2 year period but within the one-year period are limited to the amount of 
188.28 	the tax, penalties, and interest on the order or return made by the commissioner and to issues 
188.29 	determined by the order or return made by the commissioner.
188.30 	In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund 
188.31 	under chapter 297A filed after the 3-1/2 year period but within the one-year period are 
189.1 	limited to the amount of the tax, penalties, and interest on the order or return made by the 
189.2 	commissioner that are due for the period before the 3-1/2 year period.
189.3 	(b) For purposes of this subdivision, the amount of a refund is limited as follows:
189.4 	(1) if the claim was filed by the taxpayer within 3-1/2 years from the date prescribed for 
189.5 	filing the return, the refund shall not exceed the tax paid within the 3-1/2 year period 
189.6 	immediately preceding the filing of the claim, plus any extension of time granted for filing 
189.7 	the return, but only if the claim was filed within the extended time;
189.8 	(2) if the claim was not filed within 3-1/2 years from the date prescribed for filing the 
189.9 	return, the refund shall not exceed the tax paid during the two years immediately preceding 
189.10 	the filing of the claim; and
189.11 	(3) if no claim was filed, the refund shall not exceed the amount which would be 
189.12 	allowable under clause (1) or (2), if the claim was filed on the date the refund is allowed.
189.13 	(c) The prepayment of tax made by withholding of tax at the source or payment of 
189.14 	estimated tax before the due date is considered paid on the last day prescribed by law for 
189.15 	the payment of the tax by the taxpayer. A return filed before the due date is considered as 
189.16 	filed on the due date. An extended return filed before the extended due date is considered 
189.17 	as filed on the extended due date.

189.18 	EFFECTIVE DATE. This section is effective for claims for refund filed after June 30, 
189.19 	2021.

189.20 	Sec. 8. Minnesota Statutes 2018, section 289A.60, subdivision 1, is amended to read:
189.21 		Subdivision 1.Penalty for failure to pay tax. (a) If a corporate franchise, fiduciary 
189.22 	income, mining company, estate, partnership, S corporation, or nonresident entertainer tax 
189.23 	is not paid within the time specified for payment, a penalty of six percent is added to the 
189.24 	unpaid tax, except that if a corporation or mining company meets the requirements of section 
189.25 	289A.19, subdivision 2, the penalty is not imposed.
189.26 	(b) For the taxes listed in paragraph (a), in addition to the penalty in that paragraph, 
189.27 	whether imposed or not, if a return or amended return is filed after the due date, without 
189.28 	regard to extensions, and any tax reported as remaining due is not remitted with the return 
189.29 	or amended return, a penalty of five percent of the tax not paid is added to the tax. If the 
189.30 	commissioner issues an order assessing additional tax for a tax listed in paragraph (a), and 
189.31 	the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60 
189.32 	days after final resolution of the appeal, a penalty of five percent of the unpaid tax is added 
189.33 	to the tax.
190.1 	(c) If an individual income tax is not paid within the time specified for payment, a penalty 
190.2 	of four percent is added to the unpaid tax. There is a presumption of reasonable cause for 
190.3 	the late payment if the individual: (i) pays by the due date of the return at least 90 percent 
190.4 	of the amount of tax, after credits other than withholding and estimated payments, shown 
190.5 	owing on the return; (ii) files the return within six months after the due date; and (iii) pays 
190.6 	the remaining balance of the reported tax when the return is filed.
190.7 	(d) If the commissioner issues an order assessing additional individual income tax, and 
190.8 	the tax is not paid within 60 days after the mailing of the order or, if appealed, within 60 
190.9 	days after final resolution of the appeal, a penalty of four percent of the unpaid tax is added 
190.10 	to the tax.
190.11 	(e) If a withholding or sales or use tax is not paid within the time specified for payment, 
190.12 	a penalty must be added to the amount required to be shown as tax. The penalty is five 
190.13 	percent of the tax not paid on or before the date specified for payment of the tax if the failure 
190.14 	is for not more than 30 days, with an additional penalty of five percent of the amount of tax 
190.15 	remaining unpaid during each additional 30 days or fraction of 30 days during which the 
190.16 	failure continues, not exceeding 15 percent in the aggregate.
190.17 	(f) No penalty applies under this section if:
190.18 	(1) the total calculated penalty that would otherwise apply under paragraphs (a) to (e) 
190.19 	is less than $150; or
190.20 	(2) for an underpayment of individual income tax under chapter 290 or sales tax under 
190.21 	chapter 297A, the liability for tax on which the penalty is calculated is less than $1,000 and 
190.22 	the taxpayer timely filed any returns required to be filed during the prior three calendar 
190.23 	years and was not subject to a penalty under this section, determined without regard to the 
190.24 	provisions of this paragraph, for any taxes on returns due during that three-year period.

190.25 	EFFECTIVE DATE. This section is effective for penalties imposed after June 30, 
190.26 	2021.

190.27 	Sec. 9. Minnesota Statutes 2018, section 296A.03, subdivision 3, is amended to read:
190.28 		Subd. 3.Form of application; license fee. An application for a distributor's license
190.29 	shall be made in the form and manner prescribed by the commissioner and must be 
190.30 	accompanied by an initial fee of $25. Once licensed, a distributor must remit a $25 fee 
190.31 	annually to maintain the license.

190.32 	EFFECTIVE DATE. This section is effective July 1, 2019.

191.1 	Sec. 10. Minnesota Statutes 2018, section 296A.13, is amended to read:
191.2 	296A.13 PERSONAL LIABILITY FOR TAX.
191.3 	Liability for payment of taxes under this chapter includes a responsible person or entity 
191.4 	described in the personal liability provisions of section 270C.56., except "person" includes 
191.5 	but is not limited to directors and officers of corporations, governors and managers of a 
191.6 	limited liability company, or members of partnerships who, either individually or jointly 
191.7 	with others, have the control, supervision, or responsibility of filing returns and making 
191.8 	payment of the amount of tax imposed by this chapter.

191.9 	EFFECTIVE DATE. This section is effective July 1, 2019.

191.10 	Sec. 11. Minnesota Statutes 2018, section 297E.02, subdivision 6, is amended to read:
191.11 		Subd. 6.Combined net receipts tax. (a) In addition to the taxes imposed under 
191.12 	subdivision 1, a tax is imposed on the combined net receipts of the organization. As used 
191.13 	in this section, "combined net receipts" is the sum of the organization's gross receipts from 
191.14 	lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, 
191.15 	and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes 
191.16 	actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for 
191.17 	the fiscal year. The combined net receipts of an organization are subject to a tax computed 
191.18 	according to the following schedule:

191.19
191.20		If the combined net receipts 
for the fiscal year are:
		The tax is:
		
191.21		Not over $87,500
		nine eight percent
		
191.22
191.23191.24		Over $87,500, but not over 
$122,500
		$7,875 $7,000 plus 18 16 percent of 
the amount over $87,500, but not over 
$122,500
		
191.25
191.26191.27		Over $122,500, but not 
over $157,500
		$14,175 $12,600 plus 27 24 percent 
of the amount over $122,500, but not 
over $157,500
		
191.28191.29		Over $157,500
		$23,625 $21,000 plus 36 32 percent 
of the amount over $157,500
		
191.30 	(b) On or before April 1, 2016, the commissioner shall estimate the total amount of 
191.31 	revenue, including interest and penalties, that will be collected for fiscal year 2016 from 
191.32 	taxes imposed under this chapter. If the amount estimated by the commissioner equals or 
191.33 	exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates 
191.34 	under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice 
191.35 	to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates 
192.1 	under this section apply, the combined net receipts of an organization are subject to a tax 
192.2 	computed according to the following schedule:

192.3
192.4		If the combined net receipts 
for the fiscal year are:
		The tax is:
		
192.5		Not over $87,500
		8.5 percent
		
192.6
192.7		Over $87,500, but not over 
$122,500
		$7,438 plus 17 percent of the amount 
over $87,500, but not over $122,500
		
192.8
192.9192.10
		Over $122,500, but not 
over $157,500
		$13,388 plus 25.5 percent of the 
amount over $122,500, but not over 
$157,500
		
192.11192.12		Over $157,500
		$22,313 plus 34 percent of the amount 
over $157,500
		
192.13 	(c) (b) Gross receipts derived from sports-themed tipboards are exempt from taxation 
192.14 	under this section. For purposes of this paragraph, a sports-themed tipboard means a 
192.15 	sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning 
192.16 	numbers are determined by the numerical outcome of a professional sporting event.

192.17 	EFFECTIVE DATE. This section is effective July 1, 2019.

192.18 	Sec. 12. Minnesota Statutes 2018, section 297E.021, subdivision 2, is amended to read:
192.19 		Subd. 2.Determination of revenue increase. By March 15 of each fiscal year, the 
192.20 	commissioner of management and budget, in consultation with the commissioner, shall 
192.21 	determine the estimated increase in revenues received from taxes imposed under this chapter 
192.22 	over the estimated revenues under the February 2012 state budget forecast for that fiscal 
192.23 	year. For fiscal years after fiscal year 2015, the commissioner of management and budget 
192.24 	shall use the February 2012 state budget forecast for fiscal year 2015 as the a baseline of: 
192.25 	(1) $26,900,000 in fiscal year 2020; (2) $26,100,000 in fiscal year 2021; (3) $25,400,000 
192.26 	in fiscal year 2022; and (4) $24,500,000 in fiscal year 2023 and thereafter. All calculations 
192.27 	under this subdivision must be made net of estimated refunds of the taxes required to be 
192.28 	paid.

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

192.30 	Sec. 13. Minnesota Statutes 2018, section 297E.021, subdivision 3, is amended to read:
192.31 		Subd. 3.Available revenues. For purposes of this section, "available revenues" equals 
192.32 	the amount determined under subdivision 2, plus up to $20,000,000 each fiscal year from 
192.33 	the taxes imposed under section 290.06, subdivision 1:
192.34 	(1) reduced by the following amounts paid for the fiscal year under:
193.1 	(i) the appropriation to principal and interest on appropriation bonds under section 
193.2 	16A.965, subdivision 8;
193.3 	(ii) the appropriation from the general fund to make operating expense payments under 
193.4 	section 473J.13, subdivision 2, paragraph (b);
193.5 	(iii) the appropriation for contributions to the capital reserve fund under section 473J.13, 
193.6 	subdivision 4, paragraph (c);
193.7 	(iv) the appropriations under Laws 2012, chapter 299, article 4, for administration and 
193.8 	any successor appropriation;
193.9 	(v) the reduction in revenues resulting from the sales tax exemptions under section 
193.10 	297A.71, subdivision 43;
193.11 	(vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);
193.12 	(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, 
193.13 	paragraph (c), and any successor appropriation; and
193.14 	(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph (c); and
193.15 	(2) increased by the revenue deposited in the general fund under section 297A.994, 
193.16 	subdivision 4, clauses (1) to (3), for the fiscal year.

193.17 	Sec. 14. Minnesota Statutes 2018, section 297E.021, is amended by adding a subdivision 
193.18 	to read:
193.19 		Subd. 3a.Revenue dedication. If the commissioner of management and budget 
193.20 	determines that the available revenues determined under subdivision 2 are insufficient, the 
193.21 	commissioner may add up to $20,000,000 each fiscal year from the taxes imposed under 
193.22 	section 290.06, subdivision 1, to the available revenues under subdivision 3. The 
193.23 	commissioner must notify the chairs and ranking minority members of the house of 
193.24 	representatives Ways and Means Committee and the senate Finance Committee at least 15 
193.25 	days prior to increasing the available revenue under subdivision 3. Any increase made under 
193.26 	this subdivision must continue in subsequent fiscal years.

193.27 	Sec. 15. Minnesota Statutes 2018, section 297E.021, subdivision 4, is amended to read:
193.28 		Subd. 4.Appropriation; general reserve account. To the extent the commissioner 
193.29 	determines that revenues are available under subdivision subdivisions 3 and 3a for the fiscal 
193.30 	year, those amounts are appropriated from the general fund for deposit in a general reserve 
193.31 	account established by order of the commissioner of management and budget. Amounts in 
194.1 	this reserve are appropriated as necessary for application against any shortfall in the amounts 
194.2 	deposited to the general fund under section 297A.994 or, after consultation with the 
194.3 	Legislative Commission on Planning and Fiscal Policy, amounts in this reserve are 
194.4 	appropriated to the commissioner of management and budget for other uses related to the 
194.5 	stadium authorized under section 473J.03, subdivision 8, that the commissioner deems 
194.6 	financially prudent including but not limited to reimbursements for capital and operating 
194.7 	costs relating to the stadium, refundings, and prepayment of debt. In no event, shall available 
194.8 	revenues be pledged, nor shall the appropriations of available revenues made by this section 
194.9 	constitute a pledge of available revenues as security for the prepayment of principal and 
194.10 	interest on the appropriation bonds under section 16A.965.

194.11 	Sec. 16. Minnesota Statutes 2018, section 297F.01, is amended by adding a subdivision 
194.12 	to read:
194.13 		Subd. 5a.Closed-system cartridge. "Closed-system cartridge" means a disposable 
194.14 	cartridge, tank, pod, or other package that is prefilled with any liquid nicotine solution or 
194.15 	other material containing nicotine that is consumed or meant to be consumed through the 
194.16 	use of a heating element, electronic circuit, or other electronic, chemical, or mechanical 
194.17 	means and is not intended to be reused, refilled, or opened.

194.18 	EFFECTIVE DATE. This section is effective January 1, 2020.

194.19 	Sec. 17. Minnesota Statutes 2018, section 297F.01, subdivision 19, is amended to read:
194.20 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
194.21 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
194.22 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
194.23 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
194.24 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
194.25 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
194.26 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
194.27 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
194.28 	products includes closed-system cartridges. Tobacco products excludes any tobacco product 
194.29 	that has been approved by the United States Food and Drug Administration for sale as a 
194.30 	tobacco cessation product, as a tobacco dependence product, or for other medical purposes, 
194.31 	and is being marketed and sold solely for such an approved purpose.
194.32 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
194.33 	products includes a premium cigar, as defined in subdivision 13a.

195.1 	EFFECTIVE DATE. This section is effective January 1, 2020.

195.2 	Sec. 18. Minnesota Statutes 2018, section 297F.05, is amended by adding a subdivision 
195.3 	to read:
195.4 		Subd. 3b.Surcharge; closed-system cartridges. In addition to taxes imposed under 
195.5 	this chapter and chapter 297A, a surcharge equal to $2 is imposed on the retail sale of each 
195.6 	closed-system cartridge in the state. The retail sales price on which the tax under chapter 
195.7 	297A is imposed does not include the surcharge required under this section. The surcharge 
195.8 	must be remitted in the form and manner required under chapter 289A, as applied to taxes 
195.9 	imposed under chapter 297A.

195.10 	EFFECTIVE DATE. This section is effective for closed-system cartridges bought or 
195.11 	sold in Minnesota after December 31, 2019.

195.12 	Sec. 19. Minnesota Statutes 2018, section 297F.05, is amended by adding a subdivision 
195.13 	to read:
195.14 		Subd. 3c.Rates; vapor products. (a) On and after January 1, 2020, a tax is hereby 
195.15 	imposed upon the privilege of selling or dealing in vapor products in this state by any person 
195.16 	engaged in business as a distributor thereof, at the rate of $0.05 per milliliter of consumable 
195.17 	material for vapor products and a proportionate tax at the like rate on all fractional parts 
195.18 	thereof. For vapor products in the possession of retail dealers for which tax has not been 
195.19 	paid, tax shall be imposed under this subdivision at the earliest time the retail dealer: (1) 
195.20 	brings or causes to be brought into this state from without the state vapor products for sale; 
195.21 	(2) makes, manufactures, or fabricates vapor products in this state for sale in this state; or 
195.22 	(3) sells vapor products to consumers within this state.
195.23 	(b) "Consumable material" means any liquid solution or similar material that is depleted 
195.24 	as a vapor product is used.

195.25 	Sec. 20. Minnesota Statutes 2018, section 298.17, is amended to read:
195.26 	298.17 OCCUPATION TAXES TO BE APPORTIONED; TRANSFERRED.
195.27 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
195.28 	companies, corporations, and associations, however or for whatever purpose organized, 
195.29 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
195.30 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
195.31 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
195.32 	treasury and credited to the general fund of which four-ninths shall be used for the support 
196.1 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
196.2 	by this section shall be deposited in the state treasury and credited to the general fund for 
196.3 	the general support of the university.
196.4 	(b) Of the money apportioned to the general fund by this section, the following 
196.5 	appropriations must be made:
196.6 	(1) there is annually appropriated and credited to the mining environmental and regulatory 
196.7 	account in the special revenue fund an amount equal to that which would have been generated 
196.8 	by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in the preceding 
196.9 	calendar year. Money in the mining environmental and regulatory account is appropriated 
196.10 	annually to the commissioner of natural resources to fund agency staff to work on 
196.11 	environmental issues and provide regulatory services for ferrous and nonferrous mining 
196.12 	operations in this state. Payment to the mining environmental and regulatory account shall 
196.13 	be made by July 1 annually. The commissioner of natural resources shall execute an 
196.14 	interagency agreement with the Pollution Control Agency to assist with the provision of 
196.15 	environmental regulatory services such as monitoring and permitting required for ferrous 
196.16 	and nonferrous mining operations;
196.17 	(2) there is annually appropriated and credited to the Iron Range resources and 
196.18 	rehabilitation account in the special revenue fund an amount equal to that which would have 
196.19 	been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced 
196.20 	in the preceding calendar year, to be expended for the purposes of section 298.22. The 
196.21 	money appropriated shall be used (i) to provide environmental development grants to local 
196.22 	governments located within any county in region 3 as defined in governor's executive order 
196.23 	number 60, issued on June 12, 1970, which does not contain a municipality qualifying 
196.24 	pursuant to section 273.134, paragraph (b), or (ii) to provide economic development loans 
196.25 	or grants to businesses located within any such county, provided that the county board or 
196.26 	an advisory group appointed by the county board to provide recommendations on economic 
196.27 	development shall make recommendations to the commissioner of Iron Range resources 
196.28 	and rehabilitation regarding the loans. Of the money allocated to Koochiching County, 
196.29 	one-third must be paid to the Koochiching County Economic Development Commission. 
196.30 	Payment to the Iron Range resources and rehabilitation account shall be made by May 15 
196.31 	annually; and
196.32 	(3) there is annually appropriated and credited to the Iron Range resources and 
196.33 	rehabilitation account in the special revenue fund for transfer to the Iron Range school 
196.34 	consolidation and cooperatively operated school account under section 298.28, subdivision 
196.35 	7a, an amount equal to that which would have been generated by a six cent tax imposed by 
197.1 	section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the 
197.2 	Iron Range resources and rehabilitation account shall be made by May 15 annually.
197.3 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
197.4 	provide environmental development grants to local governments located within any county 
197.5 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
197.6 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
197.7 	(b), or (ii) to provide economic development loans or grants to businesses located within 
197.8 	any such county, provided that the county board or an advisory group appointed by the 
197.9 	county board to provide recommendations on economic development shall make 
197.10 	recommendations to the commissioner of Iron Range resources and rehabilitation regarding 
197.11 	the loans. Payment to the Iron Range resources and rehabilitation account shall be made by 
197.12 	May 15 annually After all appropriations are made pursuant to paragraph (b), any amount 
197.13 	remaining in the general fund, of the money credited to the general fund under paragraph 
197.14 	(a) in the current fiscal year, shall be transferred by the commissioner of management and 
197.15 	budget to the taconite economic development fund under section 298.227. Transfer to the 
197.16 	taconite economic development fund shall be made by June 1 annually.
197.17 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
197.18 	Koochiching County Economic Development Commission The maximum amount that shall 
197.19 	be transferred each year under this paragraph shall be $4,000,000. If there are insufficient 
197.20 	funds remaining in the general fund in any year after all appropriations are made pursuant 
197.21 	to paragraph (b), transfer of funds to the taconite economic development fund pursuant to 
197.22 	this paragraph shall not be made.

197.23 	EFFECTIVE DATE. This section is effective beginning with distributions made in 
197.24 	2020 and thereafter.

197.25 	Sec. 21. Minnesota Statutes 2018, section 298.227, is amended to read:
197.26 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
197.27 	An amount equal to that distributed pursuant to each taconite producer's taxable 
197.28 	production and qualifying sales under section 298.28, subdivision 9a; and an amount equal 
197.29 	to each taconite producer's share of the amount transferred under section 298.17, paragraph 
197.30 	(c), shall be held by the commissioner of Iron Range resources and rehabilitation in a separate 
197.31 	taconite economic development fund for each taconite and direct reduced ore producer. The 
197.32 	amount of each taconite producer's share of the amount transferred under section 298.17, 
197.33 	paragraph (c), shall be equal to the amount of tax paid under section 298.01 in the current 
197.34 	year by that producer in proportion to the total amount of tax paid under section 298.01 in 
198.1 	the current year by all producers. Money from the fund for each producer shall be released 
198.2 	by the commissioner after review by a joint committee consisting of an equal number of 
198.3 	representatives of the salaried employees and the nonsalaried production and maintenance 
198.4 	employees of that producer. The District 11 director of the United States Steelworkers of 
198.5 	America, on advice of each local employee president, shall select the employee members. 
198.6 	In nonorganized operations, the employee committee shall be elected by the nonsalaried 
198.7 	production and maintenance employees. The review must be completed no later than six 
198.8 	months after the producer presents a proposal for expenditure of the funds to the committee. 
198.9 	The funds held pursuant to this section may be released only for workforce development, 
198.10 	concurrent reclamation, plant and stationary mining equipment, facilities for the producer, 
198.11 	or for research and development in Minnesota on new mining, taconite, iron, or steel 
198.12 	production technology, but only if the producer provides a matching expenditure equal to 
198.13 	the amount of the distribution to be used for the same purpose. If a proposed expenditure 
198.14 	is not approved by the commissioner, after consultation with the advisory board, the funds 
198.15 	must be deposited in the taconite environmental protection fund under sections 298.222 to 
198.16 	298.225. If a taconite production facility is sold after operations at the facility had ceased, 
198.17 	any money remaining in the fund for the former producer may be released to the purchaser 
198.18 	of the facility on the terms otherwise applicable to the former producer under this section. 
198.19 	If a producer fails to provide matching funds for a proposed expenditure within six months 
198.20 	after the commissioner approves release of the funds, the funds may be released by the 
198.21 	commissioner for deposit in the taconite area environmental protection fund created in 
198.22 	section 298.223. Any portion of the fund which is not released by the commissioner within 
198.23 	one year of its deposit in the fund shall be distributed to the taconite environmental protection 
198.24 	fund.

198.25 	EFFECTIVE DATE. This section is effective beginning with distributions made in 
198.26 	2020 and thereafter.

198.27 	Sec. 22. Minnesota Statutes 2018, section 298.28, subdivision 11, is amended to read:
198.28 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
198.29 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
198.30 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
198.31 	interest earned on all money distributed under this section prior to distribution, shall be 
198.32 	divided between the taconite environmental protection fund created in section 298.223 and 
198.33 	the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows: 
198.34 	Two-thirds to the taconite environmental protection fund and one-third to the Douglas J. 
199.1 	Johnson economic protection trust fund. The proceeds shall be placed in the respective 
199.2 	special accounts.
199.3 	(b) There shall be distributed to each city, town, and county the amount that it received 
199.4 	under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however, 
199.5 	that (1) the amount distributed in 1981 to the unorganized territory number 2 of Lake County 
199.6 	and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company 
199.7 	will be distributed in 1982 and subsequent years to the unorganized territory number 2 of 
199.8 	Lake County and the towns of Beaver Bay and Stony River based on the miles of track of 
199.9 	Erie Mining Company in each taxing district; and (2) a city located within six miles of five 
199.10 	other cities qualifying for a distribution under section 298.282 shall receive a distribution 
199.11 	equal to $5,000 under this paragraph in calendar year 2020 and subsequent years. The 
199.12 	distribution to all other cites and towns receiving a distribution under this paragraph shall 
199.13 	be reduced by the ratio that $5,000 bears to the total aid distribution received by all cities 
199.14 	and towns under this paragraph.
199.15 	(c) There shall be distributed to the Iron Range resources and rehabilitation account the 
199.16 	amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount 
199.17 	distributed under this paragraph shall be expended within or for the benefit of the taconite 
199.18 	assistance area defined in section 273.1341.
199.19 	(d) There shall be distributed to each school district 62 percent of the amount that it 
199.20 	received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

199.21 	EFFECTIVE DATE. This section is effective for aid distributions in 2020 and 
199.22 	subsequent years.

199.23 	Sec. 23. Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
199.24 		Subdivision 1.Distribution of taconite municipal aid account. The amount deposited 
199.25 	with the county as provided in section 298.28, subdivision 3, must be distributed as provided 
199.26 	by this section among: (1) the municipalities comprisinglocated within a taconite assistance 
199.27 	area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2) 
199.28 	a township that contains a state park consisting primarily of an underground iron ore mine; 
199.29 	and (3) a city located within five miles of that state park; and (4) Breitung Township in St. 
199.30 	Louis County, each being referred to in this section as a qualifying municipality. The 
199.31 	distribution to Breitung Township under this subdivision shall be $15,000 annually.

199.32 	EFFECTIVE DATE. This section is effective beginning with distributions in 2020.

200.1 	Sec. 24. Minnesota Statutes 2018, section 349.15, subdivision 1, is amended to read:
200.2 		Subdivision 1.Expenditure restrictions, requirements, and civil penalties. (a) Gross 
200.3 	profits from lawful gambling may be expended only for lawful purposes or allowable 
200.4 	expenses as authorized by the membership of the conducting organization at a monthly 
200.5 	meeting of the organization's membership.
200.6 	(b) For each 12-month period beginning July 1, a licensed organization will be evaluated 
200.7 	by the board to determine a rating based on the percentage of annual lawful purpose 
200.8 	expenditures when compared to available gross profits for the same period. The rating will 
200.9 	be used to determine the organization's profitability percent and is not a rating of the 
200.10 	organization's lawful gambling operation. An organization will be evaluated according to 
200.11 	the following criteria:
200.12 	(1) an organization that expends 50 70 percent or more of gross profits on lawful purposes 
200.13 	will receive a five-star rating;
200.14 	(2) an organization that expends 40 55 percent or more but less than 50 70 percent of 
200.15 	gross profits on lawful purposes will receive a four-star rating;
200.16 	(3) an organization that expends 30 40 percent or more but less than 40 55 percent of 
200.17 	gross profits on lawful purposes will receive a three-star rating;
200.18 	(4) an organization that expends 20 25 percent or more but less than 30 40 percent of 
200.19 	gross profits on lawful purposes will receive a two-star rating; and
200.20 	(5) an organization that expends less than 2025 percent of gross profits on lawful 
200.21 	purposes will receive a one-star rating.
200.22 	(c) An organization that fails to expend a minimum of 30 40 percent annually of gross 
200.23 	profits on lawful purposes, or 20 25 percent annually for organizations that conduct lawful 
200.24 	gambling in a location where the primary business is bingo, is automatically on probation 
200.25 	effective July 1 for a period of one year. The organization must increase its rating to the 
200.26 	required minimum or be subject to sanctions by the board. If an organization fails to meet 
200.27 	the minimum after a one-year probation, the board may suspend the organization's license 
200.28 	or impose a civil penalty as follows:
200.29 	(1) in determining any suspension or penalty for a violation of this paragraph, the board 
200.30 	must consider any unique factors or extraordinary circumstances that caused the organization 
200.31 	to not meet the minimum rate of profitability. Unique factors or extraordinary circumstances 
200.32 	include, but are not limited to, the purchase of capital assets necessary to conduct lawful 
200.33 	gambling; road or other construction causing impaired access to the lawful gambling 
201.1 	premises; and flood, tornado, or other catastrophe that had a direct impact on the continuing 
201.2 	lawful gambling operation; and
201.3 	(2) notwithstanding section 349.151, subdivision 4, paragraph (a), clause (10), the board 
201.4 	may impose a civil penalty under this subdivision up to $10,000.

201.5 	EFFECTIVE DATE. This section is effective July 1, 2019.

201.6 	Sec. 25. Minnesota Statutes 2018, section 349.151, subdivision 4, is amended to read:
201.7 		Subd. 4.Powers and duties. (a) The board has the following powers and duties:
201.8 	(1) to regulate lawful gambling to ensure it is conducted in the public interest;
201.9 	(2) to issue licenses to organizations and gambling managers, and to issue licenses and 
201.10 	renewals to distributors, distributor salespersons, manufacturers, and linked bingo game 
201.11 	providers;
201.12 	(3) to collect and deposit fees due under this chapter;
201.13 	(4) to receive reports required by this chapter and inspect all premises, records, books, 
201.14 	and other documents of organizations, distributors, manufacturers, and linked bingo game 
201.15 	providers to insure compliance with all applicable laws and rules;
201.16 	(5) to make rules authorized by this chapter;
201.17 	(6) to register gambling equipment and issue registration stamps;
201.18 	(7) to provide by rule for the mandatory posting by organizations conducting lawful 
201.19 	gambling of rules of play and the odds and/or house percentage on each form of lawful 
201.20 	gambling;
201.21 	(8) to report annually to the governor and legislature on its activities and on recommended 
201.22 	changes in the laws governing gambling, including an annual report that provides a tabulation 
201.23 	of the number of compliance reviews completed, the percentage of organizations reviewed, 
201.24 	an average of the number of months between reviews, the number, location, and organization 
201.25 	of site inspections, and the number of allegations awaiting investigation by the board;
201.26 	(9) to report annually to the governor and legislature a financial summary for each 
201.27 	licensed organization identifying the gross receipts, prizes paid, allowable expenses, lawful 
201.28 	purpose expenditures including charitable contributions and all taxes and fees as per section 
201.29 	349.12, subdivision 25, paragraph (a), clauses (8) and (18), and the percentage of annual 
201.30 	gross profit used for lawful purposes;
202.1 	(10) to impose civil penalties of not more than $1,000 per violation on organizations, 
202.2 	distributors, distributor salespersons, manufacturers, linked bingo game providers, and 
202.3 	gambling managers for violating or failing to comply with any provision of this chapter, 
202.4 	chapter 297E, or any rule or order of the board;
202.5 	(11) to issue premises permits to organizations licensed to conduct lawful gambling;
202.6 	(12) to delegate to the director the authority to issue or deny license and premises permit 
202.7 	applications and renewals under criteria established by the board;
202.8 	(13) to delegate to the director the authority to approve or deny fund loss requests, 
202.9 	contribution of gambling funds to another licensed organization, and property expenditure 
202.10 	requests under criteria established by the board;
202.11 	(14) to suspend or revoke licenses and premises permits of organizations, distributors, 
202.12 	distributor salespersons, manufacturers, linked bingo game providers, or gambling managers 
202.13 	as provided in this chapter;
202.14 	(15) to approve or deny requests from licensees for:
202.15 	(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and
202.16 	(ii) variances from Gambling Control Board rules under section 14.055; and
202.17 	(16) to register employees of organizations licensed to conduct lawful gambling;
202.18 	(17) to require fingerprints from persons determined by board rule to be subject to 
202.19 	fingerprinting;
202.20 	(18) to delegate to a compliance review group of the board the authority to investigate 
202.21 	alleged violations, issue consent orders, and initiate contested cases on behalf of the board;
202.22 	(19) to order organizations, distributors, distributor salespersons, manufacturers, linked 
202.23 	bingo game providers, and gambling managers to take corrective actions; and
202.24 	(20) to take all necessary steps to ensure the integrity of and public confidence in lawful 
202.25 	gambling.
202.26 	(b) The board, or director if authorized to act on behalf of the board, may by citation 
202.27 	assess any organization, distributor, distributor salesperson, manufacturer, linked bingo 
202.28 	game provider, or gambling manager a civil penalty of not more than $1,000 per violation 
202.29 	for a failure to comply with any provision of this chapter, chapter 297E, or any rule adopted 
202.30 	or order issued by the board. Any organization, distributor, distributor salesperson, gambling 
202.31 	manager, linked bingo game provider, or manufacturer assessed a civil penalty under this 
203.1 	paragraph may request a hearing before the board. Appeals of citations imposing a civil 
203.2 	penalty are not subject to the provisions of the Administrative Procedure Act.
203.3 	(c) All penalties received by the board must be deposited in the general fund.
203.4 	(d) All fees imposed by the board under sections 349.16 to 349.167 must be deposited 
203.5 	in the state treasury and credited to a lawful gambling regulation account in the special 
203.6 	revenue fund. Receipts in this account are available for the operations of the board up to 
203.7 	the amount authorized in biennial appropriations from the legislature.

203.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

203.9 	Sec. 26. Minnesota Statutes 2018, section 462A.38, is amended to read:
203.10 	462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP 
203.11 	DEVELOPMENT PROGRAM.
203.12 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
203.13 	program is established to award homeownership development grants and loans to cities, 
203.14 	tribal governments, nonprofit organizations, cooperatives created under chapter 308A or 
203.15 	308B, and community land trusts created for the purposes outlined in section 462A.31, 
203.16 	subdivision 1, for development of workforce and affordable homeownership projects. The 
203.17 	purpose of the program is to increase the supply of workforce and affordable, owner-occupied 
203.18 	multifamily or single-family housing throughout Minnesota.
203.19 		Subd. 2.Use of funds. (a) Grant funds and loans awarded under this program may be 
203.20 	used for:
203.21 	(1) development costs;
203.22 	(2) rehabilitation;
203.23 	(3) land development; and
203.24 	(4) residential housing, including storm shelters and related community facilities.
203.25 	(b) A project funded through the grant this program shall serve households that meet 
203.26 	the income limits as provided in section 462A.33, subdivision 5, unless a project is intended 
203.27 	for the purpose outlined in section 462A.02, subdivision 6.
203.28 		Subd. 3.Application. The commissioner shall develop forms and procedures for soliciting 
203.29 	and reviewing applications for grants and loans under this section. The commissioner shall 
203.30 	consult with interested stakeholders when developing the guidelines and procedures for the 
203.31 	program. In making grants and loans, the commissioner shall establish semiannual application 
204.1 	deadlines in which grants and loans will be authorized from all or part of the available 
204.2 	appropriations.
204.3 		Subd. 4.Awarding grants and loans. Among comparable proposals, preference must 
204.4 	be given to proposals that include contributions from nonstate resources for the greatest 
204.5 	portion of the total development cost.
204.6 		Subd. 5.Statewide program. The agency shall attempt to make grants and loans in 
204.7 	approximately equal amounts to applicants outside and within the metropolitan area, as 
204.8 	defined under section 473.121, subdivision 2.
204.9 		Subd. 6.Report. Beginning January 15, 2018 2020, the commissioner must annually 
204.10 	submit a report to the chairs and ranking minority members of the senate and house of 
204.11 	representatives committees having jurisdiction over housing and workforce development 
204.12 	specifying the projects that received grants and loans under this section and the specific 
204.13 	purposes for which the grant or loan funds were used.
204.14 		Subd. 7.Workforce and affordable homeownership development account. A 
204.15 	workforce and affordable homeownership development account is established in the housing 
204.16 	development fund. Money in the account, including interest, is appropriated to the 
204.17 	commissioner of the Housing Finance Agency for the purposes of this section. The amount 
204.18 	appropriated under this section must supplement traditional sources of funding for this 
204.19 	purpose and must not be used as a substitute or to pay debt service on bonds.
204.20 		Subd. 8.Deposits; determination of funding amount. (a) In fiscal years 2020 to 2030, 
204.21 	the commissioner of revenue shall annually deposit, by September 15, an amount equal to 
204.22 	the increment determined under paragraph (b) into the workforce and affordable 
204.23 	homeownership account in the housing development fund.
204.24 	(b) By September 1, 2019, and each year thereafter through 2029, the commissioner of 
204.25 	revenue must determine the total amount of the proceeds of the mortgage registry tax imposed 
204.26 	under section 287.035 and the deed tax imposed under section 287.21 that was collected 
204.27 	during the fiscal year ending in that calendar year and must determine the increment that 
204.28 	exceeds the amount collected in the previous fiscal year. The increment calculated under 
204.29 	this paragraph must not be less than $0, but must not exceed $4,000,000.
204.30 	(c) All loan repayments received under this section are to be deposited into the workforce 
204.31 	and affordable homeownership development account in the housing development fund.

204.32 	EFFECTIVE DATE. This section is effective July 1, 2019.

205.1 	Sec. 27. REPEALER.
 205.2 	(a) Minnesota Statutes 2018, sections 296A.03, subdivision 5; 296A.04, subdivision 2; 
205.3 	296A.05, subdivision 2; and 349.213, subdivision 3, are repealed.
205.4 	(b) Minnesota Rules, part 8125.0410, subpart 1, is repealed.

205.5 	EFFECTIVE DATE. This section is effective July 1, 2019.

205.6 	ARTICLE 10
205.7 	PARTNERSHIP AUDITS

205.8 	Section 1. Minnesota Statutes 2018, section 270C.445, subdivision 6, is amended to read:
205.9 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
205.10 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
205.11 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
205.12 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
205.13 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
205.14 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
205.15 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
205.16 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
205.17 	the penalty in the same manner as the income tax. There is no right to make a claim for 
205.18 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
205.19 	under this paragraph are public data.
205.20 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
205.21 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
205.22 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
205.23 	desist from committing the violation. The administrative order may include an administrative 
205.24 	penalty provided in paragraph (a).
205.25 	(c) If the commissioner issues an administrative order under paragraph (b), the 
205.26 	commissioner must send the order to the tax preparer addressed to the last known address 
205.27 	of the tax preparer.
205.28 	(d) A cease and desist order under paragraph (b) must:
205.29 	(1) describe the act, conduct, or practice committed and include a reference to the law 
205.30 	that the act, conduct, or practice violates; and
205.31 	(2) provide notice that the tax preparer may request a hearing as provided in this 
205.32 	subdivision.
206.1 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
206.2 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
206.3 	for hearing must be made in writing and must be served on the commissioner at the address 
206.4 	specified in the order. The hearing request must specifically state the reasons for seeking 
206.5 	review of the order. The date on which a request for hearing is served by mail is the postmark 
206.6 	date on the envelope in which the request for hearing is mailed.
206.7 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
206.8 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
206.9 	subject to review by any court or agency.
206.10 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
206.11 	under paragraph (b), the hearing must be commenced within ten days after the commissioner 
206.12 	receives the request for a hearing.
206.13 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
206.14 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
206.15 	must issue a report containing findings of fact, conclusions of law, and a recommended 
206.16 	order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 
206.17 	or the submission of written arguments, whichever is later.
206.18 	(i) Within five days of the date of the administrative law judge's report issued under 
206.19 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
206.20 	written exceptions and arguments to the commissioner. Within 15 days after receiving the 
206.21 	administrative law judge's report, the commissioner must issue an order vacating, modifying, 
206.22 	or making final the administrative order.
206.23 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
206.24 	lengthen any time periods prescribed in paragraphs (g) to (i).
206.25 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
206.26 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
206.27 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
206.28 	the exclusive remedy for a tax preparer aggrieved by the order.
206.29 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
206.30 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
206.31 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
206.32 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
206.33 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
206.34 	penalty order. The request for hearing must be made in writing and must be served on the 
207.1 	commissioner at the address specified in the order. The hearing request must specifically 
207.2 	state the reasons for seeking review of the order. The cease and desist order issued under 
207.3 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
207.4 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
207.5 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
207.6 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
207.7 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
207.8 	under this paragraph may be collected and enforced by the commissioner as an income tax 
207.9 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
207.10 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
207.11 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
207.12 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
207.13 	to the state. Termination under this paragraph is public data.
207.14 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
207.15 	order.
207.16 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
207.17 	action under this subdivision against a tax preparer, with respect to a return, within the 
207.18 	period to assess tax on that return as provided by section sections289A.38 to 289A.384.
207.19 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
207.20 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
207.21 	the commissioner within five years of the violation of statute.

207.22 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
207.23 	determination date after June 30, 2019.

207.24 	Sec. 2. Minnesota Statutes 2018, section 289A.31, subdivision 1, is amended to read:
207.25 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
207.26 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
207.27 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
207.28 	taxpayer upon whom the tax is imposed, except in the following cases:
207.29 	(1) the tax due from a decedent for that part of the taxable year in which the decedent 
207.30 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
207.31 	prior years must be paid by the decedent's personal representative, if any. If there is no 
207.32 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
208.1 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
208.2 	decedent;
208.3 	(2) the tax due from an infant or other incompetent person must be paid by the person's 
208.4 	guardian or other person authorized or permitted by law to act for the person;
208.5 	(3) the tax due from the estate of a decedent must be paid by the estate's personal 
208.6 	representative;
208.7 	(4) the tax due from a trust, including those within the definition of a corporation, as 
208.8 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
208.9 	(5) the tax due from a taxpayer whose business or property is in charge of a receiver, 
208.10 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
208.11 	of the business or property so far as the tax is due to the income from the business or property.
208.12 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
208.13 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
208.14 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
208.15 	entertainer for the amount of the payment.
208.16 	(c) The taxes imposed under sections 289A.35, paragraph (b), 289A.383, subdivision 
208.17 	3, and 290.0922 on partnerships are the joint and several liability of the partnership and the 
208.18 	general partners.

208.19 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
208.20 	determination date after June 30, 2019.

208.21 	Sec. 3. Minnesota Statutes 2018, section 289A.37, subdivision 2, is amended to read:
208.22 		Subd. 2.Erroneous refunds. (a) Except as provided in paragraph (b), an erroneous 
208.23 	refund occurs when the commissioner issues a payment to a person that exceeds the amount 
208.24 	the person is entitled to receive under law. An erroneous refund is considered an 
208.25 	underpayment of tax on the date issued.
208.26 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
208.27 	taxpayer, an erroneous refund does not include the following:
208.28 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
208.29 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
208.30 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
208.31 	290.0681; or 290.0692; or chapter 290A; or
209.1 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
209.2 	taxpayer.
209.3 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
209.4 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
209.5 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
209.6 	be made at any time.
209.7 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
209.8 	conducted under section sections289A.38 to 289A.384.

