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, sales and use taxes, partnership 
1.5 	taxes, special and excise taxes, property taxes, local government aids, provisions 
1.6 	related to local taxes, tax increment financing, public finance, and other 
1.7 	miscellaneous taxes and tax provisions; providing for various individual and 
1.8 	corporate additions and subtractions to income; modifying certain income tax 
1.9 	credits and authorizing new credits; providing for a pass-through entity tax; 
1.10 	modifying definitions for resident trusts; modifying existing and providing new 
1.11 	sales tax exemptions; modifying vapor and tobacco tax provisions; modifying and 
1.12 	providing certain property tax exemptions; modifying property classification 
1.13 	provisions; allowing for certain special assessments; modifying local government 
1.14 	aid appropriations; modifying existing local taxes and authorizing new local taxes; 
1.15 	modifying property tax homeowners' and renters' refunds; authorizing and 
1.16 	modifying certain tax increment financing provisions; providing for a tax 
1.17 	expenditure review commission and the required expiration of tax expenditures; 
1.18 	making appointments; requiring reports; appropriating money;amending Minnesota 
1.19 	Statutes 2020, sections 3.192; 3.8853, subdivision 2; 16A.152, subdivision 2; 
1.20 	41B.0391, subdivisions 2, 4; 116J.8737, subdivisions 5, 12; 270.41, subdivision 
1.21 	3a; 270.44; 270A.03, subdivision 2; 270B.12, subdivisions 8, 9; 270B.14, by 
1.22 	adding a subdivision; 270C.11, subdivisions 2, 4, 6; 270C.13, subdivision 1; 
1.23 	270C.22, subdivision 1; 270C.445, subdivisions 3, 6; 272.02, by adding a 
1.24 	subdivision; 272.029, subdivision 2; 272.0295, subdivisions 2, 5; 272.115, 
1.25 	subdivision 1; 273.063; 273.0755; 273.124, subdivisions 1, 3a, 6, 9, 13, 13a, 13c, 
1.26 	13d, 14; 273.1245, subdivision 1; 273.13, subdivisions 23, 25, 34; 273.1315, 
1.27 	subdivision 2; 273.18; 275.025, subdivisions 1, 2; 275.065, subdivisions 1, 3, by 
1.28 	adding subdivisions; 275.066; 287.04; 289A.02, subdivision 7; 289A.08, 
1.29 	subdivisions 7, 11, by adding subdivisions; 289A.09, subdivision 2; 289A.20, 
1.30 	subdivision 4; 289A.31, subdivision 1; 289A.37, subdivision 2; 289A.38, 
1.31 	subdivisions 7, 8, 9, 10; 289A.42; 289A.60, subdivisions 15, 24; 290.01, 
1.32 	subdivisions 19, 31, by adding a subdivision; 290.0121, subdivision 3; 290.0122, 
1.33 	subdivisions 4, 8; 290.0131, by adding subdivisions; 290.0132, subdivision 27, 
1.34 	by adding subdivisions; 290.0133, subdivision 6, by adding subdivisions; 290.0134, 
1.35 	subdivision 18, by adding a subdivision; 290.06, subdivisions 2c, 2d, 22, by adding 
1.36 	subdivisions; 290.0671, subdivisions 1, 1a, 7; 290.0674, subdivision 2a; 290.0681, 
1.37 	subdivision 10; 290.0682; 290.0685, subdivision 1, by adding a subdivision; 
1.38 	290.091, subdivision 2; 290.17, by adding subdivisions; 290.21, subdivision 9, by 
2.1 	adding a subdivision; 290.31, subdivision 1; 290.92, subdivisions 1, 2a, 3, 4b, 4c, 
2.2 	5, 5a, 19, 20; 290.923, subdivision 9; 290.993; 290A.03, subdivisions 3, 15; 
2.3 	290A.04, subdivisions 2, 2a; 290A.25; 291.005, subdivision 1; 295.75, subdivision 
2.4 	2; 296A.06, subdivision 2; 297A.66, subdivision 3; 297A.67, by adding a 
2.5 	subdivision; 297A.70, subdivision 13, by adding a subdivision; 297A.71, 
2.6 	subdivision 52, by adding a subdivision; 297A.75, subdivisions 1, 2, 3; 297A.993, 
2.7 	subdivision 2; 297E.021, subdivision 4; 297F.01, subdivisions 19, 22b, 23, by 
2.8 	adding subdivisions; 297F.031; 297F.04, subdivision 2; 297F.05, by adding a 
2.9 	subdivision; 297F.09, subdivisions 3, 4a, 7, 10; 297F.10, subdivision 1; 297F.13, 
2.10 	subdivision 4; 297F.17, subdivisions 1, 6; 297G.09, subdivision 9; 297G.16, 
2.11 	subdivision 7; 297H.04, subdivision 2; 297H.05; 297I.05, subdivision 7; 297I.20, 
2.12 	by adding a subdivision; 298.001, by adding a subdivision; 298.24, subdivision 
2.13 	1; 298.405, subdivision 1; 325F.781, subdivisions 1, 5, 6; 429.021, subdivision 1; 
2.14 	429.031, subdivision 3; 453A.04, subdivision 21, by adding a subdivision; 462A.38; 
2.15 	465.71; 469.176, by adding a subdivision; 469.1763, subdivisions 2, 3, 4; 469.319, 
2.16 	subdivision 4; 475.56; 475.58, subdivision 3b; 475.60, subdivision 1; 475.67, 
2.17 	subdivision 8; 477A.013, subdivision 13; 477A.03, subdivisions 2a, 2b; 477A.10; 
2.18 	609B.153; Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended; 
2.19 	Laws 2017, First Special Session chapter 1, article 3, section 32, as amended; Laws 
2.20 	2019, First Special Session chapter 6, article 6, sections 25; 27; proposing coding 
2.21 	for new law in Minnesota Statutes, chapters 3; 16A; 116U; 289A; 477A; proposing 
2.22 	coding for new law as Minnesota Statutes, chapters 299O; 428B; repealing 
2.23 	Minnesota Statutes 2020, sections 270C.17, subdivision 2; 290.01, subdivisions 
2.24 	7b, 19i; 290.0131, subdivision 18; 327C.01, subdivision 13; 327C.16; 469.055, 
2.25 	subdivision 7.
2.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.27 	ARTICLE 1
2.28 	FEDERAL CONFORMITY

2.29 	Section 1. Minnesota Statutes 2020, section 289A.02, subdivision 7, is amended to read:
2.30 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
2.31 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
2.32 	31, 2018 2020.

2.33 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
2.34 	the changes incorporated by federal changes are effective retroactively at the same time as 
2.35 	the changes were effective for federal purposes.

2.36 	Sec. 2. Minnesota Statutes 2020, section 290.01, subdivision 19, is amended to read:
2.37 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
2.38 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
2.39 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
2.40 	the date named in this subdivision, incorporating the federal effective dates of changes to 
2.41 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
3.1 	Internal Revenue Code in determining federal taxable income for federal income tax 
3.2 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
3.3 	(b) For an individual, the term "net income" means federal adjusted gross income with 
3.4 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
3.5 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
3.6 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
3.7 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
3.8 	except that:
3.9 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
3.10 	Revenue Code does not apply;
3.11 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
3.12 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
3.13 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
3.14 	and
3.15 	(3) the deduction for dividends paid must also be applied in the amount of any 
3.16 	undistributed capital gains which the regulated investment company elects to have treated 
3.17 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
3.18 	(d) The net income of a real estate investment trust as defined and limited by section 
3.19 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
3.20 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
3.21 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
3.22 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
3.23 	Revenue Code.
3.24 	(f) The Internal Revenue Code of 1986, as amended through December 31, 2018 2020, 
3.25 	shall be in effect for taxable years beginning after December 31, 1996.
3.26 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
3.27 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
3.28 	determining net income for the applicable year.

3.29 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
3.30 	the changes incorporated by federal changes are effective retroactively at the same time as 
3.31 	the changes were effective for federal purposes.

4.1 	Sec. 3. Minnesota Statutes 2020, section 290.01, subdivision 31, is amended to read:
4.2 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
4.3 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
4.4 	31, 2018 2020. Internal Revenue Code also includes any uncodified provision in federal 
4.5 	law that relates to provisions of the Internal Revenue Code that are incorporated into 
4.6 	Minnesota law.

4.7 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
4.8 	the changes incorporated by federal changes are effective retroactively at the same time as 
4.9 	the changes were effective for federal purposes.

4.10 	Sec. 4. Minnesota Statutes 2020, section 290.0122, subdivision 4, is amended to read:
4.11 		Subd. 4.Charitable contributions. (a) A taxpayer is allowed a deduction for charitable 
4.12 	contributions. The deduction equals the amount of the charitable contribution deduction 
4.13 	allowable to the taxpayer under section 170 of the Internal Revenue Code, including the 
4.14 	denial of the deduction under section 408(d)(8), except that the provisions of section 
4.15 	170(b)(1)(G) apply regardless of the taxable year deduction under this subdivision is limited 
4.16 	to 60 percent of the taxpayer's contribution base as defined in section 170(b)(1)(H) of the 
4.17 	Internal Revenue Code.
4.18 	(b) For taxable years beginning after December 31, 2017, the determination of carryover 
4.19 	amounts must be made by applying the rules under section 170 of the Internal Revenue 
4.20 	Code based on the charitable contribution deductions claimed and allowable under this 
4.21 	section.

4.22 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
4.23 	after December 31, 2019.

4.24 	Sec. 5. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
4.25 	to read:
4.26 		Subd. 19.Business interest. The amount of business interest deducted under section 
4.27 	163(j) of the Internal Revenue Code of 1986, as amended through December 31, 2020, that 
4.28 	exceeds the amount of business interest allowed to be deducted under section 163(j) of the 
4.29 	Internal Revenue Code of 1986, as amended through December 31, 2018, is an addition.

4.30 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
4.31 	after December 31, 2017, and before January 1, 2021.

5.1 	Sec. 6. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
5.2 	to read:
5.3 		Subd. 20.Excess business losses. The amount by which an excess business loss under 
5.4 	section 461(l)(3) of the Internal Revenue Code of 1986, as amended through December 31, 
5.5 	2018, exceeds the amount of a disallowed loss carryover under section 461(l)(3) of the 
5.6 	Internal Revenue Code of 1986, as amended through December 31, 2020, is an addition.

5.7 	EFFECTIVE DATE. This section is effective retroactively at the same time and for 
5.8 	the same taxable years as the temporary changes in section 2304 of Public Law 116-136 
5.9 	were effective for federal purposes.

5.10 	Sec. 7. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
5.11 	to read:
5.12 		Subd. 21.Net operating loss. The amount by which a net operating loss deducted under 
5.13 	section 172 of the Internal Revenue Code of 1986, as amended through December 31, 2020, 
5.14 	exceeds the amount of a net operating loss allowed to be deducted under the Internal Revenue 
5.15 	Code of 1986, as amended through December 31, 2018, including the amount of the addition 
5.16 	required under subdivision 20 to the extent the amount is not included under section 172 
5.17 	of the Internal Revenue Code of 1986, as amended through December 31, 2018, is an 
5.18 	addition.

5.19 	EFFECTIVE DATE. This section is effective retroactively at the same time and for 
5.20 	the same taxable years as the temporary changes in section 2303 of Public Law 116-136 
5.21 	were effective for federal purposes.

5.22 	Sec. 8. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
5.23 	to read:
5.24 		Subd. 30.Delayed business interest. (a) The amount of delayed business interest is a 
5.25 	subtraction.
5.26 	(b) For purposes of this subdivision, the following terms have the meanings given:
5.27 	(1) "delayed business interest" means the lesser of:
5.28 	(i) the base amount; or
5.29 	(ii) the amount of business interest deductible under section 163(j) of the Internal Revenue 
5.30 	Code, excluding the special rule under section 163(j)(10) of the Internal Revenue Code, 
6.1 	less the amount of business interest deducted under section 163(j) of the Internal Revenue 
6.2 	Code for the taxable year; and
6.3 	(2) "base amount" means the sum of each addition required under section 290.0131, 
6.4 	subdivision 19, for all prior taxable years, less the sum of all subtractions claimed under 
6.5 	this subdivision for all prior taxable years.

6.6 	EFFECTIVE DATE. This section is effective retroactively at the same time and for 
6.7 	the same taxable years as the temporary changes in section 2306 of Public Law 116-136 
6.8 	were effective for federal purposes and thereafter.

6.9 	Sec. 9. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
6.10 	to read:
6.11 		Subd. 31.Delayed net operating loss. (a) The amount of a delayed net operating loss 
6.12 	is a subtraction.
6.13 	(b) For purposes of this subdivision, the following terms have the meanings given:
6.14 	(1) "delayed net operating loss" means the lesser of:
6.15 	(i) the base amount; or
6.16 	(ii) the net operating loss deduction limit under section 172(a) of the Internal Revenue 
6.17 	Code of 1986, as amended through December 31, 2018, including the amount of the addition 
6.18 	required under section 290.0131, subdivision 20, to the extent the amount is not included 
6.19 	under section 172 of the Internal Revenue Code, less the amount of any net operating loss 
6.20 	deducted under section 172 of the Internal Revenue Code for the taxable year; and
6.21 	(2) "base amount" means the sum of each addition required under section 290.0131, 
6.22 	subdivision 21, for all prior taxable years, less the sum of all subtractions claimed under 
6.23 	this subdivision for all prior taxable years.

6.24 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
6.25 	after December 31, 2018.

6.26 	Sec. 10. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision 
6.27 	to read:
6.28 		Subd. 15.Business interest. The amount of business interest deducted under section 
6.29 	163(j) of the Internal Revenue Code of 1986, as amended through December 31, 2020, or 
6.30 	section 290.34, that exceeds the amount of business interest allowed to be deducted under 
7.1 	section 163(j) of the Internal Revenue Code of 1986, as amended through December 31, 
7.2 	2018, or section 290.34, is an addition.

7.3 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
7.4 	the changes incorporated by federal changes are effective retroactively at the same time as 
7.5 	the changes were effective for federal purposes.

7.6 	Sec. 11. Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision 
7.7 	to read:
7.8 		Subd. 20.Delayed business interest. (a) The amount of delayed business interest is a 
7.9 	subtraction.
7.10 	(b) For purposes of this subdivision, the following terms have the meanings given:
7.11 	(1) "delayed business interest" means the portion of the base amount equal to the 
7.12 	difference, if any, between:
7.13 	(i) the amount of business interest deductible under section 290.34 or section 163(j) of 
7.14 	the Internal Revenue Code, excluding the special rule under section 163(j)(10) of the Internal 
7.15 	Revenue Code; and
7.16 	(ii) the amount of business interest deducted under section 163(j) of the Internal Revenue 
7.17 	Code for the taxable year; and
7.18 	(2) "base amount" means the sum of each addition required under section 290.0131, 
7.19 	subdivision 16, for all prior taxable years, less the sum of all subtractions claimed under 
7.20 	this subdivision for all prior taxable years.

7.21 	EFFECTIVE DATE. This section is effective retroactively at the same time and for 
7.22 	the same taxable years as the temporary changes in section 2306 of Public Law 116-136 
7.23 	were effective for federal purposes and thereafter.

7.24 	Sec. 12. Minnesota Statutes 2020, section 290.993, is amended to read:
7.25 	290.993 SPECIAL LIMITED ADJUSTMENT.
7.26 	(a) For an individual income taxpayer subject to tax under section 290.06, subdivision 
7.27 	2c, or a partnership that elects to file a composite return under section 289A.08, subdivision 
7.28 	7, for taxable years beginning after December 31, 2017, and before January 1, 2019, the 
7.29 	following special rules apply:
8.1 	(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an 
8.2 	election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual 
8.3 	income tax purposes, regardless of the choice made on their federal return; and
8.4 	(2) there is an adjustment to tax equal to the difference between the tax calculated under 
8.5 	this chapter using the Internal Revenue Code as amended through December 16, 2016, and 
8.6 	the tax calculated under this chapter using the Internal Revenue Code amended through 
8.7 	December 31, 2018, before the application of credits. The end result must be zero additional 
8.8 	tax due or refund.
8.9 	(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to 
8.10 	sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303, 
8.11 	13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public 
8.12 	Law 115-97; and section 40411 of Public Law 115-123.
8.13 	(c) For an individual, estate, trust, or partnership subject to an adjustment under this 
8.14 	section, any change in tax as a result of this act, including amendments to the Internal 
8.15 	Revenue Code that are incorporated in this act, must be calculated after the adjustment.

8.16 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
8.17 	the changes incorporated by federal changes are effective retroactively at the same time as 
8.18 	the changes were effective for federal purposes.

8.19 	Sec. 13. Minnesota Statutes 2020, section 290A.03, subdivision 15, is amended to read:
8.20 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
8.21 	Code of 1986, as amended through December 31, 2018 2020.

8.22 	EFFECTIVE DATE. This section is effective for property tax refunds based on property 
8.23 	taxes payable after December 31, 2021, and rent paid after December 31, 2020.

8.24 	Sec. 14. Minnesota Statutes 2020, section 291.005, subdivision 1, is amended to read:
8.25 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
8.26 	used in this chapter shall have the following meanings:
8.27 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
8.28 	commissioner has delegated functions under this chapter.
8.29 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
8.30 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
8.31 	increased by the value of any property in which the decedent had a qualifying income interest 
9.1 	for life and for which an election was made under section 291.03, subdivision 1d, for 
9.2 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
9.3 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
9.4 	as amended through December 31, 2018 2020.
9.5 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
9.6 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
9.7 	and (b) including any property omitted from the federal gross estate which is includable in 
9.8 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
9.9 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
9.10 	was not in Minnesota.
9.11 	(6) "Personal representative" means the executor, administrator or other person appointed 
9.12 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
9.13 	administrator or other person appointed, qualified, and acting within this state, then any 
9.14 	person in actual or constructive possession of any property having a situs in this state which 
9.15 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
9.16 	representative to the extent of the property and the Minnesota estate tax due with respect 
9.17 	to the property.
9.18 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
9.19 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
9.20 	to determinations of domicile under this chapter.
9.21 	(8) "Situs of property" means, with respect to:
9.22 	(i) real property, the state or country in which it is located;
9.23 	(ii) tangible personal property, the state or country in which it was normally kept or 
9.24 	located at the time of the decedent's death or for a gift of tangible personal property within 
9.25 	three years of death, the state or country in which it was normally kept or located when the 
9.26 	gift was executed;
9.27 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
9.28 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
9.29 	because it is on loan to an organization, qualifying as exempt from taxation under section 
9.30 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
9.31 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
10.1 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
10.2 	at death or for a gift of intangible personal property within three years of death, the state or 
10.3 	country in which the decedent was domiciled when the gift was executed.
10.4 	For a nonresident decedent with an ownership interest in a pass-through entity with 
10.5 	assets that include real or tangible personal property, situs of the real or tangible personal 
10.6 	property, including qualified works of art, is determined as if the pass-through entity does 
10.7 	not exist and the real or tangible personal property is personally owned by the decedent. If 
10.8 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
10.9 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
10.10 	share of the pass-through entity.
10.11 	(9) "Pass-through entity" includes the following:
10.12 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
10.13 	Code;
10.14 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
10.15 	(iii) a single-member limited liability company or similar entity, regardless of whether 
10.16 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
10.17 	of Federal Regulations, title 26, section 301.7701-3; or
10.18 	(iv) a trust to the extent the property is includable in the decedent's federal gross estate; 
10.19 	but excludes
10.20 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
10.21 	by the Securities and Exchange Commission as a national securities exchange under section 
10.22 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

10.23 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
10.24 	the changes incorporated by federal changes are effective retroactively at the same time as 
10.25 	the changes were effective for federal purposes.

10.26 	Sec. 15. TEMPORARY NONCONFORMITY ADDITIONS AND SUBTRACTIONS.
 10.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this section 
10.28 	have the meanings given.
10.29 	(b) For an individual, estate, or trust:
10.30 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132, 
10.31 	subdivision 1, and the rules in that subdivision apply for this section; and
11.1 	(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision 
11.2 	1, and the rules in that subdivision apply for this section.
11.3 	(c) For a corporation other than an S corporation:
11.4 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0134, 
11.5 	subdivision 1, and the rules in that subdivision apply for this section; and
11.6 	(2) "addition" has the meaning given in Minnesota Statutes, section 290.0133, subdivision 
11.7 	1, and the rules in that subdivision apply for this section.
11.8 	(d) The definitions in Minnesota Statutes, section 290.01, apply for this section.
11.9 		Subd. 2.Temporary subtraction; federal credits for sick and family leave; 
11.10 	individuals, estates, and trusts. (a) For an individual, estate, or trust, the amount by which 
11.11 	gross income is increased under the following credits is a subtraction:
11.12 	(1) the payroll credit for required paid sick leave under section 7001 of Public Law 
11.13 	116-127; and
11.14 	(2) the payroll credit for required paid family leave under section 7003 of Public Law 
11.15 	116-127.
11.16 	(b) This subdivision is effective retroactively for taxable years in which a taxpayer 
11.17 	claimed the credits described in paragraph (a).
11.18 		Subd. 3.Temporary subtraction; federal credits for sick and family leave; 
11.19 	corporations. (a) For a corporation other than an S corporation, the amount by which gross 
11.20 	income is increased under the following credits is a subtraction:
11.21 	(1) the payroll credit for required paid sick leave under section 7001 of Public Law 
11.22 	116-127; and
11.23 	(2) the payroll credit for required paid family leave under section 7003 of Public Law 
11.24 	116-127.
11.25 	(b) This subdivision is effective retroactively for taxable years in which a taxpayer 
11.26 	claimed the credits described in paragraph (a).
11.27 		Subd. 4.Temporary subtraction; wages used to claim employee retention credit; 
11.28 	individuals, estates, and trusts. (a) For an individual, estate, or trust, the amount disallowed 
11.29 	under section 2301(e) of Public Law 116-136 is a subtraction.
11.30 	(b) This subdivision is effective retroactively for taxable years in which a taxpayer had 
11.31 	a deduction disallowed under section 2301(e) of Public Law 116-136.
12.1 		Subd. 5.Temporary subtraction; wages used to claim employee retention credit; 
12.2 	corporations. (a) For a corporation other than an S corporation, the amount disallowed 
12.3 	under section 2301(e) of Public Law 116-136 is a subtraction.
12.4 	(b) This subdivision is effective retroactively for taxable years in which a taxpayer had 
12.5 	a deduction disallowed under section 2301(e) of Public Law 116-136.
12.6 		Subd. 6.Temporary addition; business meals; individuals, estates, and trusts. (a) 
12.7 	For an individual, estate, or trust, the amount deducted for food or beverages under section 
12.8 	274(n)(2) of the Internal Revenue Code that exceeds the 50 percent limit in section 274(n)(1) 
12.9 	of the Internal Revenue Code is an addition.
12.10 	(b) This subdivision is effective retroactively for expenses paid or incurred after December 
12.11 	31, 2020, and before January 1, 2023.
12.12 		Subd. 7.Temporary addition; business meals; C corporations. (a) For a corporation 
12.13 	other than an S corporation, the amount deducted for food or beverages under section 
12.14 	274(n)(2) of the Internal Revenue Code that exceeds the 50 percent limit in section 274(n)(1) 
12.15 	of the Internal Revenue Code is an addition.
12.16 	(b) This subdivision is effective retroactively for expenses paid or incurred after December 
12.17 	31, 2020, and before January 1, 2023.
12.18 		Subd. 8.Temporary addition; PPP expenses for individuals, estates, and trusts. (a) 
12.19 	For the purposes of this subdivision:
12.20 	(1) "qualifying business" means a business with paycheck protection program expenses 
12.21 	in the taxable year that is a partnership, limited liability company, S corporation, or sole 
12.22 	proprietorship;
12.23 	(2) "paycheck protection program expenses" means amounts allowed as a deduction 
12.24 	under section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260; 
12.25 	and
12.26 	(3) "paycheck protection program loan" means a discharged loan that is excluded from 
12.27 	gross income under section 1106(i) of Public Law 116-136.
12.28 	(b) For a qualifying business, for each paycheck protection program loan, the amount 
12.29 	of paycheck protection program expenses in excess of $350,000 is an addition.
12.30 	(c) This section is effective retroactively at the same time and for the same taxable years 
12.31 	as the changes in section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 
12.32 	116-260.
13.1 		Subd. 9.Temporary addition; PPP expenses for C corporations. (a) For the purposes 
13.2 	of this subdivision:
13.3 	(1) "qualifying business" means a business with paycheck protection program expenses 
13.4 	that is a corporation other than an S corporation;
13.5 	(2) "paycheck protection program expenses" means amounts allowed as a deduction 
13.6 	under section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260; 
13.7 	and
13.8 	(3) "paycheck protection program loan" means a discharged loan that is excluded from 
13.9 	gross income under section 1106(i) of Public Law 116-136.
13.10 	(b) For a qualifying business, for each paycheck protection program loan, the amount 
13.11 	of paycheck protection program expenses in excess of $350,000 is an addition.
13.12 	(c) This section is effective retroactively at the same time and for the same taxable years 
13.13 	as the changes in section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 
13.14 	116-260.
13.15 		Subd. 10.Nonresident apportionment; alternative minimum tax. (a) For the purpose 
13.16 	of calculating the percentage under Minnesota Statutes, section 290.06, subdivision 2c, 
13.17 	paragraph (e), the commissioner of revenue must increase:
13.18 	(1) the numerator in Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e), 
13.19 	clause (1), by the subtractions in subdivisions 2 and 4; and
13.20 	(2) the denominator in Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
13.21 	(e), clause (2), by the additions in subdivisions 6 and 8.
13.22 	(b) For the purpose of determining "income" under Minnesota Statutes, section 289A.08, 
13.23 	the commissioner of revenue must consider the additions under subdivisions 6 and 8 and 
13.24 	the subtractions under subdivisions 2 and 4.
13.25 	(c) A taxpayer's alternative minimum taxable income under Minnesota Statutes, section 
13.26 	290.091, is increased by the amount of the taxpayer's additions under subdivisions 6 and 8, 
13.27 	and reduced by the amount of the taxpayer's subtractions under subdivisions 2 and 4.
13.28 	(d) This section is effective for taxable years in which a taxpayer had an addition or 
13.29 	subtraction under this section.