209.9 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
209.10 	determination date after June 30, 2019.

209.11 	Sec. 4. Minnesota Statutes 2018, section 289A.38, subdivision 10, is amended to read:
209.12 		Subd. 10.Incorrect determination of federal adjusted gross income. Notwithstanding 
209.13 	any other provision of this chapter, if a taxpayer whose net income is determined under 
209.14 	section 290.01, subdivision 19, omits from income an amount that will under the Internal 
209.15 	Revenue Code extend the statute of limitations for the assessment of federal income taxes, 
209.16 	or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting 
209.17 	in adjustments by the Internal Revenue Service, then the period of assessment and 
209.18 	determination of tax will be that under the Internal Revenue Code. When a change is made 
209.19 	to federal income during the extended time provided under this subdivision, the provisions 
209.20 	under subdivisions 7 to 9 sections 289A.381 to 289A.384 regarding additional extensions 
209.21 	apply.

209.22 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
209.23 	determination date after June 30, 2019.

209.24 	Sec. 5. [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
209.25 		Subdivision 1.Definitions relating to federal adjustments. Unless otherwise specified, 
209.26 	the definitions in this section apply for the purposes of sections 289A.381 to 289A.385.
209.27 		Subd. 2.Administrative adjustment request. "Administrative adjustment request" 
209.28 	means an administrative adjustment request filed by a partnership under section 6227 of 
209.29 	the Internal Revenue Code.
209.30 		Subd. 3.Audited partnership. "Audited partnership" means a partnership subject to a 
209.31 	federal adjustment resulting from a partnership-level audit.
210.1 		Subd. 4.Corporate partner. "Corporate partner" means a partner that is subject to tax 
210.2 	under section 290.02.
210.3 		Subd. 5.Direct partner. "Direct partner" means a partner that holds an immediate legal 
210.4 	ownership interest in a partnership or pass-through entity.
210.5 		Subd. 6.Exempt partner. "Exempt partner" means a partner that is exempt from taxes 
210.6 	on its net income under section 290.05, subdivision 1.
210.7 		Subd. 7.Federal adjustment. "Federal adjustment" means any change in an amount 
210.8 	calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an 
210.9 	item of preference, or any other item that is used by a taxpayer to compute a tax administered 
210.10 	under this chapter for the reviewed year whether that change results from action by the 
210.11 	Internal Revenue Service or other competent authority, including a partnership-level audit, 
210.12 	or the filing of an amended federal return, federal refund claim, or an administrative 
210.13 	adjustment request by the taxpayer.
210.14 		Subd. 8.Federal adjustments report. "Federal adjustments report" includes a method 
210.15 	or form prescribed by the commissioner for use by a taxpayer to report federal adjustments, 
210.16 	including an amended Minnesota tax return or a uniform multistate report.
210.17 		Subd. 9.Federal partnership representative. "Federal partnership representative" 
210.18 	means the person the partnership designates for the taxable year as the partnership's 
210.19 	representative, or the person the Internal Revenue Service has appointed to act as the 
210.20 	partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
210.21 		Subd. 10.Final determination date. "Final determination date" means:
210.22 	(1) for a federal adjustment arising from an audit by the Internal Revenue Service or 
210.23 	other competent authority, the first day on which no federal adjustment arising from that 
210.24 	audit remains to be finally determined, whether by agreement, or, if appealed or contested, 
210.25 	by a final decision with respect to which all rights of appeal have been waived or exhausted;
210.26 	(2) for a federal adjustment arising from the filing of an amended federal return, a federal 
210.27 	refund claim, or the filing by a partnership of an administrative adjustment request, the day 
210.28 	which the amended return, refund claim, or administrative adjustment request was filed; or
210.29 	(3) for agreements required to be signed by the Internal Revenue Service and the taxpayer, 
210.30 	the date on which the last party signed the agreement.
210.31 		Subd. 11.Final federal adjustment. "Final federal adjustment" means a federal 
210.32 	adjustment for which the final determination date for that federal adjustment has passed.
211.1 		Subd. 12.Indirect partner. "Indirect partner" means either:
211.2 	(1) a partner in a partnership or pass-through entity that itself holds an immediate legal 
211.3 	ownership interest in another partnership or pass-through entity; or
211.4 	(2) a partner in a partnership or pass-through entity that holds an indirect interest in 
211.5 	another partnership or pass-through entity through another indirect partner.
211.6 		Subd. 13.Partner. "Partner" means a person that holds an interest directly or indirectly 
211.7 	in a partnership or other pass-through entity.
211.8 		Subd. 14.Partnership. The term "partnership" has the meaning provided under section 
211.9 	7701(a)(2) of the Internal Revenue Code.
211.10 		Subd. 15.Partnership-level audit. "Partnership-level audit" means an examination by 
211.11 	the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63, 
211.12 	subchapter C, of the Internal Revenue Code, which results in federal adjustments and 
211.13 	adjustments to partnership-related items.
211.14 		Subd. 16.Pass-through entity. "Pass-through entity" means an entity, other than a 
211.15 	partnership, that is not subject to the tax imposed under section 290.02. The term pass-through 
211.16 	entity includes but is not limited to S corporations, estates, and trusts other than grantor 
211.17 	trusts.
211.18 		Subd. 17.Resident partner. "Resident partner" means an individual direct partner or 
211.19 	individual indirect partner who is a resident of Minnesota under section 290.01, subdivision 
211.20 	7 for the relevant tax period.
211.21 		Subd. 18.Reviewed year. "Reviewed year" means the taxable year of a partnership that 
211.22 	is subject to a partnership-level audit from which federal adjustments arise.
211.23 		Subd. 19.Tiered partner. "Tiered partner" means any partner that is a partnership or 
211.24 	pass-through entity.
211.25 		Subd. 20.Unrelated business taxable income. "Unrelated business taxable income" 
211.26 	has the same meaning as defined in section 512 of the Internal Revenue Code.

211.27 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
211.28 	determination date after June 30, 2019.

212.1 	Sec. 6. [289A.382] REPORTING FEDERAL ADJUSTMENTS; GENERAL RULE.
212.2 	(a) Within 180 days of a final determination date, a taxpayer must file a federal 
212.3 	adjustments report with the commissioner reporting all final federal adjustments by the 
212.4 	Internal Revenue Service or other competent authority.
212.5 	(b) Within 180 days of a final determination date, a taxpayer must file a federal 
212.6 	adjustments report with the commissioner reporting any federal adjustments reported by 
212.7 	the taxpayer to the Internal Revenue Service, including but not limited to:
212.8 	(1) federal refund claims;
212.9 	(2) a change reported on a timely filed amended federal income tax return; and
212.10 	(3) a change reported on an amended return filed pursuant to section 6225(c) of the 
212.11 	Internal Revenue Code.
212.12 	(c) In the case of a final federal adjustment arising from a partnership-level audit or an 
212.13 	administrative adjustment request filed by a partnership under section 6227 of the Internal 
212.14 	Revenue Code, a taxpayer must report adjustments as provided for under section 289A.383, 
212.15 	and not this section.

212.16 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
212.17 	determination date after June 30, 2019.

212.18 	Sec. 7. [289A.383] REPORTING AND PAYMENT REQUIREMENTS.
212.19 		Subdivision 1.State partnership representative. (a) With respect to an action required 
212.20 	or permitted to be taken by a partnership under this section, or in a proceeding under section 
212.21 	270C.35 or 271.06, the state partnership representative for the reviewed year shall have the 
212.22 	sole authority to act on behalf of the partnership, and its direct partners and indirect partners 
212.23 	shall be bound by those actions.
212.24 	(b) The state partnership representative for the reviewed year is the partnership's federal 
212.25 	partnership representative unless the partnership, in a form and manner prescribed by the 
212.26 	commissioner, designates another person as its state partnership representative.
212.27 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
212.28 	partners. (a) Unless an audited partnership makes the election in subdivision 3, then, for 
212.29 	all final federal adjustments the audited partnership must comply with paragraph (b) and 
212.30 	each direct partner of the audited partnership, other than a tiered partner, must comply with 
212.31 	paragraph (c).
212.32 	(b) No later than 90 days after the final determination date, the audited partnership must:
213.1 	(1) file a completed federal adjustments report, including all partner-level information 
213.2 	required under section 289A.12, subdivision 3, with the commissioner;
213.3 	(2) notify each of its direct partners of their distributive share of the adjustments;
213.4 	(3) file an amended composite report for all direct partners who were included in a 
213.5 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
213.6 	additional amount that would have been due had the federal adjustments been reported 
213.7 	properly as required; and
213.8 	(4) file amended withholding reports for all direct partners who were or should have 
213.9 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
213.10 	year, and pay the additional amount that would have been due had the federal adjustments 
213.11 	been reported properly as required.
213.12 	(c) No later than 180 days after the final determination date, each direct partner, other 
213.13 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
213.14 	sales tax, must:
213.15 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
213.16 	reported to them under paragraph (b), clause (2); and
213.17 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
213.18 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
213.19 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
213.20 	paragraph (b), clauses (3) and (4).
213.21 		Subd. 3.Election; partnership or tiered partners pay. (a) An audited partnership may 
213.22 	make an election under this subdivision to pay its assessment at the entity level. If an audited 
213.23 	partnership makes an election to pay its assessment at the entity level it must:
213.24 	(1) no later than 90 days after the final determination date, file a completed federal 
213.25 	adjustments report, including the residency information for all individual direct partners, 
213.26 	and information pertaining to all other direct partners as prescribed by the commissioner, 
213.27 	and notify the commissioner that it is making the election under this subdivision; and
213.28 	(2) no later than 180 days after the final determination date, pay an amount, determined 
213.29 	as follows, in lieu of taxes on partners:
213.30 	(i) exclude from final federal adjustments the distributive share of these adjustments 
213.31 	made to a direct exempt partner that is not unrelated business taxable income;
214.1 	(ii) exclude from final federal adjustments the distributive share of these adjustments 
214.2 	made to a direct partner that has filed a federal adjustments report and paid the applicable 
214.3 	tax, as required under subdivision 2, for the distributive share of adjustments reported on a 
214.4 	federal return under section 6225(c) of the Internal Revenue Code;
214.5 	(iii) allocate and apportion at the partnership level using sections 290.17 to 290.20 the 
214.6 	total distributive share of the remaining final federal adjustments for the reviewed year 
214.7 	attributed to direct corporate partners and direct exempt partners, multiply the total by the 
214.8 	highest tax rate in section 290.06, subdivision 1, for the reviewed year, and calculate interest 
214.9 	and penalties as applicable under this chapter;
214.10 	(iv) allocate at the partnership level using section 290.17, subdivision 1, the total 
214.11 	distributive share of all final federal adjustments attributable to resident direct partners for 
214.12 	the reviewed year, multiply the total by the highest tax rate in section 290.06, subdivision 
214.13 	2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter;
214.14 	(v) allocate and apportion at the partnership level using sections 290.17 to 290.20 the 
214.15 	total distributive share of the remaining final federal adjustments attributable to nonresident 
214.16 	individual direct partners and direct partners who are an estate or a trust for the reviewed 
214.17 	year, and multiply the total by the highest tax rate in section 290.06, subdivision 2c, for the 
214.18 	reviewed year, and calculate interest and penalties as applicable under this chapter;
214.19 	(vi) for the total distributive share of the remaining final federal adjustments reported 
214.20 	to tiered partners:
214.21 	(A) determine the amount of the adjustments which are of a type that would be subject 
214.22 	to sourcing under section 290.17 for a nonresident partner, and then determine the portion 
214.23 	of this amount which would be sourced to this state;
214.24 	(B) determine the amount of the adjustments which are of a type which are fully sourced 
214.25 	to the taxpayer's state of residency under section 290.17, subdivision 2;
214.26 	(C) determine the portion of the amount determined in subitem (B) that can be established, 
214.27 	as determined by the commissioner, to be properly allocable to nonresident indirect partners 
214.28 	or other partners not subject to tax on the adjustments; and
214.29 	(D) multiply the total of the amounts determined in subitems (A) and (B) reduced by 
214.30 	the amount determined in subitem (C) by the highest tax rate in section 290.06, subdivision 
214.31 	2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter; 
214.32 	and
215.1 	(vii) add the amounts determined in items (iii) to (vi), and pay all applicable taxes, 
215.2 	penalties, and interest to the commissioner.
215.3 	(b) An audited partnership may not make an election under this subdivision to report:
215.4 	(1) a federal adjustment that results in unitary business income to a corporate partner 
215.5 	required to file as a member of a combined report under section 290.17, subdivision 4; or
215.6 	(2) any final federal adjustments resulting from an administrative adjustment request.
215.7 	(c) An audited partnership not otherwise subject to any reporting or payment obligation 
215.8 	to this state may not make an election under this subdivision.
215.9 		Subd. 4.Tiered partners and indirect partners. The direct and indirect partners of an 
215.10 	audited partnership that are tiered partners, and all of the partners of those tiered partners 
215.11 	that are subject to tax under chapter 290 are subject to the reporting and payment 
215.12 	requirements contained in subdivision 2 and the tiered partners are entitled to make the 
215.13 	elections provided in subdivisions 3 and 7. The tiered partners or their partners shall make 
215.14 	required reports and payments no later than 90 days after the time for filing and furnishing 
215.15 	of statements to tiered partners and their partners as established under section 6226 of the 
215.16 	Internal Revenue Code. If the commissioner determines by a preponderance of the evidence 
215.17 	that the primary purpose of a tiered partnership was that it was structured to allow an indirect 
215.18 	individual partner who is a Minnesota resident to avoid paying Minnesota income tax, 
215.19 	resulting from a partnership-level audit, as a Minnesota resident, the partnership is not 
215.20 	permitted to make the election under subdivision 3 and is instead subject to the reporting 
215.21 	and payment requirements under subdivision 2. The commissioner must notify the partnership 
215.22 	when this determination is made. The date of the notice issued by the commissioner shall 
215.23 	be deemed to be the final determination date for purposes of determining the due date for 
215.24 	the reporting provisions in subdivision 2.
215.25 		Subd. 5.Effects of election by partnership or tiered partner and payment of amount 
215.26 	due. (a) Unless the commissioner determines otherwise, the election under subdivision 3 
215.27 	is irrevocable.
215.28 	(b) If an audited partnership or tiered partner properly reports and pays an amount 
215.29 	determined in subdivision 3 or 7, the amount will be treated as paid in lieu of taxes owed 
215.30 	by the partnership's direct partners and indirect partners, to the extent applicable, on the 
215.31 	same final federal adjustments. The direct partners or indirect partners of the partnership 
215.32 	may not take any deduction or credit for this amount or claim a refund of the amount in this 
215.33 	state.
216.1 	(c) Nothing in this subdivision precludes resident direct partners from claiming a credit 
216.2 	against taxes paid under section 290.06, on any amounts paid by the audited partnership or 
216.3 	tiered partners on the resident partner's behalf to another state or local tax jurisdiction.
216.4 		Subd. 6.Failure of partnership or tiered partner to report or pay. Nothing in this 
216.5 	section prevents the commissioner from assessing direct partners or indirect partners for 
216.6 	taxes they owe, using the best information available, in the event that, for any reason, a 
216.7 	partnership or tiered partner fails to timely make any report or payment required by this 
216.8 	section.
216.9 		Subd. 7.Modified reporting and payment method. An audited partnership or tiered 
216.10 	partner may enter into an agreement with the commissioner to utilize an alternative reporting 
216.11 	and payment method, including applicable time requirements or any other provision of this 
216.12 	section. The audited partnership or tiered partner must demonstrate that the requested method 
216.13 	will reasonably provide for the reporting and payment of taxes, penalties, and interest due 
216.14 	under the provisions of this section. Application for approval of an alternative reporting 
216.15 	and payment method must be made by the audited partnership or tiered partner within the 
216.16 	time for making an election as provided in subdivision 3 or 4, as appropriate.

216.17 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
216.18 	determination date after June 30, 2019.

216.19 	Sec. 8. [289A.384] ASSESSMENT OF TAX, INTEREST, PENALTIES, AND 
216.20 	ADDITIONAL AMOUNTS.
216.21 		Subdivision 1.Assessment of additional tax, interest, and penalties. The commissioner 
216.22 	may assess, in accordance with subdivisions 2 and 3, additional tax, interest, and penalties 
216.23 	following a final federal adjustment:
216.24 	(1) arising from an audit by the Internal Revenue Service, including a partnership-level 
216.25 	audit;
216.26 	(2) reported by the taxpayer on an amended federal tax return; or
216.27 	(3) as part of an administrative adjustment request on or before the dates provided in 
216.28 	this section.
216.29 		Subd. 2.Timely and untimely reported federal adjustments. If a taxpayer files a 
216.30 	federal adjustments report, within or after the periods prescribed in section 289A.382 or 
216.31 	289A.383, the commissioner may assess additional Minnesota amounts related to the federal 
216.32 	adjustments including in-lieu-of amounts, taxes, interest, and penalties at the later of:
217.1 	(1) the expiration of the period of limitations in section 289A.38; or
217.2 	(2) the expiration of the one-year period following the date of the filing with the 
217.3 	commissioner of the federal adjustments report.
217.4 		Subd. 3.Unreported reported federal adjustments. If the taxpayer fails to file a federal 
217.5 	adjustments report, the commissioner may assess additional amounts related to the federal 
217.6 	adjustments including in-lieu-of amounts, taxes, penalties, and interest, at the later of:
217.7 	(1) the expiration of the period of limitations in section 289A.38; or
217.8 	(2) the expiration of the six-year period following the final determination date.
217.9 		Subd. 4.Estimated tax payments during the course of a federal audit.  A taxpayer 
217.10 	may make estimated payments to the commissioner of the tax expected to result from a 
217.11 	pending audit by the Internal Revenue Service. The taxpayer may make estimated payments 
217.12 	prior to the due date of the federal adjustments report without the taxpayer having to file 
217.13 	the report with the commissioner. The commissioner must credit the estimated tax payments 
217.14 	against any tax liability of the taxpayer ultimately found to be due to the commissioner. 
217.15 	The estimated payments limit the accrual of further statutory interest on that amount. If the 
217.16 	estimated tax payments exceed the final tax liability and statutory interest ultimately 
217.17 	determined to be due, the taxpayer is entitled to a refund or credit for the excess, provided 
217.18 	the taxpayer files a federal adjustments report or claim for refund or credit of tax pursuant 
217.19 	to section 289A.385.

217.20 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
217.21 	determination date after June 30, 2019.

217.22 	Sec. 9. [289A.385] CLAIMS FOR REFUND OR CREDITS OF STATE TAX 
217.23 	ARISING FROM FINAL FEDERAL ADJUSTMENTS MADE BY THE INTERNAL 
217.24 	REVENUE SERVICE.
217.25 	Notwithstanding the general period of limitations on claims for refund in section 289A.40, 
217.26 	taxpayers subject to the reporting requirements of sections 289A.382 and 289A.383 may 
217.27 	file claims for refund related to federal adjustments made by the Internal Revenue Service 
217.28 	on or before the last day for the assessment of tax under section 289A.384.

217.29 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
217.30 	determination date after June 30, 2019.

218.1 	Sec. 10. Minnesota Statutes 2018, section 289A.42, is amended to read:
218.2 	289A.42 CONSENT TO EXTEND STATUTE.
218.3 		Subdivision 1.Extension agreement. If before the expiration of time prescribed in 
218.4 	sections 289A.38 to 289A.384 and 289A.40 for the assessment of tax or the filing of a claim 
218.5 	for refund, both the commissioner and the taxpayer have consented in writing to the 
218.6 	assessment or filing of a claim for refund after that time, the tax may be assessed or the 
218.7 	claim for refund filed at any time before the expiration of the agreed-upon period. The 
218.8 	period may be extended by later agreements in writing before the expiration of the period 
218.9 	previously agreed upon. The taxpayer and the commissioner may also agree to extend the 
218.10 	period for collection of the tax. The time periods provided in sections 289A.382 and 
218.11 	289A.383 may be extended automatically, upon written notice to the commissioner, by 60 
218.12 	days for an audited partnership or tiered partner which has 10,000 or more direct partners.
218.13 		Subd. 2.Federal extensions. When a taxpayer consents to an extension of time for the 
218.14 	assessment of federal withholding or income taxes, the period in which the commissioner 
218.15 	may recompute the tax is also extended, notwithstanding any period of limitations to the 
218.16 	contrary, as follows:
218.17 	(1) for the periods adjustments provided in section 289A.38, subdivisions 8 and 9;
218.18 	289A.384, subdivisions 2 and 3.
218.19 	(2) for six months following the expiration of the extended federal period of limitations 
218.20 	when no change is made by the federal authority. If no change is made by the federal 
218.21 	authority, and, but for this subdivision, the commissioner's time period to adjust the tax has 
218.22 	expired, and if the commissioner has completed a field audit of the taxpayer, no additional 
218.23 	changes resulting in additional tax due or a refund may be made. For purposes of this 
218.24 	subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.

218.25 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
218.26 	determination date after June 30, 2019.

218.27 	Sec. 11. Minnesota Statutes 2018, section 289A.60, subdivision 24, is amended to read:
218.28 		Subd. 24.Penalty for failure to notify of federal change. If a person fails to report to 
218.29 	the commissioner a change or correction of the person's federal return in the manner and 
218.30 	time prescribed in section 289A.38, subdivision 7 sections 289A.382 and 289A.383, there 
218.31 	must be added to the tax an amount equal to ten percent of the amount of any underpayment 
218.32 	of Minnesota tax attributable to the federal change.

219.1 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
219.2 	determination date after June 30, 2019.

219.3 	Sec. 12. Minnesota Statutes 2018, section 290.31, subdivision 1, is amended to read:
219.4 		Subdivision 1.Partners, not partnership, subject to tax. Except as provided under 
219.5 	section sections289A.35, paragraph (b), and 289A.383, subdivision 3, a partnership as such 
219.6 	shall not be subject to the income tax imposed by this chapter, but is subject to the tax 
219.7 	imposed under section 290.0922. Persons carrying on business as partners shall be liable 
219.8 	for income tax only in their separate or individual capacities.

219.9 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
219.10 	determination date after June 30, 2019.

219.11 	Sec. 13. Minnesota Statutes 2018, section 297F.17, subdivision 6, is amended to read:
219.12 		Subd. 6.Time limit for bad debt refund. Claims for refund must be filed with the 
219.13 	commissioner during the one-year period beginning with the timely filing of the taxpayer's 
219.14 	federal income tax return containing the bad debt deduction that is being claimed. Claimants 
219.15 	under this subdivision are subject to the notice requirements of section 289A.38, subdivision 
219.16 	7 sections 289A.382 and 289A.383.

219.17 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
219.18 	determination date after June 30, 2019.

219.19 	Sec. 14. Minnesota Statutes 2018, section 297G.16, subdivision 7, is amended to read:
219.20 		Subd. 7.Time limit for a bad debt deduction. Claims for refund must be filed with 
219.21 	the commissioner within one year of the filing of the taxpayer's income tax return containing 
219.22 	the bad debt deduction that is being claimed. Claimants under this subdivision are subject 
219.23 	to the notice requirements of section 289A.38, subdivision 7 sections 289A.38 to 289A.384.

219.24 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
219.25 	determination date after June 30, 2019.

219.26 	Sec. 15. Minnesota Statutes 2018, section 469.319, subdivision 4, is amended to read:
219.27 		Subd. 4.Repayment procedures. (a) For the repayment of taxes imposed under chapter 
219.28 	290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an 
219.29 	amended return with the commissioner of revenue and pay any taxes required to be repaid 
219.30 	within 30 days after becoming subject to repayment under this section. The amount required 
220.1 	to be repaid is determined by calculating the tax for the period or periods for which repayment 
220.2 	is required without regard to the exemptions and credits allowed under section 469.315.
220.3 	(b) For the repayment of taxes imposed under chapter 297B, a business must pay any 
220.4 	taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of 
220.5 	revenue, within 30 days after becoming subject to repayment under this section.
220.6 	(c) For the repayment of property taxes, the county auditor shall prepare a tax statement 
220.7 	for the business, applying the applicable tax extension rates for each payable year and 
220.8 	provide a copy to the business and to the taxpayer of record. The business must pay the 
220.9 	taxes to the county treasurer within 30 days after receipt of the tax statement. The business 
220.10 	or the taxpayer of record may appeal the valuation and determination of the property tax to 
220.11 	the Tax Court within 30 days after receipt of the tax statement.
220.12 	(d) The provisions of chapters 270C and 289A relating to the commissioner's authority 
220.13 	to audit, assess, and collect the tax and to hear appeals are applicable to the repayment 
220.14 	required under paragraphs (a) and (b). The commissioner may impose civil penalties as 
220.15 	provided in chapter 289A, and the additional tax and penalties are subject to interest at the 
220.16 	rate provided in section 270C.40. The additional tax shall bear interest from 30 days after 
220.17 	becoming subject to repayment under this section until the date the tax is paid. Any penalty 
220.18 	imposed pursuant to this section shall bear interest from the date provided in section 270C.40, 
220.19 	subdivision 3, to the date of payment of the penalty.
220.20 	(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the 
220.21 	amount required to be repaid to the property taxes assessed against the property for payment 
220.22 	in the year following the year in which the auditor provided the statement under paragraph 
220.23 	(c).
220.24 	(f) For determining the tax required to be repaid, a reduction of a state or local sales or 
220.25 	use tax is deemed to have been received on the date that the good or service was purchased 
220.26 	or first put to a taxable use. In the case of an income tax or franchise tax, including the credit 
220.27 	payable under section 469.318, a reduction of tax is deemed to have been received for the 
220.28 	two most recent tax years that have ended prior to the date that the business became subject 
220.29 	to repayment under this section. In the case of a property tax, a reduction of tax is deemed 
220.30 	to have been received for the taxes payable in the year that the business became subject to 
220.31 	repayment under this section and for the taxes payable in the prior year.
220.32 	(g) The commissioner may assess the repayment of taxes under paragraph (d) any time 
220.33 	within two years after the business becomes subject to repayment under subdivision 1, or 
220.34 	within any period of limitations for the assessment of tax under section 289A.38 sections 
221.1 	289A.38 to 289A.384, whichever period is later. The county auditor may send the statement 
221.2 	under paragraph (c) any time within three years after the business becomes subject to 
221.3 	repayment under subdivision 1.
221.4 	(h) A business is not entitled to any income tax or franchise tax benefits, including 
221.5 	refundable credits, for any part of the year in which the business becomes subject to 
221.6 	repayment under this section nor for any year thereafter. Property is not exempt from tax 
221.7 	under section 272.02, subdivision 64, for any taxes payable in the year following the year 
221.8 	in which the property became subject to repayment under this section nor for any year 
221.9 	thereafter. A business is not eligible for any sales tax benefits beginning with goods or 
221.10 	services purchased or first put to a taxable use on the day that the business becomes subject 
221.11 	to repayment under this section.

221.12 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
221.13 	determination date after June 30, 2019.

221.14 	Sec. 16.  REPEALER.
 221.15 	Minnesota Statutes 2018, section 289A.38, subdivisions 7, 8, and 9, are repealed.

221.16 	EFFECTIVE DATE. This section is effective for federal adjustments that have a final 
221.17 	determination date after June 30, 2019.

221.18 	ARTICLE 11
221.19 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
221.20 	FRANCHISE TAXES; POLICY CHANGES

221.21 	Section 1. Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
221.22 		Subd. 26.Social Security benefits. (a) A portion of Social Security benefits is allowed 
221.23 	as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum 
221.24 	subtraction subject to the limits under paragraphs (b), (c), and (d).
221.25 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
221.26 	subtraction equals $4,500. The maximum subtraction is reduced by 20 percent of provisional 
221.27 	income over $77,000. In no case is the subtraction less than zero.
221.28 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500. 
221.29 	The maximum subtraction is reduced by 20 percent of provisional income over $60,200. 
221.30 	In no case is the subtraction less than zero.
221.31 	(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250
221.32 	one-half the maximum subtraction for joint returns under paragraph (b). The maximum 
222.1 	subtraction is reduced by 20 percent of provisional income over $38,500 one-half the 
222.2 	threshold amount specified in paragraph (b). In no case is the subtraction less than zero.
222.3 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
222.4 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
222.5 	the Social Security benefits received during the taxable year, and "Social Security benefits" 
222.6 	has the meaning given in section 86(d)(1) of the Internal Revenue Code.
222.7 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
222.8 	paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section 
222.9 	1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue 
222.10 	Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner 
222.11 	shall then determine the percentage change from the 12 months ending on August 31, 2016, 
222.12 	to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12 
222.13 	months ending on August 31, 2016, to the 12 months ending on August 31 of the year 
222.14 	preceding the taxable year. The determination of the commissioner pursuant to this 
222.15 	subdivision must not be considered a rule and is not subject to the Administrative Procedure 
222.16 	Act contained in chapter 14, including section 14.386. The maximum subtraction and 
222.17 	threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount 
222.18 	ends in $5, the amount is rounded up to the nearest $10 amount.

222.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
222.20 	31, 2018.

222.21 	Sec. 2. Minnesota Statutes 2018, section 290.0137, is amended to read:
222.22 	290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT 
222.23 	SALE GAINS.
222.24 	(a) In the case of a nonresident individual or a person who becomes a nonresident 
222.25 	individual during the tax year, taxable net income shall include the allocable amount realized 
222.26 	upon a sale of the assets of, or any interest in, an S corporation or partnership that operated 
222.27 	in Minnesota during the year of sale, including any income or gain to be recognized in future 
222.28 	years pursuant to an installment sale method of reporting under the Internal Revenue Code.
222.29 	(1) For the purposes of this paragraph, an individual who becomes a nonresident of 
222.30 	Minnesota in any year after an installment sale is required to recognize the full amount of 
222.31 	any income or gain described in this paragraph on the individual's final Minnesota resident 
222.32 	tax return to the extent that such income has not been recognized in a prior year.
223.1 	(2) For the purposes of this section, "realized" has the meaning given in section 1001(b) 
223.2 	of the Internal Revenue Code.
223.3 	(3) For the purposes of this section, "installment sale" means any installment sale under 
223.4 	section 453 of the Internal Revenue Code and any other sale that is reported utilizing a 
223.5 	method of accounting authorized under subchapter E of the Internal Revenue Code that 
223.6 	allows taxpayers to delay reporting or recognizing a realized gain until a future year.
223.7 	(4) For the purposes of this section, "allocable amount" means the full amount to be 
223.8 	apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned 
223.9 	to Minnesota under section 290.17.
223.10 	(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing 
223.11 	unrecognized installment sale gains by making an election under this paragraph. The election 
223.12 	must be filed on a form to be determined or prescribed by the commissioner and must be 
223.13 	filed by the due date of the individual income tax return, including any extension. Electing 
223.14 	taxpayers must make an irrevocable agreement to:
223.15 	(1) file Minnesota tax returns in all subsequent years when gains from the installment 
223.16 	sales are recognized and reported to the Internal Revenue Service;
223.17 	(2) allocate gains to the state of Minnesota as though the gains were realized in the year 
223.18 	of sale under section 290.17, 290.191, or 290.20; and
223.19 	(3) include all relevant federal tax documents reporting the installment sale with 
223.20 	subsequent Minnesota tax returns.
223.21 	(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must 
223.22 	be excluded from taxable net income in any future year that the taxpayer files a Minnesota 
223.23 	tax return to the extent that the income or gain has already been subject to tax pursuant to 
223.24 	paragraph (a).

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

223.26 	Sec. 3. Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
223.27 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
223.28 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
223.29 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
223.30 	their taxable net income the following schedule of rates:
223.31 	(1) On the first $35,480, 5.35 percent;
223.32 	(2) On all over $35,480, but not over $140,960, 7.05 percent;
224.1 	(3) On all over $140,960, but not over $250,000, 7.85 percent;
224.2 	(4) On all over $250,000, 9.85 percent.
224.3 	Married individuals filing separate returns, estates, and trusts must compute their income 
224.4 	tax by applying the above rates to their taxable income, except that the income brackets 
224.5 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
224.6 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
224.7 	computed by applying to taxable net income the following schedule of rates:
224.8 	(1) On the first $24,270, 5.35 percent;
224.9 	(2) On all over $24,270, but not over $79,730, 7.05 percent;
224.10 	(3) On all over $79,730, but not over $150,000, 7.85 percent;
224.11 	(4) On all over $150,000, 9.85 percent.
224.12 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
224.13 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
224.14 	computed by applying to taxable net income the following schedule of rates:
224.15 	(1) On the first $29,880, 5.35 percent;
224.16 	(2) On all over $29,880, but not over $120,070, 7.05 percent;
224.17 	(3) On all over $120,070, but not over $200,000, 7.85 percent;
224.18 	(4) On all over $200,000, 9.85 percent.
224.19 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
224.20 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
224.21 	amount determined by the commissioner must be computed in accordance with tables 
224.22 	prepared and issued by the commissioner of revenue based on income brackets of not more 
224.23 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
224.24 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
224.25 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
224.26 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
224.27 	individual's Minnesota income tax as provided in this subdivision. After the application of 
224.28 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
224.29 	by a fraction in which:
224.30 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
224.31 	defined in section 62 of the Internal Revenue Code and increased by:
225.1 	(i) the additions required under section sections290.0131, subdivisions 2 and 6 to 11,
225.2 	and 290.0137, paragraph (a); and reduced by
225.3 	(ii) the Minnesota assignable portion of the subtraction for United States government 
225.4 	interest under section 290.0132, subdivision 2, and the subtractions under section sections
225.5 	290.0132, subdivisions 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c), after applying 
225.6 	the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
225.7 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
225.8 	62 of the Internal Revenue Code, increased by:
225.9 	(i) the amounts specified in section additions required under sections290.0131, 
225.10 	subdivisions 2 and 6 to 11, and 290.0137, paragraph (a); and reduced by
225.11 	(ii) the amounts specified in section subtractions under sections290.0132, subdivisions 
225.12 	2, 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c).

225.13 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for taxable years 
225.14 	beginning after December 31, 2018. The amendment to paragraph (e) is effective the day 
225.15 	following final enactment.

225.16 	Sec. 4. Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
225.17 		Subd. 2d.Inflation adjustment of brackets. (a) For taxable years beginning after 
225.18 	December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for 
225.19 	which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage 
225.20 	determined under paragraph (b). For the purpose of making the adjustment as provided in 
225.21 	this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets 
225.22 	as they existed for taxable years beginning after December 31, 2012, and before January 1, 
225.23 	2014. The rate applicable to any rate bracket must not be changed. The dollar amounts 
225.24 	setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate 
225.25 	brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in 
225.26 	$5, it must be rounded up to the nearest $10 amount.
225.27 	(b) The commissioner shall adjust the rate brackets and by the percentage determined 
225.28 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
225.29 	1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the 
225.30 	commissioner shall then determine the percent change from the 12 months ending on August 
225.31 	31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from 
225.32 	the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the 
225.33 	year preceding the taxable year. The commissioner shall determine the rate bracket for 
226.1 	married filing separate returns after this adjustment is done. The rate bracket for married 
226.2 	filing separate must be one-half of the rate bracket for married filing joint. The determination 
226.3 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
226.4 	not be subject to the Administrative Procedure Act contained in chapter 14.
226.5 	No later than December 15 of each year, the commissioner shall announce the specific 
226.6 	percentage that will be used to adjust the tax rate brackets.

226.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
226.8 	31, 2018.

226.9 	ARTICLE 12
226.10 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
226.11 	FRANCHISE TAXES; TECHNICAL CHANGES

226.12 	Section 1. Minnesota Statutes 2018, section 289A.38, subdivision 7, is amended to read:
226.13 		Subd. 7.Federal tax changes. (a) If the amount of income, items of tax preference, 
226.14 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any 
226.15 	period, as reported to the Internal Revenue Service is changed or corrected by the 
226.16 	commissioner of Internal Revenue or other officer of the United States or other competent 
226.17 	authority, or where a renegotiation of a contract or subcontract with the United States results 
226.18 	in a change in income, items of tax preference, deductions, credits, or withholding tax, or, 
226.19 	in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall 
226.20 	report the change or correction or renegotiation results in writing to the commissioner. The 
226.21 	report must be submitted within 180 days after the final determination and must be in the 
226.22 	form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or 
226.23 	income tax return conceding the accuracy of the federal determination or a letter detailing 
226.24 	how the federal determination is incorrect or does not change the Minnesota tax. An amended 
226.25 	Minnesota income tax return must be accompanied by an amended property tax refund 
226.26 	return, if necessary. A taxpayer filing an amended federal tax return must also file a copy 
226.27 	of the amended return with the commissioner of revenue within 180 days after filing the 
226.28 	amended return.
226.29 	(b) For the purposes of paragraph (a), a change or correction includes any case where a 
226.30 	taxpayer reaches a closing agreement or compromise with the Internal Revenue Service 
226.31 	under section 7121 or 7122 of the Internal Revenue Code.

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

227.1 	Sec. 2. Minnesota Statutes 2018, section 290.92, subdivision 28, is amended to read:
227.2 		Subd. 28.Payments to horse racing license holders. Effective with payments made 
227.3 	after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission 
227.4 	who makes a payment for personal or professional services to a holder of a class C license 
227.5 	issued by the commission, except an amount paid as a purse, shall deduct from the payment 
227.6 	and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount 
227.7 	paid to that individual by the same person during the calendar year exceeds $600. For 
227.8 	purposes of the provisions of this section, a payment to any person which is subject to 
227.9 	withholding under this subdivision must be treated as if the payment was a wage paid by 
227.10 	an employer to an employee. Every individual who is to receive a payment which is subject 
227.11 	to withholding under this subdivision shall furnish the license holder with a statement, made 
227.12 	under the penalties of perjury, containing the name, address, and Social Security account 
227.13 	number of the person receiving the payment. No withholding is required if the individual 
227.14 	presents a signed certificate from the individual's employer which states that the individual 
227.15 	is an employee of that employer. A nonresident individual who holds a class C license must 
227.16 	be treated as an athlete for purposes of applying the provisions of subdivision 4a and section 
227.17 	290.17, subdivision 2(1)(b)(ii)(a)(2)(ii).

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

227.19 	Sec. 3. Minnesota Statutes 2018, section 462D.03, subdivision 2, is amended to read:
227.20 		Subd. 2.Designation of qualified beneficiary. (a) The account holder must designate 
227.21 	a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
227.22 	in a form and manner prescribed by the commissioner following the taxable year in which 
227.23 	the account was established. The account holder may be the qualified beneficiary. The 
227.24 	account holder may change the designated qualified beneficiary at any time, but no more 
227.25 	than one qualified beneficiary may be designated for an account at any one time. For purposes 
227.26 	of the one beneficiary restriction, a married couple qualifies as one beneficiary. Changing 
227.27 	the designated qualified beneficiary of an account does not affect computation of the ten-year 
227.28 	period under section 462D.06, subdivision 2.
227.29 	(b) The commissioner shall establish a process for account holders to notify the state 
227.30 	that permits recording of the account, the account holder or holders, any transfers under 
227.31 	section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 
227.32 	This may be done upon filing the account holder's income tax return or in any other way 
227.33 	the commissioner determines to be appropriate.

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

228.1 	ARTICLE 13
228.2 	DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES

228.3 	Section 1. Minnesota Statutes 2018, section 297A.68, subdivision 17, is amended to read:
228.4 		Subd. 17.Ships used in interstate commerce; other vessels. Repair, replacement, and 
228.5 	rebuilding parts and materials, and lubricants, for the following are exempt:
228.6 	(1) ships or vessels used or to be used principally in interstate or foreign commerce are 
228.7 	exempt.; and
228.8 	(2) vessels with a gross registered tonnage of at least 3,000 tons are exempt.

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

228.10 	Sec. 2. Minnesota Statutes 2018, section 297A.68, subdivision 42, is amended to read:
228.11 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information technology 
228.12 	equipment and computer software for use in a qualified data center, or a qualified refurbished 
228.13 	data center, are exempt, except that computer software maintenance agreements are exempt 
228.14 	for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph 
228.15 	must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, 
228.16 	and then refunded after June 30, 2013, in the manner provided in section 297A.75. This 
228.17 	exemption includes enterprise information technology equipment and computer software 
228.18 	purchased to replace or upgrade enterprise information technology equipment and computer 
228.19 	software in a qualified data center, or a qualified refurbished data center.
228.20 	(b) Electricity used or consumed in the operation of a qualified data center or qualified 
228.21 	refurbished data center is exempt.
228.22 	(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:
228.23 	(1) that is comprised of one or more buildings that consist in the aggregate of at least 
228.24 	25,000 square feet, and that are located on a single parcel or on contiguous parcels, where 
228.25 	the total cost of construction or refurbishment, investment in enterprise information 
228.26 	technology equipment, and computer software is at least $30,000,000 within a 48-month 
228.27 	period. The 48-month period begins no sooner than July 1, 2012, except that costs for 
228.28 	computer software maintenance agreements purchased before July 1, 2013, are not included 
228.29 	in determining if the $30,000,000 threshold has been met;
228.30 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
228.31 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
228.32 	modified, including:
229.1 	(i) installation of enterprise information technology equipment; environmental control, 
229.2 	computer software, and energy efficiency improvements; and
229.3 	(ii) building improvements; and
229.4 	(3) that is used to house enterprise information technology equipment, where the facility 
229.5 	has the following characteristics:
229.6 	(i) uninterruptible power supplies, generator backup power, or both;
229.7 	(ii) sophisticated fire suppression and prevention systems; and
229.8 	(iii) enhanced security. A facility will be considered to have enhanced security if it has 
229.9 	restricted access to the facility to selected personnel; permanent security guards; video 
229.10 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, 
229.11 	such as hand scans and retinal or fingerprint recognition; or similar security features.
229.12 	In determining whether the facility has the required square footage, the square footage 
229.13 	of the following spaces shall be included if the spaces support the operation of enterprise 
229.14 	information technology equipment: office space, meeting space, and mechanical and other 
229.15 	support facilities. For purposes of this subdivision, "computer software" includes, but is not 
229.16 	limited to, software utilized or loaded at a qualified data center or qualified refurbished data 
229.17 	center, including maintenance, licensing, and software customization.
229.18 	(d) For purposes of this subdivision, a "qualified refurbished data center" means an 
229.19 	existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 
229.20 	that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
229.21 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
229.22 	cost of construction or refurbishment, investment in enterprise information technology 
229.23 	equipment, and computer software is at least $50,000,000 within a 24-month period.
229.24 	(e) For purposes of this subdivision, "enterprise information technology equipment" 
229.25 	means computers and equipment supporting computing, networking, or data storage, 
229.26 	including servers and routers. It includes, but is not limited to: cooling systems, cooling 
229.27 	towers, and other temperature control infrastructure; power infrastructure for transformation, 
229.28 	distribution, or management of electricity used for the maintenance and operation of a 
229.29 	qualified data center or qualified refurbished data center, including but not limited to exterior 
229.30 	dedicated business-owned substations, backup power generation systems, battery systems, 
229.31 	and related infrastructure; and racking systems, cabling, and trays, which are necessary for 
229.32 	the maintenance and operation of the qualified data center or qualified refurbished data 
229.33 	center.
230.1 	(f) A qualified data center or qualified refurbished data center may claim the exemptions 
230.2 	in this subdivision for purchases made either within 20 years of the date of its first purchase 
230.3 	qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
230.4 	(g) The purpose of this exemption is to create jobs in the construction and data center 
230.5 	industries.
230.6 	(h) This subdivision is effective for sales and purchases made before July 1, 2042.
230.7 	(i) The commissioner of employment and economic development must certify to the 
230.8 	commissioner of revenue, in a format approved by the commissioner of revenue, when a 
230.9 	qualified data center has met the requirements under paragraph (c) or a qualified refurbished 
230.10 	data center has met the requirements under paragraph (d). The certification must provide 
230.11 	the following information regarding each qualified data center or qualified refurbished data 
230.12 	center:
230.13 	(1) the total square footage amount;
230.14 	(2) the total amount of construction or refurbishment costs and the total amount of 
230.15 	qualifying investments in enterprise information technology equipment and computer 
230.16 	software; and
230.17 	(3) the beginning and ending of the applicable period under either paragraph (c) or (d) 
230.18 	in which the qualifying expenditures and purchases under clause (2) were made, but in no 
230.19 	case shall the period begin before July 1, 2012; and
230.20 	(4) the date upon which the qualified data center first met the requirements under 
230.21 	paragraph (c) or a qualified refurbished data center first met the requirements under paragraph 
230.22 	(d).
230.23 	(j) Any refund for sales tax paid on qualifying purchases under this subdivision must 
230.24 	not be issued unless the commissioner of revenue has received the certification required 
230.25 	under paragraph (i) either from issued by the commissioner of employment and economic 
230.26 	development or the qualified data center or qualified refurbished data center claiming the 
230.27 	refund; and.
230.28 	(k) The commissioner of employment and economic development must annually notify 
230.29 	the commissioner of revenue of the qualified data centers that are projected to meet the 
230.30 	requirements under paragraph (c) and the qualified refurbished data centers that are projected 
230.31 	to meet the requirements under paragraph (d) in each of the next four years. The notification 
230.32 	must provide the information required under paragraph (i), clauses (1) to (3) (4), for each 
230.33 	qualified data center or qualified refurbished data center.

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

231.2 	Sec. 3. Minnesota Statutes 2018, section 297A.68, subdivision 44, is amended to read:
231.3 		Subd. 44.Greater Minnesota business expansions. (a) Purchases and use of tangible 
231.4 	personal property or taxable services by a qualified business, as defined in section 116J.8738,
231.5 	are exempt if:
231.6 	(1) the commissioner of employment and economic development certifies to the 
231.7 	commissioner of revenue, in a format approved by the commissioner of revenue, that the 
231.8 	qualified business meets the requirements under section 116J.8738;
231.9 	(2) the business subsidy agreement provides that the exemption under this subdivision 
231.10 	applies;
231.11 	(2) (3) the property or services are primarily used or consumed at the facility in greater 
231.12 	Minnesota identified in the business subsidy agreement; and
231.13 	(3) (4) the purchase was made and delivery received during the duration of the 
231.14 	certification of the business as a qualified business under section 116J.8738 business subsidy 
231.15 	agreement.
231.16 	(b) Purchase and use of construction materials and supplies used or consumed in, and 
231.17 	equipment incorporated into, the construction of improvements to real property in greater 
231.18 	Minnesota are exempt if the improvements after completion of construction are to be used 
231.19 	in the conduct of the trade or business of the qualified business, as defined in section 
231.20 	116J.8738 and the commissioner of employment and economic development certifies to 
231.21 	the commissioner of revenue, in a format approved by the commissioner of revenue, that 
231.22 	the qualified business meets the requirements under section 116J.8738. This exemption 
231.23 	applies regardless of whether the purchases are made by the business or a contractor.
231.24 	(c) The exemptions under this subdivision apply to a local sales and use tax.
231.25 	(d) The tax on purchases imposed under this subdivision must be imposed and collected 
231.26 	as if the rate under section 297A.62 applied, and then refunded in the manner provided in 
231.27 	section 297A.75. The total amount refunded for a facility over the certification period is 
231.28 	limited to the amount listed in the business subsidy agreement. No more than $7,000,000 
231.29 	may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be 
231.30 	allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are 
231.31 	made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and 
231.32 	the commissioner of revenue must first allocate refunds to qualified businesses eligible for 
231.33 	a refund in the preceding fiscal year. Any portion of the balance of funds allocated for 
232.1 	refunds under this paragraph does not cancel and shall be carried forward to and available 
232.2 	for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for 
232.3 	an eligible refund claim that carries over to a subsequent fiscal year, the interest on the 
232.4 	amount carried over must be paid on the refund no sooner than from 90 days after July 1 
232.5 	of the fiscal year in which funds are available for the eligible claim.

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

232.7 	Sec. 4. Minnesota Statutes 2018, section 297A.71, subdivision 45, is amended to read:
232.8 		Subd. 45.Biopharmaceutical manufacturing facility. (a) Materials and supplies used 
232.9 	or consumed in, capital equipment incorporated into, and privately owned infrastructure in 
232.10 	support of the construction, improvement, or expansion of a biopharmaceutical manufacturing 
232.11 	facility in the state are exempt if the commissioner of employment and economic 
232.12 	development certifies to the commissioner of revenue that the following criteria are met:
232.13 	(1) the facility is used for the manufacturing of biologics;
232.14 	(2) the total capital investment made at the facility exceeds $50,000,000; and
232.15 	(3) the facility creates and maintains at least 190 full-time equivalent positions at the 
232.16 	facility. These positions must be new jobs in Minnesota and not the result of relocating jobs 
232.17 	that currently exist in Minnesota.
232.18 	(b) The tax must be imposed and collected as if the rate under section 297A.62 applied, 
232.19 	and refunded in the manner provided in section 297A.75.
232.20 	(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility 
232.21 	must:
232.22 	(1) initially apply to the Department commissioner of employment and economic 
232.23 	development for certification no later than one year from the final completion date of 
232.24 	construction, improvement, or expansion of the facility; and
232.25 	(2) for each year that the owner of the biopharmaceutical manufacturing facility applies 
232.26 	for a refund, the owner commissioner of revenue must have received written certification 
232.27 	from the Department commissioner of employment and economic development that the 
232.28 	facility has met the criteria of paragraph (a).
232.29 	(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund 
232.30 	payable to date, with the commissioner making annual payments of the remaining refund 
232.31 	until all of the refund has been paid.
233.1 	(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are 
233.2 	interchangeable and mean medical drugs or medicinal preparations produced using 
233.3 	technology that uses biological systems, living organisms, or derivatives of living organisms 
233.4 	to make or modify products or processes for specific use. The medical drugs or medicinal 
233.5 	preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.

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

233.7 	Sec. 5. Minnesota Statutes 2018, section 297A.77, is amended by adding a subdivision to 
233.8 	read:
233.9 		Subd. 5.Records must be kept. Every person liable for any tax imposed by this chapter, 
233.10 	or for the collection thereof, shall keep such records, render such statements, make such 
233.11 	returns, and comply with such rules, as the commissioner may from time to time prescribe.

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

233.13 	ARTICLE 14
233.14 	DEPARTMENT OF REVENUE; TOBACCO TAXES; TECHNICAL CHANGES

233.15 	Section 1. Minnesota Statutes 2018, section 297F.01, subdivision 19, is amended to read:
233.16 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
233.17 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
233.18 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
233.19 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
233.20 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
233.21 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
233.22 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
233.23 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
233.24 	products includes nicotine solution products. Tobacco products excludes any tobacco product 
233.25 	that has been approved by the United States Food and Drug Administration for sale as a 
233.26 	tobacco cessation product, as a tobacco dependence product, or for other medical purposes, 
233.27 	and is being marketed and sold solely for such an approved purpose.
233.28 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
233.29 	products includes a premium cigar, as defined in subdivision 13a.

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

234.1 	Sec. 2. Minnesota Statutes 2018, section 297F.01, is amended by adding a subdivision to 
234.2 	read:
234.3 		Subd. 22b.Nicotine solution products. (a) "Nicotine solution products" means any 
234.4 	cartridge, bottle, or other package that contains nicotine made or derived from tobacco, that 
234.5 	is in a solution that is consumed, or meant to be consumed, through the use of a heating 
234.6 	element, power source, electronic circuit, or other electronic, chemical, or mechanical means 
234.7 	that produces vapor or aerosol. This paragraph expires December 31, 2019.
234.8 	(b) Beginning January 1, 2020, "nicotine solution products" means any cartridge, bottle, 
234.9 	or other package that contains nicotine, including nicotine made or derived from tobacco 
234.10 	or sources other than tobacco, that is in a solution that is consumed, or meant to be consumed, 
234.11 	through the use of a heating element, power source, electronic circuit, or other electronic, 
234.12 	chemical, or mechanical means that produces vapor or aerosol.
234.13 	(c) Nicotine solution products includes any electronic cigarette, electronic cigar, electronic 
234.14 	cigarillo, electronic pipe, or similar product or device, and any batteries, heating elements, 
234.15 	or other components, parts, or accessories sold with and meant to be used in the consumption 
234.16 	of a solution containing nicotine.

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

234.18 	Sec. 3. Minnesota Statutes 2018, section 297F.01, subdivision 23, is amended to read:
234.19 		Subd. 23.Wholesale sales price. (a) "Wholesale sales price" means the price at which 
234.20 	a distributor purchases a tobacco product.
234.21 	(b) When a distributor sells a cartridge, bottle, or other package of a solution containing 
234.22 	nicotine that is part of a kit that also includes a product, device, component, part, or accessory 
234.23 	described in subdivision 22b:
234.24 	(1) the wholesale sales price is the price at which the distributor purchases the kit; except 
234.25 	that
234.26 	(2) if the distributor also separately sells the same package of solution containing nicotine 
234.27 	that is sold with the kit and can isolate the cost of the package of solution containing nicotine, 
234.28 	then the wholesale sales price includes only the price at which the distributor separately 
234.29 	purchases the package of the solution containing nicotine and any taxes, charges, and costs 
234.30 	listed in paragraph (c).
234.31 	(c) Wholesale sales price includes the applicable federal excise tax, freight charges, or 
234.32 	packaging costs, regardless of whether they were included in the purchase price.

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

235.2 	ARTICLE 15
235.3 	MINNESOTACARE; TECHNICAL CHANGES

235.4 	Section 1. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision 
235.5 	to read:
235.6 		Subd. 2b.Emergency medical reasons. "Emergency medical reasons" means a public 
235.7 	health emergency declaration pursuant to United States Code, title 42, section 247d; a 
235.8 	national security or peacetime emergency declared by the governor pursuant to section 
235.9 	12.31; or a situation involving an action by the commissioner of health pursuant to section 
235.10 	144.4197, 144.4198, or 151.37, subdivisions 2, paragraph (b), and 10, except that, for 
235.11 	purposes of this subdivision, a drug shortage not caused by a public health emergency shall 
235.12 	not constitute an emergency medical reason.

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

235.14 	Sec. 2. Minnesota Statutes 2018, section 295.50, subdivision 3, is amended to read:
235.15 		Subd. 3.Gross revenues. "Gross revenues" are total amounts received in money or 
235.16 	otherwise by:
235.17 	(1) a hospital for patient services;
235.18 	(2) a surgical center for patient services;
235.19 	(3) a health care provider, other than a staff model health carrier plan company, for 
235.20 	patient services;
235.21 	(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered 
235.22 	in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the 
235.23 	legend drugs are delivered to another wholesale drug distributor who sells legend drugs 
235.24 	exclusively at wholesale. Legend drugs do not include nutritional products as defined in 
235.25 	Minnesota Rules, part 9505.0325, and blood and blood components; and
235.26 	(5) a staff model health plan company as gross premiums for enrollees, co-payments, 
235.27 	deductibles, coinsurance, and fees for patient services.

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

235.29 	Sec. 3. Minnesota Statutes 2018, section 295.50, subdivision 4, is amended to read:
235.30 		Subd. 4.Health care provider. (a) "Health care provider" means:
236.1 	(1) a person whose health care occupation is regulated or required to be regulated by 
236.2 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
236.3 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
236.4 	drugs, laboratory, diagnostic or therapeutic services;
236.5 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
236.6 	reimbursement under the medical assistance program provided under chapter 256B;
236.7 	(3) a staff model health plan company;
236.8 	(4) an ambulance service required to be licensed; or
236.9 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
236.10 	eyewear.; or
236.11 	(6) a person providing patient services, who does not otherwise meet the definition of 
236.12 	health care provider and is not specifically excluded in clause (b), who employs or contracts 
236.13 	with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise 
236.14 	oversee, or consult with regarding patient services.
236.15 	(b) Health care provider does not include:
236.16 	(1) hospitals; medical supplies distributors, except as specified under paragraph (a), 
236.17 	clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; 
236.18 	wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, 
236.19 	or any other providers of transportation services other than ambulance services required to 
236.20 	be licensed; supervised living facilities for persons with developmental disabilities, licensed 
236.21 	under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments 
236.22 	required to be registered under chapter 144D; board and lodging establishments providing 
236.23 	only custodial services that are licensed under chapter 157 and registered under section 
236.24 	157.17 to provide supportive services or health supervision services; adult foster homes as 
236.25 	defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults 
236.26 	with developmental disabilities as defined in section 252.41, subdivision 3; boarding care 
236.27 	homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined 
236.28 	in Minnesota Rules, part 9555.9600;
236.29 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a 
236.30 	person providing personal care services and supervision of personal care services as defined 
236.31 	in Minnesota Rules, part 9505.0335; a person providing home care nursing services as 
236.32 	defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed 
236.33 	under chapter 144A for home care services provided under chapter 144A;
237.1 	(3) a person who employs health care providers solely for the purpose of providing 
237.2 	patient services to its employees;
237.3 	(4) an educational institution that employs health care providers solely for the purpose 
237.4 	of providing patient services to its students if the institution does not receive fee for service 
237.5 	payments or payments for extended coverage; and
237.6 	(5) a person who receives all payments for patient services from health care providers, 
237.7 	surgical centers, or hospitals for goods and services that are taxable to the paying health 
237.8 	care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 
237.9 	1, paragraph (b), clause (3) or (4), or from a source of funds that is exempt from tax under 
237.10 	this chapter.

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

237.12 	Sec. 4. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
237.13 	read:
237.14 		Subd. 7a.Manufacturer. "Manufacturer" has the meaning provided in section 151.01, 
237.15 	subdivision 14a.

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

237.17 	Sec. 5. Minnesota Statutes 2018, section 295.50, subdivision 9b, is amended to read:
237.18 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
237.19 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
237.20 	They include the following health care goods and services provided to a patient or consumer:
237.21 	(1) bed and board;
237.22 	(2) nursing services and other related services;
237.23 	(3) use of hospitals, surgical centers, or health care provider facilities;
237.24 	(4) medical social services;
237.25 	(5) drugs, biologicals, supplies, appliances, and equipment;
237.26 	(6) other diagnostic or therapeutic items or services;
237.27 	(7) medical or surgical services;
237.28 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
237.29 	and
238.1 	(9) emergency services.
238.2 	(b) "Patient services" does not include:
238.3 	(1) services provided to nursing homes licensed under chapter 144A;
238.4 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
238.5 	litigation, and employment, including reviews of medical records for those purposes;
238.6 	(3) services provided to and by community residential mental health facilities licensed 
238.7 	under Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment 
238.8 	programs for children with severe emotional disturbance licensed or certified under chapter 
238.9 	245A;
238.10 	(4) services provided to and by community support programs and family community 
238.11 	support programs approved under Minnesota Rules, parts 9535.1700 to 9535.1760, or 
238.12 	certified as mental health rehabilitative services under chapter 256B; under the following 
238.13 	programs: day treatment services as defined in section 245.462, subdivision 8; assertive 
238.14 	community treatment as described in section 256B.0622; adult rehabilitative mental health 
238.15 	services as described in section 256B.0623; adult crisis response services as described in 
238.16 	section 256B.0624; children's therapeutic services and supports as described in section 
238.17 	256B.0943; and children's mental health crisis response services as described in section 
238.18 	256B.0944;
238.19 	(5) services provided to and by community mental health centers as defined in section 
238.20 	245.62, subdivision 2;
238.21 	(6) services provided to and by assisted living programs and congregate housing 
238.22 	programs;
238.23 	(7) hospice care services;
238.24 	(8) home and community-based waivered services under sections 256B.0915, 256B.49, 
238.25 	and 256B.501;
238.26 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
238.27 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
238.28 	(10) services provided to the following: supervised living facilities for persons with 
238.29 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
238.30 	housing with services establishments required to be registered under chapter 144D; board 
238.31 	and lodging establishments providing only custodial services that are licensed under chapter 
238.32 	157 and registered under section 157.17 to provide supportive services or health supervision 
239.1 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
239.2 	and habilitation services for adults with developmental disabilities as defined in section 
239.3 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
239.4 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
239.5 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
239.6 	chapter 144A.

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

239.8 	Sec. 6. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
239.9 	read:
239.10 		Subd. 10c.Pharmacy benefits manager. "Pharmacy benefits manager" means an entity 
239.11 	that performs pharmacy benefits management.

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

239.13 	Sec. 7. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
239.14 	read:
239.15 		Subd. 13a.Third-party purchaser of health care services. "Third-party purchaser of 
239.16 	health care services" includes but is not limited to a health carrier or community integrated 
239.17 	service network that pays for health care services on behalf of patients or that reimburses, 
239.18 	indemnifies, compensates, or otherwise insures patients for health care services.

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

239.20 	Sec. 8. Minnesota Statutes 2018, section 295.50, subdivision 14, is amended to read:
239.21 		Subd. 14.Wholesale drug distributor. "Wholesale drug distributor" means a wholesale 
239.22 	drug distributor required to be licensed under sections 151.42 to 151.51. any person engaged 
239.23 	in wholesale drug distribution including but not limited to manufacturers; repackagers; 
239.24 	own-label distributors; jobbers; brokers; warehouses, including manufacturers' and 
239.25 	distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; 
239.26 	independent wholesale drug traders; and pharmacies that conduct wholesale drug distribution. 
239.27 	A wholesale drug distributor does not include a common carrier or individual hired primarily 
239.28 	to transport legend drugs.

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

240.1 	Sec. 9. Minnesota Statutes 2018, section 295.50, subdivision 15, is amended to read:
240.2 		Subd. 15.Legend drug. "Legend drug" means a drug that is required by federal law to 
240.3 	bear one of the following statements: "Caution: Federal law prohibits dispensing without 
240.4 	prescription" or "Rx only." Legend drugs do not include nutritional products as defined in 
240.5 	Minnesota Rules, part 9505.0325, subpart 1, and blood and blood components.

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

240.7 	Sec. 10. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
240.8 	read:
240.9 		Subd. 16.Wholesale drug distribution. "Wholesale drug distribution" means the sale 
240.10 	or distribution of legend drugs to a person other than a consumer or patient, but does not 
240.11 	include:
240.12 	(1) a sale between a division, subsidiary, parent, affiliated, or related company under 
240.13 	the common ownership and control of a corporate entity;
240.14 	(2) the purchase or other acquisition, by a hospital or other health care entity that is a 
240.15 	member of a group purchasing organization, of a legend drug for its own use from the 
240.16 	organization or from other hospitals or health care entities that are members of such 
240.17 	organizations;
240.18 	(3) the sale, purchase, or trade of a legend drug by a charitable organization described 
240.19 	in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 
240.20 	31, 1988, to a nonprofit affiliate of the organization to the extent otherwise permitted by 
240.21 	law;
240.22 	(4) the sale, purchase, or trade of a legend drug among hospitals or other health care 
240.23 	entities that are under common control;
240.24 	(5) the sale, purchase, or trade of a legend drug for emergency medical reasons;
240.25 	(6) the transfer of legend drugs by a retail pharmacy to another retail pharmacy to alleviate 
240.26 	a temporary shortage; or
240.27 	(7) the distribution of legend drug samples by manufacturer representatives.

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

241.1 	Sec. 11. Minnesota Statutes 2018, section 295.53, subdivision 1, is amended to read:
241.2 		Subdivision 1.Exclusions and Exemptions. (a) The following payments are excluded 
241.3 	from the gross revenues subject to the hospital, surgical center, or health care provider taxes 
241.4 	under sections 295.50 to 295.59:
241.5 	(1) payments received for services provided under the Medicare program, including 
241.6 	payments received from the government, and organizations governed by sections 1833 and 
241.7 	1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 
241.8 	1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 
241.9 	enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 
241.10 	3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 
241.11 	Payments for services not covered by Medicare are taxable;
241.12 	(2) payments received for home health care services;
241.13 	(3) payments received from hospitals or surgical centers for goods and services on which 
241.14 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
241.15 	exempt under clause (1), (7), (10), or (14);
241.16 	(4) payments received from health care providers for goods and services on which 
241.17 	liability for tax is imposed under this chapter or the source of funds for the payment is 
241.18 	exempt under clause (1), (7), (10), or (14);
241.19 	(5) amounts paid for legend drugs, other than nutritional products and blood and blood 
241.20 	components, to a wholesale drug distributor who is subject to tax under section 295.52, 
241.21 	subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt 
241.22 	under this chapter;
241.23 	(6) (1) payments received by a health care provider or the wholly owned subsidiary of 
241.24 	a health care provider for care provided outside Minnesota;
241.25 	(7) payments received from the chemical dependency fund under chapter 254B;
241.26 	(8) payments received in the nature of charitable donations that are not designated for 
241.27 	providing patient services to a specific individual or group;
241.28 	(9) payments received for providing patient services incurred through a formal program 
241.29 	of health care research conducted in conformity with federal regulations governing research 
241.30 	on human subjects. Payments received from patients or from other persons paying on behalf 
241.31 	of the patients are subject to tax;
242.1 	(10) payments received from any governmental agency for services benefiting the public, 
242.2 	not including payments made by the government in its capacity as an employer or insurer 
242.3 	or payments made by the government for services provided under the MinnesotaCare 
242.4 	program or the medical assistance program governed by title XIX of the federal Social 
242.5 	Security Act, United States Code, title 42, sections 1396 to 1396v;
242.6 	(11) (2) government payments received by the commissioner of human services for 
242.7 	state-operated services;
242.8 	(12) (3) payments received by a health care provider for hearing aids and related 
242.9 	equipment or prescription eyewear delivered outside of Minnesota; and
242.10 	(13) (4) payments received by an educational institution from student tuition, student 
242.11 	activity fees, health care service fees, government appropriations, donations, or grants, and 
242.12 	for services identified in and provided under an individualized education program as defined 
242.13 	in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 
242.14 	for service payments and payments for extended coverage are taxable;.
242.15 	(14) payments received under the federal Employees Health Benefits Act, United States 
242.16 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
242.17 	Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
242.18 	(15) payments received under the federal Tricare program, Code of Federal Regulations, 
242.19 	title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 
242.20 	to tax.
242.21 	(b) The following payments are exempted from the gross revenues subject to hospital, 
242.22 	surgical center, or health care provider taxes under sections 295.50 to 295.59:
242.23 	(1) payments received for services provided under the Medicare program, including 
242.24 	payments received from the government and organizations governed by sections 1833, 
242.25 	1853, and 1876 of title XVIII of the federal Social Security Act, United States Code, title 
242.26 	42, section 1395; and enrollee deductibles, co-insurance, and co-payments, whether paid 
242.27 	by the Medicare enrollee, by Medicare supplemental coverage as described in section 
242.28 	62A.011, subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal 
242.29 	Social Security Act. Payments for services not covered by Medicare are taxable;
242.30 	(2) payments received for home health care services;
242.31 	(3) payments received from hospitals or surgical centers for goods and services on which 
242.32 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
242.33 	exempt under clauses (1), (6), (9), (10), or (11);
243.1 	(4) payments received from the health care providers for goods and services on which 
243.2 	liability for tax is imposed under this chapter or the source of funds for the payment is 
243.3 	exempt under clause (1), (6), (9), (10), or (11);
243.4 	(5) amounts paid for legend drugs to a wholesale drug distributor who is subject to tax 
243.5 	under section 295.52, subdivision 3, reduced by reimbursement received for legend drugs 
243.6 	otherwise exempt under this chapter;
243.7 	(6) payments received from the chemical dependency fund under chapter 254B;
243.8 	(7) payments received in the nature of charitable donations that are not designated for 
243.9 	providing patient services to a specific individual or group;
243.10 	(8) payments received for providing patient services incurred through a formal program 
243.11 	of health care research conducted in conformity with federal regulations governing research 
243.12 	on human subjects. Payments received from patients or from other persons paying on behalf 
243.13 	of the patients are subject to tax;
243.14 	(9) payments received from any governmental agency for services benefiting the public, 
243.15 	not including payments made by the government in its capacity as an employer or insurer 
243.16 	or payments made by the government for services provided under the MinnesotaCare 
243.17 	program or the medical assistance program governed by title XIX of the federal Social 
243.18 	Security Act, United States Code, title 42, section 1396 to 1396v;
243.19 	(10) payments received under the federal Employees Health Benefits Act, United States 
243.20 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
243.21 	Enrollee deductibles, co-insurance, and co-payments are subject to tax;
243.22 	(11) payments received under the federal Tricare program, Code of Federal Regulations, 
243.23 	title 32, section 199.17(a)(7). Enrollee deductibles, co-insurance, and co-payments are 
243.24 	subject to tax; and
243.25 	(12) supplemental or enhanced payments authorized under section 256B.196 or 256B.197.
243.26 	(b)(c) Payments received by wholesale drug distributors for legend drugs sold directly 
243.27 	to veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
243.28 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
243.29 	(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision 
243.30 	1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections 
243.31 	295.50 to 295.59.

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

244.1 	Sec. 12. Minnesota Statutes 2018, section 295.57, subdivision 5, is amended to read:
244.2 		Subd. 5.Exemption for amounts paid for legend drugs. If a hospital, surgical center, 
244.3 	or health care provider cannot determine the actual cost or reimbursement of legend drugs 
244.4 	under the exemption provided in section 295.53, subdivision 1, paragraph (a) (b), clause 
244.5 	(5), the following method must be used:
244.6 	A hospital, surgical center, or health care provider must determine the amount paid for 
244.7 	legend drugs used during the month or quarter and multiply that amount by a ratio, the 
244.8 	numerator of which is the total amount received for taxable patient services, and the 
244.9 	denominator of which is the total amount received for all patient services, including amounts 
244.10 	exempt under section 295.53, subdivision 1, paragraph (b). The result represents the allowable 
244.11 	exemption for the monthly or quarterly cost of drugs.

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

244.13 	Sec. 13. Minnesota Statutes 2018, section 295.582, subdivision 1, is amended to read:
244.14 		Subdivision 1.Tax expense transfer. (a) A hospital, surgical center, or health care 
244.15 	provider that is subject to a tax under section 295.52, or a pharmacy that has paid additional 
244.16 	expense transferred under this section by a wholesale drug distributor, may transfer additional 
244.17 	expense generated by section 295.52 obligations on to all third-party contracts for the 
244.18 	purchase of health care services on behalf of a patient or consumer. Nothing shall prohibit 
244.19 	a pharmacy from transferring the additional expense generated under section 295.52 to a 
244.20 	pharmacy benefits manager. The additional expense transferred to the third-party purchaser 
244.21 	or a pharmacy benefits manager must not exceed the tax percentage specified in section 
244.22 	295.52 multiplied against the gross revenues received under the third-party contract, and 
244.23 	the tax percentage specified in section 295.52 multiplied against co-payments and deductibles 
244.24 	paid by the individual patient or consumer. The expense must not be generated on revenues 
244.25 	derived from payments that are excluded from the tax under section 295.53. All third-party 
244.26 	purchasers of health care services including, but not limited to, third-party purchasers 
244.27 	regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 65B, 79, or 79A, or 
244.28 	under section 471.61 or 471.617, and pharmacy benefits managers must pay the transferred 
244.29 	expense in addition to any payments due under existing contracts with the hospital, surgical 
244.30 	center, pharmacy, or health care provider, to the extent allowed under federal law. A 
244.31 	third-party purchaser of health care services includes, but is not limited to, a health carrier 
244.32 	or community integrated service network that pays for health care services on behalf of 
244.33 	patients or that reimburses, indemnifies, compensates, or otherwise insures patients for 
244.34 	health care services. For purposes of this section, a pharmacy benefits manager means an 
245.1 	entity that performs pharmacy benefits management. A third-party purchaser or pharmacy 
245.2 	benefits manager shall comply with this section regardless of whether the third-party 
245.3 	purchaser or pharmacy benefits manager is a for-profit, not-for-profit, or nonprofit entity. 
245.4 	A wholesale drug distributor may transfer additional expense generated by section 295.52
245.5 	obligations to entities that purchase from the wholesaler, and the entities must pay the 
245.6 	additional expense. Nothing in this section limits the ability of a hospital, surgical center, 
245.7 	pharmacy, wholesale drug distributor, or health care provider to recover all or part of the 
245.8 	section 295.52 obligation by other methods, including increasing fees or charges.
245.9 	(a) The tax expense generated by section 295.52 may be transferred as follows:
245.10 	(1) a hospital, surgical center, or health care provider subject to the tax under section 
245.11 	295.52 may transfer the tax expense to all third-party contracts for the purchase of health 
245.12 	care services on behalf of a patient or consumer;
245.13 	(2) a wholesale drug distributor subject to the tax under section 295.52 may transfer the 
245.14 	tax expense to entities that purchase legend drugs from the wholesale drug distributor; and
245.15 	(3) a pharmacy that has paid the tax expense transferred by a wholesale drug distributor 
245.16 	may transfer the tax expense to all third-party contracts for the purchase of health care 
245.17 	services on behalf of a patient or consumer. Nothing shall prohibit a pharmacy from 
245.18 	transferring the tax expense generated under section 295.52 to a pharmacy benefits manager.
245.19 	(b) The transfer of the tax expense under paragraph (a) must comply with the following:
245.20 	(1) the tax expense transferred to the third-party purchaser or a pharmacy benefits 
245.21 	manager must not exceed the tax percentage specified in section 295.52 multiplied against:
245.22 	(i) gross revenues received under the third-party contract; and
245.23 	(ii) co-payments and deductibles paid by the individual patient or consumer; and
245.24 	(2) the tax expense must not be generated on revenues derived from payments that are 
245.25 	excluded or exempted from the tax under section 295.53.
245.26 	(c) Payment of the transferred tax expense is required as follows:
245.27 	(1) all third-party purchasers of health care services, including but not limited to 
245.28 	third-party purchasers regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 
245.29 	65B, 79, or 79A, or under section 471.61 or 471.617, and pharmacy benefits managers must 
245.30 	pay the transferred expense. This is in addition to any payments due under existing contracts 
245.31 	with the hospital, surgical center, pharmacy, or health care provider, to the extent allowed 
245.32 	under federal law; and
246.1 	(2) all entities that purchase legend drugs from a wholesale drug distributor must pay 
246.2 	the transferred expense.
246.3 	(d) A third-party purchaser or pharmacy benefits manager must comply with this section 
246.4 	regardless of whether the third-party purchaser or pharmacy benefits manager is a for-profit, 
246.5 	not-for-profit, or nonprofit entity.
246.6 	(e) Nothing in this section limits the ability of a hospital, surgical center, health care 
246.7 	provider, pharmacy, or wholesale drug distributor to recover all or part of the section 295.52 
246.8 	obligation by other methods, including increasing fees or charges.
246.9 	(b)(f) Any hospital, surgical center, or health care provider subject to a tax under section 
246.10 	295.52 or a pharmacy that has paid the additional expense transferred under this section by 
246.11 	a wholesale drug distributor may file a complaint with the commissioner responsible for 
246.12 	regulating the third-party purchaser if at any time the third-party purchaser fails to comply 
246.13 	with paragraph (a) this section.
246.14 	(c) (g) If the commissioner responsible for regulating the third-party purchaser finds at 
246.15 	any time that the third-party purchaser has not complied with paragraph (a) this section, the 
246.16 	commissioner may take enforcement action against a third-party purchaser which is subject 
246.17 	to the commissioner's regulatory jurisdiction and which does not allow a hospital, surgical 
246.18 	center, pharmacy, or provider to pass-through the tax expense. The commissioner may by 
246.19 	order fine or censure the third-party purchaser or revoke or suspend the certificate of authority 
246.20 	or license of the third-party purchaser to do business in this state if the commissioner finds 
246.21 	that the third-party purchaser has not complied with this section. The third-party purchaser 
246.22 	may appeal the commissioner's order through a contested case hearing in accordance with 
246.23 	chapter 14.

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

246.25 	ARTICLE 16
246.26 	DEPARTMENT OF REVENUE; PROPERTY TAX; POLICY

246.27 	Section 1. Minnesota Statutes 2018, section 162.145, subdivision 3, is amended to read:
246.28 		Subd. 3.Administration. (a) Subject to funds made available by law, the commissioner 
246.29 	shall allocate all funds as provided in subdivision 4 and shall notify, by June 1, certify to
246.30 	the commissioner of revenue the amounts to be paid.
246.31 	(b) Following notification certification from the commissioner of transportation, the 
246.32 	commissioner of revenue shall distribute the specified funds to cities in the same manner 
247.1 	as local government aid under chapter 477A. An appropriation to the commissioner of 
247.2 	transportation under this section is available to the commissioner of revenue for the purposes 
247.3 	specified in this paragraph.
247.4 	(c) Notwithstanding other law to the contrary, in order to receive distributions under 
247.5 	this section, a city must conform to the standards in section 477A.017, subdivision 2. A city 
247.6 	that receives funds under this section must make and preserve records necessary to show 
247.7 	that the funds are spent in compliance with subdivision 4.

247.8 	EFFECTIVE DATE. This section is effective for aids payable in 2019 and thereafter.

247.9 	Sec. 2. Minnesota Statutes 2018, section 273.124, subdivision 13, is amended to read:
247.10 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
247.11 	under subdivision 1 must file a homestead application with the county assessor to initially 
247.12 	obtain homestead classification.
247.13 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
247.14 	application required to be filed under this chapter pursuant to section 270C.30. The 
247.15 	application must clearly inform the taxpayer that this application must be signed by all 
247.16 	owners who occupy the property or by the qualifying relative and returned to the county 
247.17 	assessor in order for the property to receive homestead treatment.
247.18 	(c) Every property owner applying for homestead classification must furnish to the 
247.19 	county assessor the Social Security number of each occupant who is listed as an owner of 
247.20 	the property on the deed of record, the name and address of each owner who does not occupy 
247.21 	the property, and the name and Social Security number of each owner's the spouse of each 
247.22 	occupying owner. The application must be signed by each owner who occupies the property 
247.23 	and by each owner's spouse who occupies the property, or, in the case of property that 
247.24 	qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
247.25 	If a property owner occupies a homestead, the property owner's spouse may not claim 
247.26 	another property as a homestead unless the property owner and the property owner's spouse 
247.27 	file with the assessor an affidavit or other proof required by the assessor stating that the 
247.28 	property qualifies as a homestead under subdivision 1, paragraph (e).
247.29 	Owners or spouses occupying residences owned by their spouses and previously occupied 
247.30 	with the other spouse, either of whom fail to include the other spouse's name and Social 
247.31 	Security number on the homestead application or provide the affidavits or other proof 
247.32 	requested, will be deemed to have elected to receive only partial homestead treatment of 
247.33 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
248.1 	When an owner or spouse's name and Social Security number appear on homestead 
248.2 	applications for two separate residences and only one application is signed, the owner or 
248.3 	spouse will be deemed to have elected to homestead the residence for which the application 
248.4 	was signed.
248.5 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
248.6 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
248.7 	the property to receive homestead status, a homestead application must be filed with the 
248.8 	assessor. The Social Security number of each relative occupying the property and the name 
248.9 	and Social Security number of the spouse of a relative occupying the property shall be 
248.10 	required on the homestead application filed under this subdivision. If a different relative of 
248.11 	the owner subsequently occupies the property, the owner of the property must notify the 
248.12 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
248.13 	occupying the property or the spouse of a relative occupying the property is private data on 
248.14 	individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
248.15 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
248.16 	Act to recover personal property taxes owing, to the county treasurer.
248.17 	(e) The homestead application shall also notify the property owners that if the property 
248.18 	is granted homestead status for any assessment year, that same property shall remain 
248.19 	classified as homestead until the property is sold or transferred to another person, or the 
248.20 	owners, the spouse of the owner, or the relatives no longer use the property as their 
248.21 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
248.22 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
248.23 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
248.24 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
248.25 	shall result in the penalty provided under this subdivision and the property will lose its 
248.26 	current homestead status.
248.27 	(f) If a homestead application has not been filed with the county by December 15, the 
248.28 	assessor shall classify the property as nonhomestead for the current assessment year for 
248.29 	taxes payable in the following year, provided that the owner may be entitled to receive the 
248.30 	homestead classification by proper application under section 375.192.

248.31 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
248.32 	2020 and thereafter.

249.1 	ARTICLE 17
249.2 	DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL

249.3 	Section 1. Minnesota Statutes 2018, section 270C.85, subdivision 2, is amended to read:
249.4 		Subd. 2.Powers and duties. The commissioner shall have and exercise the following 
249.5 	powers and duties in administering the property tax laws.:
249.6 	(a) (1) confer with, advise, and give the necessary instructions and directions to local 
249.7 	assessors and local boards of review throughout the state as to their duties under the laws 
249.8 	of the state.;
249.9 	(b) (2) direct proceedings, actions, and prosecutions to be instituted to enforce the laws 
249.10 	relating to the liability and punishment of public officers and officers and agents of 
249.11 	corporations for failure or negligence to comply with the provisions of the property tax 
249.12 	laws, and cause complaints to be made against local assessors, members of boards of 
249.13 	equalization, members of boards of review, or any other assessing or taxing officer, to the 
249.14 	proper authority, for their removal from office for misconduct or negligence of duty.;
249.15 	(c) (3) require county attorneys to assist in the commencement of prosecutions in actions 
249.16 	or proceedings for removal, forfeiture, and punishment, for violation of the property tax 
249.17 	laws in their respective districts or counties.;
249.18 	(d) (4) require town, city, county, and other public officers to report and certify 
249.19 	information, at the parcel level or in the aggregate, as to the assessment and taxation of real 
249.20 	and personal property, and such other information as may be needful in the work of the 
249.21 	commissioner, in such form as the commissioner may prescribe. The commissioner shall 
249.22 	prescribe the content, format, manner, and time of filing of all required reports and 
249.23 	certifications;
249.24 	(e) (5) transmit to the governor, on or before the third Monday in December of each 
249.25 	even-numbered year, and to each member of the legislature, on or before November 15 of 
249.26 	each even-numbered year, the report of the department for the preceding years, showing all 
249.27 	the taxable property subject to the property tax laws and the value of the same, in tabulated 
249.28 	form.;
249.29 	(f) (6) inquire into the methods of assessment and taxation and ascertain whether the 
249.30 	assessors faithfully discharge their duties.; and
249.31 	(g) (7) assist local assessors in determining the estimated market value of industrial 
249.32 	special-use property. For purposes of this paragraph clause, "industrial special-use property" 
249.33 	means property that:
250.1 	(1)(i) is designed and equipped for a particular type of industry;
250.2 	(2)(ii) is not easily adapted to some other use due to the unique nature of the facilities;
250.3 	(3)(iii) has facilities totaling at least 75,000 square feet in size; and
250.4 	(4)(iv) has a total estimated market value of $10,000,000 or greater based on the 
250.5 	assessor's preliminary determination.

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

250.7 	Sec. 2. Minnesota Statutes 2018, section 270C.89, subdivision 1, is amended to read:
250.8 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
250.9 	commissioner a copy of the abstract preliminary assessment information that the 
250.10 	commissioner may require under section 270C.85, subdivision 2, clause (4), that will be 
250.11 	acted upon by the local and county boards of review. The abstract must list the real and 
250.12 	personal property in the county itemized by assessment districts. The assessor of each county 
250.13 	in the state shall file with the commissioner, within ten working days following final action 
250.14 	of the local board of review or equalization and within five days following final action of 
250.15 	the county board of equalization, any changes made by the local or county board. The 
250.16 	information must be filed in the manner prescribed by the commissioner.