13.30 	EFFECTIVE DATE. This section is effective for the taxable years specified in each 
13.31 	subdivision.

14.1 	Sec. 16. WORKING FAMILY CREDIT; SPECIAL EARNED INCOME RULES 
14.2 	FOR TAX YEAR 2020.
 14.3 	For the purposes of calculating the credit under Minnesota Statutes, section 290.067, 
14.4 	the commissioner of revenue must allow a taxpayer to elect to determine earned income 
14.5 	using the rules in section 211 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 
14.6 	in Public Law 116-260.

14.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.8 	31, 2019, and before January 1, 2021.

14.9 	Sec. 17. TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION; 
14.10 	UNEMPLOYMENT INSURANCE BENEFITS.
 14.11 	(a) For the purposes of this section:
14.12 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132; and
14.13 	(2) "unemployment compensation" has the meaning given in section 85(b) of the Internal 
14.14 	Revenue Code.
14.15 	(b) For taxable years beginning after December 31, 2019, and before January 1, 2021, 
14.16 	an individual taxpayer with adjusted gross income that is less than $150,000 is allowed a 
14.17 	subtraction equal to the amount of unemployment compensation received in the taxable 
14.18 	year. The subtraction is limited to $10,200, except for a joint return the subtraction is limited 
14.19 	to $10,200 in unemployment compensation received by each spouse.

14.20 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
14.21 	after December 31, 2019, and before January 1, 2021.

14.22 	ARTICLE 2
14.23 	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

14.24 	Section 1. Minnesota Statutes 2020, section 41B.0391, subdivision 2, is amended to read:
14.25 		Subd. 2.Tax credit for owners of agricultural assets. (a) An owner of agricultural 
14.26 	assets may take a credit against the tax due under chapter 290 for the sale or rental of 
14.27 	agricultural assets to a beginning farmer in the amount allocated by the authority under 
14.28 	subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:
14.29 	(1) five percent of the lesser of the sale price or the fair market value of the agricultural 
14.30 	asset, up to a maximum of $32,000;
15.1 	(2) ten percent of the gross rental income in each of the first, second, and third years of 
15.2 	a rental agreement, up to a maximum of $7,000 per year; or
15.3 	(3) 15 percent of the cash equivalent of the gross rental income in each of the first, 
15.4 	second, and third years of a share rent agreement, up to a maximum of $10,000 per year.
15.5 	(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent 
15.6 	agreement. The agricultural asset must be rented at prevailing community rates as determined 
15.7 	by the authority.
15.8 	(c) The credit may be claimed only after approval and certification by the authority, and 
15.9 	is limited to the amount stated on the certificate issued under subdivision 4. An owner of 
15.10 	agricultural assets must apply to the authority for certification and allocation of a credit, in 
15.11 	a form and manner prescribed by the authority.
15.12 	(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement, 
15.13 	including a share rent agreement, for reasonable cause upon approval of the authority. If a 
15.14 	rental agreement is terminated without the fault of the owner of agricultural assets, the tax 
15.15 	credits shall not be retroactively disallowed. In determining reasonable cause, the authority 
15.16 	must look at which party was at fault in the termination of the agreement. If the authority 
15.17 	determines the owner of agricultural assets did not have reasonable cause, the owner of 
15.18 	agricultural assets must repay all credits received as a result of the rental agreement to the 
15.19 	commissioner of revenue. The repayment is additional income tax for the taxable year in 
15.20 	which the authority makes its decision or when a final adjudication under subdivision 5, 
15.21 	paragraph (a), is made, whichever is later.
15.22 	(e) The credit is limited to the liability for tax as computed under chapter 290 for the 
15.23 	taxable year. If the amount of the credit determined under this section for any taxable year 
15.24 	exceeds this limitation, the excess is a beginning farmer incentive credit carryover according 
15.25 	to section 290.06, subdivision 37.
15.26 	(f) Notwithstanding subdivision 1, paragraph (c), for purposes of the credit for the sale 
15.27 	of an agricultural asset under paragraph (a), clause (1), the family member definitional 
15.28 	exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
15.29 	(g) For a qualifying sale to a family member, to qualify for the credit under paragraph 
15.30 	(a), clause (1), the sale price of the agricultural asset must equal or exceed the assessed 
15.31 	value of the asset as of the date of the sale. If there is no assessed value, the sale price must 
15.32 	equal or exceed 80 percent of the fair market value of the asset as of the date of the sale.
16.1 	(h) For the purposes of this section, "qualifying sale to a family member" means a sale 
16.2 	to a beginning farmer in which the beginning farmer or the beginning farmer's spouse is a 
16.3 	family member of:
16.4 	(1) the owner of the agricultural asset; or
16.5 	(2) a partner, member, shareholder, or trustee of the owner of the agricultural asset.
16.6 	(i) For a sale to a socially disadvantaged farmer or rancher, the credit rate under paragraph 
16.7 	(a), clause (1), is ten percent rather than five percent. For the purposes of this section, 
16.8 	"socially disadvantaged farmer or rancher" has the meaning given in United States Code, 
16.9 	title 7, section 2279(a)(5).

16.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.11 	31, 2020.

16.12 	Sec. 2. Minnesota Statutes 2020, section 41B.0391, subdivision 4, is amended to read:
16.13 		Subd. 4.Authority duties. (a) The authority shall:
16.14 	(1) approve and certify or recertify beginning farmers as eligible for the program under 
16.15 	this section;
16.16 	(2) approve and certify or recertify owners of agricultural assets as eligible for the tax 
16.17 	credit under subdivision 2 subject to the allocation limits in paragraph (c);
16.18 	(3) provide necessary and reasonable assistance and support to beginning farmers for 
16.19 	qualification and participation in financial management programs approved by the authority;
16.20 	(4) refer beginning farmers to agencies and organizations that may provide additional 
16.21 	pertinent information and assistance; and
16.22 	(5) notwithstanding section 41B.211, the Rural Finance Authority must share information 
16.23 	with the commissioner of revenue to the extent necessary to administer provisions under 
16.24 	this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority 
16.25 	must annually notify the commissioner of revenue of approval and certification or 
16.26 	recertification of beginning farmers and owners of agricultural assets under this section. 
16.27 	For credits under subdivision 2, the notification must include the amount of credit approved 
16.28 	by the authority and stated on the credit certificate.
16.29 	(b) The certification of a beginning farmer or an owner of agricultural assets under this 
16.30 	section is valid for the year of the certification and the two following years, after which 
16.31 	time the beginning farmer or owner of agricultural assets must apply to the authority for 
16.32 	recertification.
17.1 	(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority 
17.2 	must not allocate more than $5,000,000 for taxable years beginning after December 31, 
17.3 	2017, and before January 1, 2019, and must not allocate more than $6,000,000 for taxable 
17.4 	years beginning after December 31, 2018. The authority must allocate credits on a first-come, 
17.5 	first-served basis beginning on January 1 of each year, except that recertifications for the 
17.6 	second and third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), 
17.7 	have first priority. Any amount authorized but not allocated in any taxable year does not 
17.8 	cancel and is added to the allocation for the next taxable year.
17.9 	(d) For taxable years beginning after December 31, 2020, the amount available to be 
17.10 	allocated for the taxable year under paragraph (c) is reduced by five percent. Beginning in 
17.11 	fiscal year 2022, an amount equal to the reduction under this paragraph is annually 
17.12 	appropriated from the general fund to the Rural Finance Authority to develop an online 
17.13 	application system and administer the credits under this section. The amount of the 
17.14 	appropriation for a fiscal year must be determined based on the reduction for taxable years 
17.15 	beginning after December 31 of the previous fiscal year and before January 1 of the fiscal 
17.16 	year of the appropriation. The Rural Finance Authority must disregard amounts carried 
17.17 	forward from previous taxable years when calculating the reduction under this paragraph.

17.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.19 	31, 2020.

17.20 	Sec. 3. Minnesota Statutes 2020, section 116J.8737, subdivision 5, is amended to read:
17.21 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for a credit 
17.22 	equal to 25 percent of the qualified investment in a qualified small business. Investments 
17.23 	made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The 
17.24 	commissioner must not allocate more than $10,000,000 in credits to qualified investors or 
17.25 	qualified funds for the taxable years listed in paragraph (i). For each taxable year, 50 percent 
17.26 	must be allocated to credits for qualified investments in qualified greater Minnesota 
17.27 	businesses and minority-owned, women-owned, or veteran-owned qualified small businesses 
17.28 	in Minnesota. Any portion of a taxable year's credits that is reserved for qualified investments 
17.29 	in greater Minnesota businesses and minority-owned, women-owned, or veteran-owned 
17.30 	qualified small businesses in Minnesota that is not allocated by September 30 of the taxable 
17.31 	year is available for allocation to other credit applications beginning on October 1. Any 
17.32 	portion of a taxable year's credits that is not allocated by the commissioner does not cancel 
17.33 	and may be carried forward to subsequent taxable years until all credits have been allocated.
18.1 	(b) The commissioner may not allocate more than a total maximum amount in credits 
18.2 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
18.3 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
18.4 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
18.5 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
18.6 	over all taxable years for qualified investments in any one qualified small business.
18.7 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
18.8 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
18.9 	is proposed:
18.10 	(1) the investor is an officer or principal of the qualified small business; or
18.11 	(2) the investor, either individually or in combination with one or more members of the 
18.12 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
18.13 	outstanding securities of the qualified small business.
18.14 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
18.15 	credit under this section. For a married couple filing a joint return, the limitations in this 
18.16 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
18.17 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
18.18 	267(e) of the Internal Revenue Code apply.
18.19 	(d) Applications for tax credits for 2010 must be made available on the department's 
18.20 	website by September 1, 2010, and the department must begin accepting applications by 
18.21 	September 1, 2010. Applications for subsequent years must be made available by November 
18.22 	1 of the preceding year.
18.23 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
18.24 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
18.25 	tax credit request applications are filed with the department. The commissioner must approve 
18.26 	or reject tax credit request applications within 15 days of receiving the application. The 
18.27 	investment specified in the application must be made within 60 days of the allocation of 
18.28 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
18.29 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
18.30 	specified in the application, within 60 days of allocation of the credits, must notify the 
18.31 	commissioner of the failure to invest within five business days of the expiration of the 
18.32 	60-day investment period.
18.33 	(f) All tax credit request applications filed with the department on the same day must 
18.34 	be treated as having been filed contemporaneously. If two or more qualified investors or 
19.1 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
19.2 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
19.3 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
19.4 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
19.5 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
19.6 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
19.7 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
19.8 	denominator of which is the total of all credit allocation claims filed on behalf of all 
19.9 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
19.10 	taxable year.
19.11 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
19.12 	behalf, must notify the commissioner when an investment for which credits were allocated 
19.13 	has been made, and the taxable year in which the investment was made. A qualified fund 
19.14 	must also provide the commissioner with a statement indicating the amount invested by 
19.15 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
19.16 	fund at the time of the qualified investment. After receiving notification that the investment 
19.17 	was made, the commissioner must issue credit certificates for the taxable year in which the 
19.18 	investment was made to the qualified investor or, for an investment made by a qualified 
19.19 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
19.20 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
19.21 	hold the investment in the qualified small business for at least three years, consisting of the 
19.22 	calendar year in which the investment was made and the two following years. The three-year 
19.23 	holding period does not apply if:
19.24 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
19.25 	the end of the three-year period;
19.26 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
19.27 	of the three-year period;
19.28 	(3) the qualified small business is sold before the end of the three-year period;
19.29 	(4) the qualified small business's common stock begins trading on a public exchange 
19.30 	before the end of the three-year period; or
19.31 	(5) the qualified investor dies before the end of the three-year period.
19.32 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
19.33 	issued under this section.
20.1 	(i) The credit allowed under this subdivision is effective for each of the following taxable 
20.2 	years:taxable years beginning after December 31, 2020, and before January 1, 2023.
20.3 	(1) taxable years beginning after December 31, 2018, and before January 1, 2020; and
20.4 	(2) taxable years beginning after December 31, 2020, and before January 1, 2022.

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

20.6 	Sec. 4. Minnesota Statutes 2020, section 116J.8737, subdivision 12, is amended to read:
20.7 		Subd. 12.Sunset. This section expires for taxable years beginning after December 31, 
20.8 	2021 2022, except that reporting requirements under subdivision 6 and revocation of credits 
20.9 	under subdivision 7 remain in effect through 2023 2024 for qualified investors and qualified 
20.10 	funds, and through 2025 2026 for qualified small businesses, reporting requirements under 
20.11 	subdivision 9 remain in effect through 2021 2022, and the appropriation in subdivision 11 
20.12 	remains in effect through 2025 2026.

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

20.14 	Sec. 5. [116U.27] FILM PRODUCTION CREDIT.
20.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
20.16 	the meanings given.
20.17 	(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer 
20.18 	upon receipt of an initial application for a credit for a project that has not yet been completed.
20.19 	(c) "Application" means the application for a credit under subdivision 4.
20.20 	(d) "Commissioner" means the commissioner of employment and economic development.
20.21 	(e) "Credit certificate" means a certificate issued by the commissioner upon submission 
20.22 	of the cost verification report in subdivision 4, paragraph (e).
20.23 	(f) "Eligible production costs" means eligible production costs as defined in section 
20.24 	116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to 
20.25 	the production of a film project in Minnesota.
20.26 	(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
20.27 	(h) "Project" means a film:
20.28 	(1) that includes the promotion of Minnesota;
21.1 	(2) for which the taxpayer has expended at least $1,000,000 in the taxable year for 
21.2 	eligible production costs; and
21.3 	(3) to the extent practicable, that employs Minnesota residents.
21.4 	(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated 
21.5 	logo, approved by the commissioner and lasting approximately five seconds, that promotes 
21.6 	Minnesota within its presentation and all promotional trailers worldwide in the end credits 
21.7 	before the below-the-line crew crawl for the life of the project.
21.8 		Subd. 2.Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible 
21.9 	production costs paid in a taxable year. A taxpayer may only claim a credit if the taxpayer 
21.10 	was issued a credit certificate under subdivision 4.
21.11 		Subd. 3.Credit assignable. A taxpayer who is eligible for a credit under this subdivision 
21.12 	may assign the credit, in whole or in part, to another taxpayer, who is then allowed the credit 
21.13 	under section 290.06, subdivision 39, or 297I.20, subdivision 4. An assignment is not valid 
21.14 	unless the assignee notifies the commissioner within 30 days of the date that the assignment 
21.15 	is made. The commissioner shall prescribe the forms necessary for notifying the 
21.16 	commissioner of the assignment of a credit certificate and for claiming a credit by assignment. 
21.17 	A credit must be assigned for at least 75 percent of the credit amount subject to assignment. 
21.18 	A credit may be assigned at any time, provided that, for an assignment of a credit carryover 
21.19 	under section 290.06, subdivision 39, paragraph (b), only the unused amount of the carryover 
21.20 	is assigned.
21.21 		Subd. 4.Applications; allocations. (a) To qualify for a credit under this section, a 
21.22 	taxpayer must submit to the commissioner an initial application for a credit in the form 
21.23 	prescribed by the commissioner, in consultation with the commissioner of revenue.
21.24 	(b) Upon approving an application for a credit that meets the requirements of this section, 
21.25 	the commissioner shall issue allocation certificates that:
21.26 	(1) verify eligibility for the credit;
21.27 	(2) state the amount of credit anticipated for the eligible project, with the credit amount 
21.28 	up to 25 percent of eligible project costs; and
21.29 	(3) state the taxable year in which the credit is allocated.
21.30 	The commissioner must consult with Minnesota Film and Television prior to issuing an 
21.31 	allocation certificate.
22.1 	(c) The commissioner must not issue allocation certificates for more than $10,000,000 
22.2 	of credits each year. If the entire amount is not allocated in that taxable year, any remaining 
22.3 	amount is available for allocation for the four following taxable years until the entire 
22.4 	allocation has been made. The commissioner must not award any credits for taxable years 
22.5 	beginning after December 31, 2024, and any unallocated amounts cancel on that date.
22.6 	(d) The commissioner must allocate credits on a first-come, first-served basis.
22.7 	(e) Upon completion of a project, the taxpayer shall submit to the commissioner a report 
22.8 	prepared by an independent certified public accountant licensed in the state of Minnesota 
22.9 	to verify the amount of eligible production costs related to the project. The report must be 
22.10 	prepared in accordance with generally accepted accounting principles. Upon receipt and 
22.11 	review of the cost verification report, the commissioner shall determine the final amount 
22.12 	of eligible production costs and issue a credit certificate to the taxpayer. The credit may not 
22.13 	exceed the anticipated credit amount on the allocation certificate. If the credit is less than 
22.14 	the anticipated amount on the allocation credit, the difference is returned to the amount 
22.15 	available for allocation under paragraph (c). To claim the credit under section 290.06, 
22.16 	subdivision 39, or 297I.20, subdivision 4, a taxpayer must include a copy of the certificate 
22.17 	as part of the taxpayer's return.
22.18 		Subd. 5.Report required. By March 15, 2024, the commissioner, in consultation with 
22.19 	the commissioner of revenue, must provide a report to the chairs and ranking minority 
22.20 	members of the legislative committees with jurisdiction over economic development and 
22.21 	taxes. The report must comply with sections 3.195 and 3.197, and must detail the following:
22.22 	(1) the amount of credits earned in each taxable year;
22.23 	(2) the number of applications received and approved for the credit;
22.24 	(3) the types of projects eligible for the credit;
22.25 	(4) the total economic impact of the credit in Minnesota, including the number of jobs 
22.26 	resulting from the credit; and
22.27 	(5) any other information the commissioner, in consultation with the commissioner of 
22.28 	revenue, deems necessary for purposes of claiming and administering the credit.
22.29 		Subd. 6.Expiration. This section expires January 1, 2025, for taxable years beginning 
22.30 	after December 31, 2024.

22.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.32 	31, 2020, and before January 1, 2025.

23.1 	Sec. 6. Minnesota Statutes 2020, section 289A.08, subdivision 7, is amended to read:
23.2 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
23.3 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
23.4 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
23.5 	other Minnesota source income. This composite return must include the names, addresses, 
23.6 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
23.7 	electing to be covered by the composite return.
23.8 	(b) The computation of a partner's tax liability must be determined by multiplying the 
23.9 	income allocated to that partner by the highest rate used to determine the tax liability for 
23.10 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
23.11 	deductions, or personal exemptions are not allowed.
23.12 	(c) The partnership must submit a request to use this composite return filing method for 
23.13 	nonresident partners. The requesting partnership must file a composite return in the form 
23.14 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
23.15 	a request to use the composite return filing method.
23.16 	(d) The electing partner must not have any Minnesota source income other than the 
23.17 	income from the partnership and other electing partnerships. If it is determined that the 
23.18 	electing partner has other Minnesota source income, the inclusion of the income and tax 
23.19 	liability for that partner under this provision will not constitute a return to satisfy the 
23.20 	requirements of subdivision 1. The tax paid for the individual as part of the composite return 
23.21 	is allowed as a payment of the tax by the individual on the date on which the composite 
23.22 	return payment was made. If the electing nonresident partner has no other Minnesota source 
23.23 	income, filing of the composite return is a return for purposes of subdivision 1.
23.24 	(e) This subdivision does not negate the requirement that an individual pay estimated 
23.25 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
23.26 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
23.27 	pays composite estimated tax in the manner prescribed in section 289A.25.
23.28 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
23.29 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
23.30 	is zero. However, a statement showing the partner's share of gross income must be included 
23.31 	as part of the composite return.
23.32 	(g) The election provided in this subdivision is only available to a partner who has no 
23.33 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
24.1 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
24.2 	Internal Revenue Code.
24.3 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
24.4 	make an election under this paragraph. The provisions covering the partnership apply to 
24.5 	the corporation and the provisions applying to the partner apply to the shareholder.
24.6 	(i) Estates and trusts distributing current income only and the nonresident individual 
24.7 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
24.8 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
24.9 	the partner apply to the beneficiary.
24.10 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
24.11 	adjusted gross income from the partnership modified by the additions provided in section 
24.12 	290.0131, subdivisions 8 to 10 and, 16, and 19 to 23, and the subtractions provided in: (1) 
24.13 	section 290.0132, subdivision 9, to the extent the amount is assignable or allocable to 
24.14 	Minnesota under section 290.17; and (2) section 290.0132, subdivision subdivisions14, 
24.15 	30, and 31. The subtraction allowed under section 290.0132, subdivision 9, is only allowed 
24.16 	on the composite tax computation to the extent the electing partner would have been allowed 
24.17 	the subtraction.

24.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
24.19 	31, 2020, except that the provisions relating to section 290.0131, subdivisions 20 and 21, 
24.20 	are effective retroactively for taxable years beginning after December 31, 2017, and the 
24.21 	provisions relating to section 290.0131, subdivision 19, and section 290.0132, subdivisions 
24.22 	30 and 31, are effective retroactively for taxable years beginning after December 31, 2018.

24.23 	Sec. 7. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to 
24.24 	read:
24.25 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
24.26 	terms have the meanings given:
24.27 	(1) "income" has the meaning given in subdivision 7, paragraph (j), except that the 
24.28 	provisions that apply to a partnership apply to a qualifying entity and the provisions that 
24.29 	apply to a partner apply to a qualifying owner. The income of both a resident and nonresident 
24.30 	qualifying owner is allocated and assigned to this state as provided for nonresident partners 
24.31 	and shareholders under section 290.17;
24.32 	(2) "qualifying owner" means a resident or nonresident individual, estate, or trust that 
24.33 	is a partner, member, or shareholder of a qualifying entity; and
25.1 	(3) "qualifying entity" means a partnership, limited liability company, or corporation 
25.2 	organized under subchapter S of the Internal Revenue Code for federal income tax purposes, 
25.3 	including a qualified subsidiary also organized under subchapter S of the Internal Revenue 
25.4 	Code. Qualifying entity does not include a partnership, limited liability company, or 
25.5 	corporation that has a partnership, limited liability company, or corporation as a partner, 
25.6 	member, or shareholder.
25.7 	(b) A qualifying entity may elect to file a return and pay the pass-through entity tax 
25.8 	imposed under paragraph (c). The election:
25.9 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
25.10 	pass-through entity tax return;
25.11 	(2) may only be made by qualifying owners who hold more than a 50 percent ownership 
25.12 	interest in a qualifying entity; and
25.13 	(3) is binding on all qualifying owners who have an ownership interest in the qualifying 
25.14 	entity.
25.15 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
25.16 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
25.17 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
25.18 	of the qualifying owner's income multiplied by the tax rates and brackets used to determine 
25.19 	the tax liability for married individuals filing separate returns, estates, and trusts under 
25.20 	section 290.06, subdivision 2c. When making this determination:
25.21 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
25.22 	and
25.23 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
25.24 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
25.25 	liability under paragraph (d) must also be used to determine that qualifying owner's individual 
25.26 	income tax liability under chapter 290.
25.27 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
25.28 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
25.29 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
25.30 	tax liability as determined under paragraph (d) is, however, satisfied when the qualifying 
25.31 	entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated 
25.32 	tax.
26.1 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
26.2 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
26.3 	under paragraph (b) is not made.
26.4 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
26.5 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
26.6 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
26.7 	return.
26.8 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
26.9 	tax under this subdivision.
26.10 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
26.11 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
26.12 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
26.13 	nonresident qualifying owner must not have any Minnesota source income other than the 
26.14 	income from the qualifying entity and other electing qualifying entities. If it is determined 
26.15 	that the nonresident qualifying owner has other Minnesota source income, the inclusion of 
26.16 	the income and tax liability for that owner under this provision will not constitute a return 
26.17 	to satisfy the requirements of subdivision 1. The tax paid for the individual as part of the 
26.18 	pass-through entity tax return is allowed as a payment of the tax by the individual on the 
26.19 	date on which the pass-through entity tax return payment was made.

26.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
26.21 	31, 2020.

26.22 	Sec. 8. Minnesota Statutes 2020, section 289A.08, subdivision 11, is amended to read:
26.23 		Subd. 11.Information included in income tax return. (a) The return must state:
26.24 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 
26.25 	of the taxpayer in the same name or names and same address as the taxpayer has used in 
26.26 	making the taxpayer's income tax return to the United States;
26.27 	(2) the date or dates of birth of the taxpayer or taxpayers;
26.28 	(3) the following information:
26.29 	(i) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 
26.30 	has been issued by the United States with respect to the taxpayers; or
27.1 	(ii) the individual tax identification number of the taxpayer, or taxpayers, if a Social 
27.2 	Security number has not been issued by the United States with respect to the taxpayers, as 
27.3 	allowed under section 290.0671; and
27.4 	(4) the amount of the taxable income of the taxpayer as it appears on the federal return 
27.5 	for the taxable year to which the Minnesota state return applies.
27.6 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 
27.7 	of the federal income tax return that the taxpayer has filed or is about to file for the period.

27.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
27.9 	31, 2020.

27.10 	Sec. 9. Minnesota Statutes 2020, section 290.01, is amended by adding a subdivision to 
27.11 	read:
27.12 		Subd. 7c.Resident trust. (a) "Resident trust" means a trust, except a grantor type trust, 
27.13 	which has sufficient relevant connections with Minnesota during the applicable tax year to 
27.14 	be permissibly taxed, consistent with due process, as a resident trust. Relevant connections 
27.15 	with Minnesota include but are not limited to the following:
27.16 	(1) one or more of the trustees, fiduciaries, nonfiduciary service providers, settlors, 
27.17 	grantors, or beneficiaries of the trust are residents or part-year residents of Minnesota;
27.18 	(2) tangible or intangible assets making up any part of the trust are located in Minnesota;
27.19 	(3) any part of the administration of the trust took place in Minnesota;
27.20 	(4) the laws of Minnesota are specifically made applicable to the trust or to the parties 
27.21 	to the trust, whether by choice of law or by operation of law;
27.22 	(5) the trust was created by a will of a decedent who at death was domiciled in Minnesota;
27.23 	(6) the trust and the will under which it was created were probated in Minnesota or were 
27.24 	otherwise approved or enforced by Minnesota's courts; and
27.25 	(7) Minnesota's courts have a continuing supervisory or other existing relationship with 
27.26 	the trust.
27.27 	(b) The term "grantor type trust" means a trust where the income or gains of the trust 
27.28 	are taxable to the grantor or others treated as substantial owners under sections 671 to 678 
27.29 	of the Internal Revenue Code.
27.30 	(c) The term "administration of the trust" means the performance of any administrative 
27.31 	function for the trust, including but not limited to the following:
28.1 	(1) investing of trust assets;
28.2 	(2) distributing of trust assets;
28.3 	(3) conducting trust business;
28.4 	(4) conducting any litigation or other legal proceedings;
28.5 	(5) conducting administrative services, including but not limited to record keeping and 
28.6 	the preparation and filing of tax returns;
28.7 	(6) making fiduciary decisions, including but not limited to decisions regarding any of 
28.8 	the administrative functions listed in this paragraph; and
28.9 	(7) official keeping of books and records of the trust, including but not limited to the 
28.10 	original minutes of trustee meetings and the original trust instruments, are located in 
28.11 	Minnesota.

28.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.13 	31, 2020.

28.14 	Sec. 10. Minnesota Statutes 2020, section 290.0122, subdivision 8, is amended to read:
28.15 		Subd. 8.Losses. A taxpayer is allowed a deduction for losses. The deduction equals the 
28.16 	amount allowed under sections 165(d) and 165(h) of the Internal Revenue Code, disregarding 
28.17 	the limitation on personal casualty losses in paragraph (h)(5). section 165(a) of the Internal 
28.18 	Revenue Code, including the limitation provided in section 67(b)(3) of the Internal Revenue 
28.19 	Code, for the following:
28.20 	(1) losses described in paragraphs (2) and (3) of section 165(c) of the Internal Revenue 
28.21 	Code, including the provisions of section 165(h) of the Internal Revenue Code but 
28.22 	disregarding paragraph (h)(5); and
28.23 	(2) losses described in section 165(d) of the Internal Revenue Code.

28.24 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
28.25 	that the reference to paragraph (2) of section 165(c) of the Internal Revenue Code is effective 
28.26 	retroactively for taxable years beginning after December 31, 2018.

28.27 	Sec. 11. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
28.28 	to read:
28.29 		Subd. 22.Previously taxed deferred foreign income. The amount received by a resident 
28.30 	or part-year resident that is excluded from federal adjusted gross income or federal taxable 
29.1 	income under section 959 of the Internal Revenue Code, because the amount was previously 
29.2 	included under sections 951A or 965 of the Internal Revenue Code, is an addition.

29.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
29.4 	31, 2020.

29.5 	Sec. 12. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
29.6 	to read:
29.7 		Subd. 23.Income attributable to domestic production activities of cooperatives. The 
29.8 	amount of the deduction allowable under section 199A(g) of the Internal Revenue Code is 
29.9 	an addition.

29.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
29.11 	31, 2020.

29.12 	Sec. 13. Minnesota Statutes 2020, section 290.0132, subdivision 27, is amended to read:
29.13 		Subd. 27.Deferred foreign income. The amount of deferred foreign income recognized 
29.14 	because of under section 965 of the Internal Revenue Code is a subtraction.

29.15 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
29.16 	after December 31, 2015, except the changes incorporated by federal changes are effective 
29.17 	retroactively at the same time the changes became effective for federal purposes.

29.18 	Sec. 14. Minnesota Statutes 2020, section 290.0133, subdivision 6, is amended to read:
29.19 		Subd. 6.Special deductions. The amount of any special deductions under sections 241 
29.20 	to 247, and 250, and 965 of the Internal Revenue Code is an addition.

29.21 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
29.22 	after December 31, 2015, except that the changes incorporated by federal changes are 
29.23 	effective retroactively at the same time the changes became effective for federal purposes.

29.24 	Sec. 15. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision 
29.25 	to read:
29.26 		Subd. 16.Previously taxed deferred foreign income. The amount received by a 
29.27 	corporation that is excluded from gross income under section 959 of the Internal Revenue 
29.28 	Code, because the amount was previously included under sections 951A or 965 of the 
29.29 	Internal Revenue Code, is an addition.

30.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.2 	31, 2020.

30.3 	Sec. 16. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision 
30.4 	to read:
30.5 		Subd. 17.Income attributable to domestic production activities of cooperatives. The 
30.6 	amount of the deduction allowable under section 199A(g) of the Internal Revenue Code is 
30.7 	an addition.

30.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.9 	31, 2020.

30.10 	Sec. 17. Minnesota Statutes 2020, section 290.0134, subdivision 18, is amended to read:
30.11 		Subd. 18.Deferred foreign income. The amount of deferred foreign income recognized 
30.12 	because of under section 965 of the Internal Revenue Code is a subtraction.

30.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.14 	31, 2020.

30.15 	Sec. 18. Minnesota Statutes 2020, section 290.06, subdivision 2c, is amended to read:
30.16 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
30.17 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
30.18 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
30.19 	their taxable net income the following schedule of rates:
30.20 	(1) On the first $38,770 $42,800, 5.35 percent;
30.21 	(2) On all over $38,770 $42,800, but not over $154,020 $154,010, 6.8 percent;
30.22 	(3) On all over $154,020 $154,010, but not over $269,010 $276,200, 7.85 percent;
30.23 	(4) On all over $269,010 $276,200, but not over $1,000,000, 9.85 percent.;
30.24 	(5) On all over $1,000,000, 11.15 percent.
30.25 	Married individuals filing separate returns, estates, and trusts must compute their income 
30.26 	tax by applying the above rates to their taxable income, except that the income brackets 
30.27 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
30.28 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
30.29 	computed by applying to taxable net income the following schedule of rates:
31.1 	(1) On the first $26,520 $29,270, 5.35 percent;
31.2 	(2) On all over $26,520 $29,270, but not over $87,110 $86,620, 6.8 percent;
31.3 	(3) On all over $87,110 $86,620, but not over $161,720 $166,040, 7.85 percent;
31.4 	(4) On all over $161,720 $166,040, but not over $500,000, 9.85 percent.;
31.5 	(5) On all over $500,000, 11.15 percent.
31.6 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
31.7 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
31.8 	computed by applying to taxable net income the following schedule of rates:
31.9 	(1) On the first $32,650 $36,030, 5.35 percent;
31.10 	(2) On all over $32,650 $36,030, but not over $131,190 $131,230, 6.8 percent;
31.11 	(3) On all over $131,190 $131,230, but not over $214,980 $220,730, 7.85 percent;
31.12 	(4) On all over $214,980 $220,730, but not over $750,000, 9.85 percent.;
31.13 	(5) On all over $750,000, 11.15 percent.
31.14 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
31.15 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
31.16 	amount determined by the commissioner must be computed in accordance with tables 
31.17 	prepared and issued by the commissioner of revenue based on income brackets of not more 
31.18 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
31.19 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
31.20 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
31.21 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
31.22 	individual's Minnesota income tax as provided in this subdivision. After the application of 
31.23 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
31.24 	by a fraction in which:
31.25 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
31.26 	defined in section 62 of the Internal Revenue Code and increased by:
31.27 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
31.28 	17, and 19 to 23, and 290.0137, paragraph (a); and reduced by
31.29 	(ii) the Minnesota assignable portion of the subtraction for United States government 
31.30 	interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132, 
31.31 	subdivisions 9, 10, 14, 15, 17, 18, and 27, 30, and 31, and 290.0137, paragraph (c), after 
32.1 	applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; 
32.2 	and
32.3 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
32.4 	62 of the Internal Revenue Code, increased by:
32.5 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
32.6 	17, and 19 to 23, and 290.0137, paragraph (a); and reduced by
32.7 	(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, and
32.8 	27, 30, and 31, and 290.0137, paragraph (c).

32.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
32.10 	31, 2020.

32.11 	Sec. 19. Minnesota Statutes 2020, section 290.06, subdivision 2d, is amended to read:
32.12 		Subd. 2d.Inflation adjustment of brackets. The commissioner shall annually adjust 
32.13 	the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed 
32.14 	in subdivision 2c as provided in section 270C.22. The statutory year is taxable year 2019
32.15 	2021. The rate applicable to any rate bracket must not be changed. The dollar amounts 
32.16 	setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate 
32.17 	brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in 
32.18 	$5, it must be rounded up to the nearest $10 amount. The commissioner shall determine the 
32.19 	rate bracket for married filing separate returns after this adjustment is done. The rate bracket 
32.20 	for married filing separate must be one-half of the rate bracket for married filing joint.

32.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
32.22 	31, 2021.

32.23 	Sec. 20. Minnesota Statutes 2020, section 290.06, subdivision 22, is amended to read:
32.24 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
32.25 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
32.26 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
32.27 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
32.28 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
32.29 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
32.30 	this credit unless the state of domicile does not allow a similar credit.
32.31 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
32.32 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
33.1 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
33.2 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
33.3 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
33.4 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
33.5 	or assigned to Minnesota under sections 290.081 and 290.17.
33.6 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
33.7 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
33.8 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
33.9 	state by the taxpayer's Minnesota taxable income.
33.10 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
33.11 	tax so paid to the other state on the gross income earned within the other state subject to 
33.12 	tax under this chapter; and
33.13 	(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 
33.14 	amount less than what would be assessed if the gross income earned within the other state 
33.15 	were excluded from taxable net income.
33.16 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
33.17 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
33.18 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
33.19 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
33.20 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
33.21 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
33.22 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
33.23 	properly apportioned to that distribution.
33.24 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
33.25 	in such other state on that same income after the Minnesota statute of limitations has expired, 
33.26 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
33.27 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
33.28 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
33.29 	proof to show entitlement to a credit.
33.30 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
33.31 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
33.32 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
33.33 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
34.1 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
34.2 	income.
34.3 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
34.4 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
34.5 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
34.6 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
34.7 	income" tax means any tax imposed on or measured by a partnership's net income. For 
34.8 	purposes of this paragraph, "partnership" includes a limited liability company and "partner" 
34.9 	includes a member of a limited liability company.
34.10 	(i) For the purposes of this subdivision, "another state":
34.11 	(1) includes:
34.12 	(i) the District of Columbia; and
34.13 	(ii) a province or territory of Canada; but
34.14 	(2) excludes Puerto Rico and the several territories organized by Congress.
34.15 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
34.16 	by state basis.
34.17 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
34.18 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
34.19 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
34.20 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
34.21 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
34.22 	tax that qualifies for the credit under this subdivision.
34.23 	(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 
34.24 	qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 
34.25 	calculated by multiplying:
34.26 	(i) the difference between the preliminary credit and the credit calculated under paragraphs 
34.27 	(b) and (d), by
34.28 	(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 
34.29 	consists of compensation for performance of personal or professional services by the total 
34.30 	amount of income subject to tax in the qualifying state.
34.31 	(2) If the amount of the credit that a qualifying individual is eligible to receive under 
34.32 	clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 
35.1 	the application of the credit calculated under clause (1), the commissioner shall refund the 
35.2 	excess to the qualifying individual. An amount sufficient to pay the refunds required by this 
35.3 	subdivision is appropriated to the commissioner from the general fund.
35.4 	(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 
35.5 	individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 
35.6 	state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 
35.7 	means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 
35.8 	compensation during the taxable year for the performance of personal or professional services 
35.9 	within a qualifying state; and "qualifying state" means a state with which an agreement 
35.10 	under section 290.081 is not in effect for the taxable year but was in effect for a taxable 
35.11 	year beginning before January 1, 2010.

35.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
35.13 	31, 2020.

35.14 	Sec. 21. Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to 
35.15 	read:
35.16 		Subd. 39.Film production credit. (a) A taxpayer, including a taxpayer to whom a credit 
35.17 	has been assigned under section 116U.27, subdivision 3, may claim a credit against the tax 
35.18 	imposed by this chapter equal to the amount certified on a credit certificate under section 
35.19 	116U.27, subject to the limitations in this subdivision.
35.20 	(b) The credit is limited to the liability for tax, as computed under this chapter, for the 
35.21 	taxable year. If the amount of the credit determined under this subdivision for any taxable 
35.22 	year exceeds this limitation, the excess is a film production credit carryover to each of the 
35.23 	five succeeding taxable years. The entire amount of the excess unused credit for the taxable 
35.24 	year is carried first to the earliest of the taxable years to which the credit may be carried 
35.25 	and then to each successive year to which the credit may be carried. The amount of the 
35.26 	unused credit that may be added under this paragraph must not exceed the taxpayer's liability 
35.27 	for tax, less any film production credit for the taxable year.
35.28 	(c) Credits allowed to a partnership, a limited liability company taxed as a partnership, 
35.29 	or an S corporation are passed through to the partners, members, shareholders, or owners, 
35.30 	respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's 
35.31 	share of the entity's assets, or as specially allocated in the organizational documents or any 
35.32 	other executed agreement, as of the last day of the taxable year.
36.1 	(d) Notwithstanding the approval and certification by the commissioner of employment 
36.2 	and economic development under section 116U.27, the commissioner may utilize any audit 
36.3 	and examination powers under chapter 270C or 289A to the extent necessary to verify that 
36.4 	the taxpayer is eligible for the credit and to assess the amount of any improperly claimed 
36.5 	credit. The commissioner may only assess the original recipient of the credit certificate for 
36.6 	the amount of improperly claimed credits. The commissioner may not assess a credit 
36.7 	certificate transferee for any amount of improperly claimed credits, and a transferee's claim 
36.8 	for credit is not affected by the commissioner's assessment of improperly claimed credits 
36.9 	against the transferor.
36.10 	(e) This subdivision expires January 1, 2025, for taxable years beginning after December 
36.11 	31, 2024, except that the expiration of this section does not affect the commissioner of 
36.12 	revenue's authority to audit or power of examination and assessment for credits claimed 
36.13 	under this subdivision.

36.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
36.15 	31, 2020, and before January 1, 2025.

36.16 	Sec. 22. Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to 
36.17 	read:
36.18 		Subd. 40.Pass-through entity tax credit. (a) A qualifying owner of a qualifying entity 
36.19 	that elects to pay the pass-through entity tax under section 289A.08, subdivision 7a, may 
36.20 	claim a credit against the tax due under this chapter equal to the amount of the owner's tax 
36.21 	liability as calculated under section 289A.08, subdivision 7a, paragraph (d).
36.22 	(b) If the amount of the credit the taxpayer may claim under this subdivision exceeds 
36.23 	the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the 
36.24 	excess to the taxpayer. The amount necessary to pay the claim for the refund provided in 
36.25 	this subdivision is appropriated from the general fund to the commissioner of revenue.
36.26 	(c) For purposes of this subdivision, "qualifying entity," "qualifying owner," and "tax 
36.27 	liability" have the meanings given in section 289A.08, subdivision 7a, paragraphs (a) and 
36.28 	(d).

36.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
36.30 	31, 2020.

37.1 	Sec. 23. Minnesota Statutes 2020, section 290.0671, subdivision 1, is amended to read:
37.2 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
37.3 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
37.4 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
37.5 	Internal Revenue Code, except that:.
37.6 	(b) A taxpayer who is a resident of Minnesota and is otherwise eligible for the credit 
37.7 	under section 32 of the Internal Revenue Code may qualify for the credit under this section 
37.8 	under one or more of the following exceptions:
37.9 	(1) a taxpayer with the taxpayer had no qualifying children who hasand attained the 
37.10 	age of 21, but not attainedthe age of 65, before the close of the taxable year and is otherwise 
37.11 	eligible for a credit under section 32 of the Internal Revenue Code may also receive a credit; 
37.12 	and
37.13 	(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
37.14 	Revenue Code remains eligible for the credit even if the taxpayer otherwise qualifies for a 
37.15 	credit under this section and the taxpayer's earned income or adjusted gross income exceeds 
37.16 	the income limitation under section 32 of the Internal Revenue Code.; or
37.17 	(3) the taxpayer does not meet the requirements of section 32(m) of the Internal Revenue 
37.18 	Code but provides an individual taxpayer identification number.
37.19 	(b) (c) For individuals with no qualifying children, the credit equals 3.9 5 percent of the 
37.20 	first $7,150 $8,000 of earned income. The credit is reduced by 2.0 percent of earned income 
37.21 	or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in 
37.22 	no case is the credit less than zero.
37.23 	(c) (d) For individuals with one qualifying child, the credit equals 9.35 percent of the 
37.24 	first $11,950 $12,270 of earned income. The credit is reduced by 6.0 percent of earned 
37.25 	income or adjusted gross income, whichever is greater, in excess of the phaseout threshold, 
37.26 	but in no case is the credit less than zero.
37.27 	(d) (e) For individuals with two qualifying children, the credit equals 11 percent of the 
37.28 	first $19,600 $20,120 of earned income. The credit is reduced by 10.5 percent of earned 
37.29 	income or adjusted gross income, whichever is greater, in excess of the phaseout threshold, 
37.30 	but in no case is the credit less than zero.
37.31 	(e) (f) For individuals with three or more qualifying children, the credit equals 12.5 
37.32 	percent of the first $20,000 $20,530 of earned income. The credit is reduced by 10.5 percent 
38.1 	of earned income or adjusted gross income, whichever is greater, in excess of the phaseout 
38.2 	threshold, but in no case is the credit less than zero.
38.3 	(f) (g) For a part-year resident, the credit must be allocated based on the percentage 
38.4 	calculated under section 290.06, subdivision 2c, paragraph (e).
38.5 	(g) (h) For a person who was a resident for the entire tax year and has earned income 
38.6 	not subject to tax under this chapter, including income excluded under section 290.0132, 
38.7 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
38.8 	income reduced by the earned income not subject to tax under this chapter over federal 
38.9 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
38.10 	considered "earned income not subject to tax under this chapter":
38.11 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
38.12 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
38.13 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
38.14 	while living on the reservation.
38.15 	(h) (i) For the purposes of this section, the phaseout threshold equals:
38.16 	(1) $14,570 $14,960 for married taxpayers filing joint returns with no qualifying children;
38.17 	(2) $8,730 $8,960 for all other taxpayers with no qualifying children;
38.18 	(3) $28,610 $29,380 for married taxpayers filing joint returns with one qualifying child;
38.19 	(4) $22,770 $23,380 for all other taxpayers with one qualifying child;
38.20 	(5) $32,840 $33,720 for married taxpayers filing joint returns with two qualifying 
38.21 	children;
38.22 	(6) $27,000 $27,720 for all other taxpayers with two qualifying children;
38.23 	(7) $33,140 $34,030 for married taxpayers filing joint returns with three or more 
38.24 	qualifying children; and
38.25 	(8) $27,300 $28,030 for all other taxpayers with three or more qualifying children.
38.26 	(i) (j) The commissioner shall construct tables showing the amount of the credit at various 
38.27 	income levels and make them available to taxpayers. The tables shall follow the schedule 
38.28 	contained in this subdivision, except that the commissioner may graduate the transition 
38.29 	between income brackets.

38.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
38.31 	31, 2020.

39.1 	Sec. 24. Minnesota Statutes 2020, section 290.0671, subdivision 1a, is amended to read:
39.2 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms "Qualifying 
39.3 	child," and have the meanings given.
39.4 	(b) "Earned income," have has the meanings meaning given in section 32(c) of the 
39.5 	Internal Revenue Code, and the term "adjusted gross income" has the meaning given in 
39.6 	section 62 of the Internal Revenue Code.
39.7 	(c) "Earned income of the lesser-earning spouse" has the meaning given in section 
39.8 	290.0675, subdivision 1, paragraph (d).
39.9 	(d) "Qualifying child" has the meaning given in section 32(c) of the Internal Revenue 
39.10 	Code, except that the requirements of section 32(m) of the Internal Revenue Code do not 
39.11 	apply for the purposes of determining a qualifying child if the taxpayer provides an individual 
39.12 	taxpayer identification number.

39.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
39.14 	31, 2020.

39.15 	Sec. 25. Minnesota Statutes 2020, section 290.0671, subdivision 7, is amended to read:
39.16 		Subd. 7.Inflation adjustment. The commissioner shall annually adjust the earned 
39.17 	income amounts used to calculate the credit and the phase-out thresholds in subdivision 1 
39.18 	as provided in section 270C.22. The statutory year is taxable year 2019 2021.

39.19 	Sec. 26. Minnesota Statutes 2020, section 290.0674, subdivision 2a, is amended to read:
39.20 		Subd. 2a.Income. (a) For purposes of this section, "income" means the sum of the 
39.21 	following:
39.22 	(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; 
39.23 	and
39.24 	(2) the sum of the following amounts to the extent not included in clause (1):
39.25 	(i) all nontaxable income;
39.26 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
39.27 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
39.28 	carryover allowed under section 469(b) of the Internal Revenue Code;
40.1 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
40.2 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
40.3 	Code;
40.4 	(iv) cash public assistance and relief;
40.5 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
40.6 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
40.7 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
40.8 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
40.9 	gross income in the years when the payments were made;
40.10 	(vi) interest received from the federal or a state government or any instrumentality or 
40.11 	political subdivision thereof;
40.12 	(vii) workers' compensation;
40.13 	(viii) nontaxable strike benefits;
40.14 	(ix) the gross amounts of payments received in the nature of disability income or sick 
40.15 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
40.16 	or otherwise;
40.17 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
40.18 	1986, as amended through December 31, 1995;
40.19 	(xi) contributions made by the claimant to an individual retirement account, including 
40.20 	a qualified voluntary employee contribution; simplified employee pension plan; 
40.21 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
40.22 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
40.23 	Revenue Code;
40.24 	(xii) nontaxable scholarship or fellowship grants;
40.25 	(xiii) the amount of deduction allowed under section 199 199A(g) of the Internal Revenue 
40.26 	Code;
40.27 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
40.28 	Code;
40.29 	(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
40.30 	Code; and
40.31 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
40.32 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
41.1 	In the case of an individual who files an income tax return on a fiscal year basis, the 
41.2 	term "federal adjusted gross income" means federal adjusted gross income reflected in the 
41.3 	fiscal year ending in the next calendar year. Federal adjusted gross income may not be 
41.4 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
41.5 	carryback or carryforward allowed for the year.
41.6 	(b) "Income" does not include:
41.7 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
41.8 	(2) amounts of any pension or annuity that were exclusively funded by the claimant or 
41.9 	spouse if the funding payments were not excluded from federal adjusted gross income in 
41.10 	the years when the payments were made;
41.11 	(3) surplus food or other relief in kind supplied by a governmental agency;
41.12 	(4) relief granted under chapter 290A;
41.13 	(5) child support payments received under a temporary or final decree of dissolution or 
41.14 	legal separation; and
41.15 	(6) restitution payments received by eligible individuals and excludable interest as 
41.16 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
41.17 	Public Law 107-16.

41.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
41.19 	31, 2020.

41.20 	Sec. 27. Minnesota Statutes 2020, section 290.0681, subdivision 10, is amended to read:
41.21 		Subd. 10.Sunset. This section expires after fiscal year 2021 2029, except that the office's 
41.22 	authority to issue credit certificates under subdivision 4 based on allocation certificates that 
41.23 	were issued before fiscal year 2022 2030 remains in effect through 2024 2032, and the 
41.24 	reporting requirements in subdivision 9 remain in effect through the year following the year 
41.25 	in which all allocation certificates have either been canceled or resulted in issuance of credit 
41.26 	certificates, or 2025 2033, whichever is earlier.

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

42.1 	Sec. 28. Minnesota Statutes 2020, section 290.0682, is amended to read:
42.2 	290.0682 STUDENT LOAN CREDIT.
42.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
42.4 	the meanings given.
42.5 	(b) "Adjusted gross income" means federal adjusted gross income as defined in section 
42.6 	62 of the Internal Revenue Code.
42.7 	(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue 
42.8 	Code 290.0675, subdivision 1, paragraph (b).
42.9 	(d) "Eligible individual" means a resident individual with one or more qualified education 
42.10 	loans related to an undergraduate or graduate degree program at a postsecondary educational 
42.11 	institution.
42.12 	(e) "Eligible loan payments" means the amount the eligible individual paid during the 
42.13 	taxable year in principal and interest on qualified education loans.
42.14 	(f) "Postsecondary educational institution" means a public or nonprofit postsecondary 
42.15 	institution eligible for state student aid under section 136A.103 or, if the institution is not 
42.16 	located in this state, a public or nonprofit postsecondary institution participating in the 
42.17 	federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law 
42.18 	89-329, as amended.
42.19 	(g) "Qualified education loan" has the meaning given in section 221 of the Internal 
42.20 	Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
42.21 		Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the tax 
42.22 	due under this chapter.
42.23 	(b) The credit for an eligible individual equals the least of:
42.24 	(1) eligible loan payments minus ten percent of an amount equal to adjusted gross income 
42.25 	in excess of $10,000, but in no case less than zero;
42.26 	(2) the earned income for the taxable year of the eligible individual, if any;
42.27 	(3) the sum of:
42.28 	(i) the interest portion of eligible loan payments made during the taxable year; and
42.29 	(ii) ten percent of the original loan amount of all qualified education loans of the eligible 
42.30 	individual; or
42.31 	(4) $500.
43.1 	(c) For a part-year resident, the credit must be allocated based on the percentage calculated 
43.2 	under section 290.06, subdivision 2c, paragraph (e).
43.3 	(d) In the case of a married couple, each spouse is eligible for the credit in this section.
43.4 	For the purposes of paragraph (b), for married taxpayers filing joint returns, each spouse's 
43.5 	adjusted gross income equals the spouse's percentage share of the couple's earned income, 
43.6 	multiplied by the couple's combined adjusted gross income.
43.7 		Subd. 3.Credit refundable; appropriation. (a) If the amount of credit which a claimant 
43.8 	is eligible to receive under this section exceeds the claimant's tax liability under this chapter, 
43.9 	the commissioner shall refund the excess to the claimant.
43.10 	(b) An amount sufficient to pay the refunds required by this section is appropriated to 
43.11 	the commissioner from the general fund.

43.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
43.13 	31, 2020.

43.14 	Sec. 29. Minnesota Statutes 2020, section 290.0685, subdivision 1, is amended to read:
43.15 		Subdivision 1.Credit allowed. (a) An eligible individual is allowed a credit against the 
43.16 	tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth 
43.17 	resulting in stillbirth has been issued under section 144.2151 stillbirth. The credit under this 
43.18 	section is allowed only in the taxable year in which the stillbirth occurred and if the child 
43.19 	would have been a dependent of the taxpayer as defined in section 152 of the Internal 
43.20 	Revenue Code.
43.21 	(b) For a nonresident or part-year resident, the credit must be allocated based on the 
43.22 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).