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

250.18 	Sec. 3. Minnesota Statutes 2018, section 270C.89, subdivision 2, is amended to read:
250.19 		Subd. 2.Final report. The final abstract of assessments assessment information after 
250.20 	adjustments by the State Board of Equalization and inclusion of any omitted property shall 
250.21 	be submitted reported to the commissioner on or before September 1 of each calendar year
250.22 	under section 270C.85, subdivision 2, clause (4). The final abstract must separately report 
250.23 	the captured tax capacity of tax increment financing districts under section 469.177, 
250.24 	subdivision 2, the areawide net tax capacity contribution values determined under sections 
250.25 	276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line 
250.26 	credit under section 273.42.

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

251.1 	Sec. 4. Minnesota Statutes 2018, section 270C.91, is amended to read:
251.2 	270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY; 
251.3 	DUTIES OF COUNTY AUDITOR.
251.4 	A record of all proceedings of the commissioner affecting any change in the net tax 
251.5 	capacity of any property, as revised by the State Board of Equalization, shall be kept by the 
251.6 	commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of 
251.7 	each county wherein such property is situated, on or before June 30 or 30 days after 
251.8 	submission of the abstract required by section 270C.89, whichever is later. This record shall 
251.9 	specify the amounts or amount, or both, added to or deducted from the net tax capacity of 
251.10 	the real property of each of the several towns and cities, and of the real property not in towns 
251.11 	or cities, also the percent or amount of both, added to or deducted from the several classes 
251.12 	of personal property in each of the towns and cities, and also the amount added to or deducted 
251.13 	from the assessment of any person. The county auditor shall add to or deduct from such 
251.14 	tract or lot, or portion thereof, of any real property in the county the required percent or 
251.15 	amount, or both, on the net tax capacity thereof as it stood after equalized by the county 
251.16 	board, adding in each case a fractional sum of 50 cents or more, and deducting in each case 
251.17 	any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or 
251.18 	lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of 
251.19 	personal property in the county the required percent or amount, or both, on the net tax 
251.20 	capacity thereof as it stood after equalized by the county board, adding or deducting in 
251.21 	manner aforesaid any fractional sum so that no net tax capacity of any separate class of 
251.22 	personal property shall contain a fraction of a dollar, and add to or deduct from assessment 
251.23 	of any person, as they stood after equalization by the county board, the required amounts 
251.24 	to agree with the assessments as returned by the commissioner.

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

251.26 	Sec. 5. Minnesota Statutes 2018, section 273.061, subdivision 9, is amended to read:
251.27 		Subd. 9.Additional general duties. Additional duties of the county assessor shall be
251.28 	are as follows:
251.29 	(1) to make all assessments, based upon the appraised values reported by the local 
251.30 	assessors or assistants and the county assessor's own knowledge of the value of the property 
251.31 	assessed;
251.32 	(2) to personally view and determine the value of any property which that because of 
251.33 	its type or character may be difficult for the local assessor to appraise;
252.1 	(3) to make all changes ordered by the local boards of review, relative to the net tax 
252.2 	capacity of the property of any individual, firm or corporation after notice has been given 
252.3 	and hearings held as provided by law;
252.4 	(4) to enter all assessments in the assessment books, furnished by the county auditor, 
252.5 	with each book and the tabular statements for each book in correct balance;
252.6 	(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the 
252.7 	commissioner of revenue;
252.8 	(6) to attend the meeting of the county board of equalization; to investigate and report 
252.9 	on any assessment ordered by said board; to enter all changes made by said board in the 
252.10 	assessment books and prepare the abstract of assessments for the commissioner of revenue
252.11 	information reported to the commissioner under section 270C.85, subdivision 2, clause (4); 
252.12 	to enter all changes made by the State Board of Equalization in the assessment books; to 
252.13 	deduct all exemptions authorized by law from each assessment and certify to the county 
252.14 	auditor the taxable value of each parcel of land, as described and listed in the assessment 
252.15 	books by the county auditor, and the taxable value of the personal property of each person, 
252.16 	firm, or corporation assessed;
252.17 	(7) to investigate and make recommendations relative to all applications for the abatement 
252.18 	of taxes or applications for the reduction of the net tax capacity of any property; and
252.19 	(8) to perform all other duties relating to the assessment of property for the purpose of 
252.20 	taxation which may be required by the commissioner of revenue.

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

252.22 	Sec. 6. Minnesota Statutes 2018, section 273.0755, is amended to read:
252.23 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
252.24 	(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 
252.25 	by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 
252.26 	successfully complete a weeklong Minnesota laws course sponsored by the Department of 
252.27 	Revenue at least once in every four-year period. An assessor need not attend the course if 
252.28 	they successfully pass the test for the course.
252.29 	(b) The commissioner of revenue may require that each county, and each city for which 
252.30 	the city assessor performs the duties of county assessor, have (i) (1) a person on the assessor's 
252.31 	staff who is certified by the Department of Revenue in sales ratio calculations, (ii) (2) an 
252.32 	officer or employee who is certified by the Department of Revenue in tax calculations, and 
253.1 	(iii) (3) an officer or employee who is certified by the Department of Revenue in the proper 
253.2 	preparation of abstracts of assessment. The commissioner of revenue may require that each 
253.3 	county have an officer or employee who is certified by the Department of Revenue in the 
253.4 	proper preparation of abstracts of tax lists information reported to the commissioner under 
253.5 	section 270C.85, subdivision 2, clause (4). Certifications under this paragraph expire after 
253.6 	four years.
253.7 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
253.8 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
253.9 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
253.10 	assessment practices developed and presented by the commissioner of revenue. This 
253.11 	requirement must be met at least once in every subsequent four-year period. This requirement 
253.12 	applies to all assessors licensed for one year or more in the four-year period.
253.13 	(d) When the commissioner of revenue determines that an individual or board that 
253.14 	performs functions related to property tax administration has performed those functions in 
253.15 	a manner that is not uniform or equitable, the commissioner may require that the individual 
253.16 	or members of the board complete supplemental training. The commissioner may not require 
253.17 	that an individual complete more than 32 hours of supplemental training pursuant to this 
253.18 	paragraph. If the individual is required to complete supplemental training due to that 
253.19 	individual's membership on a local or county board of appeal and equalization, the 
253.20 	commissioner may not require that the individual complete more than two hours of 
253.21 	supplemental training.

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

253.23 	Sec. 7. Minnesota Statutes 2018, section 273.113, subdivision 3, is amended to read:
253.24 		Subd. 3.Reimbursement for lost revenue. The county auditor shall certify to the 
253.25 	commissioner of revenue, as part of the abstracts of tax lists required to be filed with the 
253.26 	commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of tax 
253.27 	lost to the county from the property tax credit under subdivision 2. Any prior year adjustments 
253.28 	must also be certified in the abstracts of tax lists. The commissioner of revenue shall review 
253.29 	the certifications to determine their accuracy. The commissioner may make the changes in 
253.30 	the certification that are considered necessary or return a certification to the county auditor 
253.31 	for corrections. The commissioner shall reimburse each taxing district, other than school 
253.32 	districts, for the taxes lost. The payments must be made at the time provided in section 
253.33 	473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax 
253.34 	is distributed. Reimbursements to school districts must be made as provided in section 
254.1 	273.1392. The amount necessary to make the reimbursements under this section is annually 
254.2 	appropriated from the general fund to the commissioner of revenue.

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

254.4 	Sec. 8. Minnesota Statutes 2018, section 273.119, subdivision 2, is amended to read:
254.5 		Subd. 2.Reimbursement for lost revenue. The county may transfer money from the 
254.6 	county conservation account created in section 40A.152 to the county revenue fund to 
254.7 	reimburse the fund for the cost of the property tax credit. The county auditor shall certify 
254.8 	to the commissioner of revenue, as part of the abstracts of tax lists required to be filed with 
254.9 	the commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of 
254.10 	tax lost to the county from the property tax credit under subdivision 1 and the extent that 
254.11 	the tax lost exceeds funds available in the county conservation account. Any prior year 
254.12 	adjustments must also be certified in the abstracts of tax lists. The commissioner of revenue 
254.13 	shall review the certifications to determine their accuracy. The commissioner may make 
254.14 	the changes in the certification that are considered necessary or return a certification to the 
254.15 	county auditor for corrections. The commissioner shall reimburse each taxing district, other 
254.16 	than school districts, from the Minnesota conservation fund under section 40A.151 for the 
254.17 	taxes lost in excess of the county account. The payments must be made at the time provided 
254.18 	in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion 
254.19 	that the ad valorem tax is distributed.

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

254.21 	Sec. 9. Minnesota Statutes 2018, section 273.1231, subdivision 3, is amended to read:
254.22 		Subd. 3.Disaster or emergency area.  (a) "Disaster or emergency area" means a 
254.23 	geographic area for which:
254.24 	(1)(i) the president of the United States, the secretary of agriculture, or the administrator 
254.25 	of the Small Business Administration has determined that a disaster exists pursuant to federal 
254.26 	law, or
254.27 	(ii) a local emergency has been declared pursuant to section 12.29; and
254.28 	(2) an application by the local unit of government requesting property tax relief under 
254.29 	this section has been received by the governor and approved by the executive council.
254.30 	(b) The executive council must not approve an application unless:
254.31 	(1) a completed disaster survey is included; and
255.1 	(2) within the boundaries of the applicant, (i) the average damage for the buildings that 
255.2 	are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged, 
255.3 	or the total dollar amount of damage to all taxable buildings equals or exceeds one percent 
255.4 	of the total taxable market value of buildings for the applicant as reported to the commissioner 
255.5 	of revenue under section 270C.89, subdivision 2 270C.85, subdivision 2, clause (4), for the 
255.6 	assessment in the year prior to the year of the damage.

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

255.8 	Sec. 10. Minnesota Statutes 2018, section 273.136, subdivision 2, is amended to read:
255.9 		Subd. 2.Reduction amounts submitted to county. The commissioner of revenue shall 
255.10 	determine, not later than April 1 of each year, the amount of reduction resulting from section 
255.11 	273.135 in each county containing a tax relief area as defined by section 273.134, paragraph 
255.12 	(b), basing determinations on a review of abstracts of tax lists submitted by the county 
255.13 	auditors pursuant to section 275.29 information reported to the commissioner under section 
255.14 	270C.85, subdivision 2, clause (4). The commissioner may make changes in the abstracts 
255.15 	of tax lists as deemed necessary. The commissioner of revenue, after such review, shall 
255.16 	submit to the St. Louis County auditor, on or before April 15, the amount of the first half 
255.17 	payment payable hereunder and on or before September 15 the amount of the second half 
255.18 	payment.

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

255.20 	Sec. 11. Minnesota Statutes 2018, section 273.1384, subdivision 3, is amended to read:
255.21 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
255.22 	allowed under subdivision 2 within the county for each taxes payable year and shall certify 
255.23 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
255.24 	by the county auditors under section 275.29 under section 270C.85, subdivision 2, clause 
255.25 	(4). Any prior year adjustments shall also be certified on the abstracts of tax lists. The 
255.26 	commissioner shall review the certifications for accuracy, and may make such changes as 
255.27 	are deemed necessary, or return the certification to the county auditor for correction. The 
255.28 	credit under this section must be used to proportionately reduce the net tax capacity-based 
255.29 	property tax payable to each local taxing jurisdiction as provided in section 273.1393.

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

256.1 	Sec. 12. Minnesota Statutes 2018, section 273.1387, subdivision 3, is amended to read:
256.2 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
256.3 	allowed under this section within the county for each taxes payable year and shall certify 
256.4 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
256.5 	under section 275.29 under section 270C.85, subdivision 2, clause (4). Any prior year 
256.6 	adjustments shall also be certified on the abstracts of tax lists. The commissioner shall 
256.7 	review the certifications for accuracy, and may make such changes as are deemed necessary, 
256.8 	or return the certification to the county auditor for correction. The credit under this section 
256.9 	must be used to reduce the school district net tax capacity-based property tax as provided 
256.10 	in section 273.1393.

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

256.12 	Sec. 13. Minnesota Statutes 2018, section 273.18, is amended to read:
256.13 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY 
256.14 	BY COUNTY AUDITORS.
256.15 	(a) In every sixth year after the year 2010, the county auditor shall enter the description 
256.16 	of each tract of real property exempt by law from taxation, with the name of the owner, and 
256.17 	the assessor shall value and assess the same in the same manner that other real property is 
256.18 	valued and assessed, and shall designate in each case the purpose for which the property is 
256.19 	used.
256.20 	(b) For purposes of the apportionment of fire state aid under section 69.021, subdivision 
256.21 	7, The county auditor shall include on the abstract of assessment of exempt real property 
256.22 	filed under this section in the exempt property information that the commissioner may 
256.23 	require under section 270C.85, subdivision 2, clause (4), the total number of acres of all 
256.24 	natural resources lands for which in lieu payments are made under sections 477A.11 to 
256.25 	477A.14. The assessor shall estimate its market value, provided that if the assessor is not 
256.26 	able to estimate the market value of the land on a per parcel basis, the assessor shall furnish 
256.27 	the commissioner of revenue with an estimate of the average value per acre of this land 
256.28 	within the county.

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

257.1 	Sec. 14. Minnesota Statutes 2018, section 274.14, is amended to read:
257.2 	274.14 LENGTH OF SESSION; RECORD.
257.3 	The board must meet after the second Friday in June on at least one meeting day and 
257.4 	may meet for up to ten consecutive meeting days. The actual meeting dates must be contained 
257.5 	on the valuation notices mailed to each property owner in the county as provided in section 
257.6 	273.121. For this purpose, "meeting days" is defined as any day of the week excluding 
257.7 	Sunday. At the board's discretion, "meeting days" may include Saturday. No action taken 
257.8 	by the county board of review after June 30 is valid, except for corrections permitted in 
257.9 	sections 273.01 and 274.01. The county auditor shall keep an accurate record of the 
257.10 	proceedings and orders of the board. The record must be published like other proceedings 
257.11 	of county commissioners. A copy of the published record must be sent to the commissioner 
257.12 	of revenue, with the abstract of assessment required by section 274.16 within five days 
257.13 	following final action of the county board of equalization.
257.14 	For counties that conduct either regular board of review meetings or open book meetings, 
257.15 	at least one of the meeting days must include a meeting that does not end before 7:00 p.m. 
257.16 	For counties that require taxpayer appointments for the board of review, appointments must 
257.17 	include some available times that extend until at least 7:00 p.m. The county may have a 
257.18 	Saturday meeting in lieu of, or in addition to, the extended meeting times under this 
257.19 	paragraph.

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

257.21 	Sec. 15. Minnesota Statutes 2018, section 274.16, is amended to read:
257.22 	274.16 CORRECTED LISTS, ABSTRACTS.
257.23 	The county assessor or, in Ramsey County, the official designated by the board of county 
257.24 	commissioners shall calculate the changes of the assessment lists determined by the county 
257.25 	board of equalization, and make corrections accordingly, in the real or personal lists, or 
257.26 	both, and shall make duplicate abstracts duplicates of them. One must be filed in the assessor's 
257.27 	office, and one must be forwarded to the commissioner of revenue as provided in section 
257.28 	270C.89.

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

257.30 	Sec. 16. Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
257.31 		Subdivision 1.Levy amount. The state general levy is levied against 
257.32 	commercial-industrial property and seasonal residential recreational property, as defined 
258.1 	in this section. The state general levy for commercial-industrial property is $784,590,000 
258.2 	for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational 
258.3 	property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section 
258.4 	is not treated as a local tax rate under section 469.177 and is not the levy of a governmental 
258.5 	unit under chapters 276A and 473F.
258.6 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
258.7 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
258.8 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
258.9 	information is available to the commissioner at the time the rates for a year must be certified, 
258.10 	and for the following reasons:
258.11 	(1) an erroneous report of taxable value by a local official;
258.12 	(2) an erroneous calculation by the commissioner; and
258.13 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
258.14 	residential recreational property reported on the abstracts of tax lists submitted under section 
258.15 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
258.16 	to the commissioner under section 270C.85, subdivision 2, clause (4), for the same year.
258.17 	The commissioner may, but need not, make adjustments if the total difference in the tax 
258.18 	levied for the year would be less than $100,000.

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

258.20 	Sec. 17. Minnesota Statutes 2018, section 290B.09, subdivision 1, is amended to read:
258.21 		Subdivision 1.Determination; payment. The county auditor shall determine the total 
258.22 	current year's deferred amount of property tax under this chapter in the county, and submit
258.23 	report those amounts as part of the abstracts of tax lists submitted by the county auditors 
258.24 	under section 275.29 to the commissioner under section 270C.85, subdivision 2, clause (4). 
258.25 	The commissioner may make changes in the abstracts of tax lists as deemed necessary. The 
258.26 	commissioner of revenue, after such review, shall pay the deferred amount of property tax 
258.27 	to each county treasurer on or before August 31.
258.28 	The county treasurer shall distribute as part of the October settlement the funds received 
258.29 	as if they had been collected as a part of the property tax.

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

259.1 	Sec. 18. Minnesota Statutes 2018, section 469.177, subdivision 1, is amended to read:
259.2 		Subdivision 1.Original net tax capacity. (a) Upon or after adoption of a tax increment 
259.3 	financing plan, the auditor of any county in which the district is situated shall, upon request 
259.4 	of the authority, certify the original net tax capacity of the tax increment financing district 
259.5 	and that portion of the district overlying any subdistrict as described in the tax increment 
259.6 	financing plan and shall certify in each year thereafter the amount by which the original net 
259.7 	tax capacity has increased or decreased as a result of a change in tax exempt status of 
259.8 	property within the district and any subdistrict, reduction or enlargement of the district or 
259.9 	changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after 
259.10 	receipt of the request and sufficient information to identify the parcels included in the district. 
259.11 	The certification relates to the taxes payable year as provided in subdivision 6.
259.12 	(b) If the classification under section 273.13 of property located in a district changes to 
259.13 	a classification that has a different assessment ratio, the original net tax capacity of that 
259.14 	property must be redetermined at the time when its use is changed as if the property had 
259.15 	originally been classified in the same class in which it is classified after its use is changed.
259.16 	(c) The amount to be added to the original net tax capacity of the district as a result of 
259.17 	previously tax exempt real property within the district becoming taxable equals the net tax 
259.18 	capacity of the real property as most recently assessed pursuant to section 273.18 information 
259.19 	reported to the commissioner under section 270C.85, subdivision 2, clause (4), or, if that 
259.20 	assessment was made more than one year prior to the date of title transfer rendering the 
259.21 	property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If 
259.22 	improvements are made to tax exempt property after the municipality approves the district 
259.23 	and before the parcel becomes taxable, the assessor shall, at the request of the authority, 
259.24 	separately assess the estimated market value of the improvements. If the property becomes 
259.25 	taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the 
259.26 	parcel, excluding the separately assessed improvements. If substantial taxable improvements 
259.27 	were made to a parcel after certification of the district and if the property later becomes tax 
259.28 	exempt, in whole or part, as a result of the authority acquiring the property through 
259.29 	foreclosure or exercise of remedies under a lease or other revenue agreement or as a result 
259.30 	of tax forfeiture, the amount to be added to the original net tax capacity of the district as a 
259.31 	result of the property again becoming taxable is the amount of the parcel's value that was 
259.32 	included in original net tax capacity when the parcel was first certified. The amount to be 
259.33 	added to the original net tax capacity of the district as a result of enlargements equals the 
259.34 	net tax capacity of the added real property as most recently certified by the commissioner 
260.1 	of revenue as of the date of modification of the tax increment financing plan pursuant to 
260.2 	section 469.175, subdivision 4.
260.3 	(d) If the net tax capacity of a property increases because the property no longer qualifies 
260.4 	under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open 
260.5 	Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act, 
260.6 	chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because 
260.7 	platted, unimproved property is improved or market value is increased after approval of the 
260.8 	plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be 
260.9 	added to the original net tax capacity. If the net tax capacity of a property increases because 
260.10 	the property no longer qualifies for the homestead market value exclusion under section 
260.11 	273.13, subdivision 35, the increase in net tax capacity must be added to original net tax 
260.12 	capacity if the original construction of the affected home was completed before the date the 
260.13 	assessor certified the original net tax capacity of the district.
260.14 	(e) The amount to be subtracted from the original net tax capacity of the district as a 
260.15 	result of previously taxable real property within the district becoming tax exempt or 
260.16 	qualifying in whole or part for an exclusion from taxable market value, or a reduction in 
260.17 	the geographic area of the district, shall be the amount of original net tax capacity initially 
260.18 	attributed to the property becoming tax exempt, being excluded from taxable market value, 
260.19 	or being removed from the district. If the net tax capacity of property located within the tax 
260.20 	increment financing district is reduced by reason of a court-ordered abatement, stipulation 
260.21 	agreement, voluntary abatement made by the assessor or auditor or by order of the 
260.22 	commissioner of revenue, the reduction shall be applied to the original net tax capacity of 
260.23 	the district when the property upon which the abatement is made has not been improved 
260.24 	since the date of certification of the district and to the captured net tax capacity of the district 
260.25 	in each year thereafter when the abatement relates to improvements made after the date of 
260.26 	certification. The county auditor may specify reasonable form and content of the request 
260.27 	for certification of the authority and any modification thereof pursuant to section 469.175, 
260.28 	subdivision 4.
260.29 	(f) If a parcel of property contained a substandard building or improvements described 
260.30 	in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if 
260.31 	the authority elects to treat the parcel as occupied by a substandard building under section 
260.32 	469.174, subdivision 10, paragraph (b), or by improvements under section 469.174, 
260.33 	subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the 
260.34 	parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated 
261.1 	market value of the parcel for the year in which the building or other improvements were 
261.2 	demolished or removed, but applying the classification rates for the current year.
261.3 	(g) For a redevelopment district qualifying under section 469.174, subdivision 10, 
261.4 	paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of 
261.5 	the land as the original tax capacity for any parcel in the district that contains a building 
261.6 	that suffered substantial damage as a result of the disaster or emergency.

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

261.8 	Sec. 19.  REPEALER.
 261.9 	Minnesota Statutes 2018, section 275.29, is repealed.

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

261.11 	ARTICLE 18
261.12 	FIRE STATE AID; TECHNICAL CHANGES

261.13 	Section 1. [477B.01] DEFINITIONS.
261.14 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
261.15 	meaning is intended, the following words and terms, for the purposes of this chapter and 
261.16 	chapters 423A and 424A, have the meanings given to them.
261.17 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
261.18 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
261.19 	the meaning given in section 60A.02, subdivision 4.
261.20 		Subd. 4.Estimated market value. "Estimated market value" has the meaning given in 
261.21 	section 272.03, subdivision 14.
261.22 		Subd. 5.Fire department. "Fire department" includes a municipal fire department and 
261.23 	an independent nonprofit firefighting corporation.
261.24 		Subd. 6.Fire department service area. "Fire department service area" means the area 
261.25 	serviced by a qualifying fire department that meets the requirements of section 477B.02.
261.26 		Subd. 7.Independent nonprofit firefighting corporation. "Independent nonprofit 
261.27 	firefighting corporation" means an independent nonprofit firefighting corporation that meets 
261.28 	the criteria in section 424A.094, subdivision 1, paragraph (a).
261.29 		Subd. 8.Minnesota Fire Premium Report. "Minnesota Fire Premium Report" means 
261.30 	a form for reporting by insurance companies of (1) gross direct fire, lightning, sprinkler 
262.1 	leakage, and extended coverage premiums received upon risks located or to be performed 
262.2 	in this state less return premiums and dividends, and (2) other facts that the commissioner 
262.3 	may require.
262.4 		Subd. 9.Municipal clerk. "Municipal clerk" means the person elected or appointed to 
262.5 	the position of municipal clerk or, if there is no such person, the chief financial official, the 
262.6 	chief administrative official, or the person primarily responsible for managing the finances 
262.7 	of a municipality.
262.8 		Subd. 10.Municipality. (a) "Municipality" means:
262.9 	(1) a home rule charter or statutory city;
262.10 	(2) an organized town;
262.11 	(3) a park district subject to chapter 398;
262.12 	(4) the University of Minnesota; and
262.13 	(5) an American Indian tribal government entity located within a federally recognized 
262.14 	American Indian reservation.
262.15 	(b) This subdivision only applies to chapter 477B.
262.16 		Subd. 11.Secretary. "Secretary" means the secretary of an independent nonprofit 
262.17 	firefighting corporation that has a subsidiary incorporated firefighters' relief association or 
262.18 	whose firefighters participate in the voluntary statewide volunteer firefighter retirement 
262.19 	plan.
262.20 		Subd. 12.Voluntary statewide volunteer firefighter retirement plan. "Voluntary 
262.21 	statewide volunteer firefighter retirement plan" means the retirement plan established under 
262.22 	chapter 353G.

262.23 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

262.24 	Sec. 2. [477B.02] QUALIFYING FOR FIRE STATE AID.
262.25 		Subdivision 1.Qualifications for fire state aid. A municipality or independent nonprofit 
262.26 	firefighting corporation qualifies to receive fire state aid if all the requirements of this section 
262.27 	are met.
262.28 		Subd. 2.Establishment of fire department. (a) An independent nonprofit firefighting 
262.29 	corporation must be created under the nonprofit corporation act of this state operating for 
262.30 	the exclusive purpose of firefighting, or the governing body of a municipality must officially 
262.31 	establish a fire department.
263.1 	(b) The fire department must have provided firefighting services for at least one calendar 
263.2 	year.
263.3 		Subd. 3.Personnel and benefits requirements. (a) A fire department must have a 
263.4 	minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
263.5 	(b) The fire department must have regular scheduled meetings and frequent drills that 
263.6 	include instructions in firefighting tactics and in the use, care, and operation of all fire 
263.7 	apparatus and equipment.
263.8 	(c) The fire department must have a separate subsidiary incorporated firefighters' relief 
263.9 	association that provides retirement benefits or must participate in the voluntary statewide 
263.10 	volunteer firefighter retirement plan; or if the municipality solely employs full-time 
263.11 	firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be 
263.12 	provided by the public employees police and fire retirement plan.
263.13 	(d) Notwithstanding paragraph (c), a municipality without a relief association as described 
263.14 	under section 424A.08, paragraph (a), may still qualify to receive fire state aid if all other 
263.15 	requirements of this section are met.
263.16 		Subd. 4.Equipment requirements. The fire department must have all of the following 
263.17 	equipment, or the equivalent as determined by the state fire marshal, by December 31 of 
263.18 	the year preceding the certification required in subdivision 8:
263.19 	(1) a motorized fire truck equipped with:
263.20 	(i) a motorized pump;
263.21 	(ii) a 250-gallon or larger water tank;
263.22 	(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and 
263.23 	straight stream nozzles;
263.24 	(iv) five-gallon hand pumps - tank extinguisher or equivalent;
263.25 	(v) a dry chemical extinguisher or equivalent;
263.26 	(vi) ladders;
263.27 	(vii) extension ladders;
263.28 	(viii) pike poles;
263.29 	(ix) crowbars;
263.30 	(x) axes;
264.1 	(xi) lanterns; and
264.2 	(xii) fire coats, helmets, and boots;
264.3 	(2) the items in clause (1) suitably housed in a building of good construction with facilities 
264.4 	for care of hoses and equipment;
264.5 	(3) a reliable and adequate method of receiving fire alarms by telephone or with electric 
264.6 	siren and suitable means of sounding an alarm; and
264.7 	(4) if response is to be provided outside the corporate limits of the municipality where 
264.8 	the fire department is located, another piece of motorized apparatus to make the response.
264.9 		Subd. 5.Fire service contract or agreement; apportionment agreement filing 
264.10 	requirement. (a) Every municipality or independent nonprofit firefighting corporation must 
264.11 	file a copy of any duly executed and valid fire service contract or agreement with the 
264.12 	commissioner.
264.13 	(b) If more than one fire department provides service to a municipality, the fire 
264.14 	departments furnishing service must enter into an agreement apportioning among themselves 
264.15 	the percentage of the population and the percentage of the estimated market value of each 
264.16 	shared service fire department service area. The agreement must be in writing and must be 
264.17 	filed with the commissioner.
264.18 		Subd. 6.Compliance with rules. The fire department must meet all other requirements 
264.19 	that the commissioner establishes by rule.
264.20 		Subd. 7.Financial reporting requirements. The financial reporting requirements of 
264.21 	section 424A.014 must be satisfied.
264.22 		Subd. 8.PERA certification to commissioner. On or before February 1 each year, if 
264.23 	retirement coverage for a fire department is provided by the voluntary statewide volunteer 
264.24 	firefighter retirement plan, the executive director of the Public Employees Retirement 
264.25 	Association must certify the existence of retirement coverage.
264.26 		Subd. 9.Fire department certification to commissioner. On or before March 15 of 
264.27 	each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the 
264.28 	commissioner that the fire department exists and meets the qualification requirements of 
264.29 	this section. The certification must be on a form prescribed by the commissioner and must 
264.30 	include all other information that the commissioner requires.
264.31 		Subd. 10.Penalty for failure to file certification. (a) If the certification under 
264.32 	subdivision 9 is not filed with the commissioner on or before March 15, the commissioner 
265.1 	must notify the municipal clerk or the secretary that a penalty equal to a portion or all of 
265.2 	the current year aid will apply if the certification is not received within ten days of the 
265.3 	postmark date of the notification.
265.4 	(b) The penalty for failure to file the certification under subdivision 9 is equal to the 
265.5 	amount of fire state aid determined for the municipality or the independent nonprofit 
265.6 	firefighting corporation for the current year, multiplied by five percent for each week or 
265.7 	fraction of a week that the certification is late. The penalty must be computed beginning 
265.8 	ten days after the postmark date of the commissioner's notification. Aid amounts forfeited 
265.9 	as a result of the penalty revert to the state general fund. Failure to receive the certification 
265.10 	form is not a defense for a failure to file.
265.11 		Subd. 11.Determination by commissioner. The commissioner must determine which 
265.12 	municipalities and independent nonprofit firefighting corporations are qualified to receive 
265.13 	fire state aid directly or are qualified to receive the benefit of fire state aid paid to the 
265.14 	voluntary statewide volunteer firefighter retirement plan based on compliance with the 
265.15 	requirements of this section and the financial compliance report required under section 
265.16 	6.495, subdivision 3, if applicable. The commissioner may take into account any other 
265.17 	relevant information that comes to the attention of the commissioner when making the 
265.18 	determination.

265.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

265.20 	Sec. 3. [477B.03] CALCULATION OF FIRE STATE AID; APPEAL.
265.21 		Subdivision 1.Certification and calculation of fire state aid. (a) On or before October 
265.22 	l, the commissioner must calculate the amount of fire state aid that each municipality or 
265.23 	independent nonprofit firefighting corporation is to receive.
265.24 	(b) The commissioner must calculate an initial fire state aid allocation amount for each 
265.25 	municipality or independent nonprofit firefighting corporation under subdivision 4 and, if 
265.26 	applicable, a minimum fire state aid allocation amount for each municipality or independent 
265.27 	nonprofit firefighting corporation under subdivision 5. The municipality or independent 
265.28 	nonprofit firefighting corporation must be apportioned the greater of the amounts calculated 
265.29 	under subdivisions 4 and 5.
265.30 		Subd. 2.Apportionment of fire state aid. (a) The amount of fire state aid available for 
265.31 	apportionment, before the addition of the minimum fire state aid allocation amount under 
265.32 	subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon 
265.33 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
266.1 	commissioner by companies or insurance companies on the Minnesota Fire Premium Report. 
266.2 	This amount must be reduced by the amount required to pay the state auditor's costs and 
266.3 	expenses of the audits or exams of the firefighters' relief associations.
266.4 	(b) The total amount available for apportionment must not be less than two percent of 
266.5 	the premiums less return premiums reported to the commissioner by companies or insurance 
266.6 	companies on the Minnesota Fire Premium Report after subtracting the following amounts:
266.7 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
266.8 	exams of the firefighters' relief associations; and
266.9 	(2) one percent of the premiums reported by township mutual insurance companies and 
266.10 	mutual property and casualty companies with total assets of $5,000,000 or less.
266.11 	(c) The commissioner must apportion the fire state aid to each municipality or independent 
266.12 	nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums 
266.13 	reported on the Minnesota Fire Premium Reports filed under this chapter.
266.14 	(d) The commissioner must calculate the percentage of increase or decrease reflected in 
266.15 	the apportionment over or under the previous year's available state aid using the same 
266.16 	premiums as a basis for comparison.
266.17 		Subd. 3.Population and estimated market value. (a) Official statewide federal census 
266.18 	figures must be used in calculations requiring the use of population figures under this chapter. 
266.19 	Increases or decreases in population disclosed by reason of any special census must not be 
266.20 	taken into consideration.
266.21 	(b) The latest available estimated market value property figures must be used in 
266.22 	calculations requiring the use of estimated market value property figures under this chapter.
266.23 		Subd. 4.Initial fire state aid allocation amount. (a) The initial fire state aid allocation 
266.24 	amount is the amount available for apportionment as fire state aid under subdivision 2, 
266.25 	without the inclusion of any additional funding amount to support a minimum fire state aid 
266.26 	amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount 
266.27 	is allocated one-half in proportion to the population for each fire department service area 
266.28 	and one-half in proportion to the estimated market value of each fire department service 
266.29 	area, including (1) the estimated market value of tax-exempt property, and (2) the estimated 
266.30 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
266.31 	to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
266.32 	(b) In the case of a municipality or independent nonprofit firefighting corporation 
266.33 	furnishing fire protection to other municipalities as evidenced by valid fire service contracts 
267.1 	filed with the commissioner under section 477B.02, subdivision 5, the distribution must be 
267.2 	adjusted proportionately to take into consideration the crossover fire protection service. 
267.3 	Necessary adjustments must be made to subsequent apportionments.
267.4 	(c) In the case of municipalities or independent nonprofit firefighting corporations 
267.5 	qualifying for aid, the commissioner must calculate the state aid for the municipality or 
267.6 	independent nonprofit firefighting corporation on the basis of the population and the estimated 
267.7 	market value of the area furnished fire protection service by the fire department as evidenced 
267.8 	by fire service agreements filed with the commissioner under section 477B.02, subdivision 
267.9 	5.
267.10 	(d) In the case of more than one fire department furnishing contracted fire service to a 
267.11 	municipality, the population and estimated market value in the apportionment agreement 
267.12 	filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating 
267.13 	the state aid.
267.14 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
267.15 	allocation amount is the amount derived from any additional funding amount to support a 
267.16 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
267.17 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
267.18 	corporations with volunteer firefighters' relief associations or covered by the voluntary 
267.19 	statewide volunteer firefighter retirement plan. The amount is based on the number of active 
267.20 	volunteer firefighters who are (1) members of the relief association as reported to the Office 
267.21 	of the State Auditor in a specific annual financial reporting year as specified in paragraphs 
267.22 	(b) to (d), or (2) covered by the voluntary statewide volunteer firefighter retirement plan as 
267.23 	specified in paragraph (e).
267.24 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
267.25 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
267.26 	members of the relief association as reported in the annual financial reporting for calendar 
267.27 	year 1993, but not to exceed 30 active volunteer firefighters.
267.28 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
267.29 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
267.30 	who were members of the relief association as reported in the annual financial reporting for 
267.31 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer 
267.32 	firefighters.
267.33 	(d) For relief associations established after calendar year 1999, the number of active 
267.34 	volunteer firefighters equals the number of active volunteer firefighters who are members 
268.1 	of the relief association as reported in the first annual financial reporting submitted to the 
268.2 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
268.3 	(e) If a relief association is terminated as a result of providing retirement coverage for 
268.4 	volunteer firefighters by the voluntary statewide volunteer firefighter retirement plan under 
268.5 	chapter 353G, the number of active volunteer firefighters equals the number of active 
268.6 	volunteer firefighters of the municipality or independent nonprofit firefighting corporation 
268.7 	covered by the statewide plan as certified by the executive director of the Public Employees 
268.8 	Retirement Association to the commissioner and the state auditor, but not to exceed 30 
268.9 	active firefighters.
268.10 		Subd. 6.Corrective aid adjustments. Any adjustments needed to correct prior 
268.11 	misallocations must be made to subsequent fire state aid apportionments.
268.12 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
268.13 	fire relief association, or the voluntary statewide volunteer firefighter retirement plan may 
268.14 	object to the amount of fire state aid apportioned to it by filing a written request with the 
268.15 	commissioner to review and adjust the apportionment of funds within the state. The decision 
268.16 	of the commissioner is subject to appeal, review, and adjustment by the district court in the 
268.17 	county in which the applicable municipality or independent nonprofit firefighting corporation 
268.18 	is located or by the Ramsey County District Court with respect to the voluntary statewide 
268.19 	volunteer firefighter retirement plan.

268.20 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

268.21 	Sec. 4. [477B.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
268.22 		Subdivision 1.Payments. (a) The commissioner must make payments to the Public 
268.23 	Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter 
268.24 	retirement fund on behalf of a municipality or independent nonprofit firefighting corporation 
268.25 	that is a member of the voluntary statewide volunteer firefighter retirement plan under 
268.26 	chapter 353G, or directly to a municipality or county designated by an independent nonprofit 
268.27 	firefighting corporation. The payment is equal to the amount of fire state aid apportioned 
268.28 	to the applicable fire state aid recipient under section 477B.03.
268.29 	(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not 
268.30 	paid by October 1 accrues interest payable to the recipient at the rate of one percent for each 
268.31 	month or part of a month that the amount remains unpaid after October 1.
268.32 	(c) The interest under paragraph (b) does not apply when payment has not been made 
268.33 	by October 1 due to noncompliance with sections 424A.014 and 477B.02, subdivision 7.
269.1 		Subd. 2.Appropriation. The amount necessary to make the payments under this section 
269.2 	and section 477B.03 is annually appropriated to the commissioner from the general fund.
269.3 		Subd. 3.Deposit of state aid. (a) If the municipality or the independent nonprofit 
269.4 	firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement 
269.5 	plan under chapter 353G, the executive director of the Public Employees Retirement 
269.6 	Association must credit the fire state aid against future municipal contribution requirements 
269.7 	under section 353G.08 and must notify the municipality or the independent nonprofit 
269.8 	firefighting corporation of the fire state aid so credited at least annually.
269.9 	(b) If the municipality or the independent nonprofit firefighting corporation is not covered 
269.10 	by the voluntary statewide volunteer firefighter retirement plan, the treasurer of the 
269.11 	municipality must, within 30 days after receipt, transmit the fire state aid to the treasurer 
269.12 	of the duly incorporated firefighters' relief association if there is one organized and the 
269.13 	association has filed a financial report with the municipality pursuant to section 424A.014, 
269.14 	subdivision 1 or 2, whichever applies. If the relief association has not filed a financial report 
269.15 	with the municipality, the treasurer of the municipality must delay transmission of the fire 
269.16 	state aid to the relief association until the complete financial report is filed.
269.17 	(c) The treasurer of the municipality must deposit the fire state aid money in the municipal 
269.18 	treasury if (1) the municipality or independent nonprofit firefighting corporation is not 
269.19 	covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no 
269.20 	relief association organized, (3) the association has dissolved, or (4) the association has 
269.21 	been removed as trustees of state aid. The money may be disbursed from the municipal 
269.22 	treasury only for the purposes and in the manner set forth in section 424A.08 or for the 
269.23 	payment of the employer contribution requirement with respect to firefighters covered by 
269.24 	the public employees police and fire retirement plan under section 353.65, subdivision 3.

269.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

269.26 	Sec. 5. [477B.05] SHORTFALL FROM GENERAL FUND.
269.27 	(a) If the annual funding requirements of fire relief associations or consolidation accounts 
269.28 	under sections 424A.091 to 424A.095 or Laws 2013, chapter 111, article 5, sections 31 to 
269.29 	42, exceed all applicable revenue sources of a given year, including the insurance premium 
269.30 	taxes funding fire state aid under this chapter as set under section 297I.05, subdivisions 2, 
269.31 	3, and 4, the shortfall in the annual funding requirements must be paid from the general 
269.32 	fund to the extent appropriated by the legislature.
270.1 	(b) Nothing in this section relieves any municipality from its obligation to a relief 
270.2 	association or consolidation account under law.

270.3 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

270.4 	Sec. 6. PURPOSE.
 270.5 	It is the intent of the legislature to make Minnesota's fire and police state aid laws more 
270.6 	understandable by separating and recodifying disparate administration and compliance 
270.7 	provisions currently contained in chapter 69 of Minnesota Statutes. Due to the complexity 
270.8 	of the recodification, prior provisions are repealed on the effective date of the new provisions.

270.9 	EFFECTIVE DATE. This section is effective July 1, 2019.

270.10 	Sec. 7.  REPEALER.
 270.11 	Minnesota Statutes 2018, sections 69.011, subdivisions 1, 2, 2b, 2c, 3, and 4; 69.021, 
270.12 	subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; and 69.041,
270.13 	are repealed.