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

43.25 	Sec. 30. Minnesota Statutes 2020, section 290.0685, is amended by adding a subdivision 
43.26 	to read:
43.27 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
43.28 	meanings given, unless the context clearly indicates otherwise.
43.29 	(b) "Certificate of birth" means the printed certificate of birth resulting in stillbirth issued 
43.30 	under section 144.2151 or for a birth occurring in another state or country a similar certificate 
43.31 	issued under that state's or country's law.
44.1 	(c) "Eligible individual" means an individual who is:
44.2 	(1)(i) a resident; or
44.3 	(ii) the nonresident spouse of a resident who is a member of armed forces of the United 
44.4 	States or the United Nations; and
44.5 	(2)(i) the individual who gave birth resulting in stillbirth and is listed as a parent on the 
44.6 	certificate of birth;
44.7 	(ii) if no individual meets the requirements of clause (i) for a stillbirth that occurs in this 
44.8 	state, then the first parent listed on the certificate of birth resulting in still birth; or
44.9 	(iii) the individual who gave birth resulting in stillbirth for a birth outside of this state 
44.10 	for which no certificate of birth was issued.
44.11 	(d) "Stillbirth" means a birth for which a fetal death report would be required under 
44.12 	section 144.222, subdivision 1, if the birth occurred in this state.

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

44.15 	Sec. 31. Minnesota Statutes 2020, section 290.091, subdivision 2, is amended to read:
44.16 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
44.17 	terms have the meanings given.
44.18 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
44.19 	year:
44.20 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
44.21 	55(b)(2) of the Internal Revenue Code;
44.22 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
44.23 	taxable income, but excluding:
44.24 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
44.25 	(ii) the medical expense deduction;
44.26 	(iii) the casualty, theft, and disaster loss deduction; and
44.27 	(iv) the impairment-related work expenses of a person with a disability;
44.28 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
44.29 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
44.30 	to the extent not included in federal alternative minimum taxable income, the excess of the 
45.1 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
45.2 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
45.3 	without regard to the depletion deduction for the taxable year);
45.4 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
45.5 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
45.6 	Code determined without regard to subparagraph (E);
45.7 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
45.8 	of interest income as provided by section 290.0131, subdivision 2;
45.9 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16, and 
45.10 	19 to 23;
45.11 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
45.12 	not included in the addition required under clause (6); and
45.13 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
45.14 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
45.15 	Code;
45.16 	less the sum of the amounts determined under the following:
45.17 	(i) interest income as defined in section 290.0132, subdivision 2;
45.18 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
45.19 	3, to the extent included in federal alternative minimum taxable income;
45.20 	(iii) the amount of investment interest paid or accrued within the taxable year on 
45.21 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
45.22 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
45.23 	in computing federal adjusted gross income;
45.24 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
45.25 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29, 30, and 31;
45.26 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
45.27 	paragraph (c); and
45.28 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
45.29 	subdivision 7.
45.30 	In the case of an estate or trust, alternative minimum taxable income must be computed 
45.31 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
45.32 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
46.1 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
46.2 	the Internal Revenue Code.
46.3 	(c) "Net minimum tax" means the minimum tax imposed by this section.
46.4 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
46.5 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
46.6 	under this chapter.
46.7 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
46.8 	after subtracting the exemption amount determined under subdivision 3.

46.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
46.10 	31, 2020, except that the provisions relating to section 290.0131, subdivisions 20 and 21, 
46.11 	are effective retroactively for taxable years beginning after December 31, 2017, and the 
46.12 	provisions relating to section 290.0131, subdivision 19, and section 290.0132, subdivisions 
46.13 	30 and 31, are effective retroactively for taxable years beginning after December 31, 2018.

46.14 	Sec. 32. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to 
46.15 	read:
46.16 		Subd. 4a.Controlled foreign corporations. (a) For purposes of applying subdivision 
46.17 	4, a controlled foreign corporation as defined in section 957 of the Internal Revenue Code 
46.18 	is deemed to be a domestic corporation if:
46.19 	(1) a United States shareholder of a controlled foreign corporation is required for the 
46.20 	taxable year to include in gross income the shareholder's global intangible low-taxed income 
46.21 	under section 951A of the Internal Revenue Code; and
46.22 	(2) the controlled foreign corporation is a member of a unitary group.
46.23 	(b) In the event the taxpayer fails to designate the controlled foreign corporation as a 
46.24 	member of a unitary group and the commissioner subsequently determines that the controlled 
46.25 	foreign corporation is a member of a unitary group, the commissioner's determination is 
46.26 	prima facie valid. The taxpayer subject to the determination has the burden of establishing 
46.27 	the incorrectness of the determination in any related action or proceeding.
46.28 	(c) For purposes of imposing a tax under this chapter, the federal taxable income of a 
46.29 	controlled foreign corporation deemed to be a domestic corporation under this subdivision 
46.30 	must be computed as follows:
46.31 	(1) a profit and loss statement must be prepared in the currency in which the books of 
46.32 	account of the controlled foreign corporation are regularly maintained;
47.1 	(2) except as determined by the commissioner or otherwise allowed under the Internal 
47.2 	Revenue Code, adjustments must be made to the profit and loss statement to conform the 
47.3 	statement to the accounting principles generally accepted in the United States for the 
47.4 	preparation of those statements;
47.5 	(3) adjustments must be made to the profit and loss statement to conform it to the tax 
47.6 	accounting standards required by the commissioner;
47.7 	(4) unless otherwise authorized by the commissioner, the apportionment factors and 
47.8 	profit and loss statement of each member of the combined group must be converted into 
47.9 	the currency in which the parent company maintains its books and records; and
47.10 	(5) the taxpayer's apportionment factors and profit and loss statement must be expressed 
47.11 	in United States dollars.

47.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
47.13 	31, 2020.

47.14 	Sec. 33. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to 
47.15 	read:
47.16 		Subd. 4b.Worldwide election. (a) Taxpayer members of a unitary group, of which one 
47.17 	or more members are deemed to be domestic corporations under subdivision 4a for the 
47.18 	taxable year, may elect to determine each of their apportioned shares of the net business 
47.19 	income or loss of the combined group under a worldwide election. Under the election, 
47.20 	taxpayer members must take into account the entire income and apportionment factors of 
47.21 	each member of the unitary group, regardless of the place where a member is incorporated 
47.22 	or formed. Corporations or other entities incorporated or formed outside of the United States 
47.23 	are subject to the requirements of subdivision 4a, paragraph (c), in reporting their income.
47.24 	(b) A worldwide election is effective only if made on a timely filed, original return for 
47.25 	the tax year by each member of the unitary group subject to tax under this chapter.
47.26 	(c) A worldwide election is binding for and applies to the taxable year it is made and 
47.27 	for the ten following taxable years.

47.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
47.29 	31, 2020.

48.1 	Sec. 34. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to 
48.2 	read:
48.3 		Subd. 4c.Withdrawal; reinstitution. (a) The election under subdivision 4b, paragraph 
48.4 	(a), may be withdrawn:
48.5 	(1) after expiration of the ten-year period in subdivision 4b, paragraph (c), provided that 
48.6 	the withdrawal is made in writing within one year after the expiration of the election; or
48.7 	(2) prior to the expiration of the ten-year period, if the taxpayer members:
48.8 	(i) file a written withdrawal request with the commissioner;
48.9 	(ii) demonstrate that they would experience an extraordinary financial hardship due to 
48.10 	increased tax arising from unforeseen changes in this state's tax statutes, laws, or policies; 
48.11 	and
48.12 	(iii) receive written permission from the commissioner approving the withdrawal, which 
48.13 	the commissioner may grant.
48.14 	(b) A withdrawal made under paragraph (a) is binding for ten years. If no withdrawal 
48.15 	is properly made under paragraph (a), clause (1), the worldwide election is binding for an 
48.16 	additional ten taxable years. If the commissioner grants written permission to withdraw 
48.17 	under paragraph (a), clause (2), the commissioner must impose any requirement deemed 
48.18 	necessary to prevent evasion of tax or to clearly reflect income for the election period before 
48.19 	or after withdrawal.
48.20 	(c) Notwithstanding the requirement binding withdrawal for ten years under paragraph 
48.21 	(b), the election may be reinstituted if the taxpayer members:
48.22 	(1) file a written reinstitution request with the commissioner;
48.23 	(2) demonstrate that they would experience an extraordinary hardship due to unforeseen 
48.24 	changes in this state's tax statutes, laws, or policies; and
48.25 	(3) receive written permission from the commissioner approving the reinstitution, which 
48.26 	the commissioner may grant.
48.27 	(d) A reinstitution under paragraph (c) is binding for a period of ten years. The withdrawal 
48.28 	provisions of paragraph (a) apply to a reinstitution under paragraph (c), and the provisions 
48.29 	of paragraph (c) apply to a reinstitution following a subsequent withdrawal.

48.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
48.31 	31, 2020.

49.1 	Sec. 35. Minnesota Statutes 2020, section 290.21, subdivision 9, is amended to read:
49.2 		Subd. 9.Controlled foreign corporations. The net income of a domestic corporation 
49.3 	that is included pursuant to section 951 of the Internal Revenue Code is dividend income.

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

49.5 	Sec. 36. Minnesota Statutes 2020, section 290.21, is amended by adding a subdivision to 
49.6 	read:
49.7 		Subd. 10.Previously taxed deferred foreign income. The amount included under 
49.8 	section 290.0133, subdivision 16, is dividend income.

49.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
49.10 	31, 2020.

49.11 	Sec. 37. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:
49.12 		Subd. 4b.Withholding by partnerships. (a) A partnership shall deduct and withhold 
49.13 	a tax as provided in paragraph (b) for nonresident individual partners based on their 
49.14 	distributive shares of partnership income for a taxable year of the partnership.
49.15 	(b) The amount of tax withheld is determined by multiplying the partner's distributive 
49.16 	share allocable to Minnesota under section 290.17, paid or credited during the taxable year 
49.17 	by the highest rate used to determine the income tax liability for an individual under section 
49.18 	290.06, subdivision 2c, except that the amount of tax withheld may be determined by the 
49.19 	commissioner if the partner submits a withholding exemption certificate under subdivision 
49.20 	5.
49.21 	(c) The commissioner may reduce or abate the tax withheld under this subdivision if the 
49.22 	partnership had reasonable cause to believe that no tax was due under this section.
49.23 	(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold 
49.24 	tax for a nonresident partner if:
49.25 	(1) the partner elects to have the tax due paid as part of the partnership's composite return 
49.26 	under section 289A.08, subdivision 7;
49.27 	(2) the partner has Minnesota assignable federal adjusted gross income from the 
49.28 	partnership of less than $1,000; or
49.29 	(3) the partnership is liquidated or terminated, the income was generated by a transaction 
49.30 	related to the termination or liquidation, and no cash or other property was distributed in 
49.31 	the current or prior taxable year;
50.1 	(4) the distributive shares of partnership income are attributable to:
50.2 	(i) income required to be recognized because of discharge of indebtedness;
50.3 	(ii) income recognized because of a sale, exchange, or other disposition of real estate, 
50.4 	depreciable property, or property described in section 179 of the Internal Revenue Code; 
50.5 	or
50.6 	(iii) income recognized on the sale, exchange, or other disposition of any property that 
50.7 	has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of 
50.8 	the Internal Revenue Code
50.9 	to the extent that the income does not include cash received or receivable or, if there is cash 
50.10 	received or receivable, to the extent that the cash is required to be used to pay indebtedness 
50.11 	by the partnership or a secured debt on partnership property; or
50.12 	(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the 
50.13 	Internal Revenue Code.; or
50.14 	(6) the partnership has elected to pay the pass-through entity tax under section 289A.08, 
50.15 	subdivision 7a.
50.16 	(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
50.17 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an 
50.18 	employer.
50.19 	(f) To the extent that income is exempt from withholding under paragraph (d), clause 
50.20 	(4), the commissioner has a lien in an amount up to the amount that would be required to 
50.21 	be withheld with respect to the income of the partner attributable to the partnership interest, 
50.22 	but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
50.23 	from the date of assessment of the tax against the partner, and attaches to that partner's share 
50.24 	of the profits and any other money due or to become due to that partner in respect of the 
50.25 	partnership. Notice of the lien may be sent by mail to the partnership, without the necessity 
50.26 	for recording the lien. The notice has the force and effect of a levy under section 270C.67, 
50.27 	and is enforceable against the partnership in the manner provided by that section. Upon 
50.28 	payment in full of the liability subsequent to the notice of lien, the partnership must be 
50.29 	notified that the lien has been satisfied.

50.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
50.31 	31, 2020.

51.1 	Sec. 38. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:
51.2 		Subd. 4c.Withholding by S corporations. (a) A corporation having a valid election in 
51.3 	effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b) 
51.4 	for nonresident individual shareholders their share of the corporation's income for the taxable 
51.5 	year.
51.6 	(b) The amount of tax withheld is determined by multiplying the amount of income 
51.7 	allocable to Minnesota under section 290.17 by the highest rate used to determine the income 
51.8 	tax liability of an individual under section 290.06, subdivision 2c, except that the amount 
51.9 	of tax withheld may be determined by the commissioner if the shareholder submits a 
51.10 	withholding exemption certificate under subdivision 5.
51.11 	(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold 
51.12 	tax for a nonresident shareholder, if:
51.13 	(1) the shareholder elects to have the tax due paid as part of the corporation's composite 
51.14 	return under section 289A.08, subdivision 7;
51.15 	(2) the shareholder has Minnesota assignable federal adjusted gross income from the 
51.16 	corporation of less than $1,000; or
51.17 	(3) the corporation is liquidated or terminated, the income was generated by a transaction 
51.18 	related to the termination or liquidation, and no cash or other property was distributed in 
51.19 	the current or prior taxable year.; or
51.20 	(4) the S corporation has elected to pay the pass-through entity tax under section 289A.08, 
51.21 	subdivision 7a.
51.22 	(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
51.23 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an 
51.24 	employer.

51.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
51.26 	31, 2020.

51.27 	Sec. 39. Minnesota Statutes 2020, section 290A.03, subdivision 3, is amended to read:
51.28 		Subd. 3.Income. (a) "Income" means the sum of the following:
51.29 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
51.30 	(2) the sum of the following amounts to the extent not included in clause (1):
51.31 	(i) all nontaxable income;
52.1 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
52.2 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
52.3 	carryover allowed under section 469(b) of the Internal Revenue Code;
52.4 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
52.5 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
52.6 	Code;
52.7 	(iv) cash public assistance and relief;
52.8 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
52.9 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
52.10 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
52.11 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
52.12 	gross income in the years when the payments were made;
52.13 	(vi) interest received from the federal or a state government or any instrumentality or 
52.14 	political subdivision thereof;
52.15 	(vii) workers' compensation;
52.16 	(viii) nontaxable strike benefits;
52.17 	(ix) the gross amounts of payments received in the nature of disability income or sick 
52.18 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
52.19 	or otherwise;
52.20 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
52.21 	1986, as amended through December 31, 1995;
52.22 	(xi) contributions made by the claimant to an individual retirement account, including 
52.23 	a qualified voluntary employee contribution; simplified employee pension plan; 
52.24 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
52.25 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
52.26 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
52.27 	the claimant and spouse;
52.28 	(xii) to the extent not included in federal adjusted gross income, distributions received 
52.29 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
52.30 	(xiii) nontaxable scholarship or fellowship grants;
52.31 	(xiv) alimony received to the extent not included in the recipient's income;
53.1 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
53.2 	Code;
53.3 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
53.4 	Code; and
53.5 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
53.6 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.; and
53.7 	(xviii) the amount of deduction allowed under section 199A(g) of the Internal Revenue 
53.8 	Code.
53.9 	In the case of an individual who files an income tax return on a fiscal year basis, the 
53.10 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
53.11 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
53.12 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
53.13 	or carryforward allowed for the year.
53.14 	(b) "Income" does not include:
53.15 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
53.16 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
53.17 	or spouse and which funding payments were not excluded from federal adjusted gross 
53.18 	income in the years when the payments were made;
53.19 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
53.20 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
53.21 	the retirement base amount reduced by the amount of contributions excluded from federal 
53.22 	adjusted gross income, but not less than zero;
53.23 	(4) surplus food or other relief in kind supplied by a governmental agency;
53.24 	(5) relief granted under this chapter;
53.25 	(6) child support payments received under a temporary or final decree of dissolution or 
53.26 	legal separation;
53.27 	(7) restitution payments received by eligible individuals and excludable interest as 
53.28 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
53.29 	Public Law 107-16; or
53.30 	(8) alimony paid.
53.31 	(c) The sum of the following amounts may be subtracted from income:
54.1 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
54.2 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
54.3 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
54.4 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
54.5 	(5) for the claimant's fifth dependent, the exemption amount; and
54.6 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
54.7 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
54.8 	amount.
54.9 	(d) For purposes of this subdivision, the following terms have the meanings given:
54.10 	(1) "exemption amount" means the exemption amount under section 290.0121, 
54.11 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
54.12 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
54.13 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
54.14 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
54.15 	to whether the claimant or spouse claimed a deduction; and
54.16 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
54.17 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

54.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
54.19 	31, 2020.

54.20 	Sec. 40. Minnesota Statutes 2020, section 297I.20, is amended by adding a subdivision 
54.21 	to read:
54.22 		Subd. 4.Film production credit. (a) A taxpayer may claim a credit against the premiums 
54.23 	tax imposed under this chapter equal to the amount indicated on the credit certificate 
54.24 	statement issued to the company under section 116U.27. If the amount of the credit exceeds 
54.25 	the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of 
54.26 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
54.27 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
54.28 	be carried and then to each successive year to which the credit may be carried. This credit 
54.29 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
54.30 	under section 477C.03.
55.1 	(b) This subdivision expires January 1, 2025, for taxable years beginning after and 
55.2 	premiums received after December 31, 2024.

55.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after and for 
55.4 	premiums received after December 31, 2020, and before January 1, 2025.

55.5 	Sec. 41. CLARIFICATION OF SECTION 179 EXPENSING CONFORMITY.
 55.6 	For taxable years beginning after December 31, 2019, no addition is required under 
55.7 	Minnesota Statutes, sections 290.0131, subdivision 10, and 290.0133, subdivision 12, for 
55.8 	property placed in service in taxable years beginning before January 1, 2020, including the 
55.9 	following:
55.10 	(1) the addition for carryover amounts pursuant to section 179(b)(3) of the Internal 
55.11 	Revenue Code for property placed in service in taxable years beginning before January 1, 
55.12 	2020; and
55.13 	(2) the addition for property placed in service in taxable years beginning before January 
55.14 	1, 2020, resulting from being a shareholder or partner in an S-corporation or partnership 
55.15 	with a taxable year that began before January 1, 2020.

55.16 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
55.17 	after December 31, 2019.

55.18 	Sec. 42. REPEALER.
 55.19 	(a) Minnesota Statutes 2020, sections 290.01, subdivision 19i; and 290.0131, subdivision 
55.20 	18, are repealed effective retroactively for taxable years beginning after December 31, 2015.
55.21 	(b) Minnesota Statutes 2020, section 290.01, subdivision 7b, is repealed effective for 
55.22 	taxable years beginning after December 31, 2020.

55.23 	ARTICLE 3
55.24 	PARTNERSHIP AUDITS

55.25 	Section 1. Minnesota Statutes 2020, section 270C.445, subdivision 6, is amended to read:
55.26 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
55.27 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
55.28 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
55.29 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
55.30 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
56.1 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
56.2 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
56.3 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
56.4 	the penalty in the same manner as the income tax. There is no right to make a claim for 
56.5 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
56.6 	under this paragraph are public data.
56.7 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
56.8 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
56.9 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
56.10 	desist from committing the violation. The administrative order may include an administrative 
56.11 	penalty provided in paragraph (a).
56.12 	(c) If the commissioner issues an administrative order under paragraph (b), the 
56.13 	commissioner must send the order to the tax preparer addressed to the last known address 
56.14 	of the tax preparer.
56.15 	(d) A cease and desist order under paragraph (b) must:
56.16 	(1) describe the act, conduct, or practice committed and include a reference to the law 
56.17 	that the act, conduct, or practice violates; and
56.18 	(2) provide notice that the tax preparer may request a hearing as provided in this 
56.19 	subdivision.
56.20 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
56.21 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
56.22 	for hearing must be made in writing and must be served on the commissioner at the address 
56.23 	specified in the order. The hearing request must specifically state the reasons for seeking 
56.24 	review of the order. The date on which a request for hearing is served by mail is the postmark 
56.25 	date on the envelope in which the request for hearing is mailed.
56.26 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
56.27 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
56.28 	subject to review by any court or agency.
56.29 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
56.30 	under paragraph (b), the hearing must be commenced within ten days after the commissioner 
56.31 	receives the request for a hearing.
56.32 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
56.33 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
57.1 	must issue a report containing findings of fact, conclusions of law, and a recommended 
57.2 	order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 
57.3 	or the submission of written arguments, whichever is later.
57.4 	(i) Within five days of the date of the administrative law judge's report issued under 
57.5 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
57.6 	written exceptions and arguments to the commissioner. Within 15 days after receiving the 
57.7 	administrative law judge's report, the commissioner must issue an order vacating, modifying, 
57.8 	or making final the administrative order.
57.9 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
57.10 	lengthen any time periods prescribed in paragraphs (g) to (i).
57.11 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
57.12 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
57.13 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
57.14 	the exclusive remedy for a tax preparer aggrieved by the order.
57.15 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
57.16 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
57.17 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
57.18 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
57.19 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
57.20 	penalty order. The request for hearing must be made in writing and must be served on the 
57.21 	commissioner at the address specified in the order. The hearing request must specifically 
57.22 	state the reasons for seeking review of the order. The cease and desist order issued under 
57.23 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
57.24 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
57.25 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
57.26 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
57.27 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
57.28 	under this paragraph may be collected and enforced by the commissioner as an income tax 
57.29 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
57.30 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
57.31 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
57.32 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
57.33 	to the state. Termination under this paragraph is public data.
58.1 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
58.2 	order.
58.3 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
58.4 	action under this subdivision against a tax preparer, with respect to a return, within the 
58.5 	period to assess tax on that return as provided by section sections289A.38 to 289A.382.
58.6 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
58.7 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
58.8 	the commissioner within five years of the violation of statute.

58.9 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
58.10 	after December 31, 2017, except that for partnerships that make an election under Code of 
58.11 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
58.12 	and applies to the same tax periods to which the election relates.

58.13 	Sec. 2. Minnesota Statutes 2020, section 289A.31, subdivision 1, is amended to read:
58.14 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
58.15 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
58.16 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
58.17 	taxpayer upon whom the tax is imposed, except in the following cases:
58.18 	(1) the tax due from a decedent for that part of the taxable year in which the decedent 
58.19 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
58.20 	prior years must be paid by the decedent's personal representative, if any. If there is no 
58.21 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
58.22 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
58.23 	decedent;
58.24 	(2) the tax due from an infant or other incompetent person must be paid by the person's 
58.25 	guardian or other person authorized or permitted by law to act for the person;
58.26 	(3) the tax due from the estate of a decedent must be paid by the estate's personal 
58.27 	representative;
58.28 	(4) the tax due from a trust, including those within the definition of a corporation, as 
58.29 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
58.30 	(5) the tax due from a taxpayer whose business or property is in charge of a receiver, 
58.31 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
58.32 	of the business or property so far as the tax is due to the income from the business or property.
59.1 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
59.2 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
59.3 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
59.4 	entertainer for the amount of the payment.
59.5 	(c) The taxes imposed under sections 289A.35, paragraph (b), 289A.382, subdivision 
59.6 	3, and 290.0922 on partnerships are the joint and several liability of the partnership and the 
59.7 	general partners.

59.8 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
59.9 	after December 31, 2017, except that for partnerships that make an election under Code of 
59.10 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
59.11 	and applies to the same tax periods to which the election relates.

59.12 	Sec. 3. Minnesota Statutes 2020, section 289A.37, subdivision 2, is amended to read:
59.13 		Subd. 2.Erroneous refunds. (a) Except as provided in paragraph (b), an erroneous 
59.14 	refund occurs when the commissioner issues a payment to a person that exceeds the amount 
59.15 	the person is entitled to receive under law. An erroneous refund is considered an 
59.16 	underpayment of tax on the date issued.
59.17 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
59.18 	taxpayer, an erroneous refund does not include the following:
59.19 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
59.20 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
59.21 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
59.22 	290.0681; or 290.0692; or chapter 290A; or
59.23 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
59.24 	taxpayer.
59.25 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
59.26 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
59.27 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
59.28 	be made at any time.
59.29 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
59.30 	conducted under section sections289A.38 to 289A.382.

59.31 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
59.32 	after December 31, 2017, except that for partnerships that make an election under Code of 
60.1 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
60.2 	and applies to the same tax periods to which the election relates.

60.3 	Sec. 4. Minnesota Statutes 2020, section 289A.38, subdivision 7, is amended to read:
60.4 		Subd. 7.Federal tax changes. (a) If the amount of income, items of tax preference, 
60.5 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any 
60.6 	period, as reported to the Internal Revenue Service is changed or corrected by the 
60.7 	commissioner of Internal Revenue or other officer of the United States or other competent 
60.8 	authority, or where a renegotiation of a contract or subcontract with the United States results 
60.9 	in a change in income, items of tax preference, deductions, credits, or withholding tax, or, 
60.10 	in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall 
60.11 	report the change or correction or renegotiation results federal adjustments in writing to the 
60.12 	commissioner. The federal adjustments report must be submitted within 180 days after the 
60.13 	final determination date and must be in the form of either an amended Minnesota estate, 
60.14 	withholding tax, corporate franchise tax, or income tax return conceding the accuracy of 
60.15 	the federal determination adjustment or a letter detailing how the federal determination
60.16 	adjustment is incorrect or does not change the Minnesota tax. An amended Minnesota 
60.17 	income tax return must be accompanied by an amended property tax refund return, if 
60.18 	necessary. A taxpayer filing an amended federal tax return must also file a copy of the 
60.19 	amended return with the commissioner of revenue within 180 days after filing the amended 
60.20 	return.
60.21 	(b) For the purposes of paragraph (a), a change or correction includes any case where a 
60.22 	taxpayer reaches a closing agreement or compromise with the Internal Revenue Service 
60.23 	under section 7121 or 7122 of the Internal Revenue Code. In the case of a final federal 
60.24 	adjustment arising from a partnership-level audit or an administrative adjustment request 
60.25 	filed by a partnership under section 6227 of the Internal Revenue Code, a taxpayer must 
60.26 	report adjustments as provided for under section 289A.382, and not this section.

60.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
60.28 	after December 31, 2017, except that for partnerships that make an election under Code of 
60.29 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
60.30 	and applies to the same tax periods to which the election relates.

60.31 	Sec. 5. Minnesota Statutes 2020, section 289A.38, subdivision 8, is amended to read:
60.32 		Subd. 8.Failure to report change or correction of federal return. If a taxpayer fails 
60.33 	to make a federal adjustments report as required by subdivision 7 or section 289A.382, the 
61.1 	commissioner may recompute the tax, including a refund, based on information available 
61.2 	to the commissioner. The tax may be recomputed within six years after the federal 
61.3 	adjustments report should have been filed, notwithstanding any period of limitations to the 
61.4 	contrary.

61.5 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
61.6 	after December 31, 2017, except that for partnerships that make an election under Code of 
61.7 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
61.8 	and applies to the same tax periods to which the election relates.

61.9 	Sec. 6. Minnesota Statutes 2020, section 289A.38, subdivision 9, is amended to read:
61.10 		Subd. 9.Report made of change or correction of federal return. If a taxpayer is 
61.11 	required to make a federal adjustments report under subdivision 7 or section 289A.382, and 
61.12 	does report the change or files a copy of the amended return, the commissioner may 
61.13 	recompute and reassess the tax due, including a refund (1) within one year after the federal 
61.14 	adjustments report or amended return is filed with the commissioner, notwithstanding any 
61.15 	period of limitations to the contrary, or (2) within any other applicable period stated in this 
61.16 	section, whichever period is longer. The period provided for the carryback of any amount 
61.17 	of loss or credit is also extended as provided in this subdivision, notwithstanding any law 
61.18 	to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but 
61.19 	for this subdivision, the commissioner's time period to adjust the tax has expired, the 
61.20 	additional tax due or refund is limited to only those changes that are required to be made 
61.21 	to the return which relate to the changes made on the federal return. This subdivision does 
61.22 	not apply to sales and use tax.
61.23 	For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is 
61.24 	the physical presence of examiners in the taxpayer's or taxpayer's representative's office 
61.25 	conducting an examination of the taxpayer with the intention of issuing an assessment or 
61.26 	notice of change in tax or which results in the issuing of an assessment or notice of change 
61.27 	in tax. The examination may include inspecting a taxpayer's place of business, tangible 
61.28 	personal property, equipment, computer systems and facilities, pertinent books, records, 
61.29 	papers, vouchers, computer printouts, accounts, and documents.
61.30 	A taxpayer may make estimated payments to the commissioner of the tax expected to 
61.31 	result from a pending audit by the Internal Revenue Service. The taxpayer may make 
61.32 	estimated payments prior to the due date of the federal adjustments report without the 
61.33 	taxpayer having to file the report with the commissioner. The commissioner must credit the 
61.34 	estimated tax payments against any tax liability of the taxpayer ultimately found to be due 
62.1 	to the commissioner. The estimated payments limit the accrual of further statutory interest 
62.2 	on that amount. If the estimated tax payments exceed the final tax liability plus statutory 
62.3 	interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the 
62.4 	excess, provided the taxpayer files a federal adjustments report, or claim for refund or credit 
62.5 	of tax, no later than one year following the final determination date.

62.6 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
62.7 	after December 31, 2017, except that for partnerships that make an election under Code of 
62.8 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
62.9 	and applies to the same tax periods to which the election relates.

62.10 	Sec. 7. Minnesota Statutes 2020, section 289A.38, subdivision 10, is amended to read:
62.11 		Subd. 10.Incorrect determination of federal adjusted gross income. Notwithstanding 
62.12 	any other provision of this chapter, if a taxpayer whose net income is determined under 
62.13 	section 290.01, subdivision 19, omits from income an amount that will under the Internal 
62.14 	Revenue Code extend the statute of limitations for the assessment of federal income taxes, 
62.15 	or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting 
62.16 	in adjustments by the Internal Revenue Service, then the period of assessment and 
62.17 	determination of tax will be that under the Internal Revenue Code. When a change is made 
62.18 	to federal income during the extended time provided under this subdivision, the provisions 
62.19 	under subdivisions 7 to 9 and section 289A.382 regarding additional extensions apply.

62.20 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
62.21 	after December 31, 2017, except that for partnerships that make an election under Code of 
62.22 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
62.23 	and applies to the same tax periods to which the election relates.

62.24 	Sec. 8. [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
62.25 		Subdivision 1.Definitions relating to federal adjustments. Unless otherwise specified, 
62.26 	the definitions in this section apply for the purposes of sections 289A.38, subdivisions 7 to 
62.27 	9, 289A.381, and 289A.382.
62.28 		Subd. 2.Administrative adjustment request. "Administrative adjustment request" 
62.29 	means an administrative adjustment request filed by a partnership under section 6227 of 
62.30 	the Internal Revenue Code.
62.31 		Subd. 3.Audited partnership. "Audited partnership" means a partnership subject to a 
62.32 	federal adjustment resulting from a partnership-level audit.
63.1 		Subd. 4.Corporate partner. "Corporate partner" means a partner that is subject to tax 
63.2 	under section 290.02.
63.3 		Subd. 5.Direct partner. "Direct partner" means a partner that holds an immediate legal 
63.4 	ownership interest in a partnership or pass-through entity.
63.5 		Subd. 6.Exempt partner. "Exempt partner" means a partner that is exempt from taxes 
63.6 	on its net income under section 290.05, subdivision 1.
63.7 		Subd. 7.Federal adjustment. "Federal adjustment" means any change in an amount 
63.8 	calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an 
63.9 	item of preference, or any other item that is used by a taxpayer to compute a tax administered 
63.10 	under this chapter for the reviewed year whether that change results from action by the 
63.11 	Internal Revenue Service or other competent authority, including a partnership-level audit, 
63.12 	or from the filing of an amended federal return, federal refund claim, or an administrative 
63.13 	adjustment request by the taxpayer. A federal adjustment is positive to the extent that it 
63.14 	increases taxable income as determined under section 290.01, subdivision 29, and is negative 
63.15 	to the extent that it decreases taxable income as determined under section 290.01, subdivision 
63.16 	29.
63.17 		Subd. 8.Federal adjustments report. "Federal adjustments report" includes a method 
63.18 	or form prescribed by the commissioner for use by a taxpayer to report federal adjustments, 
63.19 	including an amended Minnesota tax return or a uniform multistate report.
63.20 		Subd. 9.Federal partnership representative. "Federal partnership representative" 
63.21 	means the person the partnership designates for the taxable year as the partnership's 
63.22 	representative, or the person the Internal Revenue Service has appointed to act as the 
63.23 	partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
63.24 		Subd. 10.Final determination date. "Final determination date" means:
63.25 	(1) for a federal adjustment arising from an audit by the Internal Revenue Service or 
63.26 	other competent authority, the first day on which no federal adjustment arising from that 
63.27 	audit remains to be finally determined, whether by agreement, or, if appealed or contested, 
63.28 	by a final decision with respect to which all rights of appeal have been waived or exhausted;
63.29 	(2) for a federal adjustment arising from an audit or other action by the Internal Revenue 
63.30 	Service or other competent authority, if the taxpayer filed as a member of a combined report 
63.31 	under section 290.17, subdivision 4, the first day on which no related federal adjustments 
63.32 	arising from that audit remain to be finally determined as described in clause (1) for the 
63.33 	entire combined group;
64.1 	(3) for a federal adjustment arising from the filing of an amended federal return, a federal 
64.2 	refund claim, or the filing by a partnership of an administrative adjustment request, the date 
64.3 	on which the amended return, refund claim, or administrative adjustment request was filed; 
64.4 	or
64.5 	(4) for agreements required to be signed by the Internal Revenue Service and the taxpayer, 
64.6 	the date on which the last party signed the agreement.
64.7 		Subd. 11.Final federal adjustment. "Final federal adjustment" means a federal 
64.8 	adjustment after the final determination date for that federal adjustment has passed.
64.9 		Subd. 12.Indirect partner. "Indirect partner" means either:
64.10 	(1) a partner in a partnership or pass-through entity that itself holds an immediate legal 
64.11 	ownership interest in another partnership or pass-through entity; or
64.12 	(2) a partner in a partnership or pass-through entity that holds an indirect interest in 
64.13 	another partnership or pass-through entity through another indirect partner.
64.14 		Subd. 13.Partner. "Partner" means a person that holds an interest directly or indirectly 
64.15 	in a partnership or other pass-through entity.
64.16 		Subd. 14.Partnership. "Partnership" has the meaning provided under section 7701(a)(2) 
64.17 	of the Internal Revenue Code.
64.18 		Subd. 15.Partnership-level audit. "Partnership-level audit" means an examination by 
64.19 	the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63, 
64.20 	subchapter C, of the Internal Revenue Code, which results in federal adjustments and 
64.21 	adjustments to partnership-related items.
64.22 		Subd. 16.Pass-through entity. "Pass-through entity" means an entity, other than a 
64.23 	partnership, that is not subject to the tax imposed under section 290.02. The term pass-through 
64.24 	entity includes but is not limited to S corporations, estates, and trusts other than grantor 
64.25 	trusts.
64.26 		Subd. 17.Resident partner. "Resident partner" means an individual, trust, or estate  
64.27 	partner who is a resident of Minnesota under section 290.01, subdivision 7, 7a, or 7b, for 
64.28 	the relevant tax period.
64.29 		Subd. 18.Reviewed year. "Reviewed year" means the taxable year of a partnership that 
64.30 	is subject to a partnership-level audit from which federal adjustments arise.
64.31 		Subd. 19.Tiered partner. "Tiered partner" means any partner that is a partnership or 
64.32 	pass-through entity.
65.1 		Subd. 20.Unrelated business taxable income. "Unrelated business taxable income" 
65.2 	has the meaning provided under section 512 of the Internal Revenue Code.

65.3 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
65.4 	after December 31, 2017, except that for partnerships that make an election under Code of 
65.5 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
65.6 	and applies to the same tax periods to which the election relates.

65.7 	Sec. 9. [289A.382] REPORTING AND PAYMENT REQUIREMENTS.
65.8 		Subdivision 1.State partnership representative. (a) With respect to an action required 
65.9 	or permitted to be taken by a partnership under this section, or in a proceeding under section 
65.10 	270C.35 or 271.06, the state partnership representative for the reviewed year shall have the 
65.11 	sole authority to act on behalf of the partnership, and its direct partners and indirect partners 
65.12 	shall be bound by those actions.
65.13 	(b) The state partnership representative for the reviewed year is the partnership's federal 
65.14 	partnership representative unless the partnership, in a form and manner prescribed by the 
65.15 	commissioner, designates another person as its state partnership representative.
65.16 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
65.17 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
65.18 	and except for negative federal adjustments required under federal law taken into account 
65.19 	by the partnership in the partnership return for the adjustment or other year,  all final federal 
65.20 	adjustments of an audited partnership must comply with paragraph (b) and each direct 
65.21 	partner of the audited partnership, other than a tiered partner, must comply with paragraph 
65.22 	(c).
65.23 	(b) No later than 90 days after the final determination date, the audited partnership must:
65.24 	(1) file a completed federal adjustments report, including all partner-level information 
65.25 	required under section 289A.12, subdivision 3, with the commissioner;
65.26 	(2) notify each of its direct partners of their distributive share of the final federal 
65.27 	adjustments;
65.28 	(3) file an amended composite report for all direct partners who were included in a 
65.29 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
65.30 	additional amount that would have been due had the federal adjustments been reported 
65.31 	properly as required; and
66.1 	(4) file amended withholding reports for all direct partners who were or should have 
66.2 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
66.3 	year, and pay the additional amount that would have been due had the federal adjustments 
66.4 	been reported properly as required.
66.5 	(c) No later than 180 days after the final determination date, each direct partner, other 
66.6 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
66.7 	sales tax, must:
66.8 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
66.9 	reported to them under paragraph (b), clause (2); and
66.10 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
66.11 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
66.12 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
66.13 	paragraph (b), clauses (3) and (4).
66.14 		Subd. 3.Election; partnership or tiered partners pay. (a) An audited partnership may 
66.15 	make an election under this subdivision to pay its assessment at the entity level. If an audited 
66.16 	partnership makes an election to pay its assessment at the entity level it must:
66.17 	(1) no later than 90 days after the final determination date:
66.18 	(i) file a completed federal adjustments report, which includes the residency information 
66.19 	for all individual, trust, and estate direct partners and information pertaining to all other 
66.20 	direct partners as prescribed by the commissioner; and
66.21 	(ii) notify the commissioner that it is making the election under this subdivision; and
66.22 	(2) no later than 180 days after the final determination date, pay an amount, determined 
66.23 	as follows, in lieu of taxes on partners:
66.24 	(i) exclude from final federal adjustments the distributive share of these adjustments 
66.25 	made to a direct exempt partner that is not unrelated business taxable income;
66.26 	(ii) exclude from final federal adjustments the distributive share of these adjustments 
66.27 	made to a direct partner that has filed a federal adjustments report and paid the applicable 
66.28 	tax, as required under subdivision 2, for the distributive share of adjustments reported on a 
66.29 	federal return under section 6225(c) of the Internal Revenue Code;
66.30 	(iii) assign and apportion at the partnership level using sections 290.17 to 290.20 the 
66.31 	total distributive share of the remaining final federal adjustments for the reviewed year 
66.32 	attributed to direct corporate partners and direct exempt partners; multiply the total by the 
67.1 	highest tax rate in section 290.06, subdivision 1, for the reviewed year; and calculate interest 
67.2 	and penalties as applicable under this chapter;
67.3 	(iv) allocate at the partnership level using section 290.17, subdivision 1, the total 
67.4 	distributive share of all final federal adjustments attributable to individual resident direct 
67.5 	partners for the reviewed year; multiply the total by the highest tax rate in section 290.06, 
67.6 	subdivision 2c, for the reviewed year; and calculate interest and penalties as applicable 
67.7 	under this chapter;
67.8 	(v) assign and apportion at the partnership level using sections 290.17 to 290.20 the total 
67.9 	distributive share of the remaining final federal adjustments attributable to nonresident 
67.10 	individual direct partners and direct partners who are an estate or a trust for the reviewed 
67.11 	year; multiply the total by the highest tax rate in section 290.06, subdivision 2c, for the 
67.12 	reviewed year; and calculate interest and penalties as applicable under this chapter;
67.13 	(vi) for the total distributive share of the remaining final federal adjustments reported 
67.14 	to tiered partners:
67.15 	(A) determine the amount of the adjustments that would be assigned using  section 290.17, 
67.16 	subdivision 2, paragraphs (a) to (d), excluding income or gains from intangible personal 
67.17 	property not employed in the business of the recipient of the income or gains if the recipient 
67.18 	of the income or gains is a resident of this state or is a resident trust or estate under section 
67.19 	290.17, subdivision 2, paragraph (c), or apportioned using sections 290.17, subdivision 3, 
67.20 	290.191, and 290.20; and then determine the portion of the amount that would be allocated 
67.21 	to this state;
67.22 	(B) determine the amount of the adjustments that are fully sourced to the taxpayer's state 
67.23 	of residency under section 290.17, subdivision 2, paragraph (e), and income or gains from 
67.24 	intangible personal property not employed in the business of the recipient of the income or 
67.25 	gains if the recipient of the income or gains is a resident of this state or is a resident trust 
67.26 	or estate under section 290.17, subdivision 2, paragraph (c);
67.27 	(C) determine the portion of the amount determined in subitem (B) that can be established 
67.28 	to be properly allocable to nonresident indirect partners or other partners not subject to tax 
67.29 	on the adjustments; and
67.30 	(D) multiply the total of the amounts determined in subitems (A) and (B) reduced by 
67.31 	the amount determined in subitem (C) by the highest tax rate in section 290.06, subdivision 
67.32 	2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter; 
67.33 	and
68.1 	(vii) add the amounts determined in items (iii) to (vi), and pay all applicable taxes, 
68.2 	penalties, and interest to the commissioner.
68.3 	(b) An audited partnership may not make an election under this subdivision to report:
68.4 	(1) a federal adjustment that results in unitary business income to a corporate partner 
68.5 	required to file as a member of a combined report under section 290.17, subdivision 4; or
68.6 	(2) any final federal adjustments resulting from an administrative adjustment request.
68.7 	(c) An audited partnership not otherwise subject to any reporting or payment obligation 
68.8 	to this state may not make an election under this subdivision.
68.9 		Subd. 4.Tiered partners and indirect partners. The direct and indirect partners of an 
68.10 	audited partnership that are tiered partners, and all the partners of the tiered partners, that 
68.11 	are subject to tax under chapter 290 are subject to the reporting and payment requirements 
68.12 	contained in subdivision 2, and the tiered partners are entitled to make the elections provided 
68.13 	in subdivision 3. The tiered partners or their partners shall make required reports and 
68.14 	payments no later than 90 days after the time for filing and furnishing of statements to tiered 
68.15 	partners and their partners as established under section 6226 of the Internal Revenue Code.
68.16 		Subd. 5.Effects of election by partnership or tiered partner and payment of amount 
68.17 	due. (a) Unless the commissioner determines otherwise, an election under subdivision 3 is 
68.18 	irrevocable.
68.19 	(b) If an audited partnership or tiered partner properly reports and pays an amount 
68.20 	determined in subdivision 3, the amount must be treated as paid in lieu of taxes owed by 
68.21 	the partnership's direct partners and indirect partners, to the extent applicable, on the same 
68.22 	final federal adjustments. The direct partners or indirect partners of the partnership who are 
68.23 	not resident partners may not take any deduction or credit for this amount or claim a refund 
68.24 	of the amount in this state.
68.25 	(c) Nothing in this subdivision precludes resident direct partners from claiming a credit 
68.26 	against taxes paid under section 290.06 on any amounts paid by the audited partnership or 
68.27 	tiered partners on the resident partner's behalf to another state or local tax jurisdiction.
68.28 		Subd. 6.Failure of partnership or tiered partner to report or pay. Nothing in this 
68.29 	section prevents the commissioner from assessing direct partners or indirect partners for 
68.30 	taxes they owe, using the best information available, in the event that, for any reason, a 
68.31 	partnership or tiered partner fails to timely make any report or payment required by this 
68.32 	section.

69.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
69.2 	after December 31, 2017, except that for partnerships that make an election under Code of 
69.3 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
69.4 	and applies to the same tax periods to which the election relates.

69.5 	Sec. 10. Minnesota Statutes 2020, section 289A.42, is amended to read:
69.6 	289A.42 CONSENT TO EXTEND STATUTE.
69.7 		Subdivision 1.Extension agreement. If before the expiration of time prescribed in 
69.8 	sections 289A.38 to 289A.382 and 289A.40 for the assessment of tax or the filing of a claim 
69.9 	for refund, both the commissioner and the taxpayer have consented in writing to the 
69.10 	assessment or filing of a claim for refund after that time, the tax may be assessed or the 
69.11 	claim for refund filed at any time before the expiration of the agreed-upon period. The 
69.12 	period may be extended by later agreements in writing before the expiration of the period 
69.13 	previously agreed upon. The taxpayer and the commissioner may also agree to extend the 
69.14 	period for collection of the tax.
69.15 		Subd. 2.Federal extensions. When a taxpayer consents to an extension of time for the 
69.16 	assessment of federal withholding or income taxes, the period in which the commissioner 
69.17 	may recompute the tax is also extended, notwithstanding any period of limitations to the 
69.18 	contrary, as follows:
69.19 	(1) for the periods provided in section sections289A.38, subdivisions 8 and 9, and 
69.20 	289A.382, subdivisions 2 and 3;
69.21 	(2) for six months following the expiration of the extended federal period of limitations 
69.22 	when no change is made by the federal authority. If no change is made by the federal 
69.23 	authority, and, but for this subdivision, the commissioner's time period to adjust the tax has 
69.24 	expired, and if the commissioner has completed a field audit of the taxpayer, no additional 
69.25 	changes resulting in additional tax due or a refund may be made. For purposes of this 
69.26 	subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.

69.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
69.28 	after December 31, 2017, except that for partnerships that make an election under Code of 
69.29 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
69.30 	and applies to the same tax periods to which the election relates.

70.1 	Sec. 11. Minnesota Statutes 2020, section 289A.60, subdivision 24, is amended to read:
70.2 		Subd. 24.Penalty for failure to notify of federal change. If a person fails to report to 
70.3 	the commissioner a change or correction of the person's federal return in the manner and 
70.4 	time prescribed in sectionsections 289A.38, subdivision 7, and 289A.382, there must be 
70.5 	added to the tax an amount equal to ten percent of the amount of any underpayment of 
70.6 	Minnesota tax attributable to the federal change.

70.7 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
70.8 	after December 31, 2017, except that for partnerships that make an election under Code of 
70.9 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
70.10 	and applies to the same tax periods to which the election relates.

70.11 	Sec. 12. Minnesota Statutes 2020, section 290.31, subdivision 1, is amended to read:
70.12 		Subdivision 1.Partners, not partnership, subject to tax. Except as provided under 
70.13 	section sections289A.35, paragraph (b), and 289A.382, subdivision 3, a partnership as such 
70.14 	shall not be subject to the income tax imposed by this chapter, but is subject to the tax 
70.15 	imposed under section 290.0922. Persons carrying on business as partners shall be liable 
70.16 	for income tax only in their separate or individual capacities.

70.17 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
70.18 	after December 31, 2017, except that for partnerships that make an election under Code of 
70.19 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
70.20 	and applies to the same tax periods to which the election relates.

70.21 	Sec. 13. Minnesota Statutes 2020, section 297F.17, subdivision 6, is amended to read:
70.22 		Subd. 6.Time limit for bad debt refund. Claims for refund must be filed with the 
70.23 	commissioner during the one-year period beginning with the timely filing of the taxpayer's 
70.24 	federal income tax return containing the bad debt deduction that is being claimed. Claimants 
70.25 	under this subdivision are subject to the notice requirements of section sections289A.38, 
70.26 	subdivision 7, and 289A.382.

70.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
70.28 	after December 31, 2017, except that for partnerships that make an election under Code of 
70.29 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
70.30 	and applies to the same tax periods to which the election relates.

71.1 	Sec. 14. Minnesota Statutes 2020, section 297G.16, subdivision 7, is amended to read:
71.2 		Subd. 7.Time limit for a bad debt deduction. Claims for refund must be filed with 
71.3 	the commissioner within one year of the filing of the taxpayer's income tax return containing 
71.4 	the bad debt deduction that is being claimed. Claimants under this subdivision are subject 
71.5 	to the notice requirements of section 289A.38, subdivision 7 sections 289A.38 to 289A.382.

71.6 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
71.7 	after December 31, 2017, except that for partnerships that make an election under Code of 
71.8 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
71.9 	and applies to the same tax periods to which the election relates.

71.10 	Sec. 15. Minnesota Statutes 2020, section 469.319, subdivision 4, is amended to read:
71.11 		Subd. 4.Repayment procedures. (a) For the repayment of taxes imposed under chapter 
71.12 	290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an 
71.13 	amended return with the commissioner of revenue and pay any taxes required to be repaid 
71.14 	within 30 days after becoming subject to repayment under this section. The amount required 
71.15 	to be repaid is determined by calculating the tax for the period or periods for which repayment 
71.16 	is required without regard to the exemptions and credits allowed under section 469.315.
71.17 	(b) For the repayment of taxes imposed under chapter 297B, a business must pay any 
71.18 	taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of 
71.19 	revenue, within 30 days after becoming subject to repayment under this section.
71.20 	(c) For the repayment of property taxes, the county auditor shall prepare a tax statement 
71.21 	for the business, applying the applicable tax extension rates for each payable year and 
71.22 	provide a copy to the business and to the taxpayer of record. The business must pay the 
71.23 	taxes to the county treasurer within 30 days after receipt of the tax statement. The business 
71.24 	or the taxpayer of record may appeal the valuation and determination of the property tax to 
71.25 	the Tax Court within 30 days after receipt of the tax statement.
71.26 	(d) The provisions of chapters 270C and 289A relating to the commissioner's authority 
71.27 	to audit, assess, and collect the tax and to hear appeals are applicable to the repayment 
71.28 	required under paragraphs (a) and (b). The commissioner may impose civil penalties as 
71.29 	provided in chapter 289A, and the additional tax and penalties are subject to interest at the 
71.30 	rate provided in section 270C.40. The additional tax shall bear interest from 30 days after 
71.31 	becoming subject to repayment under this section until the date the tax is paid. Any penalty 
71.32 	imposed pursuant to this section shall bear interest from the date provided in section 270C.40, 
71.33 	subdivision 3, to the date of payment of the penalty.
72.1 	(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the 
72.2 	amount required to be repaid to the property taxes assessed against the property for payment 
72.3 	in the year following the year in which the auditor provided the statement under paragraph 
72.4 	(c).
72.5 	(f) For determining the tax required to be repaid, a reduction of a state or local sales or 
72.6 	use tax is deemed to have been received on the date that the good or service was purchased 
72.7 	or first put to a taxable use. In the case of an income tax or franchise tax, including the credit 
72.8 	payable under section 469.318, a reduction of tax is deemed to have been received for the 
72.9 	two most recent tax years that have ended prior to the date that the business became subject 
72.10 	to repayment under this section. In the case of a property tax, a reduction of tax is deemed 
72.11 	to have been received for the taxes payable in the year that the business became subject to 
72.12 	repayment under this section and for the taxes payable in the prior year.
72.13 	(g) The commissioner may assess the repayment of taxes under paragraph (d) any time 
72.14 	within two years after the business becomes subject to repayment under subdivision 1, or 
72.15 	within any period of limitations for the assessment of tax under sectionsections 289A.38
72.16 	to 289A.382, whichever period is later. The county auditor may send the statement under 
72.17 	paragraph (c) any time within three years after the business becomes subject to repayment 
72.18 	under subdivision 1.
72.19 	(h) A business is not entitled to any income tax or franchise tax benefits, including 
72.20 	refundable credits, for any part of the year in which the business becomes subject to 
72.21 	repayment under this section nor for any year thereafter. Property is not exempt from tax 
72.22 	under section 272.02, subdivision 64, for any taxes payable in the year following the year 
72.23 	in which the property became subject to repayment under this section nor for any year 
72.24 	thereafter. A business is not eligible for any sales tax benefits beginning with goods or 
72.25 	services purchased or first put to a taxable use on the day that the business becomes subject 
72.26 	to repayment under this section.