270.14 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

270.15 	ARTICLE 19
270.16 	POLICE STATE AID; TECHNICAL CHANGES

270.17 	Section 1. [477C.01] DEFINITIONS.
270.18 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
270.19 	meaning is intended, the following words and terms, for the purposes of this chapter and 
270.20 	chapter 423A have the meanings given to them.
270.21 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
270.22 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
270.23 	the meaning given in section 60A.02, subdivision 4.
270.24 		Subd. 4.Minnesota Aid to Police Premium Report. "Minnesota Aid to Police Premium 
270.25 	Report" means a form for reporting the total gross premiums, less return premiums and 
270.26 	dividends, on all direct business received by an insurance company in this state during the 
270.27 	preceding calendar year, with reference to insurance written for perils contained in auto 
270.28 	insurance coverages as reported to the National Association of Insurance Commissioners 
270.29 	and the commissioner of commerce.
271.1 		Subd. 5.Municipal clerk, municipal clerk-treasurer, or county auditor. "Municipal 
271.2 	clerk," "municipal clerk-treasurer," or "county auditor" means:
271.3 	(1) the person elected or appointed to the position of municipal clerk, municipal 
271.4 	clerk-treasurer, or county auditor or, if there is no such person, the chief financial official 
271.5 	or the person primarily responsible for managing the finances of a municipality;
271.6 	(2) for a park district, the secretary of the board of park district commissioners;
271.7 	(3) for the University of Minnesota, the official designated by the Board of Regents;
271.8 	(4) for the Metropolitan Airports Commission, the person designated by the commission;
271.9 	(5) for the Departments of Natural Resources and Public Safety, the respective 
271.10 	commissioner of the agency; and
271.11 	(6) for a tribal police department that exercises state arrest powers under section 626.90, 
271.12 	626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal 
271.13 	government.
271.14 		Subd. 6.Municipality. (a) "Municipality" means:
271.15 	(1) a home rule charter or statutory city;
271.16 	(2) an organized town;
271.17 	(3) a county;
271.18 	(4) a park district subject to chapter 398;
271.19 	(5) the University of Minnesota;
271.20 	(6) an American Indian tribal government with a tribal police department that exercises 
271.21 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
271.22 	(7) the Metropolitan Airports Commission; and
271.23 	(8) the Departments of Natural Resources and Public Safety with respect to peace officers 
271.24 	covered under chapter 352B.
271.25 	(b) This subdivision only applies to chapter 477C.
271.26 		Subd. 7.Peace officer. "Peace officer" means any person:
271.27 	(1) whose primary source of income derived from wages is from direct employment by 
271.28 	a municipality as a law enforcement officer on a full-time basis of not less than 30 hours 
271.29 	per week;
272.1 	(2) who has been employed for a minimum of six months before December 31 preceding 
272.2 	the date of the current year's certification under section 477C.02, subdivision 1;
272.3 	(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
272.4 	(4) who is licensed by the Peace Officers Standards and Training Board and is authorized 
272.5 	to arrest with a warrant; and
272.6 	(5) who is a member of the State Patrol retirement plan or the public employees police 
272.7 	and fire fund.

272.8 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

272.9 	Sec. 2. [477C.02] QUALIFYING FOR POLICE STATE AID.
272.10 		Subdivision 1.Certification to commissioner. (a) A certification made under this 
272.11 	section must be filed with the commissioner on a form prescribed by the commissioner and 
272.12 	must include all other facts that the commissioner requires.
272.13 	(b) Except as provided in subdivision 2, on or before March 15 annually, the municipal 
272.14 	clerk, municipal clerk-treasurer, or county auditor of each municipality employing one or 
272.15 	more peace officers must certify to the commissioner the number of peace officers employed 
272.16 	during the previous calendar year. No peace officer may be included in the certification by 
272.17 	more than one municipality for the same month.
272.18 	(c) Credit for peace officers employed less than a full year must be apportioned. Each 
272.19 	full month of employment of a qualifying officer during the calendar year entitles the 
272.20 	employing municipality to credit for 1/12 of the payment for employment of a peace officer 
272.21 	for the entire year. For purposes of this chapter, employment of a peace officer begins when 
272.22 	the peace officer is entered on the payroll of the employing municipality.
272.23 		Subd. 2.Departments of Natural Resources and Public Safety. On or before March 
272.24 	15 annually, the commissioner of natural resources must certify the number of peace officers 
272.25 	employed by the Enforcement Division and the commissioner of public safety must certify 
272.26 	the number of peace officers employed by the Bureau of Criminal Apprehension, the 
272.27 	Gambling Enforcement Division, and the State Patrol Division. The certification must be 
272.28 	on the form described in subdivision 1, paragraph (a). Peace officers certified under this 
272.29 	subdivision must be included in the total certifications under subdivision 1.
272.30 		Subd. 3.Ineligibility of certain peace officers. A peace officer employed by the 
272.31 	University of Minnesota who is required by the Board of Regents to be a member of the 
273.1 	University of Minnesota faculty retirement plan is not eligible to be included in any police 
273.2 	state aid certification under this section.
273.3 		Subd. 4.Penalty for failure to file certification. (a) If a certification under subdivision 
273.4 	1 or 2 is not filed with the commissioner on or before March 15, the commissioner must 
273.5 	notify the municipal clerk, municipal clerk-treasurer, or county auditor that a penalty equal 
273.6 	to a portion or all of its current year aid will apply if the certification is not received within 
273.7 	ten days.
273.8 	(b) The penalty for failure to file the certification under subdivision 1 or 2 is equal to 
273.9 	the amount of police state aid determined for the municipality for the current year, multiplied 
273.10 	by five percent for each week or fraction of a week that the certification is late. The penalty 
273.11 	must be computed beginning ten days after the postmark date of the commissioner's 
273.12 	notification as required under this subdivision. All aid amounts forfeited as a result of the 
273.13 	penalty revert to the state general fund. Failure to receive the certification form may not be 
273.14 	used as a defense for a failure to file.
273.15 		Subd. 5.Determination by commissioner. The commissioner must determine which 
273.16 	municipalities are qualified to receive police state aid based on compliance with the 
273.17 	requirements of this section. The commissioner may take into account any other relevant 
273.18 	information that comes to the attention of the commissioner when making the determination.

273.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

273.20 	Sec. 3. [477C.03] CALCULATION OF POLICE STATE AID; APPEAL.
273.21 		Subdivision 1.Certification and calculation of police state aid. (a) On or before 
273.22 	October 1, the commissioner must calculate the amount of police state aid that each 
273.23 	municipality is to receive.
273.24 	(b) The commissioner must calculate an excess police state aid amount for each 
273.25 	municipality under subdivision 3 and must reduce the apportionment amount for each 
273.26 	municipality based on the calculation.
273.27 		Subd. 2.Apportionment of police state aid. (a) The total amount available for 
273.28 	apportionment as police state aid is equal to 104 percent of the amount of premium taxes 
273.29 	paid to the state on the premiums reported to the commissioner by companies or insurance 
273.30 	companies on the Minnesota Aid to Police Premium Report. The total amount for 
273.31 	apportionment for the police state aid program must not be less than two percent of the 
273.32 	amount of premiums reported to the commissioner by companies or insurance companies 
273.33 	on the Minnesota Aid to Police Premium Report.
274.1 	(b) The commissioner must calculate the percentage of increase or decrease reflected in 
274.2 	the apportionment over or under the previous year's available state aid using the same 
274.3 	premiums as a basis for comparison.
274.4 	(c) In addition to the amount for apportionment of police state aid under paragraph (a), 
274.5 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
274.6 	this increase is annually appropriated from the general fund.
274.7 	(d) The commissioner must apportion police state aid to all municipalities in proportion 
274.8 	to the relationship that the total number of peace officers employed by that municipality for 
274.9 	the prior calendar year and the proportional or fractional number who were employed less 
274.10 	than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears 
274.11 	to the total number of peace officers employed by all municipalities subject to any reduction 
274.12 	under subdivision 3.
274.13 	(e) Any necessary additional adjustments must be made to subsequent police state aid 
274.14 	apportionments.
274.15 		Subd. 3.Apportionment reduction; excess police state aid. (a) The commissioner 
274.16 	must reduce the apportionment of police state aid under this section for eligible municipalities 
274.17 	by the amount of any excess police state aid calculated under this subdivision.
274.18 	(b) The commissioner must calculate the amount of excess police state aid for each 
274.19 	municipality as follows:
274.20 	(1) for municipalities in which police retirement coverage is provided wholly by the 
274.21 	public employees police and fire fund and all peace officers are members of the plan governed 
274.22 	by sections 353.63 to 353.657, the excess police state aid amount equals the amount of 
274.23 	police state aid apportioned under subdivision 2 that exceeds the employer's total prior 
274.24 	calendar year obligation as defined in paragraph (c), as certified by the executive director 
274.25 	of the Public Employees Retirement Association;
274.26 	(2) for the Metropolitan Airports Commission, the excess police state aid amount equals 
274.27 	the amount of apportioned police aid calculated under subdivision 2 that exceeds the 
274.28 	commission's total prior calendar year obligation as defined in paragraph (c), as certified 
274.29 	by the executive director of the Public Employees Retirement Association; and
274.30 	(3) for the Departments of Natural Resources and Public Safety, the excess police state 
274.31 	aid amount equals the amount of apportioned police aid calculated under subdivision 2 that 
274.32 	exceeds the employer's total prior calendar year obligation under section 352B.02, subdivision 
275.1 	1c, for plan members who are peace officers, as certified by the executive director of the 
275.2 	Minnesota State Retirement System.
275.3 	(c) The municipality's total prior calendar year obligation with respect to the public 
275.4 	employees police and fire plan under paragraph (b), clause (1), is the total prior calendar 
275.5 	year obligation under section 353.65, subdivision 3, for police officers as defined in section 
275.6 	353.64, subdivisions 1, la, and 2, and the actual total prior calendar year obligation under 
275.7 	section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 
275.8 	la, and 2, but not to exceed for those firefighters the applicable following employer calendar 
275.9 	year amount:

275.10		Municipality
	Maximum Amount
		
275.11		Albert Lea
	$54,157.01
		
275.12		Anoka
	10,399.31
		
275.13		Apple Valley
	5,442.44
		
275.14		Austin
	49,864.73
		
275.15		Bemidji
	27,671.38
		
275.16		Brooklyn Center
	6,605.92
		
275.17		Brooklyn Park
	24,002.26
		
275.18		Burnsville
	15,956.00
		
275.19		Cloquet
	4,260.49
		
275.20		Coon Rapids
	39,920.00
		
275.21		Cottage Grove
	8,588.48
		
275.22		Crystal
	5,855.00
		
275.23		East Grand Forks
	51,009.88
		
275.24		Edina
	32,251.00
		
275.25		Elk River
	5,216.55
		
275.26		Ely
	13,584.16
		
275.27		Eveleth
	16,288.27
		
275.28		Fergus Falls
	6,742.00
		
275.29		Fridley
	33,420.64
		
275.30		Golden Valley
	11,744.61
		
275.31		Hastings
	16,561.00
		
275.32		Hopkins
	4,324.23
		
275.33		International Falls
	14,400.69
		
275.34		Lakeville
	782.35
		
275.35		Lino Lakes
	5,324.00
		
275.36		Little Falls
	7,889.41
		
275.37		Maple Grove
	6,707.54
		
276.1		Maplewood
	8,476.69
		
276.2		Minnetonka
	10,403.00
		
276.3		Montevideo
	1,307.66
		
276.4		Moorhead
	68,069.26
		
276.5		New Hope
	6,739.72
		
276.6		North St. Paul
	4,241.14
		
276.7		Northfield
	770.63
		
276.8		Owatonna
	37,292.67
		
276.9		Plymouth
	6,754.71
		
276.10		Red Wing
	3,504.01
		
276.11		Richfield
	53,757.96
		
276.12		Rosemount
	1,712.55
		
276.13		Roseville
	9,854.51
		
276.14		St. Anthony
	33,055.00
		
276.15		St. Louis Park
	53,643.11
		
276.16		Thief River Falls
	28,365.04
		
276.17		Virginia
	31,164.46
		
276.18		Waseca
	11,135.17
		
276.19		West St. Paul
	15,707.20
		
276.20		White Bear Lake
	6,521.04
		
276.21		Woodbury
	3,613.00
		
276.22		any other municipality
	0.00
		
276.23 	(d) The total amount of excess police state aid must be deposited in the excess police 
276.24 	state aid account in the general fund, and administered and distributed as provided in 
276.25 	subdivision 4.
276.26 		Subd. 4.Excess police state aid holding account. (a) The excess police state aid holding 
276.27 	account is established in the general fund. The excess police state aid holding account is 
276.28 	administered by the commissioner.
276.29 	(b) Excess police state aid determined under subdivision 3 must be deposited annually 
276.30 	in the excess police state aid holding account.
276.31 	(c) From the balance in the excess police state aid holding account, $900,000 must be 
276.32 	canceled annually to the general fund.
276.33 	(d) On October 1 annually, one-half of the balance of the excess police state aid holding 
276.34 	account remaining after the deduction under paragraph (c) is appropriated for additional 
276.35 	amortization aid under section 423A.02, subdivision 1b.
277.1 	(e) The remaining balance in the excess police state aid holding account, after the 
277.2 	deductions under paragraphs (c) and (d), must be canceled annually to the general fund.
277.3 		Subd. 5.Appeal. A municipality may object to the amount of police state aid apportioned 
277.4 	to it by filing a written request with the commissioner to review and adjust the apportionment 
277.5 	of funds to the municipality. The decision of the commissioner is subject to appeal, review, 
277.6 	and adjustment by the district court in the county in which the applicable municipality is 
277.7 	located or by the Ramsey County District Court with respect to the Departments of Natural 
277.8 	Resources or Public Safety.

277.9 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

277.10 	Sec. 4. [477C.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
277.11 		Subdivision 1.Payments. (a) The commissioner must make payments to the municipality 
277.12 	equal to the amount of police state aid apportioned to the applicable state aid recipient under 
277.13 	section 477C.03.
277.14 	(b) Police state aid is payable on October 1 annually. The amount of state aid due and 
277.15 	not paid by October 1 accrues interest payable to the recipient at the rate of one percent for 
277.16 	each month or part of a month that the amount remains unpaid after October 1.
277.17 		Subd. 2.Appropriation. (a) The amount necessary to make the payments under this 
277.18 	section and section 477C.03 is annually appropriated to the commissioner from the general 
277.19 	fund.
277.20 	(b) The police state aid apportioned to the Departments of Public Safety and Natural 
277.21 	Resources under section 477C.03 is allocated to the commissioner of management and 
277.22 	budget for transfer to the funds and accounts from which the salaries of peace officers 
277.23 	certified under section 477C.02, subdivision 2, are paid. On or before October l, the 
277.24 	commissioner of revenue must certify to the commissioners of public safety, natural 
277.25 	resources, and management and budget the amounts to be transferred from the appropriation 
277.26 	for police state aid. The commissioners of public safety and natural resources must certify 
277.27 	to the commissioner of management and budget the amounts to be credited to each of the 
277.28 	funds and accounts from which the peace officers employed by their respective departments 
277.29 	are paid.
277.30 		Subd. 3.Deposit of state aid. (a) For a municipality in which police retirement coverage 
277.31 	is provided by the public employees police and fire fund and all peace officers are members 
277.32 	of the fund, including municipalities covered by section 353.665, the total state aid must 
278.1 	be applied toward the municipality's employer contribution to the public employees police 
278.2 	and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8.
278.3 	(b) The county treasurer, upon receipt of the police state aid for the county, must apply 
278.4 	the total state aid toward the county's employer contribution to the public employees police 
278.5 	and fire fund under section 353.65, subdivision 3.
278.6 	(c) The designated Metropolitan Airports Commission official, upon receipt of the police 
278.7 	state aid for the Metropolitan Airports Commission, must apply the total police state aid 
278.8 	toward the commission's employer contribution for peace officers to the public employees 
278.9 	police and fire plan under section 353.65, subdivision 3.
278.10 	(d) The commissioners of public safety and natural resources must allocate the police 
278.11 	state aid first for employer contributions funded from the general fund and then for employer 
278.12 	contributions funded from other funds. For peace officers employed by the Departments of 
278.13 	Natural Resources or Public Safety whose salaries are paid from the general fund, the 
278.14 	amounts transferred from the appropriation for police state aid must be canceled to the 
278.15 	general fund.

278.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

278.17 	ARTICLE 20
278.18 	FIRE AND POLICE STATE AID; MISCELLANEOUS TECHNICAL CHANGES

278.19 	Section 1. [297I.26] FIRE AND POLICE PREMIUM REPORTS.
278.20 		Subdivision 1.Filing reports. (a) Each company must file with the commissioner the 
278.21 	reports defined in sections 477B.01, subdivision 8, and 477C.01, subdivision 4, signed by 
278.22 	the authorized representative of the company, on or before March 1 annually. The fire and 
278.23 	extended coverage portion of multiperil package premiums and all other combination 
278.24 	premiums must be determined by applying percentages determined by the commissioner 
278.25 	or by rating bureaus recognized by the commissioner. The commissioner shall prescribe 
278.26 	the content, form, and manner of the reports.
278.27 	(b) The commissioner must notify each company that fails to timely file the report 
278.28 	required under paragraph (a). The notice must demand that the company file the report 
278.29 	within 30 days. Where good cause exists, the commissioner may extend the period for filing 
278.30 	the report as long as a request for extension is filed by the company before the expiration 
278.31 	of the 30-day period.
279.1 		Subd. 2.Penalties. (a) A company that fails to file the report on or before the due date 
279.2 	in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof, 
279.3 	that the report is delinquent, but not to exceed $200.
279.4 	(b) Any person whose duty it is to file the report and who fails or refuses to file within 
279.5 	30 days after the postmark of the notice in subdivision 1 must be fined an amount of no 
279.6 	more than $1,000.
279.7 	(c) Any company that knowingly makes and files an inaccurate or false report is liable 
279.8 	for a fine in an amount not less than $25 nor more than $1,000, as determined by the 
279.9 	commissioner, and the commissioner of commerce may revoke the company's certificate 
279.10 	of authority.

279.11 	EFFECTIVE DATE. This section is effective for reports filed after December 31, 2019.

279.12 	Sec. 2. [424A.014] FINANCIAL REPORT; BOND; EXAMINATION.
279.13 		Subdivision 1.Financial report and audit. (a) The board of the Bloomington Fire 
279.14 	Department Relief Association and each volunteer firefighters relief association with assets 
279.15 	of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous 
279.16 	year, according to the applicable actuarial valuation or according to the financial report if 
279.17 	no valuation is required, must prepare a financial report covering the special and general 
279.18 	funds of the relief association for the preceding fiscal year, file the financial report, and 
279.19 	submit financial statements.
279.20 	(b) The financial report must contain financial statements and disclosures that present 
279.21 	the true financial condition of the relief association and the results of relief association 
279.22 	operations in conformity with generally accepted accounting principles and in compliance 
279.23 	with the regulatory, financing, and funding provisions of this chapter and any other applicable 
279.24 	laws. The financial report must be countersigned by:
279.25 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
279.26 	association is located if the relief association is a firefighters' relief association that is directly 
279.27 	associated with a municipal fire department;
279.28 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
279.29 	contracts with the independent nonprofit firefighting corporation if the volunteer firefighter 
279.30 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
279.31 	by the secretary of the independent nonprofit firefighting corporation; or
280.1 	(3) the chief financial official of the county in which the volunteer firefighter relief 
280.2 	association is located or primarily located if the relief association is associated with a fire 
280.3 	department that is not located in or associated with an organized municipality.
280.4 	(c) The financial report must be retained in the office of the Bloomington Fire Department 
280.5 	Relief Association or the volunteer firefighter relief association for public inspection and 
280.6 	must be filed with the governing body of the government subdivision in which the associated 
280.7 	fire department is located after the close of the fiscal year. One copy of the financial report 
280.8 	must be furnished to the state auditor after the close of the fiscal year.
280.9 	(d) Audited financial statements must be attested to by a certified public accountant or 
280.10 	by the state auditor and must be filed with the state auditor on or before June 30 after the 
280.11 	close of the fiscal year. The state auditor may accept this report in lieu of the report required 
280.12 	in paragraph (c).
280.13 		Subd. 2.Financial statement. (a) The board of each volunteer firefighter relief 
280.14 	association that is not required to file a financial report and audit under subdivision 1 must 
280.15 	prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief 
280.16 	association's special and general funds in the style and form prescribed by the state auditor. 
280.17 	The detailed statement must show:
280.18 	(1) the sources and amounts of all money received;
280.19 	(2) all disbursements, accounts payable, and accounts receivable;
280.20 	(3) the amount of money remaining in the treasury;
280.21 	(4) total assets, including a listing of all investments;
280.22 	(5) the accrued liabilities; and
280.23 	(6) all other items necessary to show accurately the revenues and expenditures and 
280.24 	financial position of the relief association.
280.25 	(b) The detailed financial statement of the special and general funds required under 
280.26 	paragraph (a) must be certified by a certified public accountant or by the state auditor in 
280.27 	accordance with agreed-upon procedures and forms prescribed by the state auditor. The 
280.28 	accountant must have at least five years of public accounting, auditing, or similar experience 
280.29 	and must not be an active, inactive, or retired member of the relief association or the fire 
280.30 	department.
280.31 	(c) The detailed financial statement required under paragraph (a) must be countersigned 
280.32 	by:
281.1 	(1) the municipal clerk or clerk-treasurer of the municipality;
281.2 	(2) where applicable, the municipal clerk or clerk-treasurer of the largest municipality 
281.3 	in population that contracts with the independent nonprofit firefighting corporation if the 
281.4 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
281.5 	by the secretary of the independent nonprofit firefighting corporation; or
281.6 	(3) the chief financial official of the county in which the volunteer firefighter relief 
281.7 	association is located or primarily located if the relief association is associated with a fire 
281.8 	department that is not located in or associated with an organized municipality.
281.9 	(d) The volunteer firefighters relief association board must submit a copy of the detailed 
281.10 	financial statement required under paragraph (a) that has been certified by the governing 
281.11 	body of the municipality to the state auditor on or before March 31 after the close of the 
281.12 	fiscal year.
281.13 	(e) A certified public accountant or auditor who performs the agreed-upon procedures 
281.14 	under paragraph (b) is subject to the reporting requirement of section 6.67.
281.15 		Subd. 3.Qualification. The state auditor may, upon a demonstration by a relief 
281.16 	association of hardship or an inability to conform, extend the deadline for reports under 
281.17 	subdivision 1 or 2, but not beyond November 30 following the due date. If the reports are 
281.18 	not received by November 30, the municipality or relief association forfeits its current year 
281.19 	state aid, and, until the state auditor receives the required information, the relief association 
281.20 	or municipality is ineligible to receive any future state aid. A municipality or relief association 
281.21 	does not qualify initially to receive, or be entitled subsequently to retain, fire state aid and 
281.22 	police and firefighter retirement supplemental state aid payable under chapter 477B and 
281.23 	section 423A.022 if the financial reporting requirement or the applicable requirements of 
281.24 	this chapter or any other statute or special law have not been complied with or are not 
281.25 	fulfilled.
281.26 		Subd. 4.Treasurer bond. (a) The treasurer of the Bloomington Fire Department Relief 
281.27 	Association may not enter upon duties without having given the association a bond in a 
281.28 	reasonable amount acceptable to the municipality for the faithful discharge of duties 
281.29 	according to law.
281.30 	(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096 may 
281.31 	enter upon the duties of the office until the treasurer has given the association a good and 
281.32 	sufficient bond in an amount equal to at least ten percent of the assets of the relief association; 
281.33 	however, the amount of the bond need not exceed $500,000.
282.1 		Subd. 5.Report by certain municipalities; exceptions. (a) The chief administrative 
282.2 	officer of each municipality that has a fire department but does not have a relief association 
282.3 	governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 
282.4 	23, and that is not exempted under paragraph (b) or (c) must annually prepare a detailed 
282.5 	financial report of the receipts and disbursements by the municipality for fire protection 
282.6 	service during the preceding calendar year on a form prescribed by the state auditor. The 
282.7 	financial report must contain any information that the state auditor deems necessary to 
282.8 	disclose the sources of receipts and the purpose of disbursements for fire protection service. 
282.9 	The financial report must be signed by the municipal clerk or clerk-treasurer with the state 
282.10 	auditor on or before July 1 annually. The municipality does not qualify initially to receive, 
282.11 	and is not entitled subsequently to retain, any fire state aid and police and firefighter 
282.12 	retirement supplemental state aid payable under chapter 477B and section 423A.022 if the 
282.13 	financial reporting requirement or the applicable requirements of any other statute or special 
282.14 	law have not been complied with or are not fulfilled.
282.15 	(b) Each municipality that has a fire department and provides retirement coverage to its 
282.16 	firefighters through the voluntary statewide volunteer firefighter retirement plan under 
282.17 	chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide 
282.18 	volunteer firefighter retirement fund without filing a detailed financial report if the executive 
282.19 	director of the Public Employees Retirement Association certifies compliance by the 
282.20 	municipality with the requirements of sections 353G.04 and 353G.08, subdivision 1, 
282.21 	paragraph (e), and certifies conformity by the applicable fire chief with the requirements 
282.22 	of section 353G.07.
282.23 	(c) Each municipality qualifies to receive fire state aid under chapter 477B without filing 
282.24 	a financial report under paragraph (a) if the municipality:
282.25 	(1) has a fire department;
282.26 	(2) does not have a volunteer firefighters relief association directly associated with its 
282.27 	fire department;
282.28 	(3) does not participate in the statewide volunteer firefighter retirement plan under 
282.29 	chapter 353G;
282.30 	(4) provides retirement coverage to its firefighters through the public employees police 
282.31 	and fire retirement plan under sections 353.63 to 353.68; and
282.32 	(5) is certified by the executive director of the Public Employees Retirement Association 
282.33 	to the state auditor to have had an employer contribution under section 353.65, subdivision 
283.1 	3, for its firefighters for the immediately prior calendar year equal to or greater than its fire 
283.2 	state aid for the immediately prior calendar year.
283.3 		Subd. 6.Notification by commissioner of revenue and state auditor. (a) The state 
283.4 	auditor, in performing an audit or examination, must notify the Legislative Commission on 
283.5 	Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or 
283.6 	nonfeasance in office by relief association officials or municipal officials.
283.7 	(b) The commissioner of revenue must notify the Legislative Commission on Pensions 
283.8 	and Retirement if the state auditor has not filed the required financial compliance reports 
283.9 	by July 1.

283.10 	EFFECTIVE DATE. This section is effective July 1, 2019.

283.11 	Sec. 3. Minnesota Statutes 2018, section 424A.05, is amended by adding a subdivision to 
283.12 	read:
283.13 		Subd. 3b.Authorized administrative expenses from special fund. (a) Notwithstanding 
283.14 	any provision of law to the contrary, the payment of the following necessary, reasonable, 
283.15 	and direct expenses of maintaining, protecting, and administering the special fund, when 
283.16 	provided for in the bylaws of the association and approved by the board of trustees, 
283.17 	constitutes authorized administrative expenses of a volunteer firefighters relief association 
283.18 	organized under any law of the state or the Bloomington Fire Department Relief Association:
283.19 	(1) office expenses, including but not limited to rent, utilities, equipment, supplies, 
283.20 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel;
283.21 	(2) salaries of the officers of the association or their designees, and salaries of the 
283.22 	members of the board of trustees of the association if the salary amounts are approved by 
283.23 	the governing body of the entity that is responsible for meeting any minimum obligation 
283.24 	under section 424A.092 or 424A.093 or Laws 2013, chapter 111, article 5, sections 31 to 
283.25 	42, and the itemized expenses of relief association officers and board members that are 
283.26 	incurred as a result of fulfilling their responsibilities as administrators of the special fund;
283.27 	(3) tuition, registration fees, organizational dues, and other authorized expenses of the 
283.28 	officers or members of the board of trustees incurred in attending educational conferences, 
283.29 	seminars, or classes relating to the administration of the relief association;
283.30 	(4) audit and audit-related services, accounting and accounting-related services, and 
283.31 	actuarial, medical, legal, and investment and performance evaluation expenses;
284.1 	(5) filing and application fees payable by the relief association to federal or other 
284.2 	government entities;
284.3 	(6) reimbursement to the officers and members of the board of trustees or their designees, 
284.4 	for reasonable and necessary expenses actually paid and incurred in the performance of 
284.5 	their duties as officers or members of the board; and
284.6 	(7) premiums on fiduciary liability insurance and official bonds for the officers, members 
284.7 	of the board of trustees, and employees of the relief association.
284.8 	(b) All other expenses of the relief association must be paid from the general fund of 
284.9 	the association if one exists. If a relief association has only one fund, that fund is the special 
284.10 	fund for purposes of this subdivision. If a relief association has a special fund and a general 
284.11 	fund, the payment of any expense of the relief association that is directly related to the 
284.12 	purposes for which both funds were established must be apportioned between the two funds 
284.13 	on the basis of the benefits derived by each fund.

284.14 	EFFECTIVE DATE. This section is effective July 1, 2019.

284.15 	Sec. 4.  REPEALER.
 284.16 	(a) Minnesota Statutes 2018, sections 69.051, subdivisions 1, 1a, 1b, 2, 3, and 4; and 
284.17 	69.80, are repealed.
284.18 	(b) Minnesota Statutes 2018, sections 69.33; and 297I.25, subdivision 2, are repealed.

284.19 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2019. Paragraph (b) is effective 
284.20 	for reports filed after December 31, 2019.

284.21 	ARTICLE 21
284.22 	FIRE AND POLICE STATE AID; CONFORMING CHANGES

284.23 	Section 1. Minnesota Statutes 2018, section 6.495, subdivision 3, is amended to read:
284.24 		Subd. 3.Report to commissioner of revenue. The state auditor shall file with the 
284.25 	commissioner of revenue a financial compliance report certifying for each relief association:
284.26 	(1) the completion of the annual financial report required under section 69.051 424A.014
284.27 	and the auditing or certification of those financial reports under subdivision 1; and
284.28 	(2) the receipt of any actuarial valuations required under section 424A.093 or Laws 
284.29 	2013, chapter 111, article 5, sections 31 to 42.

284.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

285.1 	Sec. 2. Minnesota Statutes 2018, section 144E.42, subdivision 2, is amended to read:
285.2 		Subd. 2.Trust account. (a) There is established in the general fund the Cooper/Sams 
285.3 	volunteer ambulance trust account and the Cooper/Sams volunteer ambulance award and 
285.4 	account.
285.5 	(b) The trust account must be credited with:
285.6 	(1) general fund appropriations for that purpose;
285.7 	(2) transfers from the Cooper/Sams volunteer ambulance award and account; and
285.8 	(3) investment earnings on those accumulated proceeds. The assets and income of the 
285.9 	trust account must be held and managed by the commissioner of management and budget 
285.10 	and the State Board of Investment for the benefit of the state of Minnesota and its general 
285.11 	creditors.
285.12 	(c) The Cooper/Sams volunteer ambulance account must be credited with transfers from 
285.13 	the excess police state-aid holding account established in section 69.021, subdivision 11
285.14 	477C.03, subdivision 4, any per-year-of-service allocation under section 144E.45, subdivision 
285.15 	2, paragraph (c), that was not made for an individual, and investment earnings on those 
285.16 	accumulated proceeds. The Cooper/Sams volunteer ambulance account must be managed 
285.17 	by the commissioner of management and budget and the State Board of Investment. From 
285.18 	the Cooper/Sams volunteer ambulance account to the trust account there must be transferred 
285.19 	to the Cooper/Sams volunteer ambulance trust account, as the Cooper/Sams volunteer 
285.20 	ambulance account balance permits, the following amounts:
285.21 	(1) an amount equal to any general fund appropriation to the Cooper/Sams volunteer 
285.22 	ambulance trust account for that fiscal year; and
285.23 	(2) an amount equal to the percentage of the remaining balance in the account after the 
285.24 	deduction of the amount under clause (1), as specified for the applicable fiscal year:

285.25	Fiscal year
	Percentage
	
285.26		1995
	20
		
285.27		1996
	40
		
285.28		1997
	50
		
285.29		1998
	60
		
285.30		1999
	70
		
285.31		2000
	80
		
285.32		2001
	90
		
285.33		2002 and thereafter
	100

286.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

286.2 	Sec. 3. Minnesota Statutes 2018, section 297I.20, subdivision 3, is amended to read:
286.3 		Subd. 3.Historic structure rehabilitation credit. An insurance company may claim 
286.4 	a credit against the premiums tax imposed under this chapter equal to the amount of the 
286.5 	credit certificate issued to it, or to a person who has assigned the credit to the insurance 
286.6 	company, under section 290.0681. If the amount of the credit exceeds the liability for tax 
286.7 	under this chapter, the commissioner shall refund the excess to the insurance company. An 
286.8 	amount sufficient to pay the refunds under this section is appropriated to the commissioner 
286.9 	from the general fund. This credit does not affect the calculation of police and fire state aid 
286.10 	under section 69.021 477B.03 and police state aid under section 477C.03.

286.11 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

286.12 	Sec. 4. Minnesota Statutes 2018, section 353G.01, subdivision 9, is amended to read:
286.13 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
286.14 	69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5) 477B.01, subdivision 10, a 
286.15 	city or township that has entered into a contract with an independent nonprofit firefighting 
286.16 	corporation, or a city or township that has entered into a contract with a joint powers entity 
286.17 	established under section 471.59.

286.18 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

286.19 	Sec. 5. Minnesota Statutes 2018, section 353G.05, subdivision 2, is amended to read:
286.20 		Subd. 2.Election of coverage; lump sum. (a) The process for electing coverage of 
286.21 	volunteer firefighters by the lump-sum retirement division is initiated by a request to the 
286.22 	executive director for a cost analysis of the prospective retirement coverage under the 
286.23 	lump-sum retirement division.
286.24 	(b) If the volunteer firefighters are currently covered by a lump-sum volunteer firefighter 
286.25 	relief association or a defined contribution volunteer firefighter relief association governed 
286.26 	by chapter 424A, the cost analysis of the prospective retirement coverage must be requested 
286.27 	jointly by the secretary of the volunteer firefighter relief association, following approval of 
286.28 	the request by the board of the volunteer firefighter relief association, and the chief 
286.29 	administrative officer of the entity associated with the relief association, following approval 
286.30 	of the request by the governing body of the entity associated with the relief association. If 
286.31 	the relief association is associated with more than one entity, the chief administrative officer 
286.32 	of each associated entity must execute the request. If the volunteer firefighters are not 
287.1 	currently covered by a volunteer firefighter relief association, the cost analysis of the 
287.2 	prospective retirement coverage must be requested by the chief administrative officer of 
287.3 	the entity operating the fire department. The request must be made in writing and must be 
287.4 	made on a form prescribed by the executive director.
287.5 	(c) The cost analysis of the prospective retirement coverage by the lump-sum retirement 
287.6 	division of the statewide retirement plan must be based on the service pension amount under 
287.7 	section 353G.11 closest to the service pension amount provided by the volunteer firefighter 
287.8 	relief association if the relief association is a lump-sum defined benefit plan, or the amount 
287.9 	equal to 95 percent of the most current average account balance per relief association member 
287.10 	if the relief association is a defined contribution plan, or to the lowest service pension amount 
287.11 	under section 353G.11 if there is no volunteer firefighter relief association, rounded up, and 
287.12 	any other service pension amount designated by the requester or requesters. The cost analysis 
287.13 	must be prepared using a mathematical procedure certified as accurate by an approved 
287.14 	actuary retained by the Public Employees Retirement Association.
287.15 	(d) If a cost analysis is requested and a volunteer firefighters' firefighters relief association 
287.16 	exists that has filed the information required under section 69.051 424A.014 in a timely 
287.17 	fashion, upon request by the executive director, the state auditor shall provide the most 
287.18 	recent data available on the financial condition of the volunteer firefighter relief association, 
287.19 	the most recent firefighter demographic data available, and a copy of the current relief 
287.20 	association bylaws. If a cost analysis is requested, but no volunteer firefighter relief 
287.21 	association exists, the chief administrative officer of the entity operating the fire department 
287.22 	shall provide the demographic information on the volunteer firefighters serving as members 
287.23 	of the fire department requested by the executive director.

287.24 	EFFECTIVE DATE. This section is effective July 1, 2019.

287.25 	Sec. 6. Minnesota Statutes 2018, section 353G.08, subdivision 1, is amended to read:
287.26 		Subdivision 1.Annual funding requirements; lump-sum retirement division. (a) 
287.27 	Annually, the executive director shall determine the funding requirements of each account 
287.28 	in the lump-sum retirement division of the voluntary statewide volunteer firefighter retirement 
287.29 	plan on or before August 1. The funding requirements computed under this subdivision 
287.30 	must be determined using a mathematical procedure developed and certified as accurate by 
287.31 	the approved actuary retained by the Public Employees Retirement Association and must 
287.32 	be based on present value factors using a six percent interest rate, without any decrement 
287.33 	assumptions. The funding requirements must be certified to the entity or entities associated 
287.34 	with the fire department whose active firefighters are covered by the retirement plan.
288.1 	(b) The overall funding balance of each lump-sum account for the current calendar year 
288.2 	must be determined in the following manner:
288.3 	(1) The total accrued liability for all active and deferred members of the account as of 
288.4 	December 31 of the current year must be calculated based on the good time service credit 
288.5 	of active and deferred members as of that date.
288.6 	(2) The total present assets of the account projected to December 31 of the current year, 
288.7 	including receipts by and disbursements from the account anticipated to occur on or before 
288.8 	December 31, must be calculated. To the extent possible, the market value of assets must 
288.9 	be utilized in making this calculation.
288.10 	(3) The amount of the total present assets calculated under clause (2) must be subtracted 
288.11 	from the amount of the total accrued liability calculated under clause (1). If the amount of 
288.12 	total present assets exceeds the amount of the total accrued liability, then the account is 
288.13 	considered to have a surplus over full funding. If the amount of the total present assets is 
288.14 	less than the amount of the total accrued liability, then the account is considered to have a 
288.15 	deficit from full funding. If the amount of total present assets is equal to the amount of the 
288.16 	total accrued liability, then the special fund is considered to be fully funded.
288.17 	(c) The financial requirements of each lump-sum account for the following calendar 
288.18 	year must be determined in the following manner:
288.19 	(1) The total accrued liability for all active and deferred members of the account as of 
288.20 	December 31 of the calendar year next following the current calendar year must be calculated 
288.21 	based on the good time service used in the calculation under paragraph (b), clause (1), 
288.22 	increased by one year.
288.23 	(2) The increase in the total accrued liability of the account for the following calendar 
288.24 	year over the total accrued liability of the account for the current year must be calculated.
288.25 	(3) The amount of administrative expenses of the account must be calculated by 
288.26 	multiplying the per-person dollar amount of the administrative expenses for the most recent 
288.27 	prior calendar year by the number of active and deferred firefighters reported to PERA on 
288.28 	the most recent good time service credit certification form for each account.
288.29 	(4) If the account is fully funded, the financial requirement of the account for the 
288.30 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
288.31 	(5) If the account has a deficit from full funding, the financial requirement of the account 
288.32 	for the following calendar year is the total of the amounts calculated under clauses (2) and 
289.1 	(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the 
289.2 	account.
289.3 	(6) If the account has a surplus over full funding, the financial requirement of the account 
289.4 	for the following calendar year is the financial requirement of the account calculated as 
289.5 	though the account was fully funded under clause (4) and, if the account has also had a 
289.6 	surplus over full funding during the prior two years, additionally reduced by an amount 
289.7 	equal to one-tenth of the amount of the surplus over full funding of the account.
289.8 	(d) The required contribution of the entity or entities associated with the fire department 
289.9 	whose active firefighters are covered by the lump-sum retirement division is the annual 
289.10 	financial requirements of the lump-sum account of the retirement plan under paragraph (c) 
289.11 	reduced by the amount of any fire state aid payable under sections 69.011 to 69.051 chapter 
289.12 	477B or police and firefighter retirement supplemental state aid payable under section 
289.13 	423A.022 that is reasonably anticipated to be received by the retirement plan attributable 
289.14 	to the entity or entities during the following calendar year, and an amount of interest on the 
289.15 	assets projected to be received during the following calendar year calculated at the rate of 
289.16 	six percent per annum. The required contribution must be allocated between the entities if 
289.17 	more than one entity is involved. A reasonable amount of anticipated fire state aid is an 
289.18 	amount that does not exceed the fire state aid actually received in the prior year multiplied 
289.19 	by the factor 1.035.
289.20 	(e) The required contribution calculated in paragraph (d) must be paid to the retirement 
289.21 	plan on or before December 31 of the year for which it was calculated. If the contribution 
289.22 	is not received by the retirement plan by December 31, it is payable with interest at an 
289.23 	annual compound rate of six percent from the date due until the date payment is received 
289.24 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
289.25 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

289.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

289.27 	Sec. 7. Minnesota Statutes 2018, section 353G.08, subdivision 1a, is amended to read:
289.28 		Subd. 1a.Annual funding requirements; monthly benefit retirement division. (a) 
289.29 	Annually, the executive director shall determine the funding requirements of each monthly 
289.30 	benefit account in the voluntary statewide volunteer firefighter retirement plan on or before 
289.31 	August 1.
289.32 	(b) The executive director must determine the funding requirements of a monthly benefit 
289.33 	account under this subdivision from:
290.1 	(1) the most recent actuarial valuation normal cost, administrative expense, including 
290.2 	the cost of a regular actuarial valuation, and amortization results for the account determined 
290.3 	by the approved actuary retained by the retirement association under sections 356.215 and 
290.4 	356.216; and
290.5 	(2) the standards for actuarial work, utilizing a six percent interest rate actuarial 
290.6 	assumption and other actuarial assumptions approved under section 356.215, subdivision 
290.7 	18:
290.8 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
290.9 	increase to be amortized over a period of 20 years from the date of the benefit change;
290.10 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
290.11 	assumption change or an actuarial method change to be amortized over a period of 20 years 
290.12 	from the date of the assumption or method change;
290.13 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
290.14 	investment loss to be amortized over a period of ten years from the date of investment loss; 
290.15 	and
290.16 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over 
290.17 	a period of five years from the date of the actuarial valuation.
290.18 	(c) The required contributions of the entity or entities associated with the fire department 
290.19 	whose active firefighters are covered by the monthly benefit retirement division are the 
290.20 	annual financial requirements of the monthly benefit account of the retirement plan under 
290.21 	paragraph (b) reduced by the amount of any fire state aid payable under sections 69.011 to 
290.22 	69.051 chapter 477B, or any police and firefighter retirement supplemental state aid payable 
290.23 	under section 423A.022, that is reasonably anticipated to be received by the retirement plan 
290.24 	attributable to the entity or entities during the following calendar year. The required 
290.25 	contribution must be allocated between the entities if more than one entity is involved. A 
290.26 	reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
290.27 	state aid actually received in the prior year multiplied by the factor 1.035.
290.28 	(d) The required contribution calculated in paragraph (c) must be paid to the retirement 
290.29 	plan on or before December 31 of the year for which it was calculated. If the contribution 
290.30 	is not received by the retirement plan by December 31, it is payable with interest at an 
290.31 	annual compound rate of six percent from the date due until the date payment is received 
290.32 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
290.33 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

291.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

291.2 	Sec. 8. Minnesota Statutes 2018, section 353G.17, subdivision 2, is amended to read:
291.3 		Subd. 2.Approval by the relief association. (a) Before a transfer of records, assets, 
291.4 	and liabilities from the retirement plan to a relief association may occur, the board of trustees 
291.5 	of the relief association shall adopt resolutions as follows:
291.6 	(1) approving and accepting the transfer of records, assets, and liabilities from the 
291.7 	retirement plan; and
291.8 	(2) amending the bylaws of the relief association as necessary to add the firefighters 
291.9 	whose benefits are being transferred from the retirement plan and to provide that each benefit 
291.10 	being transferred retains vesting, distribution, and other rights to which the firefighter, for 
291.11 	whom the benefit is being transferred, is entitled under the terms of the retirement plan to 
291.12 	the date of the transfer.
291.13 	The board of trustees shall file a copy of the resolutions with the executive director.
291.14 	(b) The board of trustees of the relief association shall file with the state auditor the 
291.15 	following:
291.16 	(1) a copy of the resolutions required under paragraph (a);
291.17 	(2) a copy of the bylaws of the relief association and any bylaw amendments;
291.18 	(3) a copy of the relief association's investment policy;
291.19 	(4) a statement that a board of trustees has been duly elected and each trustee's name, 
291.20 	address, telephone number, and e-mail address, if any;
291.21 	(5) a copy of the most recent annual financial, investment, and plan administration report 
291.22 	filed under section 69.051 424A.014, unless the due date for the first report has not yet 
291.23 	occurred; and
291.24 	(6) a copy of the documentation indicating that a special fund has been established with 
291.25 	a financial institution to receive a transfer of assets from the retirement plan.
291.26 	(c) Upon receipt of the information and documents required under paragraph (b), the 
291.27 	state auditor shall issue to the relief association and the executive director written 
291.28 	confirmation of receipt of all required information and documents.