72.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
72.28 	after December 31, 2017, except that for partnerships that make an election under Code of 
72.29 	Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively 
72.30 	and applies to the same tax periods to which the election relates.

73.1 	ARTICLE 4
73.2 	SALES AND USE TAXES

73.3 	Section 1. Minnesota Statutes 2020, section 297A.67, is amended by adding a subdivision 
73.4 	to read:
73.5 		Subd. 38.Season ticket purchasing rights to collegiate events. The sale of a right to 
73.6 	purchase the privilege of admission to a college or university athletic event in a preferred 
73.7 	viewing location for a season of a particular athletic event is exempt provided that:
73.8 	(1) the consideration paid for the right to purchase is used entirely to support student 
73.9 	scholarships, wellness, and academic costs;
73.10 	(2) the consideration paid for the right to purchase is separately stated from the admission 
73.11 	price; and
73.12 	(3) the admission price is equal to or greater than the highest priced general admission 
73.13 	ticket for the closest seat not in the preferred viewing location.

73.14 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
73.15 	30, 2021.

73.16 	Sec. 2. Minnesota Statutes 2020, section 297A.70, subdivision 13, is amended to read:
73.17 		Subd. 13.Fund-raising sales by or for nonprofit groups. (a) The following sales by 
73.18 	the specified organizations for fund-raising purposes are exempt, subject to the limitations 
73.19 	listed in paragraph (b):
73.20 	(1) all sales made by a nonprofit organization that exists solely for the purpose of 
73.21 	providing educational or social activities for young people primarily age 18 and under;
73.22 	(2) all sales made by an organization that is a senior citizen group or association of 
73.23 	groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 
73.24 	and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no 
73.25 	part of its net earnings inures to the benefit of any private shareholders;
73.26 	(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the 
73.27 	beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under 
73.28 	section 501(c)(3) of the Internal Revenue Code; and
73.29 	(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides 
73.30 	educational and social activities primarily for young people age 18 and under.
73.31 	(b) The exemptions listed in paragraph (a) are limited in the following manner:
74.1 	(1) the exemption under paragraph (a), clauses (1) and (2), applies only to the first 
74.2 	$20,000 of the gross annual receipts of the organization from fund-raising; and
74.3 	(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived 
74.4 	from admission charges or from activities for which the money must be deposited with the 
74.5 	school district treasurer under section 123B.49, subdivision 2, or; and
74.6 	(3) the exemption under paragraph (a), clause (1), does not apply if the sales are derived 
74.7 	from admission charges or from activities for which the money must be recorded in the 
74.8 	same manner as other revenues or expenditures of the school district under section 123B.49, 
74.9 	subdivision 4., unless the following conditions are both met:
74.10 	(i) the sales are made for fund-raising purposes of a club, association, or other 
74.11 	organization of elementary or secondary school students organized for the purpose of 
74.12 	carrying on sports activities, educational activities, or other extracurricular activities; and
74.13 	(ii) the school district reserves revenue raised for extracurricular activities, as provided 
74.14 	in section 123B.49, subdivision 4, paragraph (e), and spends the revenue raised by a particular 
74.15 	extracurricular activity only for that extracurricular activity.
74.16 	(c) Sales of tangible personal property and services are exempt if the entire proceeds, 
74.17 	less the necessary expenses for obtaining the property or services, will be contributed to a 
74.18 	registered combined charitable organization described in section 43A.50, to be used 
74.19 	exclusively for charitable, religious, or educational purposes, and the registered combined 
74.20 	charitable organization has given its written permission for the sale. Sales that occur over 
74.21 	a period of more than 24 days per year are not exempt under this paragraph.
74.22 	(d) For purposes of this subdivision, a club, association, or other organization of 
74.23 	elementary or secondary school students organized for the purpose of carrying on sports, 
74.24 	educational, or other extracurricular activities is a separate organization from the school 
74.25 	district or school for purposes of applying the $20,000 limit.

74.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after the 
74.27 	date of final enactment.

74.28 	Sec. 3. Minnesota Statutes 2020, section 297A.70, is amended by adding a subdivision to 
74.29 	read:
74.30 		Subd. 22.Prepared food used by certain nonprofits. Sales of prepared food to a 
74.31 	nonprofit organization that, as part of its charitable mission, is sponsoring and managing 
74.32 	the provision of meals and other food through the federal Child and Adult Care Food Program 
74.33 	or the federal Summer Food Service Program to unaffiliated centers and sites are exempt 
75.1 	from sales tax. Only prepared food purchased from a caterer or other business under a 
75.2 	contract with the nonprofit and used directly in the federal Child and Adult Care Food 
75.3 	Program or the federal Summer Food Service Program qualifies for this exemption. Prepared 
75.4 	food purchased by the nonprofit for other purposes remains taxable.

75.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
75.6 	30, 2021.

75.7 	Sec. 4. Minnesota Statutes 2020, section 297A.71, subdivision 52, is amended to read:
75.8 		Subd. 52.Construction; certain local government facilities. (a) Materials and supplies 
75.9 	used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, 
75.10 	or remodeling of the following local government owned facilities are exempt:
75.11 	(1) a new fire station, which includes firefighting, emergency management, public safety 
75.12 	training, and other public safety facilities in the city of Monticello if materials, supplies, 
75.13 	and equipment are purchased after January 31, 2019, and before January 1, 2022;
75.14 	(2) a new fire station, which includes firefighting and public safety training facilities 
75.15 	and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and 
75.16 	equipment are purchased after June 30, 2018, and before January 1, 2021;
75.17 	(3) a fire station and police station, including access roads, lighting, sidewalks, and 
75.18 	utility components, on or adjacent to the property on which the fire station or police station 
75.19 	are located that are necessary for safe access to and use of those buildings, in the city of 
75.20 	Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and 
75.21 	before January 1, 2021 2022;
75.22 	(4) the school building in Independent School District No. 414, Minneota, if materials, 
75.23 	supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;
75.24 	(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment 
75.25 	are purchased after December 31, 2018, and before January 1, 2021; and
75.26 	(6) a Dakota County law enforcement collaboration center, also known as the Safety 
75.27 	and Mental Health Alternative Response Training (SMART) Center, if materials, supplies, 
75.28 	and equipment are purchased after June 30, 2019, and before July 1, 2021.
75.29 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
75.30 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
75.31 	(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed 
75.32 	$850,000.

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

76.2 	Sec. 5. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to 
76.3 	read:
76.4 		Subd. 53.Public safety facilities. (a) Materials and supplies used or consumed in and 
76.5 	equipment incorporated into the construction, remodeling, expansion, or improvement of 
76.6 	a fire station or police station, including related facilities, owned and operated by a local 
76.7 	government, as defined in section 297A.70, subdivision 2, paragraph (d), are exempt.
76.8 	(b) For purposes of this subdivision, "related facilities" includes access roads, lighting, 
76.9 	sidewalks, and utility components on or adjacent to the property on which the fire station 
76.10 	or police station is located that are necessary for safe access to and use of those buildings.
76.11 	(c) The tax must be imposed and collected as if the rate under section 297A.62, 
76.12 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.

76.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
76.14 	30, 2021.

76.15 	Sec. 6. Minnesota Statutes 2020, section 297A.75, subdivision 1, is amended to read:
76.16 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
76.17 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
76.18 	section 297A.62, subdivision 1, applied. The exempt items include:
76.19 	(1) building materials for an agricultural processing facility exempt under section 
76.20 	297A.71, subdivision 13;
76.21 	(2) building materials for mineral production facilities exempt under section 297A.71, 
76.22 	subdivision 14;
76.23 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
76.24 	(4) building materials used in a residence for veterans with a disability exempt under 
76.25 	section 297A.71, subdivision 11;
76.26 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
76.27 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
76.28 	subdivision 23;
76.29 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
76.30 	section 297A.71, subdivision 35;
77.1 	(8) equipment and materials used for the generation, transmission, and distribution of 
77.2 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
77.3 	37;
77.4 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
77.5 	(a), clause (10);
77.6 	(10) materials, supplies, and equipment for construction or improvement of projects and 
77.7 	facilities under section 297A.71, subdivision 40;
77.8 	(11) materials, supplies, and equipment for construction, improvement, or expansion of 
77.9 	a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
77.10 	(12) enterprise information technology equipment and computer software for use in a 
77.11 	qualified data center exempt under section 297A.68, subdivision 42;
77.12 	(13) materials, supplies, and equipment for qualifying capital projects under section 
77.13 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
77.14 	(14) items purchased for use in providing critical access dental services exempt under 
77.15 	section 297A.70, subdivision 7, paragraph (c);
77.16 	(15) items and services purchased under a business subsidy agreement for use or 
77.17 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
77.18 	44;
77.19 	(16) building materials, equipment, and supplies for constructing or replacing real 
77.20 	property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51; and
77.21 	(17) building materials, equipment, and supplies for qualifying capital projects under 
77.22 	section 297A.71, subdivision 52.; and
77.23 	(18) building materials, equipment, and supplies for constructing, remodeling, expanding, 
77.24 	or improving a fire station, police station, or related facilities exempt under section 297A.71, 
77.25 	subdivision 53.

77.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
77.27 	30, 2021.

77.28 	Sec. 7. Minnesota Statutes 2020, section 297A.75, subdivision 2, is amended to read:
77.29 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
77.30 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
77.31 	be paid to the applicant. Only the following persons may apply for the refund:
78.1 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
78.2 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
78.3 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
78.4 	provided in United States Code, title 38, chapter 21;
78.5 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
78.6 	property;
78.7 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
78.8 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
78.9 	joint venture of municipal electric utilities;
78.10 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
78.11 	business;
78.12 	(8) for subdivision 1, clauses (9), (10), (13), and (17), and (18), the applicant must be 
78.13 	the governmental entity that owns or contracts for the project or facility; and
78.14 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
78.15 	building or project.

78.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
78.17 	30, 2021.

78.18 	Sec. 8. Minnesota Statutes 2020, section 297A.75, subdivision 3, is amended to read:
78.19 		Subd. 3.Application. (a) The application must include sufficient information to permit 
78.20 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
78.21 	or builder, under subdivision 1, clauses (3) to (13) or (15) to (17) (18), the contractor, 
78.22 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
78.23 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
78.24 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
78.25 	this section.
78.26 	(b) An applicant may not file more than two applications per calendar year for refunds 
78.27 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

78.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
78.29 	30, 2021.

79.1 	Sec. 9. Laws 2017, First Special Session chapter 1, article 3, section 32, the effective date, 
79.2 	as amended by Laws 2019, First Special Session chapter 6, article 3, section 18, is amended 
79.3 	to read:

79.4 	EFFECTIVE DATE. Paragraph (a) is effective retroactively for sales and purchases 
79.5 	made after September 30, 2016, and before January July 1, 2023. Paragraph (b) is effective 
79.6 	for sales and purchases made (1) after September 30, 2016, and before July 1, 2017; and 
79.7 	(2) after December 31, 2018, and before July 1, 2019.

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

79.9 	Sec. 10. PROPERTIES DESTROYED OR DAMAGED BY FIRE; CITY OF 
79.10 	ALEXANDRIA.
 79.11 	(a) The sale and purchase of the following items are exempt from sales and use tax 
79.12 	imposed under Minnesota Statutes, chapter 297A, if the items are used to repair, replace, 
79.13 	clean, or otherwise remediate damage to real and personal property damaged or destroyed 
79.14 	in the February 25, 2020, fire in the city of Alexandria, if sales and purchases are made after 
79.15 	February 24, 2020, and before February 28, 2023:
79.16 	(1) building materials and supplies used or consumed in, and equipment incorporated 
79.17 	into the construction, replacement, or repair of real property; and
79.18 	(2) durable equipment used in a restaurant for food storage, preparation, and serving.
79.19 	(b) Building cleaning and disinfecting services related to mitigating smoke damage to 
79.20 	real property are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
79.21 	297A, if sales and purchases are made after February 24, 2020, and before January 1, 2021.
79.22 	(c) For sales and purchases made after February 24, 2020, and before July 1, 2021, the 
79.23 	tax must be imposed and collected as if the rate under Minnesota Statutes, section 297A.62, 
79.24 	subdivision 1, applied and then refunded in the manner provided in Minnesota Statutes, 
79.25 	section 297A.75. The amount required to pay the refunds under this section is appropriated 
79.26 	from the general fund to the commissioner of revenue. Refunds for eligible purchases must 
79.27 	not be issued until after June 30, 2021.

79.28 	EFFECTIVE DATE. This section is effective the day following final enactment and 
79.29 	applies retroactively to sales and purchases made after February 24, 2020.

80.1 	Sec. 11. CITY OF BUFFALO; SALES TAX EXEMPTION FOR CONSTRUCTION 
80.2 	MATERIALS.
 80.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
80.4 	incorporated into the construction of a new fire station, which includes firefighting, 
80.5 	emergency management, public safety training, and other public safety facilities in the city 
80.6 	of Buffalo, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
80.7 	297A, if materials, supplies, and equipment are purchased after March 31, 2020, and before 
80.8 	July 1, 2021.
80.9 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
80.10 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
80.11 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
80.12 	purchases must not be issued until after June 30, 2021.
80.13 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
80.14 	is appropriated from the general fund to the commissioner of revenue.

80.15 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2020, and 
80.16 	applies to sales and purchases made after March 31, 2020, and before July 1, 2021.

80.17 	Sec. 12. CITY OF HIBBING; SALES TAX EXEMPTION FOR CONSTRUCTION 
80.18 	MATERIALS.
 80.19 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
80.20 	incorporated into the following projects in the city of Hibbing are exempt from sales and 
80.21 	use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
80.22 	equipment are purchased after May 1, 2019, and before January 1, 2025:
80.23 	(1) the addition of an Early Childhood Family Education Center to an existing elementary 
80.24 	school; and
80.25 	(2) improvements to an existing athletic facility in Independent School District No. 701.
80.26 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
80.27 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
80.28 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
80.29 	purchases must not be issued until after June 30, 2021.
80.30 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
80.31 	is appropriated from the general fund to the commissioner of revenue.

81.1 	EFFECTIVE DATE. This section is effective retroactively from May 2, 2019, and 
81.2 	applies to sales and purchases made after May 1, 2019, and before January 1, 2025.

81.3 	Sec. 13. CITY OF MAPLEWOOD; SALES TAX EXEMPTION FOR 
81.4 	CONSTRUCTION MATERIALS.
 81.5 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
81.6 	incorporated into the construction of a new fire station and emergency management 
81.7 	operations center, including on-site infrastructure improvements of parking lot, road access, 
81.8 	lighting, sidewalks, and utility components in the city of Maplewood are exempt from sales 
81.9 	and use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
81.10 	equipment are purchased after September 30, 2020, and before July 1, 2021.
81.11 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
81.12 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
81.13 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
81.14 	purchases must not be issued until after June 30, 2021.
81.15 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
81.16 	is appropriated from the general fund to the commissioner of revenue.

81.17 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2020, and 
81.18 	applies to sales and purchases made after September 30, 2020, and before July 1, 2021.

81.19 	Sec. 14. CITY OF MARSHALL; SALES TAX EXEMPTION FOR CONSTRUCTION 
81.20 	MATERIALS.
 81.21 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
81.22 	incorporated into the following projects in the city of Marshall in Independent School District 
81.23 	No. 413 are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, 
81.24 	if materials, supplies, and equipment are purchased after May 1, 2019, and before January 
81.25 	1, 2022:
81.26 	(1) the construction of a new elementary school; and
81.27 	(2) the remodeling of existing school buildings.
81.28 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
81.29 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
81.30 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
81.31 	purchases must not be issued until after June 30, 2021.
82.1 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
82.2 	is appropriated from the general fund to the commissioner of revenue.

82.3 	EFFECTIVE DATE. This section is effective retroactively to May 2, 2019, and applies 
82.4 	to materials, supplies, and equipment purchased after May 1, 2019, and before January 1, 
82.5 	2022.

82.6 	Sec. 15. CITY OF PLYMOUTH; SALES TAX EXEMPTION FOR CONSTRUCTION 
82.7 	MATERIALS.
 82.8 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
82.9 	incorporated into the following projects in the city of Plymouth are exempt from sales and 
82.10 	use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
82.11 	equipment are purchased after January 1, 2021, and before July 1, 2021:
82.12 	(1) demolition and replacement of the existing Fire Station No. 2 on its existing site; 
82.13 	and
82.14 	(2) renovation and expansion of Fire Station No. 3.
82.15 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
82.16 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
82.17 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
82.18 	purchases must not be issued until after June 30, 2021.
82.19 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
82.20 	is appropriated from the general fund to the commissioner of revenue.

82.21 	EFFECTIVE DATE. This section is effective retroactively from January 2, 2021, and 
82.22 	applies to sales and purchases made after January 1, 2021, and before July 1, 2021.

82.23 	Sec. 16. CITY OF PROCTOR; SALES TAX EXEMPTION FOR CONSTRUCTION 
82.24 	MATERIALS.
 82.25 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
82.26 	incorporated into the construction of a sand and salt storage facility in the city of Proctor 
82.27 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if 
82.28 	materials, supplies, and equipment are purchased after March 31, 2021, and before January 
82.29 	1, 2023.
82.30 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
82.31 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
83.1 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
83.2 	purchases must not be issued until after June 30, 2021.
83.3 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
83.4 	is appropriated from the general fund to the commissioner of revenue.

83.5 	EFFECTIVE DATE. This section is effective retroactively from April 1, 2021, and 
83.6 	applies to sales and purchases made after March 31, 2021, and before January 1, 2023.

83.7 	Sec. 17. CITY OF VIRGINIA; SALES TAX EXEMPTION FOR CONSTRUCTION 
83.8 	MATERIALS.
 83.9 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
83.10 	incorporated into the construction of a regional public safety center and training facility for 
83.11 	fire and police departments, emergency medical services, regional emergency services 
83.12 	training, and other regional community needs are exempt from sales and use tax imposed 
83.13 	under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased 
83.14 	after May 1, 2021, and before July 1, 2021.
83.15 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
83.16 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
83.17 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
83.18 	purchases must not be issued until after June 30, 2021.
83.19 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
83.20 	is appropriated from the general fund to the commissioner of revenue.

83.21 	EFFECTIVE DATE. This section is effective retroactively from May 2, 2021, and 
83.22 	applies to sales and purchases made after May 1, 2021, and before July 1, 2021.

83.23 	Sec. 18. ROCK RIDGE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
83.24 	CONSTRUCTION MATERIALS.
 83.25 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
83.26 	incorporated into the construction of two new elementary school buildings and a new high 
83.27 	school building in Independent School District No. 2909, Rock Ridge Public Schools, are 
83.28 	exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials, 
83.29 	supplies, and equipment are purchased after May 1, 2019, and before January 1, 2024.
83.30 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
83.31 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
84.1 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
84.2 	purchases must not be issued until after June 30, 2021.
84.3 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
84.4 	is appropriated from the general fund to the commissioner of revenue.

84.5 	EFFECTIVE DATE. This section is effective retroactively from May 2, 2019, and 
84.6 	applies to sales and purchases made after May 1, 2019, and before January 1, 2024.

84.7 	Sec. 19. MSP AIRPORT; SALES TAX EXEMPTION FOR CONSTRUCTION 
84.8 	MATERIALS.
 84.9 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
84.10 	incorporated into the following projects at the Minneapolis-St. Paul International Airport 
84.11 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if 
84.12 	materials, supplies, and equipment are purchased after June 30, 2021, and before January 
84.13 	1, 2024:
84.14 	(1) construction of an aircraft rescue and firefighting station and associated facilities;
84.15 	(2) construction of a facility for the storage of trades materials and equipment;
84.16 	(3) replacement and rehabilitation of a terminal building roof;
84.17 	(4) replacement, rehabilitation, and improvements of a baggage handling system; and
84.18 	(5) replacement, rehabilitation, and operational improvements of Terminal 1 passenger 
84.19 	arrivals and departures area.
84.20 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
84.21 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
84.22 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
84.23 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
84.24 	is appropriated from the general fund to the commissioner of revenue.

84.25 	EFFECTIVE DATE. This section is effective from July 1, 2021, and applies to sales 
84.26 	and purchases made after June 30, 2021, and before January 1, 2024.

84.27 	Sec. 20. PROPERTIES DESTROYED OR DAMAGED DURING PROTESTS AND 
84.28 	UNREST IN MAY AND JUNE OF 2020.
 84.29 		Subdivision 1.Exemption. (a) The sale and purchase of the following items are exempt 
84.30 	if the items are used to repair, replace, clean, or otherwise remediate damage to real and 
85.1 	personal property damaged or destroyed after May 24, 2020, and before June 16, 2020, 
85.2 	resulting from protests and unrest in the cities included in the peacetime emergency declared 
85.3 	in the governor's Executive Order No. 20-64:
85.4 	(1) building materials and supplies used or consumed in, and equipment incorporated 
85.5 	into, the construction, replacement, or repair of real property;
85.6 	(2) retail fixtures, office equipment, and restaurant equipment, so long as each item has 
85.7 	a useful life of more than one year and costs at least $5,000; and
85.8 	(3) building cleaning and disinfecting services related to mitigating smoke damage and 
85.9 	graffiti on and in impacted buildings.
85.10 	(b) The exemption in this subdivision only applies to materials, supplies, and services 
85.11 	purchased to repair, replace, clean, or otherwise remediate damage to buildings owned by 
85.12 	a government entity or by a private owner provided the building housed one or more of the 
85.13 	following entities at the time of the damage or destruction:
85.14 	(1) a commercial establishment with an annual gross income of $30,000,000 or less in 
85.15 	calendar year 2019;
85.16 	(2) a nonprofit organization; or
85.17 	(3) a low-income housing development that meets the certification requirements under 
85.18 	Minnesota Statutes, section 273.128, whether or not the development was occupied at the 
85.19 	time of its damage or destruction.
85.20 	(c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
85.21 	297A.62, subdivision 1, applied and then refunded in the manner provided in Minnesota 
85.22 	Statutes, section 297A.75, except that the applicant must have been an owner or occupant 
85.23 	of the real property at the time of its destruction. The exemption under paragraph (a) applies 
85.24 	to sales and purchases made after May 25, 2020, and before December 1, 2022. Refunds 
85.25 	for eligible purchases must not be issued until after June 30, 2021.
85.26 	(d) Both the owner and occupants of the real property at the time of the damage or 
85.27 	destruction may apply for a refund under this subdivision but may only request a refund for 
85.28 	the goods and services they paid for, or were contracted and paid for on their behalf. The 
85.29 	exemption does not apply to purchases of an owner if the owner did not own the real property 
85.30 	at the time of the damage or destruction.
85.31 		Subd. 2.Appropriation. The amount necessary to pay the refunds under subdivision 1 
85.32 	is appropriated from the general fund to the commissioner of revenue.

86.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
86.2 	made after May 25, 2020.

86.3 	Sec. 21. SALES TAX EXEMPTION FOR CERTAIN PURCHASES RELATED TO 
86.4 	COVID-19.
 86.5 	(a) Notwithstanding Minnesota Statutes, section 289A.50, or any law to the contrary, 
86.6 	the sale and purchase of any materials, supplies, or equipment used in this state by a restaurant 
86.7 	as defined in Minnesota Statutes, section 157.15, subdivision 12, to adapt to health guidelines 
86.8 	or any executive order related to COVID-19 is exempt from sales and use taxes imposed 
86.9 	under Minnesota Statutes, chapter 297A.
86.10 	(b) The maximum refund allowed under this section is $1,000 per federal employer 
86.11 	identification number or Minnesota sales and use tax account number, whichever number 
86.12 	is used to file sales tax returns. A business using a consolidated return to report sales tax 
86.13 	information from more than one restaurant location, as provided in Minnesota Statutes, 
86.14 	section 289A.11, subdivision 1, paragraph (a), is eligible for a refund of up to $1,000, per 
86.15 	restaurant location reported.
86.16 	(c) The tax on the gross receipts from the sale of the items exempt under paragraph (a) 
86.17 	must be imposed and collected as if the sale were taxable and the rate under Minnesota 
86.18 	Statutes, section 297A.62, subdivision 1, applied. Refunds for eligible purchases must not 
86.19 	be issued until after June 30, 2021.
86.20 	(d) Upon application on forms prescribed by the commissioner, a refund equal to the 
86.21 	tax paid on the gross receipts of the exempt items or $1,000, whichever is less, must be paid 
86.22 	to the applicant. Only the owner of the restaurant may apply for the refund. The application 
86.23 	must include sufficient information to permit the commissioner to verify the tax paid and 
86.24 	that the applicant is the owner of the restaurant.

86.25 	EFFECTIVE DATE; APPLICATION. This section is effective retroactively from 
86.26 	March 1, 2020, and applies to sales and purchases made after February 29, 2020, and before 
86.27 	January 1, 2022.

87.1 	ARTICLE 5
87.2 	VAPOR AND TOBACCO TAXES

87.3 	Section 1. Minnesota Statutes 2020, section 297F.01, is amended by adding a subdivision 
87.4 	to read:
87.5 		Subd. 7a.Delivery sale. "Delivery sale" has the meaning given in section 325F.781, 
87.6 	subdivision 1.

87.7 	EFFECTIVE DATE. This section is effective January 1, 2022.

87.8 	Sec. 2. Minnesota Statutes 2020, section 297F.01, is amended by adding a subdivision to 
87.9 	read:
87.10 		Subd. 7b.Heat device. "Heat device" means any electronic heat device, heat system, 
87.11 	or similar product or device, meant to be used with a cigarette to produce a vapor or aerosol, 
87.12 	regardless of whether sold with a cigarette. A heat device includes any batteries, heating 
87.13 	elements, components, parts, accessories, apparel, or other items that are packaged with, 
87.14 	connected to, attached to, or contained within the product or device.

87.15 	EFFECTIVE DATE. This section is effective January 1, 2022.

87.16 	Sec. 3. Minnesota Statutes 2020, section 297F.01, subdivision 19, is amended to read:
87.17 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
87.18 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
87.19 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
87.20 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
87.21 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
87.22 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
87.23 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
87.24 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
87.25 	products includes nicotine solution products and heat devices. Tobacco products excludes 
87.26 	any tobacco product that has been approved by the United States Food and Drug 
87.27 	Administration for sale as a tobacco cessation product, as a tobacco dependence product, 
87.28 	or for other medical purposes, and is being marketed and sold solely for such an approved 
87.29 	purpose.
87.30 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
87.31 	products includes a premium cigar, as defined in subdivision 13a.

87.32 	EFFECTIVE DATE. This section is effective January 1, 2022.

88.1 	Sec. 4. Minnesota Statutes 2020, section 297F.01, subdivision 22b, is amended to read:
88.2 		Subd. 22b.Nicotine solution products. (a) "Nicotine solution products" means any 
88.3 	cartridge, bottle, or other package that contains nicotine made or derived from tobacco, that 
88.4 	is in a solution that is consumed, or meant to be consumed, through the use of a heating 
88.5 	element, power source, electronic circuit, or other electronic, chemical, or mechanical means 
88.6 	that produces vapor or aerosol. This paragraph expires December 31, 2019.
88.7 	(b) Beginning January 1, 2020, "nicotine solution products" means any cartridge, bottle, 
88.8 	or other package that contains nicotine, including nicotine made or derived from tobacco 
88.9 	or sources other than tobacco, that is in a solution that is consumed, or meant to be consumed, 
88.10 	through the use of a heating element, power source, electronic circuit, or other electronic, 
88.11 	chemical, or mechanical means that produces vapor or aerosol.
88.12 	(c) Nicotine solution products includes any electronic cigarette, electronic cigar, electronic 
88.13 	cigarillo, electronic pipe, electronic nicotine delivery system, electronic vaping device, 
88.14 	electronic vape pen, electronic oral device, electronic delivery device, or similar product 
88.15 	or device, andmeant to be used in the consumption of a solution containing nicotine 
88.16 	regardless of whether sold with a solution containing nicotine. Nicotine solution products 
88.17 	include any batteries, heating elements, or other components, parts, or accessories sold with 
88.18 	and meant to be used in the consumption of a solution containing nicotine, apparel, or other 
88.19 	items that are packaged with, connected to, attached to, or contained within the product or 
88.20 	device.

88.21 	EFFECTIVE DATE. This section is effective January 1, 2022.

88.22 	Sec. 5. Minnesota Statutes 2020, section 297F.01, subdivision 23, is amended to read:
88.23 		Subd. 23.Wholesale sales price. (a) "Wholesale sales price" means the price at which 
88.24 	a distributor purchases a tobacco product.
88.25 	(b) When a distributor sells a cartridge, bottle, or other package of a solution containing 
88.26 	nicotine that is part of a kit that also includes a product, device, component, part, or accessory 
88.27 	described in subdivision 22b:
88.28 	(1), or other item, the wholesale sales price is the price at which the distributor purchases 
88.29 	the kit; except that.
88.30 	(2) if the distributor also separately sells the same package of solution containing nicotine 
88.31 	that is sold with the kit and can isolate the cost of the package of solution containing nicotine, 
88.32 	then the wholesale sales price includes only the price at which the distributor separately 
89.1 	purchases the package of the solution containing nicotine and any taxes, charges, and costs 
89.2 	listed in paragraph (c).
89.3 	(c) When a distributor sells a heat device that is part of a kit that also includes a product, 
89.4 	device, component, part, accessory, or other item, the wholesale sales price is the price at 
89.5 	which the distributor purchases the kit.
89.6 	(c) (d) Wholesale sales price includes the applicable federal excise tax, freight charges, 
89.7 	or packaging costs, regardless of whether they were included in the purchase price.

89.8 	EFFECTIVE DATE. This section is effective for kits purchased by distributors after 
89.9 	December 31, 2021.

89.10 	Sec. 6. Minnesota Statutes 2020, section 297F.031, is amended to read:
89.11 	297F.031 REGISTRATION REQUIREMENT.
89.12 	Prior to making delivery sales or shipping cigarettes or tobacco products in connection 
89.13 	with any sales, an out-of-state retailer shall must file with the Department of Revenue a 
89.14 	statement setting forth the out-of-state retailer's name, trade name, and the address of the 
89.15 	out-of-state retailer's, principal place of business, and any other place of business.

89.16 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
89.17 	December 31, 2021.

89.18 	Sec. 7. Minnesota Statutes 2020, section 297F.05, is amended by adding a subdivision to 
89.19 	read:
89.20 		Subd. 4b.Retailer collection and remittance of use tax. A retailer or out-of-state 
89.21 	retailer must, for any delivery sale, collect and pay to the state any use tax imposed by this 
89.22 	section. The retailer or out-of-state retailer must give the purchaser a receipt for the tax paid.

89.23 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
89.24 	December 31, 2021.

89.25 	Sec. 8. Minnesota Statutes 2020, section 297F.09, subdivision 3, is amended to read:
89.26 		Subd. 3.Use tax return; cigarette or tobacco products consumer and retailers 
89.27 	making delivery sales. (a) On or before the 18th day of each calendar month, a consumer 
89.28 	who, during the preceding calendar month, has acquired title to or possession of cigarettes 
89.29 	or tobacco products for use or storage in this state, upon which cigarettes or tobacco products 
89.30 	the tax imposed by this chapter has not been paid, shall file a return with the commissioner 
89.31 	showing the quantity of cigarettes or tobacco products so acquired. The return must be made 
90.1 	in the form and manner prescribed by the commissioner, and must contain any other 
90.2 	information required by the commissioner. The return must be accompanied by a remittance 
90.3 	for the full unpaid tax liability shown by it.
90.4 	(b) On or before the 18th day of each calendar month, a retailer or out-of-state retailer 
90.5 	who, during the preceding calendar month, made delivery sales must file a return with the 
90.6 	commissioner showing the quantity of cigarettes or tobacco products so delivered. The 
90.7 	commissioner shall prescribe the content, format, and manner of returns pursuant to section 
90.8 	270C.30. The return must be accompanied by a remittance for the full unpaid tax liability.

90.9 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
90.10 	December 31, 2021.

90.11 	Sec. 9. Minnesota Statutes 2020, section 297F.09, subdivision 4a, is amended to read:
90.12 		Subd. 4a.Reporting requirements. No later than the 18th day of each calendar month, 
90.13 	an a retailer or out-of-state retailer that has made a delivery of cigarettes or tobacco products 
90.14 	or shipped or delivered cigarettes or tobacco products into the state in a delivery sale in the 
90.15 	previous calendar month shall file with the Department of Revenue reports a report in the 
90.16 	form and in the manner prescribed by the commissioner of revenue that provides for each 
90.17 	delivery sale, the name and address of the purchaser and the brand or brands and quantity 
90.18 	of cigarettes or tobacco products sold. A tobacco retailer or out-of-state retailer that meets 
90.19 	the requirements of United States Code, title 15, section 375 et seq. satisfies the requirements 
90.20 	of this subdivision. The filing of a return under subdivision 3, paragraph (b), satisfies the 
90.21 	requirements of this subdivision for the applicable month.

90.22 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
90.23 	December 31, 2021.

90.24 	Sec. 10. Minnesota Statutes 2020, section 297F.09, subdivision 7, is amended to read:
90.25 		Subd. 7.Electronic payment. A cigarette or distributor, tobacco products distributor, 
90.26 	retailer, or out-of-state retailer having a liability of $10,000 or more during a fiscal year 
90.27 	ending June 30 must remit all liabilities in all subsequent calendar years by electronic means.

90.28 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
90.29 	December 31, 2021.

91.1 	Sec. 11. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
91.2 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor. A 
91.3 	cigarette or distributor, tobacco products distributor, retailer, or out-of-state retailer having 
91.4 	a liability of $250,000 or more during a fiscal year ending June 30, shall remit the June 
91.5 	liability for the next year in the following manner:
91.6 	(a) Two business days before June 30 of calendar years 2020 and 2021, the distributor 
91.7 	shall remit the actual May liability and 87.5 percent of the estimated June liability to the 
91.8 	commissioner and file the return in the form and manner prescribed by the commissioner.
91.9 	(b) On or before August 18 of the year, the distributor, retailer, or out-of-state retailer
91.10 	shall submit a return showing the actual June liability and pay any additional amount of tax 
91.11 	not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability 
91.12 	required to be paid in June, less the amount remitted in June. However, the penalty is not 
91.13 	imposed if the amount remitted in June equals the lesser of:
91.14 	(1) 87.5 percent of the actual June liability for the calendar year 2020 and 2021 June 
91.15 	liabilities and 84.5 of the actual June liability for June 2022 and thereafter; or
91.16 	(2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June 
91.17 	liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter.
91.18 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
91.19 	vendor must remit by two business days before June 30 is 84.5 percent.

91.20 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
91.21 	December 31, 2021.

91.22 	Sec. 12. Minnesota Statutes 2020, section 325F.781, subdivision 1, is amended to read:
91.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
91.24 	the meanings given, unless the language or context clearly provides otherwise.
91.25 	(b) "Consumer" means an individual who purchases, receives, or possesses tobacco 
91.26 	products for personal consumption and not for resale.
91.27 	(c) "Delivery sale" means:
91.28 	(1) a sale of tobacco products to a consumer in this state when:
91.29 	(i) the purchaser submits the order for the sale by means of a telephonic or other method 
91.30 	of voice transmission, the mail or any other delivery service, or the Internet or other online 
91.31 	service; or
92.1 	(ii) the tobacco products are delivered by use of the mail or other delivery service; or
92.2 	(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), regardless 
92.3 	of whether the seller is located inside or outside of the state.
92.4 	A sale of tobacco products to an individual in this state must be treated as a sale to a 
92.5 	consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
92.6 	(d) "Delivery service" means a person, including the United States Postal Service, that 
92.7 	is engaged in the commercial delivery of letters, packages, or other containers.
92.8 	(e) "Distributor" means a person, whether located inside or outside of this state, other 
92.9 	than a retailer, who sells or distributes tobacco products in the state. Distributor does not 
92.10 	include a tobacco products manufacturer, export warehouse proprietor, or importer with a 
92.11 	valid permit under United States Code, title 26, section 5712 (1997), if the person sells or 
92.12 	distributes tobacco products in this state only to distributors who hold valid and current 
92.13 	licenses under the laws of a state, or to an export warehouse proprietor or another 
92.14 	manufacturer. Distributor does not include a common or contract carrier that is transporting 
92.15 	tobacco products under a proper bill of lading or freight bill that states the quantity, source, 
92.16 	and destination of tobacco products, or a person who ships tobacco products through this 
92.17 	state by common or contract carrier under a bill of lading or freight bill.
92.18 	(f) "Retailer" means a person, whether located inside or outside this state, who sells or 
92.19 	distributes tobacco products to a consumer in this state.
92.20 	(g) "Tobacco products" means: cigarettes and tobacco products as defined in section 
92.21 	297F.01.
92.22 	(1) cigarettes, as defined in section 297F.01, subdivision 3;
92.23 	(2) smokeless tobacco as defined in section 325F.76; and
92.24 	(3) premium cigars as defined in section 297F.01, subdivision 13a.

92.25 	EFFECTIVE DATE. This section is effective January 1, 2022.

92.26 	Sec. 13. Minnesota Statutes 2020, section 325F.781, subdivision 5, is amended to read:
92.27 		Subd. 5.Registration requirement. Prior to making delivery sales or shipping tobacco 
92.28 	products in connection with any sales, an out-of-state retailer must meet the requirements 
92.29 	of register with the commissioner of revenue as required under section 297F.031.

92.30 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
92.31 	December 31, 2021.

93.1 	Sec. 14. Minnesota Statutes 2020, section 325F.781, subdivision 6, is amended to read:
93.2 		Subd. 6.Collection of taxes. (a) Prior to shipping any tobacco products to a purchaser 
93.3 	in this state, the out-of-state A retailer shall comply with all requirements of making delivery 
93.4 	sales must file all returns and reports, collect and pay all taxes, and maintain all records 
93.5 	required under chapter 297F and shall ensure that all state excise taxes and fees that apply 
93.6 	to such tobacco products have been collected and paid to the state and that all related state 
93.7 	excise tax stamps or other indicators of state excise tax payment have been properly affixed 
93.8 	to those tobacco products.
93.9 	(b) In addition to any penalties under chapter 297F, a distributor a retailer making delivery 
93.10 	sales who fails to pay any tax due according to paragraph (a) under chapter 297F, shall pay, 
93.11 	in addition to any other penalty, a penalty of 50 percent of the tax due but unpaid.

93.12 	EFFECTIVE DATE. This section is effective for all delivery sales occurring after 
93.13 	December 31, 2021.

93.14 	ARTICLE 6
93.15 	SPECIAL TAXES

93.16 	Section 1. Minnesota Statutes 2020, section 297H.04, subdivision 2, is amended to read:
93.17 		Subd. 2.Rate. (a) Commercial generators that generate nonmixed municipal solid waste 
93.18 	shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic 
93.19 	waste collection capacity purchased by the generator, based on the size of the container for 
93.20 	the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion 
93.21 	schedule in paragraph (c). However, the tax must be calculated by the waste management 
93.22 	service provider using the same method for calculating the waste management service fee 
93.23 	so that both are calculated according to container capacity, actual volume, or weight.
93.24 	(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed 
93.25 	municipal solid waste shall pay a solid waste management tax in the same manner as provided 
93.26 	in paragraph (a).
93.27 	(c) The weight-to-volume conversion schedule tax for:
93.28 	(1) construction debris as defined in section 115A.03, subdivision 7, is equal to 60 cents 
93.29 	per cubic yard. The commissioner of revenue, after consultation with the commissioner of 
93.30 	the Pollution Control Agency, shall determine and may publish by notice a weight-to-volume 
93.31 	conversion schedule for construction debris;
94.1 	(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents 
94.2 	per cubic yard. The commissioner of revenue after consultation with the commissioner of 
94.3 	the Pollution Control Agency, shall determine, and may publish by notice, a 
94.4 	weight-to-volume conversion schedule for various industrial wastes; and
94.5 	(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste 
94.6 	as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 
94.7 	cents per 150 pounds.

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

94.9 	Sec. 2. Minnesota Statutes 2020, section 297H.05, is amended to read:
94.10 	297H.05 SELF-HAULERS.
94.11 	(a) A self-hauler of mixed municipal solid waste shall pay the tax to the operator of the 
94.12 	waste management facility to which the waste is delivered at the rate imposed under section 
94.13 	297H.03, based on the sales price of the waste management services.
94.14 	(b) A self-hauler of nonmixed municipal solid waste shall pay the tax to the operator of 
94.15 	the waste management facility to which the waste is delivered at the rate imposed under 
94.16 	section 297H.04.
94.17 	(c) The tax imposed on the self-hauler of nonmixed municipal solid waste may be based 
94.18 	either on the capacity of the container, the actual volume, or the weight-to-volume conversion 
94.19 	schedule in paragraph (d). However, the tax must be calculated by the operator using the 
94.20 	same method for calculating the tipping fee so that both are calculated according to container 
94.21 	capacity, actual volume, or weight.
94.22 	(d) The weight-to-volume conversion schedule tax for:
94.23 	(1) construction debris as defined in section 115A.03, subdivision 7, is one ton equals 
94.24 	3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner of 
94.25 	revenue, after consultation with the commissioner of the Pollution Control Agency, shall 
94.26 	determine and publish by notice a weight-to-volume conversion schedule for construction 
94.27 	debris;
94.28 	(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents 
94.29 	per cubic yard. The commissioner of revenue, after consultation with the commissioner of 
94.30 	the Pollution Control Agency, shall determine, and may publish by notice, a 
94.31 	weight-to-volume conversion schedule for various industrial wastes; and
95.1 	(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste 
95.2 	as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 
95.3 	cents per 150 pounds.
95.4 	(e) For mixed municipal solid waste the tax is imposed upon the difference between the 
95.5 	market price and the tip fee at a processing or disposal facility if the tip fee is less than the 
95.6 	market price and the political subdivision subsidizes the cost of service at the facility. The 
95.7 	political subdivision is liable for the tax.

95.8 	EFFECTIVE DATE. This section is effective July 1, 2021, except the new rate for 
95.9 	construction debris applies to waste delivered after June 30, 2021.

95.10 	Sec. 3. Minnesota Statutes 2020, section 297I.05, subdivision 7, is amended to read:
95.11 		Subd. 7.Nonadmitted insurance premium tax. (a) A tax is imposed on surplus lines 
95.12 	brokers. The rate of tax is equal to three percent of the gross premiums less return premiums 
95.13 	paid by an insured whose home state is Minnesota.
95.14 	(b) A tax is imposed on a person, firm, corporation, or purchasing group as defined in 
95.15 	section 60E.02, or any member of a purchasing group, that procures insurance directly from 
95.16 	a nonadmitted insurer. The rate of tax is equal to two three percent of the gross premiums 
95.17 	less return premiums paid by an insured whose home state is Minnesota.
95.18 	(c) No state other than the home state of an insured may require any premium tax payment 
95.19 	for nonadmitted insurance. When Minnesota is the home state of the insured, as provided 
95.20 	under section 297I.01, 100 percent of the gross premiums are taxable in Minnesota with no 
95.21 	allocation of the tax to other states.

95.22 	EFFECTIVE DATE. This section is effective for policies with an effective date after 
95.23 	December 31, 2021.

95.24 	Sec. 4. Minnesota Statutes 2020, section 298.001, is amended by adding a subdivision to 
95.25 	read:
95.26 		Subd. 13.Merchantable iron ore concentrate. "Merchantable iron ore concentrate" 
95.27 	means iron-bearing material that has been treated in Minnesota by any means of beneficiation, 
95.28 	separation, concentration, or refinement for the purpose of making it salable for its iron ore 
95.29 	content.

95.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2022 and thereafter.

96.1 	Sec. 5. Minnesota Statutes 2020, section 298.24, subdivision 1, is amended to read:
96.2 		Subdivision 1.Imposed; calculation. (a) For concentrate produced in 2013, there is 
96.3 	imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and 
96.4 	upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, 
96.5 	a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom.
96.6 	(b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal 
96.7 	to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied 
96.8 	by the percentage increase in the implicit price deflator from the fourth quarter of the second 
96.9 	preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means 
96.10 	the implicit price deflator for the gross domestic product prepared by the Bureau of Economic 
96.11 	Analysis of the United States Department of Commerce.
96.12 	(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron 
96.13 	ore concentrate for each one percent that the iron content of the product exceeds 72 percent, 
96.14 	when dried at 212 degrees Fahrenheit.
96.15 	(d) The tax on taconite and iron sulphides shall be imposed on the average of the 
96.16 	production for the current year and the previous two years. The rate of the tax imposed will 
96.17 	be the current year's tax rate. This clause shall not apply in the case of the closing of a 
96.18 	taconite facility if the property taxes on the facility would be higher if this clause and section 
96.19 	298.25 were not applicable.
96.20 	(e) The tax under paragraph (a) is also imposed upon other iron-bearing material as 
96.21 	described in section 298.405 on the tonnage of merchantable iron ore concentrate produced 
96.22 	therefrom. The tax on other iron-bearing material shall be imposed on the current year 
96.23 	production. The rate of the tax imposed is the current year's tax rate.
96.24 	(f) If the tax or any part of the tax imposed by this subdivision is held to be 
96.25 	unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 
96.26 	shall be imposed.
96.27 	(g) Consistent with the intent of this subdivision to impose a tax based upon the weight 
96.28 	of merchantable iron ore concentrate, the commissioner of revenue may indirectly determine 
96.29 	the weight of merchantable iron ore concentrate included in fluxed pellets by subtracting 
96.30 	the weight of the limestone, dolomite, or olivine derivatives or other basic flux additives 
96.31 	included in the pellets from the weight of the pellets. For purposes of this paragraph, "fluxed 
96.32 	pellets" are pellets produced in a process in which limestone, dolomite, olivine, or other 
96.33 	basic flux additives are combined with merchantable iron ore concentrate. No subtraction 
97.1 	from the weight of the pellets shall be allowed for binders, mineral and chemical additives 
97.2 	other than basic flux additives, or moisture.
97.3 	(h)(1) Notwithstanding any other provision of this subdivision, for the first two years 
97.4 	of a plant's commercial production of direct reduced ore from ore mined in this state, no 
97.5 	tax is imposed under this section. For the third year of a plant's commercial production of 
97.6 	direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate 
97.7 	otherwise determined under this subdivision. For the fourth commercial production year, 
97.8 	the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth 
97.9 	commercial production year, the rate is 75 percent of the rate otherwise determined under 
97.10 	this subdivision; and for all subsequent commercial production years, the full rate is imposed.
97.11 	(2) Subject to clause (1), production of direct reduced ore in this state is subject to the 
97.12 	tax imposed by this section, but if that production is not produced by a producer of taconite, 
97.13 	iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or 
97.14 	other iron-bearing material, that is consumed in the production of direct reduced ore in this 
97.15 	state is not subject to the tax imposed by this section on taconite, iron sulfides, or other 
97.16 	iron-bearing material.
97.17 	(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct 
97.18 	reduced ore under this section during the facility's noncommercial production of direct 
97.19 	reduced ore. The taconite or iron sulphides consumed in the noncommercial production of 
97.20 	direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. 
97.21 	Three-year average production of direct reduced ore does not include production of direct 
97.22 	reduced ore in any noncommercial year.
97.23 	(4) Three-year average production for a direct reduced ore facility that has noncommercial 
97.24 	production is the average of the commercial production of direct reduced ore for the current 
97.25 	year and the previous two commercial years.
97.26 	(5) As used in this paragraph, "commercial production" means production of more than 
97.27 	50,000 tons of direct reduced ore in the current year or in any prior year, and "noncommercial 
97.28 	production" means production of 50,000 tons or less of direct reduced ore in any year.
97.29 	(6) This paragraph applies only to plants for which all environmental permits have been 
97.30 	obtained and construction has begun before July 1, 2008.

97.31 	EFFECTIVE DATE. This section is effective for taxes payable in 2022 and thereafter.

98.1 	Sec. 6. Minnesota Statutes 2020, section 298.405, subdivision 1, is amended to read:
98.2 		Subdivision 1.Definition.  Iron-bearing material, other than taconite and semitaconite, 
98.3 	having not more than 46.5 percent natural iron content on the average, is subject to taxation 
98.4 	under section 298.24. The tax under that section applies to material that is:
98.5 	(1) finer than or ground to 90 percent passing 20 mesh; and
98.6 	(2) treated in Minnesota for the purpose of separating the iron particles from silica, 
98.7 	alumina, or other detrimental compounds or elements unless used in a direct reduction 
98.8 	process: making the iron-bearing material merchantable by any means of beneficiation, 
98.9 	separation, concentration, or refinement. The tax under section 298.24 does not apply to 
98.10 	unmined iron ore and low-grade iron-bearing formations as described in section 273.13, 
98.11 	subdivision 31, clause (1).
98.12 	(i) by electrostatic separation, roasting and magnetic separation, or flotation;
98.13 	(ii) by a direct reduction process;
98.14 	(iii) by any combination of such processes; or
98.15 	(iv) by any other process or method not presently employed in gravity separation plants 
98.16 	employing only crushing, screening, washing, jigging, heavy media separation, spirals, 
98.17 	cyclones, drying or any combination thereof.

98.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2022 and thereafter.

98.19 	ARTICLE 7
98.20 	PROPERTY TAXES

98.21 	Section 1. Minnesota Statutes 2020, section 270B.12, subdivision 8, is amended to read:
98.22 		Subd. 8.County assessors; homestead classification and renter credit. The 
98.23 	commissioner may disclose names and Social Security numbers or names and individual 
98.24 	taxpayer identification numbers of individuals who have applied for both homestead 
98.25 	classification under section 273.13 and a property tax refund as a renter under chapter 290A 
98.26 	for the purpose of and to the extent necessary to administer section 290A.25.

98.27 	EFFECTIVE DATE. This section is effective for allowed disclosures made in 2021 
98.28 	and thereafter.

99.1 	Sec. 2. Minnesota Statutes 2020, section 270B.12, subdivision 9, is amended to read:
99.2 		Subd. 9.County assessors; homestead application, determination, and income tax 
99.3 	status. (a) If, as a result of an audit, the commissioner determines that a person is a Minnesota 
99.4 	nonresident or part-year resident for income tax purposes, the commissioner may disclose 
99.5 	the person's name, address, and Social Security number or the person's name, address, and 
99.6 	individual taxpayer identification number to the assessor of any political subdivision in the 
99.7 	state, when there is reason to believe that the person may have claimed or received homestead 
99.8 	property tax benefits for a corresponding assessment year in regard to property apparently 
99.9 	located in the assessor's jurisdiction.
99.10 	(b) To the extent permitted by section 273.124, subdivision 1, paragraph (a), the 
99.11 	Department of Revenue may verify to a county assessor whether an individual who is 
99.12 	requesting or receiving a homestead classification has filed a Minnesota income tax return 
99.13 	as a resident for the most recent taxable year for which the information is available.

99.14 	EFFECTIVE DATE. This section is effective for allowed disclosures made in 2021 
99.15 	and thereafter.

99.16 	Sec. 3. Minnesota Statutes 2020, section 272.02, is amended by adding a subdivision to 
99.17 	read:
99.18 		Subd. 104.Certain property owned by an Indian Tribe. (a) Property is exempt that:
99.19 	(1) is located in a county with a population greater than 28,000 but less than 29,000 as 
99.20 	of the 2010 federal census;
99.21 	(2) was on January 2, 2018, and is for the current assessment owned by a federally 
99.22 	recognized Indian Tribe or its instrumentality, that is located in Minnesota;
99.23 	(3) was on January 2, 2018, erroneously treated as exempt under subdivision 7; and
99.24 	(4) is used for the same purpose as the property was used on January 2, 2018.
99.25 	(b) The owner of property exempt under paragraph (a) may apply to the county for a 
99.26 	refund of any state general tax paid for property taxes payable in 2020 and 2021. The county 
99.27 	may prescribe the form and manner of the application. The county auditor must certify to 
99.28 	the commissioner of revenue the amount needed for refunds under this section, which the 
99.29 	commissioner must pay to the county. An amount necessary for refunds under this paragraph 
99.30 	is appropriated from the general fund to the commissioner of revenue in fiscal year 2022. 
99.31 	This paragraph expires June 30, 2022.

100.1 	EFFECTIVE DATE. (a) The amendments in paragraph (a) are effective beginning 
100.2 	with assessment year 2021. For assessment year 2021, an exemption application under this 
100.3 	section must be filed with the county assessor by August 1, 2021.
100.4 	(b) The amendments in paragraph (b) are effective the day following final enactment.