291.29 	EFFECTIVE DATE. This section is effective July 1, 2019.

292.1 	Sec. 9. Minnesota Statutes 2018, section 356.20, subdivision 4a, is amended to read:
292.2 		Subd. 4a.Financial report for police or firefighters relief association. For any police 
292.3 	or firefighter's firefighters relief association referred to in subdivision 2, clause (10) or (11), 
292.4 	a financial report that is duly filed and that meets the requirements of section 69.051
292.5 	424A.014 is deemed to have met the requirements of subdivision 4.

292.6 	EFFECTIVE DATE. This section is effective July 1, 2019.

292.7 	Sec. 10. Minnesota Statutes 2018, section 356.219, subdivision 8, is amended to read:
292.8 		Subd. 8.Timing of reports. (a) For the Bloomington Fire Department Relief Association 
292.9 	and the volunteer firefighter relief associations, the information required under this section 
292.10 	must be submitted by the due date for reports required under section 69.051, subdivision 1
292.11 	or 1a 424A.014, subdivision 1 or 2, as applicable. If a relief association satisfies the definition 
292.12 	of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered 
292.13 	by the report required under section 69.051, subdivision 1 or 1a 424A.014, subdivision 1 
292.14 	or 2, as applicable, the chief administrative officer of the covered pension plan shall certify 
292.15 	that compliance on a form prescribed by the state auditor. The state auditor shall transmit 
292.16 	annually to the State Board of Investment a list or lists of covered pension plans which 
292.17 	submitted certifications in order to facilitate reporting by the State Board of Investment 
292.18 	under paragraph (c).
292.19 	(b) For the St. Paul Teachers Retirement Fund Association and the University of 
292.20 	Minnesota faculty supplemental retirement plan, the information required under this section 
292.21 	must be submitted to the state auditor by June 1 of each year.
292.22 	(c) The State Board of Investment, on behalf of pension funds specified in subdivision 
292.23 	1, paragraph (c), shall report information required under this section by September 1 of each 
292.24 	year.

292.25 	EFFECTIVE DATE. This section is effective July 1, 2019.

292.26 	Sec. 11. Minnesota Statutes 2018, section 423A.02, subdivision 1b, is amended to read:
292.27 		Subd. 1b.Additional amortization state aid. (a) Annually, the commissioner shall 
292.28 	allocate the additional amortization state aid, if any, including any state aid in excess of the 
292.29 	limitation in subdivision 4, on the following basis:
292.30 	(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with 
292.31 	police and firefighter retirement coverage;
293.1 	(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer 
293.2 	firefighter relief associations under section 69.021, subdivision 7, paragraph (d) 477B.03, 
293.3 	subdivision 5;
293.4 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with police 
293.5 	and firefighter retirement coverage;
293.6 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment 
293.7 	performance requirement of paragraph (c) is met; and
293.8 	(5) 1.3 percent to the city of Virginia to defray the employer contribution under section 
293.9 	353.665, subdivision 8, paragraph (d).
293.10 	If there is no additional employer contribution under section 353.665, subdivision 8, 
293.11 	paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect to the 
293.12 	former Minneapolis Police Relief Association and the former Minneapolis Fire Department 
293.13 	Relief Association, the commissioner shall allocate that 47.1 percent of the aid as follows: 
293.14 	49 percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers 
293.15 	Retirement Fund Association, and 30 percent as additional funding to support minimum 
293.16 	fire state aid for volunteer firefighter relief associations under section 69.021, subdivision 
293.17 	7, paragraph (d) 477B.03, subdivision 5. If there is no employer contribution by the city of 
293.18 	Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire 
293.19 	Department Relief Association certified on or before June 30 by the executive director of 
293.20 	the Public Employees Retirement Association, the commissioner shall allocate that 1.3 
293.21 	percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent 
293.22 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional funding 
293.23 	to support minimum fire state aid for volunteer firefighter relief associations under section 
293.24 	69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5.
293.25 	(b) The allocation must be made by the commissioner of revenue on October 1 annually.
293.26 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the 
293.27 	teacher's association five-year average time-weighted rate of investment return does not 
293.28 	equal or exceed the performance of a composite portfolio assumed passively managed 
293.29 	(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt 
293.30 	securities, and 30 percent in domestic stock calculated using the formula under section 
293.31 	11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until 
293.32 	the five-year annual rate of investment return equals or exceeds the performance of that 
293.33 	composite portfolio.
294.1 	(d) The amounts required under this subdivision are the amounts annually appropriated 
294.2 	to the commissioner of revenue under section 69.021, subdivision 11 477B.03, subdivision 
294.3 	5, paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.

294.4 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

294.5 	Sec. 12. Minnesota Statutes 2018, section 423A.02, subdivision 3, is amended to read:
294.6 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
294.7 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
294.8 	that is not distributed for any reason to a municipality must be distributed by the 
294.9 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
294.10 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
294.11 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
294.12 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
294.13 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
294.14 	the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this 
294.15 	aid ceases. Amounts remaining in the undistributed balance account at the end of the 
294.16 	biennium if aid eligibility ceases cancel to the general fund.
294.17 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
294.18 	Independent School District No. 625, St. Paul, must make an additional contribution of 
294.19 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
294.20 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
294.21 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
294.22 	distributed under section 69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5, as 
294.23 	additional funding to support a minimum fire state aid amount for volunteer firefighter relief 
294.24 	associations.

294.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

294.26 	Sec. 13. Minnesota Statutes 2018, section 423A.022, subdivision 2, is amended to read:
294.27 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
294.28 	(1) 58.064 percent must be paid to the executive director of the Public Employees 
294.29 	Retirement Association for deposit in the public employees police and fire retirement fund 
294.30 	established by section 353.65, subdivision 1;
294.31 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
294.32 	employing firefighters with retirement coverage provided by the public employees police 
295.1 	and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated 
295.2 	in proportion to the most recent amount of fire state aid paid under section 69.021, 
295.3 	subdivision 7 477B.04, for the municipality bears to the most recent total fire state aid for 
295.4 	all municipalities other than the municipalities solely employing firefighters with retirement 
295.5 	coverage provided by the public employees police and fire retirement plan paid under section 
295.6 	69.021, subdivision 7 477B.04, with the allocated amount for fire departments participating 
295.7 	in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the 
295.8 	executive director of the Public Employees Retirement Association for deposit in the fund 
295.9 	established by section 353G.02, subdivision 3, and credited to the respective account and 
295.10 	with the balance paid to the treasurer of each municipality for transmittal within 30 days of 
295.11 	receipt to the treasurer of the applicable volunteer firefighter relief association for deposit 
295.12 	in its special fund; and
295.13 	(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement 
295.14 	System for deposit in the state patrol retirement fund.
295.15 	(b) For purposes of this section, the term "municipalities" includes independent nonprofit 
295.16 	firefighting corporations that participate in the voluntary statewide lump-sum volunteer 
295.17 	firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter relief 
295.18 	associations operating under chapter 424A.

295.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

295.20 	Sec. 14. Minnesota Statutes 2018, section 423A.022, subdivision 4, is amended to read:
295.21 		Subd. 4.Payments; conditions prerequisite. (a) The payments under this section must 
295.22 	be made on October 1 each year, with interest at one percent for each month, or portion of 
295.23 	a month, that the amount remains unpaid after October 1. Any necessary adjustments must 
295.24 	be made to subsequent payments.
295.25 	(b) The provisions of sections 69.011 to 69.051 chapter 477B and section 424A.014 that 
295.26 	prevent municipalities and relief associations from being eligible for, or receiving fire state 
295.27 	aid under sections 69.011 to 69.051 chapter 477B and section 424A.014 until the applicable 
295.28 	financial reporting requirements have been complied with, apply to the amounts payable to 
295.29 	municipalities and relief associations under this section.

295.30 	EFFECTIVE DATE. This section is effective July 1, 2019, except the references to 
295.31 	Minnesota Statutes, chapter 477B, are effective for aids payable in 2020 and thereafter.

296.1 	Sec. 15. Minnesota Statutes 2018, section 424A.016, subdivision 2, is amended to read:
296.2 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
296.3 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
296.4 	special fund a defined contribution service pension to each of its members who:
296.5 	(1) separates from active service with the fire department;
296.6 	(2) reaches age 50;
296.7 	(3) completes at least five years of active service as an active member of the fire 
296.8 	department to which the relief association is associated;
296.9 	(4) completes at least five years of active membership with the relief association before 
296.10 	separation from active service; and
296.11 	(5) complies with any additional conditions as to age, service, and membership that are 
296.12 	prescribed by the bylaws of the relief association.
296.13 	(b) In the case of a member who has completed at least five years of active service as 
296.14 	an active member of the fire department to which the relief association is associated on the 
296.15 	date that the relief association is established and incorporated, the requirement that the 
296.16 	member complete at least five years of active membership with the relief association before 
296.17 	separation from active service may be waived by the board of trustees of the relief association 
296.18 	if the member completes at least five years of inactive membership with the relief association 
296.19 	before the date of the payment of the service pension. During the period of inactive 
296.20 	membership, the member is not entitled to receive any disability benefit coverage, is not 
296.21 	entitled to receive additional individual account allocation of fire state aid or municipal 
296.22 	contribution towards a service pension, and is considered to have the status of a person 
296.23 	entitled to a deferred service pension.
296.24 	(c) The service pension earned by a volunteer under this chapter and the articles of 
296.25 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
296.26 	or independent nonprofit firefighting corporation to which the relief association is associated 
296.27 	qualifies for the receipt of fire state aid under chapter 69 477B.

296.28 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

296.29 	Sec. 16. Minnesota Statutes 2018, section 424A.016, subdivision 4, is amended to read:
296.30 		Subd. 4.Individual accounts. (a) An individual account must be established for each 
296.31 	firefighter who is a member of the relief association.
296.32 	(b) To each individual active member account must be credited an equal share of:
297.1 	(1) any amounts of fire state aid and police and firefighter retirement supplemental state 
297.2 	aid received by the relief association;
297.3 	(2) any amounts of municipal contributions to the relief association raised from levies 
297.4 	on real estate or from other available municipal revenue sources exclusive of fire state aid; 
297.5 	and
297.6 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
297.7 	(i) any former member who terminated active service with the fire department to which 
297.8 	the relief association is associated before meeting the minimum service requirement provided 
297.9 	for in subdivision 2, paragraph (b), and has not returned to active service with the fire 
297.10 	department for a period no shorter than five years; or
297.11 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in the 
297.12 	amounts credited to the individual member account under subdivision 2, paragraph (b), and 
297.13 	any applicable provision of the bylaws of the relief association. In addition, any investment 
297.14 	return on the assets of the special fund must be credited in proportion to the share of the 
297.15 	assets of the special fund to the credit of each individual active member account. 
297.16 	Administrative expenses of the relief association payable from the special fund may be 
297.17 	deducted from individual accounts in a manner specified in the bylaws of the relief 
297.18 	association.
297.19 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
297.20 	any investment return on the assets of the special fund to the accounts of inactive members.
297.21 	(d) Amounts to be credited to individual accounts must be allocated uniformly for all 
297.22 	years of active service and allocations must be made for all years of service, except for caps 
297.23 	on service credit if so provided in the bylaws of the relief association. Amounts forfeited 
297.24 	under paragraph (b), clause (3), before a resumption of active service and membership under 
297.25 	section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the 
297.26 	resumption of active service and membership. The allocation method may utilize monthly 
297.27 	proration for fractional years of service, as the bylaws or articles of incorporation of the 
297.28 	relief association so provide. The bylaws or articles of incorporation may define a "month," 
297.29 	but the definition must require a calendar month to have at least 16 days of active service. 
297.30 	If the bylaws or articles of incorporation do not define a "month," a "month" is a completed 
297.31 	calendar month of active service measured from the member's date of entry to the same date 
297.32 	in the subsequent month.
297.33 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
297.34 	bylaws of the relief association, a retiring member is entitled to that portion of the assets of 
298.1 	the special fund to the credit of the member in the individual member account which is 
298.2 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
298.3 	association based on the number of years of service to the credit of the retiring member.
298.4 	(f) Annually, the secretary of the relief association shall certify the individual account 
298.5 	allocations to the state auditor at the same time that the annual financial statement or financial 
298.6 	report and audit of the relief association, whichever applies, is due under section 69.051
298.7 	424A.014.

298.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

298.9 	Sec. 17. Minnesota Statutes 2018, section 424A.02, subdivision 1, is amended to read:
298.10 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
298.11 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
298.12 	benefit service pension to each of its members who: (1) separates from active service with 
298.13 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
298.14 	as an active member of the fire department to which the relief association is associated; (4) 
298.15 	completes at least five years of active membership with the relief association before 
298.16 	separation from active service; and (5) complies with any additional conditions as to age, 
298.17 	service, and membership that are prescribed by the bylaws of the relief association. A service 
298.18 	pension computed under this section may be prorated monthly for fractional years of service 
298.19 	as the bylaws or articles of incorporation of the relief association so provide. The bylaws 
298.20 	or articles of incorporation may define a "month," but the definition must require a calendar 
298.21 	month to have at least 16 days of active service. If the bylaws or articles of incorporation 
298.22 	do not define a "month," a "month" is a completed calendar month of active service measured 
298.23 	from the member's date of entry to the same date in the subsequent month. The service 
298.24 	pension earned by a volunteer firefighter under this chapter and the articles of incorporation 
298.25 	and bylaws of the volunteer firefighters relief association may be paid whether or not the 
298.26 	municipality or independent nonprofit firefighting corporation to which the relief association 
298.27 	is associated qualifies for the receipt of fire state aid under chapter 69 477B.
298.28 	(b) In the case of a member who has completed at least five years of active service as 
298.29 	an active member of the fire department to which the relief association is associated on the 
298.30 	date that the relief association is established and incorporated, the requirement that the 
298.31 	member complete at least five years of active membership with the relief association before 
298.32 	separation from active service may be waived by the board of trustees of the relief association 
298.33 	if the member completes at least five years of inactive membership with the relief association 
298.34 	before the date of the payment of the service pension. During the period of inactive 
299.1 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
299.2 	to receive additional service credit towards computation of a service pension, and is 
299.3 	considered to have the status of a person entitled to a deferred service pension under 
299.4 	subdivision 7.
299.5 	(c) No municipality, independent nonprofit firefighting corporation, or joint powers 
299.6 	entity may delegate the power to take final action in setting a service pension or ancillary 
299.7 	benefit amount or level to the board of trustees of the relief association or to approve in 
299.8 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
299.9 	or level that this chapter would allow rather than a specific dollar amount or level.

299.10 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

299.11 	Sec. 18. Minnesota Statutes 2018, section 424A.02, subdivision 3a, is amended to read:
299.12 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
299.13 	defined benefit relief association pays a service pension greater than the maximum service 
299.14 	pension associated with the applicable average amount of available financing per active 
299.15 	covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies, 
299.16 	the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum 
299.17 	service pension amount specified in subdivision 3, paragraph (g), whichever is less, the 
299.18 	state auditor shall:
299.19 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
299.20 	associated with the relief association from receiving fire state aid by making the appropriate 
299.21 	notification to the municipality and the commissioner of revenue, with the disqualification 
299.22 	applicable for the next apportionment and payment of fire state aid; and
299.23 	(2) order the treasurer of the applicable relief association to recover the amount of the 
299.24 	overpaid service pension or pensions from any retired firefighter who received an 
299.25 	overpayment.
299.26 	(b) Fire state aid amounts from disqualified municipalities for the period of 
299.27 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
299.28 	insurance premium tax proceeds available for the next subsequent fire state aid 
299.29 	apportionment.
299.30 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
299.31 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
299.32 	the next subsequent fire state aid apportionment.
300.1 	(d) The determination of the state auditor that a relief association has paid a service 
300.2 	pension greater than the applicable maximum must be made on the basis of the information 
300.3 	filed by the relief association and the municipality with the state auditor under sections 
300.4 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, this chapter and 
300.5 	any other relevant information that comes to the attention of the state auditor. The 
300.6 	determination of the state auditor is final. An aggrieved municipality, relief association, or 
300.7 	person may appeal the determination under section 480A.06.
300.8 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
300.9 	pension based on an error in the maximum service pension calculation, the municipality or 
300.10 	independent nonprofit firefighting corporation associated with the relief association for fire 
300.11 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
300.12 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
300.13 	(c), all overpayments recovered under this paragraph must be credited to the relief 
300.14 	association's special fund.

300.15 	EFFECTIVE DATE. This section is effective July 1, 2019.

300.16 	Sec. 19. Minnesota Statutes 2018, section 424A.02, subdivision 10, is amended to read:
300.17 		Subd. 10.Local approval of bylaw amendments; filing requirements. (a) Each defined 
300.18 	benefit relief association to which this section applies must file a revised copy of its governing 
300.19 	bylaws with the state auditor upon the adoption of any amendment to its governing bylaws 
300.20 	by the relief association or upon the approval of any amendment to its governing bylaws 
300.21 	granted by the governing body of each municipality served by the fire department to which 
300.22 	the relief association is directly associated. Failure of the relief association to file a copy of 
300.23 	the bylaws or any bylaw amendments with the state auditor disqualifies the municipality 
300.24 	from the distribution of any future fire state aid until this filing requirement has been 
300.25 	completed.
300.26 	(b) If the special fund of the relief association does not have a surplus over full funding 
300.27 	under section 424A.092, subdivision 3, paragraph (c), clause (5), or 424A.093, subdivision 
300.28 	4, and if the municipality is required to provide financial support to the special fund of the 
300.29 	relief association under section 424A.092 or 424A.093, no bylaw amendment which would 
300.30 	affect the amount of, the manner of payment of, or the conditions for qualification for service 
300.31 	pensions or ancillary benefits or disbursements other than administrative expenses authorized 
300.32 	under section 69.80 424A.05, subdivision 3b, payable from the special fund of the relief 
300.33 	association is effective until it has been ratified as required under section 424A.092, 
300.34 	subdivision 6, or 424A.093, subdivision 6. If the special fund of the relief association has 
301.1 	a surplus over full funding under section 424A.092, subdivision 3, or 424A.093, subdivision 
301.2 	4, and if the municipality is not required to provide financial support to the special fund 
301.3 	under this section, the relief association may adopt or amend without municipal ratification 
301.4 	its articles of incorporation or bylaws which increase or otherwise affect the service pensions 
301.5 	or ancillary benefits payable from the special fund if authorized under section 424A.092, 
301.6 	subdivision 6, or 424A.093, subdivision 6.
301.7 	(c) If the relief association pays only a lump-sum pension, the financial requirements 
301.8 	are to be determined by the board of trustees following the preparation of an estimate of 
301.9 	the expected increase in the accrued liability and annual accruing liability of the relief 
301.10 	association attributable to the change. If the relief association pays a monthly benefit service 
301.11 	pension, the financial requirements are to be determined by the board of trustees following 
301.12 	either an updated actuarial valuation including the proposed change or an estimate of the 
301.13 	expected actuarial impact of the proposed change prepared by the actuary of the relief 
301.14 	association. If a relief association adopts or amends its articles of incorporation or bylaws 
301.15 	without municipal ratification under this subdivision, and, subsequent to the amendment or 
301.16 	adoption, the financial requirements of the special fund under this section are such so as to 
301.17 	require financial support from the municipality, the provision which was implemented 
301.18 	without municipal ratification is no longer effective without municipal ratification, and any 
301.19 	service pensions or ancillary benefits payable after that date must be paid only in accordance 
301.20 	with the articles of incorporation or bylaws as amended or adopted with municipal 
301.21 	ratification.

301.22 	EFFECTIVE DATE. This section is effective July 1, 2019.

301.23 	Sec. 20. Minnesota Statutes 2018, section 424A.03, subdivision 2, is amended to read:
301.24 		Subd. 2.Penalties for violations. A municipality which has a fire department associated 
301.25 	with a relief association which violates the provisions of subdivision 1 is directly associated 
301.26 	or which contracts with an independent nonprofit firefighting corporation associated with 
301.27 	a relief association which violates the provisions of subdivision 1 is a subsidiary may not 
301.28 	be included in the apportionment of fire state aid to the applicable county auditor and police 
301.29 	and firefighter retirement supplemental state aid payable under section 69.021, subdivision 
301.30 	6, chapter 477B and section 423A.022 and may not be included in the apportionment of 
301.31 	fire state aid by the county auditor to the various municipalities under section 69.021, 
301.32 	subdivision 7 477B.03.

301.33 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

302.1 	Sec. 21. Minnesota Statutes 2018, section 424A.05, subdivision 2, is amended to read:
302.2 		Subd. 2.Special fund assets and revenues. The special fund must be credited with all 
302.3 	fire state aid and police and firefighter retirement supplemental state aid received under 
302.4 	sections 69.011 to 69.051 chapter 477B and section 423A.022, all taxes levied by or other 
302.5 	revenues received from the municipality under sections 424A.091 to 424A.096 or any 
302.6 	applicable special law requiring municipal support for the relief association, any funds or 
302.7 	property donated, given, granted or devised by any person which is specified for use for the 
302.8 	support of the special fund and any interest or investment return earned upon the assets of 
302.9 	the special fund. The treasurer of the relief association is the custodian of the assets of the 
302.10 	special fund and must be the recipient on behalf of the special fund of all revenues payable 
302.11 	to the special fund. The treasurer shall maintain adequate records documenting any 
302.12 	transaction involving the assets or the revenues of the special fund. These records and the 
302.13 	bylaws of the relief association are public and must be open for inspection by any member 
302.14 	of the relief association, any officer or employee of the state or of the municipality, or any 
302.15 	member of the public, at reasonable times and places.

302.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

302.17 	Sec. 22. Minnesota Statutes 2018, section 424A.05, subdivision 3, is amended to read:
302.18 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
302.19 	special fund may not be made for any purpose other than one of the following:
302.20 	(1) for the payment of service pensions to retired members of the relief association if 
302.21 	authorized and paid under law and the bylaws governing the relief association;
302.22 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
302.23 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
302.24 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
302.25 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
302.26 	subdivision 5;
302.27 	(3) for the payment of temporary or permanent disability benefits to disabled members 
302.28 	of the relief association if authorized and paid under law and specified in amount in the 
302.29 	bylaws governing the relief association;
302.30 	(4) for the payment of survivor benefits or for the payment of a death benefit to the estate 
302.31 	of the deceased active or deferred firefighter, if authorized and paid under law and specified 
302.32 	in amount in the bylaws governing the relief association;
303.1 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
303.2 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
303.3 	entitle relief association members to membership in and the benefits of these associations 
303.4 	or organizations;
303.5 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
303.6 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
303.7 	insurance, in order to entitle relief association members to membership in and the benefits 
303.8 	of the association or organization; and
303.9 	(7) for the payment of administrative expenses of the relief association as authorized 
303.10 	under section 69.80 subdivision 3b.
303.11 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
303.12 	by this section must be signed by the relief association treasurer and at least one other elected 
303.13 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
303.14 	A relief association may make disbursements authorized by this subdivision by electronic 
303.15 	fund transfers only if the specific method of payment and internal control policies and 
303.16 	procedures regarding the method are approved by the board of trustees.

303.17 	EFFECTIVE DATE. This section is effective July 1, 2019.

303.18 	Sec. 23. Minnesota Statutes 2018, section 424A.07, is amended to read:
303.19 	424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT 
303.20 	OF RELIEF ASSOCIATIONS.
303.21 	Before paying any service pensions or retirement benefits under section 424A.02 or 
303.22 	before becoming entitled to receive any amounts of fire state aid upon transmittal from a 
303.23 	contracting municipality under section 69.031, subdivision 5 477B.04, subdivision 3, an 
303.24 	independent nonprofit firefighting corporation shall establish a volunteer firefighters relief 
303.25 	association governed by this chapter.

303.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

303.27 	Sec. 24. Minnesota Statutes 2018, section 424A.091, subdivision 3, is amended to read:
303.28 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
303.29 	there exists a firefighters relief association as specified in subdivision 1 which does not 
303.30 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
303.31 	of any applicable special law relating to the funding or financing of the association does 
303.32 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
304.1 	sections 69.011 to 69.051 chapter 477B until the reason for the disqualification specified 
304.2 	by the state auditor is remedied, whereupon the municipality or relief association, if otherwise 
304.3 	qualified, is entitled to again receive fire state aid for the year occurring immediately 
304.4 	subsequent to the year in which the disqualification is remedied.
304.5 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
304.6 	association is directly associated or a firefighters relief association fails to comply with the 
304.7 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
304.8 	applicable special law based upon the information contained in the annual financial report 
304.9 	of the firefighters relief association required under section 69.051 424A.014, the actuarial 
304.10 	valuation of the relief association, if applicable, the relief association officers' financial 
304.11 	requirements of the relief association and minimum municipal obligation determination 
304.12 	documentation under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 
304.13 	and 5; or 424A.094, subdivision 2, if requested to be filed by the state auditor, the applicable 
304.14 	municipal or independent nonprofit firefighting corporation budget, if requested to be filed 
304.15 	by the state auditor, and any other relevant documents or reports obtained by the state 
304.16 	auditor.
304.17 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
304.18 	relief association are not eligible to receive or to retain fire state aid if:
304.19 	(1) the relief association fails to prepare or to file the financial report or financial 
304.20 	statement under section 69.051 424A.014;
304.21 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
304.22 	by section 69.051, subdivision 2 424A.014, subdivision 4;
304.23 	(3) the relief association officers fail to determine or improperly determine the accrued 
304.24 	liability and the annual accruing liability of the relief association under section 424A.092, 
304.25 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
304.26 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
304.27 	valuation or the officers file an actuarial valuation that does not contain the special fund 
304.28 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
304.29 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
304.30 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
304.31 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
304.32 	summary of the applicable benefit plan, a summary of the membership of the relief 
304.33 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
305.1 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
305.2 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
305.3 	(5) the municipality failed to provide a municipal contribution, or the independent 
305.4 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
305.5 	equal to the minimum municipal obligation if the relief association is governed under section 
305.6 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
305.7 	the plan year in question, to at least equal in total the calculated annual financial requirements 
305.8 	of the special fund of the relief association if the relief association is governed under section 
305.9 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
305.10 	failed to include the minimum municipal obligation certified under section 424A.092, 
305.11 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
305.12 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
305.13 	under section 424A.094, subdivision 2, in the corporate budget;
305.14 	(6) the defined benefit relief association did not receive municipal ratification for the 
305.15 	most recent plan amendment when municipal ratification was required under section 424A.02, 
305.16 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
305.17 	(7) the relief association invested special fund assets in an investment security that is 
305.18 	not authorized under section 424A.095;
305.19 	(8) the relief association had an administrative expense that is not authorized under 
305.20 	section 69.80 or424A.05, subdivision 3 or 3b, or the municipality had an expenditure that 
305.21 	is not authorized under section 424A.08;
305.22 	(9) the relief association officers fail to provide a complete and accurate public pension 
305.23 	plan investment portfolio and performance disclosure under section 356.219;
305.24 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
305.25 	statement of investment restrictions under section 356A.06, subdivision 8b;
305.26 	(11) the relief association officers permitted to occur a prohibited transaction under 
305.27 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
305.28 	of a prohibited transaction that did occur; or
305.29 	(12) the relief association pays a defined benefit service pension in an amount that is in 
305.30 	excess of the applicable service pension maximum under section 424A.02, subdivision 3.

305.31 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
305.32 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

306.1 	Sec. 25. Minnesota Statutes 2018, section 424A.092, subdivision 3, is amended to read:
306.2 		Subd. 3.Financial requirements of relief association; minimum obligation of 
306.3 	municipality. (a) During the month of July, the officers of the relief association shall 
306.4 	determine the overall funding balance of the special fund for the current calendar year, the 
306.5 	financial requirements of the special fund for the following calendar year and the minimum 
306.6 	obligation of the municipality with respect to the special fund for the following calendar 
306.7 	year in accordance with the requirements of this subdivision.
306.8 	(b) The overall funding balance of the special fund for the current calendar year must 
306.9 	be determined in the following manner:
306.10 	(1) The total accrued liability of the special fund for all active and deferred members of 
306.11 	the relief association as of December 31 of the current year must be calculated under 
306.12 	subdivisions 2 and 2a, if applicable.
306.13 	(2) The total present assets of the special fund projected to December 31 of the current 
306.14 	year, including receipts by and disbursements from the special fund anticipated to occur on 
306.15 	or before December 31, must be calculated. To the extent possible, for those assets for which 
306.16 	a market value is readily ascertainable, the current market value as of the date of the 
306.17 	calculation for those assets must be utilized in making this calculation. For any asset for 
306.18 	which no market value is readily ascertainable, the cost value or the book value, whichever 
306.19 	is applicable, must be utilized in making this calculation.
306.20 	(3) The amount of the total present assets of the special fund calculated under clause (2) 
306.21 	must be subtracted from the amount of the total accrued liability of the special fund calculated 
306.22 	under clause (1). If the amount of total present assets exceeds the amount of the total accrued 
306.23 	liability, then the special fund is considered to have a surplus over full funding. If the amount 
306.24 	of the total present assets is less than the amount of the total accrued liability, then the 
306.25 	special fund is considered to have a deficit from full funding. If the amount of total present 
306.26 	assets is equal to the amount of the total accrued liability, then the special fund is considered 
306.27 	to be fully funded.
306.28 	(c) The financial requirements of the special fund for the following calendar year must 
306.29 	be determined in the following manner:
306.30 	(1) The total accrued liability of the special fund for all active and deferred members of 
306.31 	the relief association as of December 31 of the calendar year next following the current 
306.32 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
307.1 	(2) The increase in the total accrued liability of the special fund for the following calendar 
307.2 	year over the total accrued liability of the special fund for the current year must be calculated.
307.3 	(3) The amount of anticipated future administrative expenses of the special fund must 
307.4 	be calculated by multiplying the dollar amount of the administrative expenses of the special 
307.5 	fund for the most recent prior calendar year by the factor of 1.035.
307.6 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
307.7 	the following calendar year are the total of the amounts calculated under clauses (2) and 
307.8 	(3).
307.9 	(5) If the special fund has a deficit from full funding, the financial requirements of the 
307.10 	special fund for the following calendar year are the financial requirements of the special 
307.11 	fund calculated as though the special fund were fully funded under clause (4) plus an amount 
307.12 	equal to one-tenth of the original amount of the deficit from full funding of the special fund 
307.13 	as determined under clause (2) resulting either from an increase in the amount of the service 
307.14 	pension occurring in the last ten years or from a net annual investment loss occurring during 
307.15 	the last ten years until each increase in the deficit from full funding is fully retired. The 
307.16 	annual amortization contribution under this clause may not exceed the amount of the deficit 
307.17 	from full funding.
307.18 	(6) If the special fund has a surplus over full funding, the financial requirements of the 
307.19 	special fund for the following calendar year are the financial requirements of the special 
307.20 	fund calculated as though the special fund were fully funded under clause (4) reduced by 
307.21 	an amount equal to one-tenth of the amount of the surplus over full funding of the special 
307.22 	fund.
307.23 	(d) The minimum obligation of the municipality with respect to the special fund is the 
307.24 	financial requirements of the special fund reduced by the amount of any fire state aid and 
307.25 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
307.26 	69.051chapter 477B and section 423A.022 reasonably anticipated to be received by the 
307.27 	municipality for transmittal to the special fund during the following calendar year, an amount 
307.28 	of interest on the assets of the special fund projected to the beginning of the following 
307.29 	calendar year calculated at the rate of five percent per annum, and the amount of any 
307.30 	contributions to the special fund required by the relief association bylaws from the active 
307.31 	members of the relief association reasonably anticipated to be received during the following 
307.32 	calendar year. A reasonable amount of anticipated fire state aid is an amount that does not 
307.33 	exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.

307.34 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

308.1 	Sec. 26. Minnesota Statutes 2018, section 424A.092, subdivision 4, is amended to read:
308.2 		Subd. 4.Certification of financial requirements and minimum municipal obligation; 
308.3 	levy. (a) The officers of the relief association shall certify the financial requirements of the 
308.4 	special fund of the relief association and the minimum obligation of the municipality with 
308.5 	respect to the special fund of the relief association as determined under subdivision 3 on or 
308.6 	before August 1 of each year. The certification must be made to the entity that is responsible 
308.7 	for satisfying the minimum obligation with respect to the special fund of the relief association. 
308.8 	If the responsible entity is a joint powers entity, the certification must be made in the manner 
308.9 	specified in the joint powers agreement, or if the joint powers agreement is silent on this 
308.10 	point, the certification must be made to the chair of the joint powers board.
308.11 	(b) The financial requirements of the relief association and the minimum municipal 
308.12 	obligation must be included in the financial report or financial statement under section 
308.13 	69.051 424A.014. The schedule forms related to the determination of the financial 
308.14 	requirements must be filed with the state auditor by March 31, annually, if the relief 
308.15 	association is required to file a financial statement under section 69.051, subdivision 1a
308.16 	424A.014, subdivision 2, or by June 30, annually, if the relief association is required to file 
308.17 	a financial report and audit under section 69.051, subdivision 1 424A.014, subdivision 1.
308.18 	(c) The municipality shall provide for at least the minimum obligation of the municipality 
308.19 	with respect to the special fund of the relief association by tax levy or from any other source 
308.20 	of public revenue.
308.21 	(d) The municipality may levy taxes for the payment of the minimum municipal obligation 
308.22 	without any limitation as to rate or amount and irrespective of any limitations imposed by 
308.23 	other provisions of law upon the rate or amount of taxation until the balance of the special 
308.24 	fund or any fund of the relief association has attained a specified level. In addition, any 
308.25 	taxes levied under this section must not cause the amount or rate of any other taxes levied 
308.26 	in that year or to be levied in a subsequent year by the municipality which are subject to a 
308.27 	limitation as to rate or amount to be reduced.
308.28 	(e) If the municipality does not include the full amount of the minimum municipal 
308.29 	obligations in its levy for any year, the officers of the relief association shall certify that 
308.30 	amount to the county auditor, who shall spread a levy in the amount of the certified minimum 
308.31 	municipal obligation on the taxable property of the municipality.
308.32 	(f) If the state auditor determines that a municipal contribution actually made in a plan 
308.33 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
308.34 	state auditor may request a copy of the certifications under this subdivision from the relief 
309.1 	association or from the city. The relief association or the city, whichever applies, must 
309.2 	provide the certifications within 14 days of the date of the request from the state auditor.

309.3 	EFFECTIVE DATE. This section is effective July 1, 2019.

309.4 	Sec. 27. Minnesota Statutes 2018, section 424A.093, subdivision 5, is amended to read:
309.5 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association shall 
309.6 	determine the minimum obligation of the municipality with respect to the special fund of 
309.7 	the relief association for the following calendar year on or before August 1 of each year in 
309.8 	accordance with the requirements of this subdivision.
309.9 	(b) The minimum obligation of the municipality with respect to the special fund is an 
309.10 	amount equal to the financial requirements of the special fund of the relief association 
309.11 	determined under subdivision 4, reduced by the estimated amount of any fire state aid and 
309.12 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
309.13 	69.051 chapter 477B and section 423A.022 reasonably anticipated to be received by the 
309.14 	municipality for transmittal to the special fund of the relief association during the following 
309.15 	year and the amount of any anticipated contributions to the special fund required by the 
309.16 	relief association bylaws from the active members of the relief association reasonably 
309.17 	anticipated to be received during the following calendar year. A reasonable amount of 
309.18 	anticipated fire state aid is an amount that does not exceed the fire state aid actually received 
309.19 	in the prior year multiplied by the factor 1.035.
309.20 	(c) The officers of the relief association shall certify the financial requirements of the 
309.21 	special fund of the relief association and the minimum obligation of the municipality with 
309.22 	respect to the special fund of the relief association as determined under subdivision 4 and 
309.23 	this subdivision by August 1 of each year. The certification must be made to the entity that 
309.24 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
309.25 	relief association. If the responsible entity is a joint powers entity, the certification must be 
309.26 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
309.27 	is silent on this point, the certification must be made to the chair of the joint powers board.
309.28 	(d) The financial requirements of the relief association and the minimum municipal 
309.29 	obligation must be included in the financial report or financial statement under section 
309.30 	69.051 424A.014.
309.31 	(e) The municipality shall provide for at least the minimum obligation of the municipality 
309.32 	with respect to the special fund of the relief association by tax levy or from any other source 
309.33 	of public revenue. The municipality may levy taxes for the payment of the minimum 
310.1 	municipal obligation without any limitation as to rate or amount and irrespective of any 
310.2 	limitations imposed by other provisions of law or charter upon the rate or amount of taxation 
310.3 	until the balance of the special fund or any fund of the relief association has attained a 
310.4 	specified level. In addition, any taxes levied under this section must not cause the amount 
310.5 	or rate of any other taxes levied in that year or to be levied in a subsequent year by the 
310.6 	municipality which are subject to a limitation as to rate or amount to be reduced.
310.7 	(f) If the municipality does not include the full amount of the minimum municipal 
310.8 	obligation in its levy for any year, the officers of the relief association shall certify that 
310.9 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
310.10 	municipal obligation on the taxable property of the municipality.
310.11 	(g) If the state auditor determines that a municipal contribution actually made in a plan 
310.12 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
310.13 	state auditor may request from the relief association or from the city a copy of the 
310.14 	certifications under this subdivision. The relief association or the city, whichever applies, 
310.15 	must provide the certifications within 14 days of the date of the request from the state auditor.

310.16 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
310.17 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

310.18 	Sec. 28. Minnesota Statutes 2018, section 424B.09, is amended to read:
310.19 	424B.09 ADMINISTRATIVE EXPENSES.
310.20 	The payment of authorized administrative expenses of the subsequent volunteer 
310.21 	firefighters relief association must be from the special fund of the subsequent volunteer 
310.22 	firefighters relief association in accordance with section 69.80 424A.05, subdivision 3b, 
310.23 	and as provided for in the bylaws of the subsequent volunteer firefighters relief association 
310.24 	and approved by the board of trustees of the subsequent volunteer firefighters relief 
310.25 	association. The payment of any other expenses of the subsequent volunteer firefighters 
310.26 	relief association must be from the general fund of the subsequent volunteer firefighters 
310.27 	relief association in accordance with section 69.80 424A.05, subdivision 3b, and as provided 
310.28 	for in the bylaws of the subsequent volunteer firefighters relief association and approved 
310.29 	by the board of trustees of the subsequent volunteer firefighters relief association.

310.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

310.31 	Sec. 29.  REPEALER.
 310.32 	Minnesota Statutes 2018, section 69.022, is repealed.

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

311.2 	ARTICLE 22
311.3 	DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES

311.4 	Section 1. Minnesota Statutes 2018, section 270B.08, subdivision 2, is amended to read:
311.5 		Subd. 2.Revocation or cancellation. When a taxpayer's sales tax permit has been 
311.6 	revoked or canceled under section 270C.722 or 297A.84, the commissioner may disclose
311.7 	to any person data identifying the holder of the revoked or canceled permit, stating the basis 
311.8 	for the revocation or cancellation, the date of the revocation or cancellation, and stating 
311.9 	whether the if a revoked or canceled permit has been reinstated, the date upon which the 
311.10 	permit was reinstated.

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

311.12 	Sec. 2. Minnesota Statutes 2018, section 297A.84, is amended to read:
311.13 	297A.84 PERMITS ISSUED AND NOT ISSUED; CANCELLATION.
311.14 		Subdivision 1.Definitions. (a) The following definitions apply for the purposes of this 
311.15 	section.
311.16 	(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes 
311.17 	any officer of a corporation or member of a partnership.
311.18 	(c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable 
311.19 	under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been 
311.20 	issued an order assessing sales and use tax under section 270C.33, subdivision 4.
311.21 		Subd. 2.Permits issued. Except as provided in subdivision 3, the commissioner shall
311.22 	must issue a permit to each applicant who has complied with section 297A.83, and with 
311.23 	section 297A.92 if security is required. A person is considered to have a permit if the person 
311.24 	has a Minnesota tax identification number issued by the commissioner that is currently 
311.25 	active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is 
311.26 	not assignable and is valid only for the person in whose name it is granted and for the 
311.27 	transaction of business at the places designated on the permit.
311.28 		Subd. 3.Permits not issued. (a) Except as provided in paragraph (b), the commissioner 
311.29 	must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
311.30 	(b) The commissioner must issue a permit to an applicant if an appeal period of an order 
311.31 	assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner 
312.1 	may cancel a permit issued under this paragraph in the manner provided in subdivision 4 
312.2 	if the applicant owes delinquent sales tax after the appeal period has ended.
312.3 		Subd. 4.Nonconforming permits; cancellation; reissue. (a) If the commissioner issues 
312.4 	a permit that does not conform with the requirements of this section or applicable rules, the 
312.5 	commissioner may cancel the permit upon notice to the permit holder. The notice must be 
312.6 	served by first class and certified mail at the permit holder's last known address. The 
312.7 	cancellation is effective immediately.
312.8 	(b) If a permit holder shows that a canceled permit was issued in conformance with the 
312.9 	requirements of this section and applicable rules, the commissioner must reissue the permit.

312.10 	EFFECTIVE DATE. This section is effective for permit applications filed after 
312.11 	December 31, 2019.

312.12 	Sec. 3. Minnesota Statutes 2018, section 297A.85, is amended to read:
312.13 	297A.85 CANCELLATION OF PERMITS.
312.14 	The commissioner may cancel a permit if one of the following conditions occurs:
312.15 	(1) the permit holder has not filed a sales or use tax return for at least one year;
312.16 	(2) the permit holder has not reported any sales or use tax liability on the permit holder's 
312.17 	returns for at least two years;
312.18 	(3) the permit holder requests cancellation of the permit; or
312.19 	(4) the permit is subject to cancellation pursuant to under section 270C.722, subdivision 
312.20 	2, paragraph (a).; or
312.21 	(5) the permit is subject to cancellation under section 297A.84.

312.22 	EFFECTIVE DATE. This section is effective for permit applications filed after 
312.23 	December 31, 2019.

312.24 	Sec. 4.  REPEALER.
 312.25 	Minnesota Statutes 2018, section 270C.131, is repealed.

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

313.1 	ARTICLE 23
313.2 	DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES

313.3 	Section 1. Minnesota Statutes 2018, section 272.02, subdivision 27, is amended to read:
313.4 		Subd. 27.Superior National Forest; recreational property for use by disabled
313.5 	veterans with a disability. Real and personal property is exempt if it is located in the 
313.6 	Superior National Forest, and owned or leased and operated by a nonprofit organization 
313.7 	that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue 
313.8 	Code and primarily used to provide recreational opportunities for disabled veterans with a 
313.9 	disability and their families.

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

313.11 	Sec. 2. Minnesota Statutes 2018, section 272.02, subdivision 81, is amended to read:
313.12 		Subd. 81.Certain recreational property for disabled veterans with a disability. Real 
313.13 	and personal property is exempt if it is located in a county in the metropolitan area with a 
313.14 	population of less than 500,000 according to the 2000 federal census, and owned or leased 
313.15 	and operated by a nonprofit organization, and primarily used to provide recreational 
313.16 	opportunities for disabled veterans with a disability and their families.

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

313.18 	Sec. 3. Minnesota Statutes 2018, section 273.032, is amended to read:
313.19 	273.032 MARKET VALUE DEFINITION.
313.20 	(a) Unless otherwise provided, for the purpose of determining any property tax levy 
313.21 	limitation based on market value or any limit on net debt, the issuance of bonds, certificates 
313.22 	of indebtedness, or capital notes based on market value, any qualification to receive state 
313.23 	aid based on market value, or any state aid amount based on market value, the terms "market 
313.24 	value," "estimated market value," and "market valuation," whether equalized or unequalized, 
313.25 	mean the estimated market value of taxable property within the local unit of government 
313.26 	before any of the following or similar adjustments for:
313.27 	(1) the market value exclusions under:
313.28 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
313.29 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
313.30 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
314.1 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
314.2 	(v) section 273.13, subdivision 34 (homestead of a disabled veteran with a disability or 
314.3 	family caregiver); or
314.4 	(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
314.5 	(2) the deferment of value under:
314.6 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
314.7 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
314.8 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
314.9 	(iv) the rural preserves property tax program, section 273.114; or
314.10 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
314.11 	(3) the adjustments to tax capacity for:
314.12 	(i) tax increment financing under sections 469.174 to 469.1794;
314.13 	(ii) fiscal disparities under chapter 276A or 473F; or
314.14 	(iii) powerline credit under section 273.425.
314.15 	(b) Estimated market value under paragraph (a) also includes the market value of 
314.16 	tax-exempt property if the applicable law specifically provides that the limitation, 
314.17 	qualification, or aid calculation includes tax-exempt property.
314.18 	(c) Unless otherwise provided, "market value," "estimated market value," and "market 
314.19 	valuation" for purposes of property tax levy limitations and calculation of state aid, refer 
314.20 	to the estimated market value for the previous assessment year and for purposes of limits 
314.21 	on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the 
314.22 	estimated market value as last finally equalized.
314.23 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
314.24 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
314.25 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
314.26 	value, the terms "market value," "taxable market value," and "market valuation," whether 
314.27 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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

315.1 	Sec. 4. Minnesota Statutes 2018, section 273.13, subdivision 22, is amended to read:
315.2 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
315.3 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
315.4 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
315.5 	property is deemed to be used for homestead purposes. The market value of class 1a property 
315.6 	must be determined based upon the value of the house, garage, and land.
315.7 	The first $500,000 of market value of class 1a property has a net classification rate of 
315.8 	one percent of its market value; and the market value of class 1a property that exceeds 
315.9 	$500,000 has a classification rate of 1.25 percent of its market value.
315.10 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
315.11 	used for the purposes of a homestead by:
315.12 	(1) any person who is blind as defined in section 256D.35, or the blind person who is 
315.13 	blind and the blind person's spouse of the person who is blind;
315.14 	(2) any person who is permanently and totally disabled or by the disabled person with 
315.15 	a disability and the disabled person's spouse of the person with a disability; or
315.16 	(3) the surviving spouse of a veteran who was permanently and totally disabled veteran
315.17 	homesteading a property classified under this paragraph for taxes payable in 2008.
315.18 	Property is classified and assessed under clause (2) only if the government agency or 
315.19 	income-providing source certifies, upon the request of the homestead occupant, that the 
315.20 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
315.21 	property is not eligible for the valuation exclusion under subdivision 34.
315.22 	Property is classified and assessed under paragraph (b) only if the commissioner of 
315.23 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
315.24 	of this paragraph.
315.25 	Permanently and totally disabled for the purpose of this subdivision means a condition 
315.26 	which is permanent in nature and totally incapacitates the person from working at an 
315.27 	occupation which brings the person an income. The first $50,000 market value of class 1b 
315.28 	property has a net classification rate of .45 percent of its market value. The remaining market 
315.29 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
315.30 	appropriate.
315.31 	(c) Class 1c property is commercial use real and personal property that abuts public 
315.32 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
315.33 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
316.1 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
316.2 	250 days in the year preceding the year of assessment, and that includes a portion used as 
316.3 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
316.4 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
316.5 	resort, or a member of a limited liability company that owns the resort even if the title to 
316.6 	the homestead is held by the corporation, partnership, or limited liability company. For 
316.7 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
316.8 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
316.9 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
316.10 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
316.11 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
316.12 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
316.13 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
316.14 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
316.15 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
316.16 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
316.17 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
316.18 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
316.19 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
316.20 	the same owner owns two separate parcels that are located in the same township, and one 
316.21 	of those properties is classified as a class 1c property and the other would be eligible to be 
316.22 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
316.23 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
316.24 	deemed to be owned by the same owner if each of them is owned by a limited liability 
316.25 	company, and both limited liability companies have the same membership. The portion of 
316.26 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
316.27 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
316.28 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
316.29 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
316.30 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
316.31 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
316.32 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
316.33 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
316.34 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
316.35 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
316.36 	the land on which they are located must be designated as class 1c as otherwise provided. 
317.1 	The remainder of the cabins or units and a proportionate share of the land on which they 
317.2 	are located must be designated as class 3a commercial. The owner of property desiring 
317.3 	designation as class 1c property must provide guest registers or other records demonstrating 
317.4 	that the units for which class 1c designation is sought were not occupied for more than 250 
317.5 	days in the year preceding the assessment if so requested. The portion of a property operated 
317.6 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
317.7 	other nonresidential facility operated on a commercial basis not directly related to temporary 
317.8 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
317.9 	(d) Class 1d property includes structures that meet all of the following criteria:
317.10 	(1) the structure is located on property that is classified as agricultural property under 
317.11 	section 273.13, subdivision 23;
317.12 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
317.13 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
317.14 	the property, provided that use of the structure for storage of farm equipment and produce 
317.15 	does not disqualify the property from classification under this paragraph;
317.16 	(3) the structure meets all applicable health and safety requirements for the appropriate 
317.17 	season; and
317.18 	(4) the structure is not salable as residential property because it does not comply with 
317.19 	local ordinances relating to location in relation to streets or roads.
317.20 	The market value of class 1d property has the same classification rates as class 1a property 
317.21 	under paragraph (a).

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

317.23 	Sec. 5. Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
317.24 		Subd. 34.Homestead of disabled veteran with a disability or family caregiver. (a) 
317.25 	All or a portion of the market value of property owned by a veteran and serving as the 
317.26 	veteran's homestead under this section is excluded in determining the property's taxable 
317.27 	market value if the veteran has a service-connected disability of 70 percent or more as 
317.28 	certified by the United States Department of Veterans Affairs. To qualify for exclusion 
317.29 	under this subdivision, the veteran must have been honorably discharged from the United 
317.30 	States armed forces, as indicated by United States Government Form DD214 or other official 
317.31 	military discharge papers.
318.1 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
318.2 	except as provided in clause (2); and
318.3 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
318.4 	excluded.
318.5 	(c) If a disabled veteran with a disability qualifying for a valuation exclusion under 
318.6 	paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the 
318.7 	veteran the spouse holds the legal or beneficial title to the homestead and permanently 
318.8 	resides there, the exclusion shall carry over to the benefit of the veteran's spouse for the 
318.9 	current taxes payable year and for eight additional taxes payable years or until such time 
318.10 	as the spouse remarries, or sells, transfers, or otherwise disposes of the property, whichever 
318.11 	comes first. Qualification under this paragraph requires an application under paragraph (h), 
318.12 	and a spouse must notify the assessor if there is a change in the spouse's marital status, 
318.13 	ownership of the property, or use of the property as a permanent residence.
318.14 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
318.15 	who dies due to a service-connected cause while serving honorably in active service, as 
318.16 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
318.17 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
318.18 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
318.19 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
318.20 	whichever comes first.
318.21 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
318.22 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
318.23 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
318.24 	for under paragraph (b).
318.25 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
318.26 	of the house and garage and immediately surrounding one acre of land qualifies for the 
318.27 	valuation exclusion under this subdivision.
318.28 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
318.29 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
318.30 	paragraph (b).
318.31 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
318.32 	apply to the assessor by July 1 of the first assessment year for which the exclusion is sought. 
318.33 	For an application received after July 1, the exclusion shall become effective for the following 
318.34 	assessment year. Except as provided in paragraph (c), the owner of a property that has been 
319.1 	accepted for a valuation exclusion must notify the assessor if there is a change in ownership 
319.2 	of the property or in the use of the property as a homestead.
319.3 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
319.4 	paragraph (d) must be made any time within two years of the death of the service member.
319.5 	(j) For purposes of this subdivision:
319.6 	(1) "active service" has the meaning given in section 190.05;
319.7 	(2) "own" means that the person's name is present as an owner on the property deed;
319.8 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
319.9 	United States Department of Veterans Affairs for assistance as the primary provider of 
319.10 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
319.11 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
319.12 	(4) "veteran" has the meaning given the term in section 197.447.
319.13 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
319.14 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
319.15 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
319.16 	or sells, transfers, or otherwise disposes of the property if:
319.17 	(1) the spouse files a first-time application within two years of the death of the service 
319.18 	member or by June 1, 2019, whichever is later;
319.19 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
319.20 	homestead and permanently resides there;
319.21 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
319.22 	(4) the United States Department of Veterans Affairs certifies that:
319.23 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
319.24 	paragraph (b), clause (2); or
319.25 	(ii) the spouse has been awarded dependency and indemnity compensation.
319.26 	(l) The purpose of this provision of law providing a level of homestead property tax 
319.27 	relief for gravely disabled veterans with a disability, their primary family caregivers, and 
319.28 	their surviving spouses is to help ease the burdens of war for those among our state's citizens 
319.29 	who bear those burdens most heavily.
319.30 	(m) By July 1, the county veterans service officer must certify the disability rating and 
319.31 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

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

320.2 	Sec. 6. Minnesota Statutes 2018, section 289A.08, subdivision 6, is amended to read:
320.3 		Subd. 6.Returns of married persons. A husband and wife Individuals who are married 
320.4 	to each other must file a joint Minnesota income tax return if they filed a joint federal income 
320.5 	tax return. If the husband and wife spouses have elected to file separate federal income tax 
320.6 	returns, they must file separate Minnesota income tax returns. This election to file a joint 
320.7 	or separate return must be changed if they change their election for federal purposes. In the 
320.8 	event taxpayers desire to change their election, the change must be done in the manner and 
320.9 	on the form prescribed by the commissioner.
320.10 	The determination of whether an individual is married shall be made under the provisions 
320.11 	of section 7703 of the Internal Revenue Code.

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

320.13 	Sec. 7. Minnesota Statutes 2018, section 289A.25, subdivision 1, is amended to read:
320.14 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or partnership 
320.15 	must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax. 
320.16 	For individuals, the term "estimated tax" means the amount the taxpayer estimates is the 
320.17 	sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations, 
320.18 	and partnerships, the term estimated tax means the amount the taxpayer estimates is the 
320.19 	sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax 
320.20 	imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent 
320.21 	person, the payments must be made by the individual's guardian. If joint payments on 
320.22 	estimated tax are made but a joint return is not made for the taxable year, the estimated tax 
320.23 	for that year may be treated as the estimated tax of either the husband or the wife spouse or 
320.24 	may be divided between them.

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

320.26 	Sec. 8. Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
320.27 		Subd. 2.Joint income tax returns. (a) If a joint income tax return is made by a husband 
320.28 	and wife spouses, the liability for the tax is joint and several. A spouse who qualifies for 
320.29 	relief from a liability attributable to an underpayment under section 6015(b) of the Internal 
320.30 	Revenue Code is relieved of the state income tax liability on the underpayment.
321.1 	(b) In the case of individuals who were a husband and wife married as determined in 
321.2 	section 7703 of the Internal Revenue Code prior to the dissolution of their marriage or their 
321.3 	legal separation, or prior to the death of one of the individuals, for tax liabilities reported 
321.4 	on a joint or combined return, the liability of each person is limited to the proportion of the 
321.5 	tax due on the return that equals that person's proportion of the total tax due if the husband 
321.6 	and wife each spouse filed separate returns for the taxable year. This provision is effective 
321.7 	only when the commissioner receives written notice of the marriage dissolution, legal 
321.8 	separation, or death of a spouse from the husband or wife surviving spouse. No refund may 
321.9 	be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more 
321.10 	than 60 days before receipt by the commissioner of the written notice.
321.11 	(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes 
321.12 	reported on a return must be made within six years after the due date of the return. For 
321.13 	calculation of separate liability for taxes assessed by the commissioner under section 289A.35
321.14 	or 289A.37, the request must be made within six years after the date of assessment. The 
321.15 	commissioner is not required to calculate separate liability if the remaining unpaid liability 
321.16 	for which recalculation is requested is $100 or less.

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

321.18 	Sec. 9. Minnesota Statutes 2018, section 289A.37, subdivision 6, is amended to read:
321.19 		Subd. 6.Order of assessment if joint income tax return. If a joint income tax return 
321.20 	is filed by a husband and wife spouses, an order of assessment may be a single joint notice. 
321.21 	If the commissioner has been notified by either spouse that that spouse's address has changed 
321.22 	and if that spouse requests it, then, instead of the single joint notice mailed to the last known 
321.23 	address of the husband and wife spouses, a duplicate or original of the joint notice must be 
321.24 	sent to the requesting spouse at the address designated by the requesting spouse. The other 
321.25 	joint notice must be mailed to the other spouse at that spouse's last known address. An 
321.26 	assessment is not invalid for failure to send it to a spouse if the spouse actually receives the 
321.27 	notice in the same period as if it had been mailed to that spouse at the correct address or if 
321.28 	the spouse has failed to provide an address to the commissioner other than the last known 
321.29 	address.

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

321.31 	Sec. 10. Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
321.32 		Subd. 2.Subtraction. (a) A qualified individual is allowed a subtraction from federal 
321.33 	taxable income of the individual's subtraction base amount. The excess of the subtraction 
322.1 	base amount over the taxable net income computed without regard to the subtraction for 
322.2 	the elderly or disabled a person with a disability under section 290.0132, subdivision 5, 
322.3 	may be used to reduce the amount of a lump sum distribution subject to tax under section 
322.4 	290.032.
322.5 	(b)(1) The initial subtraction base amount equals
322.6 	(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
322.7 	(ii) $9,600 for a single taxpayer, and
322.8 	(iii) $6,000 for a married taxpayer filing a separate federal return.
322.9 	(2) The qualified individual's initial subtraction base amount, then, must be reduced by 
322.10 	the sum of nontaxable retirement and disability benefits and one-half of the amount of 
322.11 	adjusted gross income in excess of the following thresholds:
322.12 	(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified 
322.13 	individuals,
322.14 	(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one 
322.15 	spouse is a qualified individual, and
322.16 	(iii) $9,000 for a married taxpayer filing a separate federal return.
322.17 	(3) In the case of a qualified individual who is under the age of 65, the maximum amount 
322.18 	of the subtraction base may not exceed the taxpayer's disability income.
322.19 	(4) The resulting amount is the subtraction base amount.

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

322.21 	Sec. 11. Minnesota Statutes 2018, section 290.0802, subdivision 3, is amended to read:
322.22 		Subd. 3.Restrictions; married couples. Except in the case of a husband and wife
322.23 	spouses who live apart at all times during the taxable year, if the taxpayer is married at the 
322.24 	close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers 
322.25 	file joint federal and state income tax returns for the taxable year.

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

322.27 	Sec. 12. Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
322.28 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
322.29 	terms have the meanings given.
323.1 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
323.2 	year:
323.3 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
323.4 	55(b)(2) of the Internal Revenue Code;
323.5 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
323.6 	taxable income, but excluding:
323.7 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
323.8 	(ii) the medical expense deduction;
323.9 	(iii) the casualty, theft, and disaster loss deduction; and
323.10 	(iv) the impairment-related work expenses of a disabled person with a disability;
323.11 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
323.12 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
323.13 	to the extent not included in federal alternative minimum taxable income, the excess of the 
323.14 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
323.15 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
323.16 	without regard to the depletion deduction for the taxable year);
323.17 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
323.18 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
323.19 	Code determined without regard to subparagraph (E);
323.20 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
323.21 	of interest income as provided by section 290.0131, subdivision 2; and
323.22 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
323.23 	less the sum of the amounts determined under the following:
323.24 	(i) interest income as defined in section 290.0132, subdivision 2;
323.25 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
323.26 	3, to the extent included in federal alternative minimum taxable income;
323.27 	(iii) the amount of investment interest paid or accrued within the taxable year on 
323.28 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
323.29 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
323.30 	in computing federal adjusted gross income;
324.1 	(iv) amounts subtracted from federal taxable income as provided by section 290.0132, 
324.2 	subdivisions 7, 9 to 15, 17, 21, 24, and 26; and
324.3 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
324.4 	paragraph (c).
324.5 	In the case of an estate or trust, alternative minimum taxable income must be computed 
324.6 	as provided in section 59(c) of the Internal Revenue Code.
324.7 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
324.8 	the Internal Revenue Code.
324.9 	(c) "Net minimum tax" means the minimum tax imposed by this section.
324.10 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
324.11 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
324.12 	under this chapter.
324.13 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
324.14 	after subtracting the exemption amount determined under subdivision 3.

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

324.16 	Sec. 13. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
324.17 		Subd. 3.Income. (a) "Income" means the sum of the following:
324.18 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
324.19 	(2) the sum of the following amounts to the extent not included in clause (1):
324.20 	(i) all nontaxable income;
324.21 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
324.22 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
324.23 	carryover allowed under section 469(b) of the Internal Revenue Code;
324.24 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
324.25 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
324.26 	Code;
324.27 	(iv) cash public assistance and relief;
324.28 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
324.29 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
324.30 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
325.1 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
325.2 	gross income in the years when the payments were made;
325.3 	(vi) interest received from the federal or a state government or any instrumentality or 
325.4 	political subdivision thereof;
325.5 	(vii) workers' compensation;
325.6 	(viii) nontaxable strike benefits;
325.7 	(ix) the gross amounts of payments received in the nature of disability income or sick 
325.8 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
325.9 	or otherwise;
325.10 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
325.11 	1986, as amended through December 31, 1995;
325.12 	(xi) contributions made by the claimant to an individual retirement account, including 
325.13 	a qualified voluntary employee contribution; simplified employee pension plan; 
325.14 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
325.15 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
325.16 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
325.17 	the claimant and spouse;
325.18 	(xii) to the extent not included in federal adjusted gross income, distributions received 
325.19 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
325.20 	(xiii) nontaxable scholarship or fellowship grants;
325.21 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
325.22 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
325.23 	Code;
325.24 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
325.25 	Code; and
325.26 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
325.27 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
325.28 	In the case of an individual who files an income tax return on a fiscal year basis, the 
325.29 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
325.30 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
325.31 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
325.32 	or carryforward allowed for the year.
326.1 	(b) "Income" does not include:
326.2 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
326.3 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
326.4 	or spouse and which funding payments were not excluded from federal adjusted gross 
326.5 	income in the years when the payments were made;
326.6 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
326.7 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
326.8 	the retirement base amount reduced by the amount of contributions excluded from federal 
326.9 	adjusted gross income, but not less than zero;
326.10 	(4) surplus food or other relief in kind supplied by a governmental agency;
326.11 	(5) relief granted under this chapter;
326.12 	(6) child support payments received under a temporary or final decree of dissolution or 
326.13 	legal separation; or
326.14 	(7) restitution payments received by eligible individuals and excludable interest as 
326.15 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
326.16 	Public Law 107-16.
326.17 	(c) The sum of the following amounts may be subtracted from income:
326.18 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
326.19 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
326.20 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
326.21 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
326.22 	(5) for the claimant's fifth dependent, the exemption amount; and
326.23 	(6) if the claimant or claimant's spouse was disabled had a disability or attained the age 
326.24 	of 65 on or before December 31 of the year for which the taxes were levied or rent paid, 
326.25 	the exemption amount.
326.26 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
326.27 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
326.28 	the income is reported; "retirement base amount" means the deductible amount for the 
326.29 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
326.30 	Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue 
326.31 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
327.1 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
327.2 	408, 408A, and 457 of the Internal Revenue Code.

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

327.4 	Sec. 14. Minnesota Statutes 2018, section 290A.03, subdivision 4, is amended to read:
327.5 		Subd. 4.Household. "Household" means a claimant and an individual related to the 
327.6 	claimant as husband or wife the claimant's spouse who are domiciled in the same homestead.

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

327.8 	Sec. 15. Minnesota Statutes 2018, section 290A.03, subdivision 8, is amended to read:
327.9 		Subd. 8.Claimant. (a) "Claimant" means a person, other than a dependent, as defined 
327.10 	under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) 
327.11 	of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a 
327.12 	resident of this state as provided in chapter 290 during the calendar year for which the claim 
327.13 	for relief was filed.
327.14 	(b) In the case of a claim relating to rent constituting property taxes, the claimant shall 
327.15 	have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu 
327.16 	of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem 
327.17 	taxes, are payable at some time during the calendar year covered by the claim.
327.18 	(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility, 
327.19 	long-term residential facility, or a facility that accepts housing support payments whose 
327.20 	rent constituting property taxes is paid pursuant to the Supplemental Security Income 
327.21 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
327.22 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
327.23 	of the Social Security Act, or the housing support program under chapter 256I.
327.24 	If only a portion of the rent constituting property taxes is paid by these programs, the 
327.25 	resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant 
327.26 	to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as 
327.27 	defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income 
327.28 	from the above sources other than vendor payments under the medical assistance program 
327.29 	and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b), 
327.30 	plus vendor payments under the medical assistance program, to determine the allowable 
327.31 	refund pursuant to this chapter.
328.1 	(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home, 
328.2 	intermediate care facility, long-term residential facility, or facility for which the rent was 
328.3 	paid for the claimant by the housing support program for only a portion of the calendar year 
328.4 	covered by the claim, the claimant may compute rent constituting property taxes by 
328.5 	disregarding the rent constituting property taxes from the nursing home or facility and use 
328.6 	only that amount of rent constituting property taxes or property taxes payable relating to 
328.7 	that portion of the year when the claimant was not in the facility. The claimant's household 
328.8 	income is the income for the entire calendar year covered by the claim.
328.9 	(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota 
328.10 	resident, the income and rental reflected in this computation shall be for the period of 
328.11 	Minnesota residency only. Any rental expenses paid which may be reflected in arriving at 
328.12 	federal adjusted gross income cannot be utilized for this computation. When two individuals 
328.13 	of a household are able to meet the qualifications for a claimant, they may determine among 
328.14 	them as to who the claimant shall be. If they are unable to agree, the matter shall be referred 
328.15 	to the commissioner of revenue whose decision shall be final. If a homestead property owner 
328.16 	was a part-year Minnesota resident, the income reflected in the computation made pursuant 
328.17 	to section 290A.04 shall be for the entire calendar year, including income not assignable to 
328.18 	Minnesota.
328.19 	(f) If a homestead is occupied by two or more renters, who are not husband and wife
328.20 	married to each other, the rent shall be deemed to be paid equally by each, and separate 
328.21 	claims shall be filed by each. The income of each shall be each renter's household income 
328.22 	for purposes of computing the amount of credit to be allowed.

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

328.24 	Sec. 16. Minnesota Statutes 2018, section 290A.05, is amended to read:
328.25 	290A.05 COMBINED HOUSEHOLD INCOME.
328.26 	If a person occupies a homestead with another person or persons not related to the person 
328.27 	as husband and wife the person's spouse, excluding dependents, roomers or boarders on 
328.28 	contract, and has property tax payable with respect to the homestead, the household income 
328.29 	of the claimant or claimants for the purpose of computing the refund allowed by section 
328.30 	290A.04 shall include the total income received by the other persons residing in the 
328.31 	homestead. For purposes of this section, "dependent" includes a parent of the claimant or 
328.32 	spouse who lives in the claimant's homestead and does not have an ownership interest in 
328.33 	the homestead. If a person occupies a homestead with another person or persons not related
329.1 	to the person as husband and wife the person's spouse or as dependents, the property tax 
329.2 	payable or rent constituting property tax shall be reduced as follows.
329.3 	If the other person or persons are residing at the homestead under rental or lease 
329.4 	agreement, the amount of property tax payable or rent constituting property tax shall be that 
329.5 	portion not covered by the rental agreement.

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

329.7 	Sec. 17. Minnesota Statutes 2018, section 290A.08, is amended to read:
329.8 	290A.08 ONE CLAIMANT PER HOUSEHOLD.
329.9 	Only one claimant per household per year is entitled to relief under this chapter. Payment 
329.10 	of the claim for relief may be made payable to the husband and wife spouses as one claimant. 
329.11 	The commissioner, upon written request, may issue separate checks, to the husband and 
329.12 	wife spouses for one-half of the relief provided the original check has not been issued or 
329.13 	has been returned. Individuals related as husband and wife spouses who were married during 
329.14 	the year may elect to file a joint claim which shall include each spouse's income, rent 
329.15 	constituting property taxes, and property taxes payable. Husbands and wives Spouses who 
329.16 	were married for the entire year and were domiciled in the same household for the entire 
329.17 	year must file a joint claim. The maximum dollar amount allowable for a joint claim shall 
329.18 	not exceed the amount that one person could receive.

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

329.20 	Sec. 18. Minnesota Statutes 2018, section 290A.09, is amended to read:
329.21 	290A.09 PROOF OF CLAIM.
329.22 	Every claimant shall supply to the commissioner of revenue, in support of the claim, 
329.23 	proof of eligibility under this chapter, including but not limited to amount of rent paid or 
329.24 	property taxes accrued, name and address of owner or managing agent of property rented, 
329.25 	changes in homestead, household membership, household income, size and nature of property 
329.26 	claimed as a homestead.
329.27 	Disabled Persons with a disability filing claims shall submit proof of disability in the 
329.28 	form and manner as the commissioner may prescribe. The department may require 
329.29 	examination and certification by the claimant's physician or by a physician designated by 
329.30 	the commissioner. The cost of any examination shall be borne by the claimant, unless the 
329.31 	examination proves the disability, in which case the cost of the examination shall be borne 
329.32 	by the commissioner.
330.1 	A determination of disability of a claimant by the Social Security Administration under 
330.2 	Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

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

330.4 	Sec. 19. Minnesota Statutes 2018, section 297A.61, subdivision 18, is amended to read:
330.5 		Subd. 18.Disabled Person with a disability. "Disabled Person with a disability" means 
330.6 	an individual who has a permanent and total disability as defined in section 273.13, 
330.7 	subdivision 22.

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

330.9 	Sec. 20. Minnesota Statutes 2018, section 297A.67, subdivision 6, is amended to read:
330.10 		Subd. 6.Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 
330.11 	and served exclusively to individuals who are 60 years of age or over and their spouses or 
330.12 	to disabled persons with a disability and their spouses by governmental agencies, nonprofit 
330.13 	organizations, or churches, or pursuant to any program funded in whole or in part through 
330.14 	United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or 
330.15 	served, are exempt. Taxable food sold through vending machines is not exempt.
330.16 	(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 
330.17 	who are less than 14 years of age or disabled children with a disability who are less than 
330.18 	16 years of age and who are attending a child care or early childhood education program, 
330.19 	are exempt if they are:
330.20 	(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 
330.21 	subdivision 4, and that primarily serves families with income of 250 percent or less of 
330.22 	federal poverty guidelines; and
330.23 	(2) prepared at the site of the child care facility.

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

330.25 	Sec. 21. Minnesota Statutes 2018, section 297A.67, subdivision 12, is amended to read:
330.26 		Subd. 12.Parts and accessories used to make a motor vehicle disabled accessible
330.27 	to a person with a disability. Parts, accessories, and labor charges that are used solely to 
330.28 	modify a motor vehicle to make it disabled accessible to persons with a disability are exempt.

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

331.1 	Sec. 22. Minnesota Statutes 2018, section 297A.70, subdivision 3, is amended to read:
331.2 		Subd. 3.Sales of certain goods and services to government. (a) The following sales 
331.3 	to or use by the specified governments and political subdivisions of the state are exempt:
331.4 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire 
331.5 	apparatus to a political subdivision;
331.6 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
331.7 	municipal solid waste management services at a solid waste disposal facility as defined in 
331.8 	section 115A.03, subdivision 10;
331.9 	(3) chore and homemaking services to a political subdivision of the state to be provided 
331.10 	to elderly individuals or disabled individuals persons with a disability;
331.11 	(4) telephone services to the Office of MN.IT Services that are used to provide 
331.12 	telecommunications services through the MN.IT services revolving fund;
331.13 	(5) firefighter personal protective equipment as defined in paragraph (b), if purchased 
331.14 	or authorized by and for the use of an organized fire department, fire protection district, or 
331.15 	fire company regularly charged with the responsibility of providing fire protection to the 
331.16 	state or a political subdivision;
331.17 	(6) bullet-resistant body armor that provides the wearer with ballistic and trauma 
331.18 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
331.19 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
331.20 	(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles 
331.21 	are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt 
331.22 	from taxation under section 473.448, or exempt from the motor vehicle sales tax under 
331.23 	section 297B.03, clause (12);
331.24 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
331.25 	treatment facilities of political subdivisions, and materials incidental to installation of that 
331.26 	equipment;
331.27 	(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads, 
331.28 	trails, or firebreaks when purchased by an agency of the state or a political subdivision of 
331.29 	the state;
331.30 	(10) purchases by the Metropolitan Council or the Department of Transportation of 
331.31 	vehicles and repair parts to equip operations provided for in section 174.90, including, but 
331.32 	not limited to, the Northstar Corridor Rail project; and
332.1 	(11) purchases of water used directly in providing public safety services by an organized 
332.2 	fire department, fire protection district, or fire company regularly charged with the 
332.3 	responsibility of providing fire protection to the state or a political subdivision.
332.4 	(b) For purposes of this subdivision, "firefighters personal protective equipment" means 
332.5 	helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including 
332.6 	pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls; 
332.7 	goggles; self-contained breathing apparatus; canister filter masks; personal alert safety 
332.8 	systems; spanner belts; optical or thermal imaging search devices; and all safety equipment 
332.9 	required by the Occupational Safety and Health Administration.
332.10 	(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed 
332.11 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
332.12 	in the manner provided in section 297A.75.

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

332.14 	Sec. 23. Minnesota Statutes 2018, section 297A.70, subdivision 4, is amended to read:
332.15 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), 
332.16 	to the following "nonprofit organizations" are exempt:
332.17 	(1) a corporation, society, association, foundation, or institution organized and operated 
332.18 	exclusively for charitable, religious, or educational purposes if the item purchased is used 
332.19 	in the performance of charitable, religious, or educational functions;
332.20 	(2) any senior citizen group or association of groups that:
332.21 	(i) in general limits membership to persons who are either age 55 or older, or physically 
332.22 	disabled persons with a physical disability;
332.23 	(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit 
332.24 	purposes, not including housing, no part of the net earnings of which inures to the benefit 
332.25 	of any private shareholders; and
332.26 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
332.27 	(3) an organization that qualifies for an exemption for memberships under subdivision 
332.28 	12 if the item is purchased and used in the performance of the organization's mission.
332.29 	For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery 
332.30 	owned by a religious organization.
332.31 	(b) This exemption does not apply to the following sales:
333.1 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
333.2 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
333.3 	maximum price covering both labor and materials for use in the construction, alteration, or 
333.4 	repair of a building or facility;
333.5 	(2) construction materials purchased by tax-exempt entities or their contractors to be 
333.6 	used in constructing buildings or facilities that will not be used principally by the tax-exempt 
333.7 	entities;
333.8 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
333.9 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
333.10 	subdivision 2, except wine purchased by an established religious organization for sacramental 
333.11 	purposes or as allowed under subdivision 9a; and
333.12 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as 
333.13 	provided in paragraph (c).
333.14 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, 
333.15 	subdivision 11, only if the vehicle is:
333.16 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
333.17 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
333.18 	for carrying more than nine persons including the driver; and
333.19 	(2) intended to be used primarily to transport tangible personal property or individuals, 
333.20 	other than employees, to whom the organization provides service in performing its charitable, 
333.21 	religious, or educational purpose.
333.22 	(d) A limited liability company also qualifies for exemption under this subdivision if 
333.23 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
333.24 	purchased qualify for the exemption.

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

333.26 	Sec. 24. Minnesota Statutes 2018, section 297A.70, subdivision 16, is amended to read:
333.27 		Subd. 16.Camp fees. Fees to camps or other recreation facilities are exempt for:
333.28 	(1) services primarily for children, adults accompanying children, or persons with 
333.29 	disabilities a disability; or
333.30 	(2) educational or religious activities;
334.1 	and if the camp or facilities are owned and operated by an exempt organization under section 
334.2 	501(c)(3) of the Internal Revenue Code.

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

334.4 	Sec. 25. Minnesota Statutes 2018, section 297A.71, subdivision 22, is amended to read:
334.5 		Subd. 22.Materials used to make residential property disabled accessible to persons 
334.6 	with a disability. Building materials and equipment sold to, or stored, used, or consumed 
334.7 	by, a nonprofit organization are exempt if:
334.8 	(1) the materials and equipment are used or incorporated into modifying an existing 
334.9 	residential structure to make it disabled accessible to persons with a disability; and
334.10 	(2) the materials and equipment used in the modification would qualify for an exemption 
334.11 	under either subdivision 11 or 12 if made by the current owner of the residence.
334.12 	For purposes of this subdivision, "nonprofit organization" means any nonprofit 
334.13 	corporation, society, association, foundation, or institution organized and operated exclusively 
334.14 	for charitable, religious, educational, or civic purposes; or a veterans' group exempt from 
334.15 	federal taxation under section 501(c), clause (19), of the Internal Revenue Code.

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

334.17 	Sec. 26. Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
334.18 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
334.19 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
334.20 	section 297A.62, subdivision 1, applied. The exempt items include:
334.21 	(1) building materials for an agricultural processing facility exempt under section 
334.22 	297A.71, subdivision 13;
334.23 	(2) building materials for mineral production facilities exempt under section 297A.71, 
334.24 	subdivision 14;
334.25 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
334.26 	(4) building materials used in a residence for disabled veterans with a disability exempt 
334.27 	under section 297A.71, subdivision 11;
334.28 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
334.29 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
334.30 	subdivision 23;
335.1 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
335.2 	section 297A.71, subdivision 35;
335.3 	(8) equipment and materials used for the generation, transmission, and distribution of 
335.4 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
335.5 	37;
335.6 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
335.7 	(a), clause (10);
335.8 	(10) materials, supplies, and equipment for construction or improvement of projects and 
335.9 	facilities under section 297A.71, subdivision 40;
335.10 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
335.11 	of:
335.12 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
335.13 	section 297A.71, subdivision 42;
335.14 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
335.15 	45;
335.16 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
335.17 	297A.71, subdivision 46; and
335.18 	(iv) an industrial measurement manufacturing and controls facility exempt under 
335.19 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
335.20 	(12) enterprise information technology equipment and computer software for use in a 
335.21 	qualified data center exempt under section 297A.68, subdivision 42;
335.22 	(13) materials, supplies, and equipment for qualifying capital projects under section 
335.23 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
335.24 	(14) items purchased for use in providing critical access dental services exempt under 
335.25 	section 297A.70, subdivision 7, paragraph (c);
335.26 	(15) items and services purchased under a business subsidy agreement for use or 
335.27 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
335.28 	44;
335.29 	(16) building materials, equipment, and supplies for constructing or replacing real 
335.30 	property exempt under section 297A.71, subdivision 49; and
336.1 	(17) building materials, equipment, and supplies for constructing or replacing real 
336.2 	property exempt under section 297A.71, subdivision 50, paragraph (b).

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

336.4 	Sec. 27. Minnesota Statutes 2018, section 297B.01, subdivision 14, is amended to read:
336.5 		Subd. 14.Purchase price.  (a) "Purchase price" means the total consideration valued in 
336.6 	money for a sale, whether paid in money or otherwise. The purchase price excludes the 
336.7 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is 
336.8 	taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter, 
336.9 	the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted 
336.10 	from the total selling price to establish the purchase price of the vehicle being sold and the 
336.11 	trade-in allowance allowed by the seller shall constitute the purchase price of the motor 
336.12 	vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle 
336.13 	is acquired by gift or by any other transfer for a nominal or no monetary consideration shall 
336.14 	also include the average value of similar motor vehicles, established by standards and guides 
336.15 	as determined by the motor vehicle registrar. The purchase price in those instances where 
336.16 	a motor vehicle is manufactured by a person who registers it under the laws of this state 
336.17 	shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean 
336.18 	the amount expended for materials, labor, and other properly allocable costs of manufacture, 
336.19 	except that in the absence of actual expenditures for the manufacture of a part or all of the 
336.20 	motor vehicle, manufactured costs shall mean the reasonable value of the completed motor 
336.21 	vehicle.
336.22 	(b) The term "purchase price" shall not include the portion of the value of a motor vehicle 
336.23 	due solely to modifications necessary to make the motor vehicle disability accessible to 
336.24 	persons with a disability.
336.25 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by way 
336.26 	of gift between a husband and wife spouses or parent and child, or to a nonprofit organization 
336.27 	as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer 
336.28 	of a motor vehicle by a guardian to a ward when there is no monetary consideration and the 
336.29 	title to such vehicle was registered in the name of the guardian, as guardian, only because 
336.30 	the ward was a minor.
336.31 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift 
336.32 	between a foster parent and foster child. For purposes of this subdivision, a foster relationship 
336.33 	exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as 
337.1 	a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the 
337.2 	county verifies that the child was a state ward or in permanent foster care.
337.3 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
337.4 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
337.5 	the consumer.

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

337.7 	Sec. 28. Minnesota Statutes 2018, section 297B.01, subdivision 16, is amended to read:
337.8 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," 
337.9 	"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor 
337.10 	vehicle, whether absolutely or conditionally, for a consideration in money or by exchange 
337.11 	or barter for any purpose other than resale in the regular course of business.
337.12 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or 
337.13 	by holding it in an effort to so lease it, and which is put to no other use by the owner other 
337.14 	than resale after such lease or effort to lease, shall be considered property purchased for 
337.15 	resale.
337.16 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle by 
337.17 	other means, for or without consideration, except that these terms shall not include:
337.18 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
337.19 	transfer-on-death of title by, a decedent who owned it;
337.20 	(2) the transfer of a motor vehicle which was previously licensed in the names of two 
337.21 	or more joint tenants and subsequently transferred without monetary consideration to one 
337.22 	or more of the joint tenants;
337.23 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
337.24 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
337.25 	no monetary or other consideration or expectation of consideration and the parties to the 
337.26 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
337.27 	(4) the transfer of a motor vehicle by gift between:
337.28 	(i) spouses;
337.29 	(ii) parents and a child; or
337.30 	(iii) grandparents and a grandchild;
338.1 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
338.2 	spouses in a divorce proceeding; or
338.3 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from 
338.4 	federal income taxation under section 501(c)(3) of the Internal Revenue Code when the 
338.5 	motor vehicle will be used exclusively for religious, charitable, or educational purposes.

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

338.7 	Sec. 29. Minnesota Statutes 2018, section 298.018, subdivision 1, is amended to read:
338.8 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
338.9 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
338.10 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
338.11 	(1) five percent to the city or town within which the minerals or energy resources are 
338.12 	mined or extracted, or within which the concentrate was produced. If the mining and 
338.13 	concentration, or different steps in either process, are carried on in more than one taxing 
338.14 	district, the commissioner shall apportion equitably the proceeds among the cities and towns 
338.15 	by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 
338.16 	and the remainder to the concentrating plant and to the processes of concentration, and with 
338.17 	respect to each thereof giving due consideration to the relative extent of the respective 
338.18 	operations performed in each taxing district;
338.19 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
338.20 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
338.21 	(3) ten percent to the school district within which the minerals or energy resources are 
338.22 	mined or extracted, or within which the concentrate was produced. If the mining and 
338.23 	concentration, or different steps in either process, are carried on in more than one school 
338.24 	district, distribution among the school districts must be based on the apportionment formula 
338.25 	prescribed in clause (1);
338.26 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
338.27 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
338.28 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
338.29 	district indexes as follows: for each school district, its pupil units determined under section 
338.30 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
338.31 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
338.32 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
338.33 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
339.1 	portion of the distribution which its index bears to the sum of the indices for all school 
339.2 	districts that receive the distributions;
339.3 	(5) 20 percent to the county within which the minerals or energy resources are mined 
339.4 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
339.5 	or different steps in either process, are carried on in more than one county, distribution 
339.6 	among the counties must be based on the apportionment formula prescribed in clause (1), 
339.7 	provided that any county receiving distributions under this clause shall pay one percent of 
339.8 	its proceeds to the Range Association of Municipalities and Schools;
339.9 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 
339.10 	as provided in sections 273.134 to 273.136;
339.11 	(7) five percent to the commissioner of Iron Range resources and rehabilitation for the 
339.12 	purposes of section 298.22;
339.13 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
339.14 	(9) seven percent to the taconite environmental protection fund.
339.15 	The proceeds of the tax shall be distributed on July 15 each year.

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

339.17 	Sec. 30. Minnesota Statutes 2018, section 298.018, is amended by adding a subdivision 
339.18 	to read:
339.19 		Subd. 1a.Distribution date. The proceeds of the tax allocated under subdivision 1 shall 
339.20 	be distributed on December 15 each year. Any payment of proceeds received after December 
339.21 	15 shall be distributed on the next net proceeds tax distribution date.

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

339.23 	Sec. 31. Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
339.24 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
339.25 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
339.26 	as provided by this section among: (1) the municipalities comprising a taconite assistance 
339.27 	area under section 273.1341; (2) a township that contains a state park consisting primarily 
339.28 	of an underground iron ore mine; and (3) a city located within five miles of that state park, 
339.29 	each being referred to in this section as a qualifying municipality.
339.30 	(b) The amount deposited in the state general fund as provided in section 298.018, 
339.31 	subdivision 1, must be distributed in the same manner as provided under paragraph (a) 
340.1 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
340.2 	dates provided under section 298.018, subdivision 1a.

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

340.4 	Sec. 32. Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date, 
340.5 	is amended to read:

340.6 	EFFECTIVE DATE. This section is effective for (1) petitions and appeals filed after 
340.7 	June 30, 2017, for which notices of entry of order are mailed before July 1, 2019, and (2) 
340.8 	notices of entry of order mailed after June 30, 2019.

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

APPENDIX 

Repealed Minnesota Statutes: UEH2125-1 

37.31 ISSUANCE OF BONDS.Subd. 8.Expiration. 
The authority to issue bonds, other than bonds to refund outstanding bonds, under this section expires July 1, 2025. 

69.011 QUALIFYING FOR STATE AID.Subdivision 1.Definitions. 
Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them: 

(a) "Commissioner" means the commissioner of revenue. 

(b) "Municipality" means: 

(1) a home rule charter or statutory city; 

(2) an organized town; 

(3) a park district subject to chapter 398; 

(4) the University of Minnesota; 

(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation; 

(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93; 

(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and 

(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B. 

(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends. 

(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association. 

(e) "Estimated market value" means latest available estimated market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization. 

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends. 

(g) "Peace officer" means any person: 

(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week; 

(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, paragraph (b); 

(3) who is sworn to enforce the general criminal laws of the state and local ordinances; 

(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and 

(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund. 

(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service. 

(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4). 

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means: 

(1) for the police state aid program: 

(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body; 

(ii) in a park district, the secretary of the board of park district commissioners; 

(iii) in the case of the University of Minnesota, the official designated by the Board of Regents; 

(iv) for the Metropolitan Airports Commission, the person designated by the commission; 

(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner; 

(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and 

(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity. 

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G. 

Subd. 2.Qualification for fire or police state aid. 
(a) Unless retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15 annually, in conjunction with the financial report required pursuant to section 69.051, the clerk of each municipality having a duly organized fire department as provided in subdivision 4, or the secretary of each independent nonprofit firefighting corporation having a subsidiary incorporated firefighters' relief association, whichever is applicable, and the fire chief, shall jointly certify the existence of the municipal fire department or of the independent nonprofit firefighting corporation, whichever is applicable, which meets the minimum qualification requirements set forth in this subdivision, and the fire personnel and equipment of the municipal fire department or the independent nonprofit firefighting corporation as of the preceding December 31. 

(b) Where retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15, annually, the executive director of the Public Employees Retirement Association shall certify the existence of that coverage for each municipality and the municipal clerk or independent nonprofit firefighting corporation secretary, whichever applies, and the applicable fire chief shall certify the fire personnel and fire department equipment as of the preceding December 31. 

(c) Except as provided in subdivision 2b, on or before March 15 annually, in order to qualify to receive police state aid, the clerk of each municipality and the auditor of each county employing one or more peace officers as defined in subdivision 1, paragraph (g), shall certify the number of such peace officers to the commissioner on forms prescribed by the commissioner. Credit for officers employed less than a full year must be apportioned. Each full month of employment of a qualifying officer during the calendar year entitles the employing municipality or county to credit for 1/12 of the payment for employment of a peace officer for the entire year. For purposes of sections 69.011 to 69.051, employment of a peace officer commences when the peace officer is entered on the payroll of the respective municipal police department or county sheriff's department. No peace officer may be included in the certification of the number of peace officers by more than one employing unit for the same month. 

(d) A certification made under this subdivision must be filed with the commissioner, must be made on a form prescribed by the commissioner, and must include any other facts that the commissioner requires. 

Subd. 2b.Departments of Natural Resources and Public Safety. 
(a) On or before each March 15, the commissioner of natural resources shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Enforcement Division and the commissioner of public safety shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Bureau of Criminal Apprehension, the Gambling Enforcement Division, and the State Patrol Division. 

(b) The certification must be on a form prescribed by the commissioner. Peace officers certified under this paragraph must be included in the total certifications under subdivision 2. 

Subd. 2c.Ineligibility of certain police officers. 
A police officer employed by the University of Minnesota who is required by the Board of Regents to be a member of the University of Minnesota faculty retirement plan is not eligible to be included in any police state-aid certification under this section. 

Subd. 3.Failure to file certificate deemed waiver. 
(a) If a certification required by this section is not filed with the commissioner by the due date prescribed by this section, the commissioner shall notify the county, the municipality, or the nonprofit firefighting corporation that a portion or all of its current year aid will be forfeited if the certification is not received within ten days. 

(b) The amount of aid forfeited is equal to the amount of state police aid or state fire aid determined for the county, the municipality, or the nonprofit firefighting corporation for the current year, multiplied by five percent for each week or fraction of a week that this certification is late. The penalty must be computed beginning ten days after the postmark date of the commissioner's notification as required under this subdivision. All forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the certificate form may not be used as a defense for a failure to file. 

Subd. 4.Qualification for fire state aid. 
(a) A municipality in this state qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and if it meets the specific requirements of paragraph (c). 

(b) Minimum qualifications for fire state aid include the following: 

(1) having for more than one year an organized fire department and officially established by the governing body of the municipality or an independent nonprofit firefighting corporation created under the nonprofit corporation act of this state and operating exclusively for firefighting purposes and providing retirement and relief benefits to its members; and 

(2) having a separate subsidiary incorporated firefighter's relief association providing retirement and relief benefits, or participating in the voluntary statewide lump-sum volunteer firefighter retirement plan or, if a paid fire department, having retirement coverage by the public employees police and fire retirement plan. 

(c) Minimum requirements for fire state aid also include the following or their equivalent as determined by the state fire marshal: 

(1) having ten paid or volunteer firefighters including a fire chief and assistant fire chief; 

(2) having regular scheduled meetings and frequent drills including instructions in firefighting tactics and in the use, care, and operation of all fire apparatus and equipment; 

(3) having a motorized fire truck equipped with a motorized pump, 250 gallon or larger water tank, 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, axes, lanterns, fire coats, helmets, and boots; 

(4) having apparatus suitably housed in a building of good construction with facilities for care of hose and equipment; 

(5) having a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; 

(6) if response is to be provided outside the corporate limits of the municipality wherein the fire department is located, having another piece of motorized apparatus to make the response; and 

(7) meeting other requirements that the commissioner establishes by rule. 

69.021 REPORTING PREMIUMS; CALCULATION OF AID.Subdivision 1.Minnesota Firetown Premium Report and Minnesota Aid to Police Premium Report. 
The commissioner shall, at the time of mailing tax forms, send blank copies of the Minnesota Firetown Premium Report and when applicable the Minnesota Aid to Police Premium Report to each insurer, including township and farmers mutual insurance companies licensed to write insurance as described in section 69.011, subdivision 1, clauses (c) and (f) in this state. These reports must contain space for the insurers name, address, gross premiums less return premiums, dividends, net premiums, certification and other facts that the commissioner may require. 

Subd. 2.Report of premiums. 
(a) Each insurer, including township and farmers mutual insurers where applicable, shall return to the commissioner the reports described in subdivision 1 certified by its secretary and president or chief financial officer. 

(b) The Minnesota Firetown Premium Report must contain a true and accurate statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and extended coverage insurance of all domestic mutual insurers and the total premiums for all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all other insurers, less return premiums and dividends received by them on that business written or done during the preceding calendar year upon property located within the state or brought into the state for temporary use. The fire and extended coverage portion of multiperil and multiple peril package premiums and all other combination premiums must be determined by applying percentages determined by the commissioner or by rating bureaus recognized by the commissioner. 

(c) The Minnesota Aid to Police Premium Report must contain a true and accurate statement of the total premiums, less return premiums and dividends, on all direct business received by such insurer in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for perils described in section 69.011, subdivision 1, clause (f). 

Subd. 3.Penalty for fraudulent, incorrect, incomplete returns and late filing of report. 
(a) When it appears to the commissioner that any insurer has made an incomplete or inaccurate report, the commissioner shall return the report and demand that a complete and accurate report be filed. If the insurer fails to file a report on or before March 1, annually, the insurer is liable and shall pay $25 for each seven days, or fraction thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a corrected report within 30 days after demand, the insurer is liable for the penalties provided in paragraph (b) or (c) for knowingly filing an inaccurate or false report. 

(b) Any insurer which knowingly makes and files an inaccurate or false report is liable to a fine in an amount of not less than $25 nor more than $1,000, as determined by the commissioner, and additionally the commissioner of commerce may revoke the insurer's certificate of authority. 

(c) Any person whose duty it is to make the report who fails or refuses to make it within 30 days after notification by the commissioner shall be fined an amount of not more than $1,000. 

(d) Failure of the insurer to receive a reporting form does not excuse the insurer from filing the report. 

Subd. 4.Determination of qualified state aid recipients; certification to commissioner of management and budget. 
(a) The commissioner shall determine which municipalities and independent nonprofit firefighting corporations are qualified to receive fire state aid directly or are qualified to receive the benefit of fire state aid paid to the voluntary statewide lump-sum volunteer firefighter retirement plan and which municipalities and counties are qualified to receive police state aid. 

(b) The commissioner shall determine qualification for state aid upon receipt of: 

(1) the fire department personnel and equipment certification or the police department and qualified peace officers certificate, whichever applies, required under section 69.011; 

(2) the financial compliance report required under section 6.495, subdivision 3, if applicable; and 

(3) any other relevant information which comes to the attention of the commissioner. 

(c) Upon completion of the determination, on or before October 1, the commissioner shall calculate the amount of: 

(1) the police state aid which each county or municipality is to receive under subdivisions 5, 6, 7a, and 10; and 

(2) the fire state aid which each municipality or nonprofit firefighting corporation is to receive under subdivisions 5 and 7. 

(d) The commissioner shall certify to the commissioner of management and budget the name of each county or municipality, and the amount of state aid which each county or municipality is to receive, in the case of police state aid. The commissioner shall certify to the commissioner of management and budget the name of each municipality or independent nonprofit firefighting corporation and the amount of state aid which each municipality or independent nonprofit firefighting corporation is to receive directly or the amount of state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is qualified to receive on behalf of the municipality or corporation, in the case of fire state aid. 

Subd. 5.Calculation of state aid. 
(a) The amount of fire state aid available for apportionment, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount must be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations. 

The total amount for apportionment in respect to fire state aid must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts: 

(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations; and 

(2) one percent of the premiums reported by township mutual insurance companies and mutual property and casualty companies with total assets of $5,000,000 or less. 

(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. The total amount for apportionment in respect to the police state aid program must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. 

(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison. 

(d) In addition to the amount for apportionment of police state aid under paragraph (b), each year $100,000 must be apportioned for police state aid. An amount sufficient to pay this increase is annually appropriated from the general fund. 

Subd. 7.Apportionment of fire state aid to municipalities and relief associations. 
(a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association qualified under section 69.011, subdivision 4. 

(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and, if applicable, a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must be apportioned the larger fire state aid amount. 

(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without the inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the estimated market value of each fire town, including (1) the estimated market value of tax-exempt property and (2) the estimated market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the estimated market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the estimated market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and estimated market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the percent of the estimated market value of each shared service area. The agreement must be in writing and must be filed with the commissioner. 

(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination. 

(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund. 

(f) The commissioner may make rules to permit the administration of the provisions of this section. 

(g) Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments. 

Subd. 7a.Apportionment of police state aid. 
(a) Subject to the reduction provided for under subdivision 10, the commissioner shall apportion the police state aid to each municipality, to each county, and to the Departments of Natural Resources and Public Safety in the following manner: 

(1) for all municipalities maintaining police departments, counties, the Department of Natural Resources, and the Department of Public Safety, the police state aid must be distributed in proportion to the relationship that the total number of peace officers, as determined under section 69.011, subdivision 1, paragraph (g), and subdivision 2, paragraph (b), employed by that employing unit for 12 calendar months and the proportional or fractional number who were employed less than 12 months bears to the total number of peace officers employed by all municipalities, counties, the Departments of Natural Resources and Public Safety, subject to any reduction under subdivision 10; 

(2) for each municipality which contracts with the county for police service, a proportionate amount of the state aid distributed to the county based on the full-time equivalent number of peace officers providing contract service to that municipality must be credited against the municipality's contract obligation; and 

(3) for each municipality which contracts with another municipality for police service, a proportionate amount of the state aid distributed to the municipality providing contract service based on the full-time equivalent number of peace officers providing contract service to that municipality on a full-time equivalent basis must be credited against the contract obligation of the municipality receiving contract service. 

(b) Any necessary additional adjustments must be made to subsequent police state aid apportionments. 

Subd. 8.Population and estimated market value. 
(a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures may be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration. 

(b) In calculations relating to fire state aid requiring the use of estimated market value property figures, only the latest available estimated market value property figures may be used. 

Subd. 9.Appeal. 
(a) In the event that a municipality, a county, a fire relief association, the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan, feels itself to be aggrieved, it may request the commissioner to review and adjust the apportionment of funds within the county in the case of police state aid, or within the state in the case of fire state aid. 

(b) The decision of the commissioner is subject to appeal, review, and adjustment by the district court in the county in which the applicable municipality or fire department is located or by the Ramsey County District Court with respect to the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan. 

Subd. 10.Reduction in police state aid apportionment. 
(a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by the amount of any excess police state aid. 

(b) "Excess police state aid" is: 

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; 

(2) for the Metropolitan Airports Commission, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; and 

(3) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, paragraph (g), as certified by the executive director of the Minnesota State Retirement System. 

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan under paragraph (b), clause (1), is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivisions 1, 1a, and 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 1a, and 2, but not to exceed for those firefighters the applicable following employer calendar year amount: 

		Municipality	Maximum Amount		
		Albert Lea	$54,157.01		
		Anoka	10,399.31		
		Apple Valley	5,442.44		
		Austin	49,864.73		
		Bemidji	27,671.38		
		Brooklyn Center	6,605.92		
		Brooklyn Park	24,002.26		
		Burnsville	15,956.00		
		Cloquet	4,260.49		
		Coon Rapids	39,920.00		
		Cottage Grove	8,588.48		
		Crystal	5,855.00		
		East Grand Forks	51,009.88		
		Edina	32,251.00		
		Elk River	5,216.55		
		Ely	13,584.16		
		Eveleth	16,288.27		
		Fergus Falls	6,742.00		
		Fridley	33,420.64		
		Golden Valley	11,744.61		
		Hastings	16,561.00		
		Hopkins	4,324.23		
		International Falls	14,400.69		
		Lakeville	782.35		
		Lino Lakes	5,324.00		
		Little Falls	7,889.41		
		Maple Grove	6,707.54		
		Maplewood	8,476.69		
		Minnetonka	10,403.00		
		Montevideo	1,307.66		
		Moorhead	68,069.26		
		New Hope	6,739.72		
		North St. Paul	4,241.14		
		Northfield	770.63		
		Owatonna	37,292.67		
		Plymouth	6,754.71		
		Red Wing	3,504.01		
		Richfield	53,757.96		
		Rosemount	1,712.55		
		Roseville	9,854.51		
		St. Anthony	33,055.00		
		St. Louis Park	53,643.11		
		Thief River Falls	28,365.04		
		Virginia	31,164.46		
		Waseca	11,135.17		
		West St. Paul	15,707.20		
		White Bear Lake	6,521.04		
		Woodbury	3,613.00		
		any other municipality	0.00		

(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11. 

Subd. 11.Excess police state-aid holding account. 
(a) The excess police state-aid holding account is established in the general fund. The excess police state-aid holding account must be administered by the commissioner. 

(b) Excess police state aid determined according to subdivision 10, must be deposited annually in the excess police state-aid holding account. 

(c) From the balance in the excess police state-aid holding account, $900,000 must be canceled annually to the general fund. 

(d) On October 1 of each year, one-half of the balance of the excess police state-aid holding account remaining after the deduction under paragraph (c) is appropriated for additional amortization aid under section 423A.02, subdivision 1b. 

(e) Annually, the remaining balance in the excess police state-aid holding account, after the deductions under paragraphs (c) and (d) cancels to the general fund. 

69.022 VOLUNTEER RETENTION STIPEND AID PILOT.Subdivision 1.Definitions. 
(a) For purposes of this section, the following terms have the meanings given them. 

(b) "Commissioner," unless otherwise specified, means the commissioner of public safety. 

(c) "Emergency medical services provider" means a licensee as defined under section 144E.001, subdivision 8. 

(d) "Independent nonprofit firefighting corporation" has the same meaning as used in chapter 424A. 

(e) "Municipality" has the meaning given in section 69.011, but only if the municipality uses one or more qualified volunteers to provide service. 

(f) "Qualified entity" means an emergency medical services provider, independent nonprofit firefighting corporation, or municipality. 

(g) "Qualified volunteer" means one of the following types of volunteers who has provided service, for the entire prior calendar year, to one or more qualified entities: 

(1) a volunteer firefighter as defined in section 299N.03, subdivision 7; 

(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or 

(3) an emergency medical responder as defined in section 144E.001, subdivision 6, who provides emergency medical services as a volunteer. 

(h) "Pilot area" means the following groups of counties: 

(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, Houston, and Watonwan; 

(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, Redwood, and Renville; 

(3) central Minnesota, consisting of the counties of Morrison and Todd; and 

(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, and Mahnomen. 

Subd. 2.Certification. 
By June 1 of the calendar year following the year in which the qualified volunteer provided service, the commissioner shall certify to the commissioner of revenue each qualified volunteer's name and the qualified entity for which the qualified volunteer provided service, but the commissioner must remove duplicate listings of qualified volunteers who provided service to more than one qualified entity so that each qualified volunteer is listed only once. The commissioner shall also certify to the commissioner of revenue the total amount of aid to be paid to each qualified entity under subdivision 3. For qualified entities that are not municipalities, the commissioner must indicate the municipality to which the aid is to be paid, as designated by the qualified entity. 

Subd. 3.Aid payment and calculation. 
The commissioner of revenue shall pay aid to qualified entities located in the pilot area to provide funds for the qualified entities to pay annual volunteer retention stipends to qualified volunteers who provide services to the qualified entities. A qualified entity is located in the pilot area if it is a municipality located in whole or in part in the pilot area, or if it is an emergency medical services provider or independent nonprofit firefighting corporation with its main office located in the pilot area. The amount of the aid equals $500 multiplied by the number of qualified volunteers. For purposes of calculating this aid, each individual providing volunteer service, regardless of the different types of service provided, is one qualified volunteer. The commissioner of revenue shall pay the aid to qualified entities by July 15 of the calendar year following the year in which the qualified volunteer provided service. If a qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of the municipality designated by the qualified entity. The treasurer of the municipality shall, within 30 days of receipt of the aid, transmit the aid to the qualified entity. 

Subd. 4.Application. 
Each year each qualified entity in the pilot area may apply to the commissioner for aid under this section. The application must be made at the time and in the form prescribed by the commissioner and must provide sufficient information to permit the commissioner to determine the applicant's entitlement to aid under this section. 

Subd. 5.Payment of stipends. 
A qualified entity receiving state aid under this section must pay the aid as retention stipends of $500 to qualified volunteers no later than September 15 of the year in which the aid was received. 

Subd. 6.Report. 
No later than January 15, 2018, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over public safety and taxes in the senate and the house of representatives, in compliance with sections 3.195 and 3.197, on aid paid under this section. The report must include: 

(1) for each county in the pilot area, a listing of the qualified entities that received aid in each of the three years of the pilot; 

(2) the amount of aid paid to each qualified entity that received aid in each of the three years of the pilot; and 

(3) for each qualified entity that received aid, the number of qualified volunteers who were paid stipends in each of the three years of the pilot, and the number of qualified volunteers in the year preceding the pilot. 

The report must also provide information on the number of qualified volunteers providing service to qualified entities in comparison counties in each of the three years of the pilot and in the year preceding the pilot, and must summarize changes in the number of qualified volunteers during the year preceding the pilot and during the three years of the pilot both within the pilot area and in the comparison counties. For purposes of this subdivision, "comparison counties" means counties designated by the commissioner to include at least half of the counties that border each group of counties in the pilot area, as specified in subdivision 1. Qualified entities in comparison counties must provide information to the commissioner necessary to the report in this subdivision in the form and manner required by the commissioner. 

Subd. 7.Appropriation. 
An amount sufficient to pay the state aid under this section is appropriated from the general fund to the commissioner of revenue. 

Subd. 8.Sunset. 
This section expires for aid payable after calendar year 2017, except that the reporting requirement in subdivision 6 remains in effect through 2018. 

69.031 COMMISSIONER OF MANAGEMENT AND BUDGET; WARRANT, APPROPRIATION, PAYMENT AND ADMINISTRATION.Subdivision 1.Commissioner's warrant. 
(a) The commissioner of management and budget shall issue to the Public Employees Retirement Association on behalf of a municipality or independent nonprofit firefighting corporation that is a member of the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to the Department of Natural Resources, the Department of Public Safety, or the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of management and budget by the commissioner a warrant for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified for the applicable state aid recipient by the commissioner under section 69.021. 

(b) Fire state aid and police state aid is payable on October 1 annually. The amount of state aid due and not paid by October 1 accrues interest payable to the state aid recipient at the rate of one percent for each month or part of a month that the amount remains unpaid after October 1. 

Subd. 3.Appropriations. 
There is hereby appropriated annually from the state general fund to the commissioner of revenue amounts sufficient to make the police state aid payments and the fire state aid payments specified in this section and section 69.021. 

Subd. 5.Deposit of state aid. 
(a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually. If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality. If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed. If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3. 

(b) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8. 

(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3. 

(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3. 

(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid. The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid. Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds. For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund. 

69.041 SHORTFALL FROM GENERAL FUND.
(a) If the annual funding requirements of fire or police relief associations or consolidation accounts under sections 424A.091 to 424A.095, or Laws 2013, chapter 111, article 5, sections 31 to 42, exceed all applicable revenue sources of a given year, including the insurance premium taxes funding the applicable fire or police state aid as set under section 297I.05, subdivisions 2, 3, and 4, the shortfall in the annual funding requirements must be paid from the general fund to the extent appropriated by the legislature. 

(b) Nothing in this section may be deemed to relieve any municipality from its obligation to a relief association or consolidation account under law. 

69.051 FINANCIAL REPORT, BOND, EXAMINATION.Subdivision 1.Financial report and audit. 
(a) The board of the Bloomington Fire Department Relief Association and each volunteer firefighters relief association as defined in section 424A.001, subdivision 4, with assets of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous year, according to the applicable actuarial valuation or according to the financial report if no valuation is required, shall prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year, file the financial report, and submit financial statements. 

(b) The financial report must contain financial statements and disclosures which present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing and funding provisions of this chapter and any other applicable laws. The financial report must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters relief association which is directly associated with a municipal fire department; or 

(2) by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(c) The financial report must be retained in its office for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor after the close of the fiscal year. 

(d) Audited financial statements must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor within 180 days after the close of the fiscal year. The state auditor may accept this report in lieu of the report required in paragraph (c). 

Subd. 1a.Financial statement. 
(a) The board of each volunteer firefighter relief association, as defined in section 424A.001, subdivision 4, that is not required to file a financial report and audit under subdivision 1 must prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief association's special and general funds in the style and form prescribed by the state auditor. The detailed statement must show: 

(1) the sources and amounts of all money received; 

(2) all disbursements, accounts payable and accounts receivable; 

(3) the amount of money remaining in the treasury; 

(4) total assets, including a listing of all investments; 

(5) the accrued liabilities; and 

(6) all other items necessary to show accurately the revenues and expenditures and financial position of the relief association. 

(b) The detailed financial statement of the special and general funds required under paragraph (a) must be certified by a certified public accountant or by the state auditor in accordance with agreed-upon procedures and forms prescribed by the state auditor. The accountant must have at least five years of public accounting, auditing, or similar experience, and must not be an active, inactive, or retired member of the relief association or the fire department. 

(c) The detailed financial statement required under paragraph (a) must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality; or 

(2) where applicable, by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(d) The volunteer firefighters' relief association board must file the detailed financial statement required under paragraph (a) in the relief association office for public inspection and present it to the governing body of the municipality within 45 days after the close of the fiscal year, and must submit a copy of the certified detailed financial statement to the state auditor within 90 days of the close of the fiscal year. 

(e) A certified public accountant or auditor who performs the agreed-upon procedures under paragraph (b) is subject to the reporting requirements of section 6.67. 

Subd. 1b.Qualification. 
The state auditor may, upon a demonstration by a relief association of hardship or an inability to conform, extend the deadline for reports under subdivisions 1 or 1a, but not beyond November 30th following the due date. If the reports are not received by November 30th, the municipality or relief association forfeits its current year state aid, and, until the state auditor receives the required information, the relief association or municipality is ineligible to receive any future state aid. A municipality or firefighters' relief association does not qualify initially to receive, or be entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

Subd. 2.Treasurers bond. 
(a) The treasurer of the Bloomington Fire Department Relief Association may not enter upon duties without having given the association a bond in a reasonable amount acceptable to the municipality for the faithful discharge of duties according to law. 

(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096  may enter upon the duties of the office until the treasurer has given the association a good and sufficient bond in an amount equal to at least ten percent of the assets of the relief association; however, the amount of the bond need not exceed $500,000. 

Subd. 3.Report by certain municipalities; exceptions. 
(a) The chief administrative officer of each municipality which has an organized fire department but which does not have a firefighters' relief association governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 23, and which is not exempted under paragraph (b) or (c) shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year on a form prescribed by the state auditor. The financial report must contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service. The financial report must be signed by the municipal clerk or clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does not qualify initially to receive, and is not entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

(b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief with the requirements of section 353G.07. 

(c) Each municipality qualifies to receive fire state aid under this chapter without filing a financial report under paragraph (a) if the municipality: 

(1) has an organized fire department; 

(2) does not have a volunteer firefighters relief association directly associated with its fire department; 

(3) does not participate in the statewide lump-sum volunteer firefighter retirement plan under chapter 353G; 

(4) provides retirement coverage to its firefighters through the public employees police and fire retirement plan under sections 353.63 to 353.68; and 

(5) is certified by the executive director of the Public Employees Retirement Association to the state auditor to have had an employer contribution under section 353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to or greater than its fire state aid for the immediately prior calendar year. 

Subd. 4.Notification by commissioner and state auditor. 
(a) The state auditor, in performing an audit or examination, shall notify the Legislative Commission on Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or nonfeasance in office by relief association officials or municipal officials. 

(b) The commissioner shall notify the Legislative Commission on Pensions and Retirement if the state auditor has not filed the required financial compliance reports by July 1. 

69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE COMPANIES.
For purposes of the first class city fire insurance premium tax surcharge aid program under section 297I.10, the commissioner shall enclose in the annual statement blank that is sent to all fire insurance companies doing business in this state a blank form containing the names of all cities of the first class and require these companies, at the time of making their annual statements to the commissioner, to state on these blanks the amount of premiums received by them upon properties insured within the corporate limits of the cities named thereon during the year ending December 31st last past. Thereafter, before July first each year, the commissioner shall certify to the commissioner of management and budget the information thus obtained, together with the amount of the tax for the benefit of the pension plans covering firefighters in cities of the first class paid in such year by these companies upon these insurance premiums. 

69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
(a) Notwithstanding any provision of law to the contrary, the payment of the following necessary, reasonable and direct expenses of maintaining, protecting and administering the special fund, when provided for in the bylaws of the association and approved by the board of trustees, constitutes authorized administrative expenses of a volunteer firefighters' relief association organized under any law of this state or the Bloomington Fire Department Relief Association: 

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel; 

(2) salaries of the officers of the association, or their designees, and salaries of the members of the board of trustees of the association if the salary amounts are approved by the governing body of the entity that is responsible for meeting any minimum obligation under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 42, and the itemized expenses of relief association officers and board members that are incurred as a result of fulfilling their responsibilities as administrators of the special fund; 

(3) tuition, registration fees, organizational dues, and other authorized expenses of the officers or members of the board of trustees incurred in attending educational conferences, seminars, or classes relating to the administration of the relief association; 

(4) audit and audit-related services, accounting and accounting-related services, and actuarial, medical, legal, and investment and performance evaluation expenses; 

(5) filing and application fees payable by the relief association to federal or other governmental entities; 

(6) reimbursement to the officers and members of the board of trustees, or their designees, for reasonable and necessary expenses actually paid and incurred in the performance of their duties as officers or members of the board; and 

(7) premiums on fiduciary liability insurance and official bonds for the officers, members of the board of trustees, and employees of the relief association. 

(b) Any other expenses of the relief association must be paid from the general fund of the association, if one exists. If a relief association has only one fund, that fund is the special fund for purposes of this section. If a relief association has a special fund and a general fund, and any expense of the relief association that is directly related to the purposes for which both funds were established, the payment of that expense must be apportioned between the two funds on the basis of the benefits derived by each fund. 

270C.131 EXPLORE MINNESOTA TOURISM TAX REPORT.
Within 30 days of the end of each quarter, the Department of Revenue shall provide Explore Minnesota Tourism with a quarterly report of comparisons of quarterly sales taxes collected under the Standard Industrial Classification System, or equivalent codes in the North America Industry Classification System, in the following areas: 

(1) SIC 70, lodging; 

(2) SIC 79, amusement and recreation; and 

(3) SIC 58, eating and drinking. 

275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.
Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year. 

289A.38 LIMITATIONS ON TIME FOR ASSESSMENT OF TAX.Subd. 7.Federal tax changes. 
If the amount of income, items of tax preference, deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any period, as reported to the Internal Revenue Service is changed or corrected by the commissioner of Internal Revenue or other officer of the United States or other competent authority, or where a renegotiation of a contract or subcontract with the United States results in a change in income, items of tax preference, deductions, credits, or withholding tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall report the change or correction or renegotiation results in writing to the commissioner. The report must be submitted within 180 days after the final determination and must be in the form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or income tax return conceding the accuracy of the federal determination or a letter detailing how the federal determination is incorrect or does not change the Minnesota tax. An amended Minnesota income tax return must be accompanied by an amended property tax refund return, if necessary. A taxpayer filing an amended federal tax return must also file a copy of the amended return with the commissioner of revenue within 180 days after filing the amended return. 

Subd. 8.Failure to report change or correction of federal return. 
If a taxpayer fails to make a report as required by subdivision 7, the commissioner may recompute the tax, including a refund, based on information available to the commissioner. The tax may be recomputed within six years after the report should have been filed, notwithstanding any period of limitations to the contrary. 

Subd. 9.Report made of change or correction of federal return. 
If a taxpayer is required to make a report under subdivision 7, and does report the change or files a copy of the amended return, the commissioner may recompute and reassess the tax due, including a refund (1) within one year after the report or amended return is filed with the commissioner, notwithstanding any period of limitations to the contrary, or (2) within any other applicable period stated in this section, whichever period is longer. The period provided for the carryback of any amount of loss or credit is also extended as provided in this subdivision, notwithstanding any law to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but for this subdivision, the commissioner's time period to adjust the tax has expired, the additional tax due or refund is limited to only those changes that are required to be made to the return which relate to the changes made on the federal return. This subdivision does not apply to sales and use tax. 

For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is the physical presence of examiners in the taxpayer's or taxpayer's representative's office conducting an examination of the taxpayer with the intention of issuing an assessment or notice of change in tax or which results in the issuing of an assessment or notice of change in tax. The examination may include inspecting a taxpayer's place of business, tangible personal property, equipment, computer systems and facilities, pertinent books, records, papers, vouchers, computer printouts, accounts, and documents. 

290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 7.Fines, fees, and penalties. 
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition. 

Subd. 10.Section 179 expensing. 
80 percent of the amount by which the deduction allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code, as amended through December 31, 2003, is an addition. 

Subd. 11.Income attributable to domestic production activities. 
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition. 

290.0133 CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 12.Section 179 expensing. 
80 percent of the amount by which the deduction allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code, as amended through December 31, 2003, is an addition. 

Subd. 13.Income attributable to domestic production activities. 
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition. 

Subd. 14.Fines, fees, and penalties. 
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition. 

290.10 NONDEDUCTIBLE ITEMS.Subd. 2.Fines, fees, and penalties. 
(a) Except as provided in this subdivision, no deduction from taxable income for a trade or business expense under section 162(a) of the Internal Revenue Code shall be allowed for any amount paid or incurred, whether by suit, agreement, or otherwise, to, or at the direction of, a government or entity described in paragraph (d) in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law. 

(b) Exception for amounts constituting restitution or paid to come into compliance with the law. Paragraph (a) does not apply to any amount which: 

(1) the taxpayer establishes: 

(i) constitutes restitution, including remediation of property for damage or harm caused by or which may be caused by the violation of any law or the potential violation of any law; or 

(ii) is paid to come into compliance with any law which was violated or involved in the investigation or inquiry; and 

(2) is identified as restitution or as an amount paid to come into compliance with the law, as the case may be, in the court order or settlement agreement. 

This paragraph does not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation. 

(c) Paragraph (a) does not apply to any amount paid or incurred by order of a court in a suit in which no government or entity described in paragraph (d) is a party. 

(d) An entity is described in this paragraph if it is: 

(1) a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, in connection with a qualified board or exchange, as defined in section 1256(g)(7) of the Internal Revenue Code; or 

(2) to the extent provided in federal regulations, a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, as part of performing an essential governmental function. 

(e) Paragraph (a) does not apply to any amount paid or incurred as taxes due. 

296A.03 DISTRIBUTOR'S LICENSE.Subd. 5.Form of application; bond. 
(a) A written application shall be made in the form and manner prescribed by the commissioner. 

(b) The commissioner shall also require the applicant or licensee to deposit with the commissioner of management and budget securities of the United States government or the state of Minnesota or to execute and file a bond, with a corporate surety approved by the commissioner, to the state of Minnesota in an amount to be determined by the commissioner and in a form to be fixed by the commissioner and approved by the attorney general, and which shall be conditioned for the payment when due of all excise taxes, fees, penalties, and accrued interest arising in the ordinary course of business or by reason of any delinquent money which may be due the state. The bond shall cover all places of business within the state where petroleum products are received by the licensee. The applicant or licensee shall designate and maintain an agent in this state upon whom service may be made for all purposes of this section. 

(c) An initial applicant for a distributor's license shall furnish a bond in a minimum sum of $3,000 for the first year. 

(d) The commissioner, on reaching the opinion that the bond given by a licensee is inadequate in amount to fully protect the state, shall require an additional bond in such amount as the commissioner deems sufficient. 

(e) A licensee who desires to be exempt from depositing securities or furnishing such bond shall furnish to the commissioner an itemized financial statement showing the assets and the liabilities of the applicant. If it appears to the commissioner, from the financial statement or otherwise, that the applicant is financially responsible, then the commissioner may exempt the applicant from depositing such securities or furnishing such bond until the commissioner otherwise orders. 

(f) When the surety upon any bond issued under the provisions of this chapter have fulfilled the conditions of such bond and compensated the state for any loss occasioned by any act or omission of any licensee under this chapter, such surety shall be subrogated to all the rights of the state in connection with the transaction where such loss occurred. 

296A.04 SPECIAL FUEL DEALER'S LICENSE; REQUIREMENTS.Subd. 2.Bond. 
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to special fuel dealers. 

296A.05 BULK PURCHASER'S LICENSE; REQUIREMENTS.Subd. 2.Bond. 
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to bulk purchasers. 

297I.25 INFORMATION RETURNS.Subd. 2.Firetown and police premium reports. 
To the extent required by section 69.021, each insurer shall file with the commissioner a Minnesota firetown premium report and Minnesota aid to police premium report. 

349.213 LOCAL AUTHORITY.Subd. 3.Local gambling tax. 
A statutory or home rule charter city that has one or more licensed organizations operating lawful gambling, and a county that has one or more licensed organizations outside incorporated areas operating lawful gambling, may impose a local gambling tax on each licensed organization within the city's or county's jurisdiction. The tax may be imposed only if the amount to be received by the city or county is necessary to cover the costs incurred by the city or county to regulate lawful gambling. The tax imposed by this subdivision may not exceed three percent per year of the gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the organization. A city or county may not use money collected under this subdivision for any purpose other than to regulate lawful gambling. All documents pertaining to site inspections, fines, penalties, or other corrective action involving local lawful gambling regulation must be shared with the board within 30 days of filing at the city or county of jurisdiction. A tax imposed under this subdivision is in lieu of all other local taxes and local investigation fees on lawful gambling. A city or county that imposes a tax under this subdivision shall annually, by March 15, file a report with the board in a form prescribed by the board showing (1) the amount of revenue produced by the tax during the preceding calendar year, and (2) the use of the proceeds of the tax. 

8125.0410DISTRIBUTOR'S LICENSES. Subpart 1.Exemption from depositing securities or filing a bond.  
The commissioner will determine which distributor license applicants are financially responsible and, as a result, qualify for the statutory exemption from depositing securities or filing a bond, by taking into consideration all relevant factors. Those factors include the following: 

A.
 whether the applicant's financial statement reflects that the applicant's current assets are at least equal to its current liabilities and that the applicant's net worth is at least three times its average quarterly motor fuel tax liability; 

B.
 whether the applicant has failed to file or has been delinquent in filing any motor fuel tax returns; 

C.
 whether the applicant has ever failed to pay its motor fuel tax liability, paid it late, or paid with a check that was later returned by the bank unpaid; and 

D.
 any other evidence of the financial responsibility of the applicant.