100.5 	Sec. 4. Minnesota Statutes 2020, section 272.115, subdivision 1, is amended to read:
100.6 		Subdivision 1.Requirement. Except as otherwise provided in subdivision 5, 6, or 7, 
100.7 	whenever any real estate is sold for a consideration in excess of $3,000, whether by warranty 
100.8 	deed, quitclaim deed, contract for deed or any other method of sale, the grantor, grantee or 
100.9 	the legal agent of either shall file a certificate of value with the county auditor in the county 
100.10 	in which the property is located when the deed or other document is presented for recording. 
100.11 	Contract for deeds are subject to recording under section 507.235, subdivision 1. Value 
100.12 	shall, in the case of any deed not a gift, be the amount of the full actual consideration thereof, 
100.13 	paid or to be paid, including the amount of any lien or liens assumed. The items and value 
100.14 	of personal property transferred with the real property must be listed and deducted from the 
100.15 	sale price. The certificate of value shall include the classification to which the property 
100.16 	belongs for the purpose of determining the fair market value of the property, and shall 
100.17 	include any proposed change in use of the property known to the person filing the certificate 
100.18 	that could change the classification of the property. The certificate shall include financing 
100.19 	terms and conditions of the sale which are necessary to determine the actual, present value 
100.20 	of the sale price for purposes of the sales ratio study. If the property is being acquired as 
100.21 	part of a like-kind exchange under section 1031 of the Internal Revenue Code of 1986, as 
100.22 	amended through December 31, 2006, that must be indicated on the certificate. The 
100.23 	commissioner of revenue shall promulgate administrative rules specifying the financing 
100.24 	terms and conditions which must be included on the certificate. The certificate of value 
100.25 	must include the Social Security number, individual tax identification number, or the federal 
100.26 	employer identification number of the grantors and grantees. However, a married person 
100.27 	who is not an owner of record and who is signing a conveyance instrument along with the 
100.28 	person's spouse solely to release and convey their marital interest, if any, in the real property 
100.29 	being conveyed is not a grantor for the purpose of the preceding sentence. A statement in 
100.30 	the deed that is substantially in the following form is sufficient to allow the county auditor 
100.31 	to accept a certificate for filing without the Social Security number or individual tax 
100.32 	identification number of the named spouse: "(Name) claims no ownership interest in the 
100.33 	real property being conveyed and is executing this instrument solely to release and convey 
100.34 	a marital interest, if any, in that real property." The identification numbers of the grantors 
100.35 	and grantees are private data on individuals or nonpublic data as defined in section 13.02, 
101.1 	subdivisions 9 and 12, but, notwithstanding that section, the private or nonpublic data may 
101.2 	be disclosed to the commissioner of revenue for purposes of tax administration. The 
101.3 	information required to be shown on the certificate of value is limited to the information 
101.4 	required as of the date of the acknowledgment on the deed or other document to be recorded.

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

101.6 	Sec. 5. Minnesota Statutes 2020, section 273.124, subdivision 1, is amended to read:
101.7 		Subdivision 1.General rule. (a) Residential real estate that is occupied and used for 
101.8 	the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential 
101.9 	homestead.
101.10 	Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used 
101.11 	as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.
101.12 	Dates for establishment of a homestead and homestead treatment provided to particular 
101.13 	types of property are as provided in this section.
101.14 	Property held by a trustee under a trust is eligible for homestead classification if the 
101.15 	requirements under this chapter are satisfied.
101.16 	The assessor shall require proof, as provided in subdivision 13, of the facts upon which 
101.17 	classification as a homestead may be determined. Notwithstanding any other law, the assessor 
101.18 	may at any time require a homestead application to be filed in order to verify that any 
101.19 	property classified as a homestead continues to be eligible for homestead status. 
101.20 	Notwithstanding any other law to the contrary, the Department of Revenue may, upon 
101.21 	request from an assessor, verify whether an individual who is requesting or receiving 
101.22 	homestead classification has filed a Minnesota income tax return as a resident for the most 
101.23 	recent taxable year for which the information is available.
101.24 	When there is a name change or a transfer of homestead property, the assessor may 
101.25 	reclassify the property in the next assessment unless a homestead application is filed to 
101.26 	verify that the property continues to qualify for homestead classification.
101.27 	(b) For purposes of this section, homestead property shall include property which is used 
101.28 	for purposes of the homestead but is separated from the homestead by a road, street, lot, 
101.29 	waterway, or other similar intervening property. The term "used for purposes of the 
101.30 	homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings 
101.31 	commonly associated with a homestead, but shall not include vacant land held primarily 
101.32 	for future development. In order to receive homestead treatment for the noncontiguous 
101.33 	property, the owner must use the property for the purposes of the homestead, and must apply 
102.1 	to the assessor, both by the deadlines given in subdivision 9. After initial qualification for 
102.2 	the homestead treatment, additional applications for subsequent years are not required.
102.3 	(c) Residential real estate that is occupied and used for purposes of a homestead by a 
102.4 	relative of the owner is a homestead but only to the extent of the homestead treatment that 
102.5 	would be provided if the related owner occupied the property. For purposes of this paragraph 
102.6 	and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent, 
102.7 	grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood 
102.8 	or marriage. Property that has been classified as seasonal residential recreational property 
102.9 	at any time during which it has been owned by the current owner or spouse of the current 
102.10 	owner will not be reclassified as a homestead unless it is occupied as a homestead by the 
102.11 	owner; this prohibition also applies to property that, in the absence of this paragraph, would 
102.12 	have been classified as seasonal residential recreational property at the time when the 
102.13 	residence was constructed. Neither the related occupant nor the owner of the property may 
102.14 	claim a property tax refund under chapter 290A for a homestead occupied by a relative. In 
102.15 	the case of a residence located on agricultural land, only the house, garage, and immediately 
102.16 	surrounding one acre of land shall be classified as a homestead under this paragraph, except 
102.17 	as provided in paragraph (d).
102.18 	(d) Agricultural property that is occupied and used for purposes of a homestead by a 
102.19 	relative of the owner, is a homestead, only to the extent of the homestead treatment that 
102.20 	would be provided if the related owner occupied the property, and only if all of the following 
102.21 	criteria are met:
102.22 	(1) the relative who is occupying the agricultural property is a grandchild, child, sibling, 
102.23 	or parent, grandparent, stepparent, stepchild, uncle, aunt, nephew, or niece of the owner of 
102.24 	the agricultural property or of the spouse of the owner;
102.25 	(2) the owner of the agricultural property must be a Minnesota resident;
102.26 	(3) the owner of the agricultural property must not receive homestead treatment on any 
102.27 	other agricultural property in Minnesota; and
102.28 	(4) the owner of the agricultural property is limited to only one agricultural homestead 
102.29 	per family under this paragraph.
102.30 	Neither the related occupant nor the owner of the property may claim a property tax 
102.31 	refund under chapter 290A for a homestead occupied by a relative qualifying under this 
102.32 	paragraph. For purposes of this paragraph, "agricultural property" means the house, garage, 
102.33 	other farm buildings and structures, and agricultural land.
103.1 	Application must be made to the assessor by the owner of the agricultural property to 
103.2 	receive homestead benefits under this paragraph. The assessor may require the necessary 
103.3 	proof that the requirements under this paragraph have been met.
103.4 	(e) In the case of property owned by a property owner who is married, the assessor must 
103.5 	not deny homestead treatment in whole or in part if only one of the spouses occupies the 
103.6 	property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2) 
103.7 	legal separation, (3) employment or self-employment in another location, or (4) other 
103.8 	personal circumstances causing the spouses to live separately, not including an intent to 
103.9 	obtain two homestead classifications for property tax purposes. To qualify under clause (3), 
103.10 	the spouse's place of employment or self-employment must be at least 50 miles distant from 
103.11 	the other spouse's place of employment, and the homesteads must be at least 50 miles distant 
103.12 	from each other.
103.13 	(f) The assessor must not deny homestead treatment in whole or in part if:
103.14 	(1) in the case of a property owner who is not married, the owner is absent due to 
103.15 	residence in a nursing home, boarding care facility, or an elderly assisted living facility 
103.16 	property as defined in section 273.13, subdivision 25a, and the property is not otherwise 
103.17 	occupied; or
103.18 	(2) in the case of a property owner who is married, the owner or the owner's spouse or 
103.19 	both are absent due to residence in a nursing home, boarding care facility, or an elderly 
103.20 	assisted living facility property as defined in section 273.13, subdivision 25a, and the property 
103.21 	is not occupied or is occupied only by the owner's spouse.
103.22 	(g) If an individual is purchasing property with the intent of claiming it as a homestead 
103.23 	and is required by the terms of the financing agreement to have a relative shown on the deed 
103.24 	as a co-owner, the assessor shall allow a full homestead classification. This provision only 
103.25 	applies to first-time purchasers, whether married or single, or to a person who had previously 
103.26 	been married and is purchasing as a single individual for the first time. The application for 
103.27 	homestead benefits must be on a form prescribed by the commissioner and must contain 
103.28 	the data necessary for the assessor to determine if full homestead benefits are warranted.
103.29 	(h) If residential or agricultural real estate is occupied and used for purposes of a 
103.30 	homestead by a child of a deceased owner and the property is subject to jurisdiction of 
103.31 	probate court, the child shall receive relative homestead classification under paragraph (c) 
103.32 	or (d) to the same extent they would be entitled to it if the owner was still living, until the 
103.33 	probate is completed. For purposes of this paragraph, "child" includes a relationship by 
103.34 	blood or by marriage.
104.1 	(i) If a single-family home, duplex, or triplex classified as either residential homestead 
104.2 	or agricultural homestead is also used to provide licensed child care, the portion of the 
104.3 	property used for licensed child care must be classified as a part of the homestead property.

104.4 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
104.5 	in 2022 and thereafter.

104.6 	Sec. 6. Minnesota Statutes 2020, section 273.124, subdivision 3a, is amended to read:
104.7 		Subd. 3a.Manufactured home park cooperative. (a) When a manufactured home park 
104.8 	is owned by a corporation or association organized under chapter 308A or 308B, and each 
104.9 	person who owns a share or shares in the corporation or association is entitled to occupy a 
104.10 	lot within the park, the corporation or association may claim homestead treatment for the 
104.11 	park. Each lot must be designated by legal description or number, and each lot is limited to 
104.12 	not more than one-half acre of land.
104.13 	(b) The manufactured home park shall be entitled to homestead treatment if all of the 
104.14 	following criteria are met:
104.15 	(1) the occupant or the cooperative corporation or association is paying the ad valorem 
104.16 	property taxes and any special assessments levied against the land and structure either 
104.17 	directly, or indirectly through dues to the corporation or association; and
104.18 	(2) the corporation or association organized under chapter 308A or 308B is wholly 
104.19 	owned by persons having a right to occupy a lot owned by the corporation or association.
104.20 	(c) A charitable corporation, organized under the laws of Minnesota with no outstanding 
104.21 	stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, 
104.22 	qualifies for homestead treatment with respect to a manufactured home park if its members 
104.23 	hold residential participation warrants entitling them to occupy a lot in the manufactured 
104.24 	home park.
104.25 	(d) "Homestead treatment" under this subdivision means the classification rate provided 
104.26 	for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause 
104.27 	(5), item (ii), and the homestead market value exclusion under section 273.13, subdivision 
104.28 	35, does not apply.

104.29 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
104.30 	in 2023 and thereafter.

105.1 	Sec. 7. Minnesota Statutes 2020, section 273.124, subdivision 6, is amended to read:
105.2 		Subd. 6.Leasehold cooperatives. When one or more dwellings or one or more buildings 
105.3 	which each contain several dwelling units is owned by a nonprofit corporation subject to 
105.4 	the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the 
105.5 	Internal Revenue Code, or a limited partnership which corporation or partnership operates 
105.6 	the property in conjunction with a cooperative association, and has received public financing, 
105.7 	homestead treatment may be claimed by the cooperative association on behalf of the members 
105.8 	of the cooperative for each dwelling unit occupied by a member of the cooperative. The 
105.9 	cooperative association must provide the assessor with the Social Security numbers or 
105.10 	individual tax identification numbers of those members. To qualify for the treatment provided 
105.11 	by this subdivision, the following conditions must be met:
105.12 	(a) the cooperative association must be organized under chapter 308A or 308B and all 
105.13 	voting members of the board of directors must be resident tenants of the cooperative and 
105.14 	must be elected by the resident tenants of the cooperative;
105.15 	(b) the cooperative association must have a lease for occupancy of the property for a 
105.16 	term of at least 20 years, which permits the cooperative association, while not in default on 
105.17 	the lease, to participate materially in the management of the property, including material 
105.18 	participation in establishing budgets, setting rent levels, and hiring and supervising a 
105.19 	management agent;
105.20 	(c) to the extent permitted under state or federal law, the cooperative association must 
105.21 	have a right under a written agreement with the owner to purchase the property if the owner 
105.22 	proposes to sell it; if the cooperative association does not purchase the property it is offered 
105.23 	for sale, the owner may not subsequently sell the property to another purchaser at a price 
105.24 	lower than the price at which it was offered for sale to the cooperative association unless 
105.25 	the cooperative association approves the sale;
105.26 	(d) a minimum of 40 percent of the cooperative association's members must have incomes 
105.27 	at or less than 60 percent of area median gross income as determined by the United States 
105.28 	Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal 
105.29 	Revenue Code. For purposes of this clause, "member income" means the income of a member 
105.30 	existing at the time the member acquires cooperative membership;
105.31 	(e) if a limited partnership owns the property, it must include as the managing general 
105.32 	partner a nonprofit organization operating under the provisions of chapter 317A and 
105.33 	qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited 
106.1 	partnership agreement must provide that the managing general partner have sufficient powers 
106.2 	so that it materially participates in the management and control of the limited partnership;
106.3 	(f) prior to becoming a member of a leasehold cooperative described in this subdivision, 
106.4 	a person must have received notice that (1) describes leasehold cooperative property in plain 
106.5 	language, including but not limited to the effects of classification under this subdivision on 
106.6 	rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that 
106.7 	copies of the articles of incorporation and bylaws of the cooperative association, the lease 
106.8 	between the owner and the cooperative association, a sample sublease between the 
106.9 	cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited 
106.10 	partnership agreement, can be obtained upon written request at no charge from the owner, 
106.11 	and the owner must send or deliver the materials within seven days after receiving any 
106.12 	request;
106.13 	(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on 
106.14 	which the unit became leasehold cooperative property described in this subdivision, the 
106.15 	notice described in paragraph (f) must have been sent by first class mail to the occupant of 
106.16 	the unit at least 60 days prior to the date on which the unit became leasehold cooperative 
106.17 	property. For purposes of the notice under this paragraph, the copies of the documents 
106.18 	referred to in paragraph (f) may be in proposed version, provided that any subsequent 
106.19 	material alteration of those documents made after the occupant has requested a copy shall 
106.20 	be disclosed to any occupant who has requested a copy of the document. Copies of the 
106.21 	articles of incorporation and certificate of limited partnership shall be filed with the secretary 
106.22 	of state after the expiration of the 60-day period unless the change to leasehold cooperative 
106.23 	status does not proceed;
106.24 	(h) the county attorney of the county in which the property is located must certify to the 
106.25 	assessor that the property meets the requirements of this subdivision;
106.26 	(i) the public financing received must be from at least one of the following sources:
106.27 	(1) tax increment financing proceeds used for the acquisition or rehabilitation of the 
106.28 	building or interest rate write-downs relating to the acquisition of the building;
106.29 	(2) government issued bonds exempt from taxes under section 103 of the Internal Revenue 
106.30 	Code, the proceeds of which are used for the acquisition or rehabilitation of the building;
106.31 	(3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing 
106.32 	Act;
107.1 	(4) rental housing program funds under Section 8 of the United States Housing Act of 
107.2 	1937, as amended, or the market rate family graduated payment mortgage program funds 
107.3 	administered by the Minnesota Housing Finance Agency that are used for the acquisition 
107.4 	or rehabilitation of the building;
107.5 	(5) low-income housing credit under section 42 of the Internal Revenue Code;
107.6 	(6) public financing provided by a local government used for the acquisition or 
107.7 	rehabilitation of the building, including grants or loans from (i) federal community 
107.8 	development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued 
107.9 	under chapter 474A; or
107.10 	(7) other rental housing program funds provided by the Minnesota Housing Finance 
107.11 	Agency for the acquisition or rehabilitation of the building;
107.12 	(j) at the time of the initial request for homestead classification or of any transfer of 
107.13 	ownership of the property, the governing body of the municipality in which the property is 
107.14 	located must hold a public hearing and make the following findings:
107.15 	(1) that the granting of the homestead treatment of the apartment's units will facilitate 
107.16 	safe, clean, affordable housing for the cooperative members that would otherwise not be 
107.17 	available absent the homestead designation;
107.18 	(2) that the owner has presented information satisfactory to the governing body showing 
107.19 	that the savings garnered from the homestead designation of the units will be used to reduce 
107.20 	tenant's rents or provide a level of furnishing or maintenance not possible absent the 
107.21 	designation; and
107.22 	(3) that the requirements of paragraphs (b), (d), and (i) have been met.
107.23 	Homestead treatment must be afforded to units occupied by members of the cooperative 
107.24 	association and the units must be assessed as provided in subdivision 3, provided that any 
107.25 	unit not so occupied shall be classified and assessed pursuant to the appropriate class. No 
107.26 	more than three acres of land may, for assessment purposes, be included with each dwelling 
107.27 	unit that qualifies for homestead treatment under this subdivision.
107.28 	When dwelling units no longer qualify under this subdivision, the current owner must 
107.29 	notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result 
107.30 	in the loss of benefits under this subdivision for taxes payable in the year that the failure is 
107.31 	discovered. For these purposes, "benefits under this subdivision" means the difference in 
107.32 	the net tax capacity of the units which no longer qualify as computed under this subdivision 
107.33 	and as computed under the otherwise applicable law, times the local tax rate applicable to 
108.1 	the building for that taxes payable year. Upon discovery of a failure to notify, the assessor 
108.2 	shall inform the auditor of the difference in net tax capacity for the building or buildings in 
108.3 	which units no longer qualify, and the auditor shall calculate the benefits under this 
108.4 	subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be 
108.5 	demanded of the building's owner. The property owner may appeal the county's determination 
108.6 	by serving copies of a petition for review with county officials as provided in section 278.01
108.7 	and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court 
108.8 	within 60 days of the date of the notice from the county. The appeal shall be governed by 
108.9 	the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as 
108.10 	defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 
108.11 	278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this 
108.12 	subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the 
108.13 	county auditor shall certify the amount of the benefit and penalty to the succeeding year's 
108.14 	tax list to be collected as part of the property taxes on the affected buildings.

108.15 	EFFECTIVE DATE. This section is effective beginning with assessment year 2021 
108.16 	and thereafter.

108.17 	Sec. 8. Minnesota Statutes 2020, section 273.124, subdivision 9, is amended to read:
108.18 		Subd. 9.Homestead established after assessment date. Any property that was not 
108.19 	used for the purpose of a homestead on the assessment date, but which was used for the 
108.20 	purpose of a homestead on December 1 31 of a year, constitutes class 1 or class 2a.
108.21 	Any taxpayer meeting the requirements of this subdivision must notify the county 
108.22 	assessor, or the assessor who has the powers of the county assessor under section 273.063, 
108.23 	in writing, by December 15 31 of the year of occupancy in order to qualify under this 
108.24 	subdivision. The assessor must not deny full homestead treatment to a property that is 
108.25 	partially homesteaded on January 2 but occupied for the purpose of a full homestead on 
108.26 	December 1 31 of a year.
108.27 	The county assessor and the county auditor may make the necessary changes on their 
108.28 	assessment and tax records to provide for proper homestead classification as provided in 
108.29 	this subdivision.
108.30 	If homestead classification has not been requested as of December 15 31, the assessor 
108.31 	will classify the property as nonhomestead for the current assessment year for taxes payable 
108.32 	in the following year, provided that the owner of any property qualifying under this 
108.33 	subdivision, which has not been accorded the benefits of this subdivision, may be entitled 
108.34 	to receive homestead classification by proper application as provided in section 375.192.
109.1 	The county assessor may publish in a newspaper of general circulation within the county 
109.2 	a notice requesting the public to file an application for homestead as soon as practicable 
109.3 	after acquisition of a homestead, but no later than December 15 31.
109.4 	The county assessor shall publish in a newspaper of general circulation within the county 
109.5 	no later than December 1 of each year a notice informing the public of the requirement to 
109.6 	file an application for homestead by December 15 31.
109.7 	In the case of manufactured homes assessed as personal property, the homestead must 
109.8 	be established, and a homestead classification requested, by May 29 of the assessment year. 
109.9 	The assessor may include information on these deadlines for manufactured homes assessed 
109.10 	as personal property in the published notice or notices.

109.11 	EFFECTIVE DATE. This section is effective beginning with assessments in 2021.

109.12 	Sec. 9. Minnesota Statutes 2020, section 273.124, subdivision 13, is amended to read:
109.13 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
109.14 	under subdivision 1 must file a homestead application with the county assessor to initially 
109.15 	obtain homestead classification.
109.16 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
109.17 	application required to be filed under this chapter pursuant to section 270C.30. The 
109.18 	application must clearly inform the taxpayer that this application must be signed by all 
109.19 	owners who occupy the property or by the qualifying relative and returned to the county 
109.20 	assessor in order for the property to receive homestead treatment.
109.21 	(c) Every property owner applying for homestead classification must furnish to the 
109.22 	county assessor the Social Security number or individual tax identification number of each 
109.23 	occupant who is listed as an owner of the property on the deed of record, the name and 
109.24 	address of each owner who does not occupy the property, and the name and Social Security 
109.25 	number or individual tax identification number of the spouse of each occupying owner. The 
109.26 	application must be signed by each owner who occupies the property and by each owner's 
109.27 	spouse who occupies the property, or, in the case of property that qualifies as a homestead 
109.28 	under subdivision 1, paragraph (c), by the qualifying relative.
109.29 	If a property owner occupies a homestead, the property owner's spouse may not claim 
109.30 	another property as a homestead unless the property owner and the property owner's spouse 
109.31 	file with the assessor an affidavit or other proof required by the assessor stating that the 
109.32 	property qualifies as a homestead under subdivision 1, paragraph (e).
110.1 	Owners or spouses occupying residences owned by their spouses and previously occupied 
110.2 	with the other spouse, either of whom fail to include the other spouse's name and Social 
110.3 	Security number or individual tax identification number on the homestead application or 
110.4 	provide the affidavits or other proof requested, will be deemed to have elected to receive 
110.5 	only partial homestead treatment of their residence. The remainder of the residence will be 
110.6 	classified as nonhomestead residential. When an owner or spouse's name and Social Security 
110.7 	number or individual tax identification number appear on homestead applications for two 
110.8 	separate residences and only one application is signed, the owner or spouse will be deemed 
110.9 	to have elected to homestead the residence for which the application was signed.
110.10 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
110.11 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
110.12 	the property to receive homestead status, a homestead application must be filed with the 
110.13 	assessor. The Social Security number or individual tax identification number of each relative 
110.14 	occupying the property and the name and Social Security number or individual tax 
110.15 	identification number of the spouse of a relative occupying the property shall be required 
110.16 	on the homestead application filed under this subdivision. If a different relative of the owner 
110.17 	subsequently occupies the property, the owner of the property must notify the assessor 
110.18 	within 30 days of the change in occupancy. The Social Security number or individual tax 
110.19 	identification number of a relative occupying the property or the spouse of a relative 
110.20 	occupying the property is private data on individuals as defined by section 13.02, subdivision 
110.21 	12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding 
110.22 	under the Revenue Recapture Act to recover personal property taxes owing, to the county 
110.23 	treasurer.
110.24 	(e) The homestead application shall also notify the property owners that if the property 
110.25 	is granted homestead status for any assessment year, that same property shall remain 
110.26 	classified as homestead until the property is sold or transferred to another person, or the 
110.27 	owners, the spouse of the owner, or the relatives no longer use the property as their 
110.28 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
110.29 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
110.30 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
110.31 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
110.32 	shall result in the penalty provided under this subdivision and the property will lose its 
110.33 	current homestead status.
110.34 	(f) If a homestead application has not been filed with the county by December 15 31, 
110.35 	the assessor shall classify the property as nonhomestead for the current assessment year for 
111.1 	taxes payable in the following year, provided that the owner may be entitled to receive the 
111.2 	homestead classification by proper application under section 375.192.

111.3 	EFFECTIVE DATE. This section is effective beginning with assessments in 2021.

111.4 	Sec. 10. Minnesota Statutes 2020, section 273.124, subdivision 13a, is amended to read:
111.5 		Subd. 13a.Occupant list.  At the request of the commissioner, each county must give 
111.6 	the commissioner a list that includes the name and Social Security number or individual 
111.7 	tax identification number of each occupant of homestead property who is the property owner, 
111.8 	property owner's spouse, qualifying relative of a property owner, or a spouse of a qualifying 
111.9 	relative. The commissioner shall use the information provided on the lists as appropriate 
111.10 	under the law, including for the detection of improper claims by owners, or relatives of 
111.11 	owners, under chapter 290A.

111.12 	EFFECTIVE DATE. This section is effective beginning with assessment year 2021 
111.13 	and thereafter.

111.14 	Sec. 11. Minnesota Statutes 2020, section 273.124, subdivision 13c, is amended to read:
111.15 		Subd. 13c.Property lists.  In addition to lists of homestead properties, the commissioner 
111.16 	may ask the counties to furnish lists of all properties and the record owners. The Social 
111.17 	Security numbers, individual tax identification numbers, and federal identification numbers 
111.18 	that are maintained by a county or city assessor for property tax administration purposes, 
111.19 	and that may appear on the lists retain their classification as private or nonpublic data; but 
111.20 	may be viewed, accessed, and used by the county auditor or treasurer of the same county 
111.21 	for the limited purpose of assisting the commissioner in the preparation of microdata samples 
111.22 	under section 270C.12. The commissioner shall use the information provided on the lists 
111.23 	as appropriate under the law, including for the detection of improper claims by owners, or 
111.24 	relatives of owners, under chapter 290A.

111.25 	EFFECTIVE DATE. This section is effective for homestead data provided to the 
111.26 	commissioner of revenue in 2022 and thereafter.

111.27 	Sec. 12. Minnesota Statutes 2020, section 273.124, subdivision 13d, is amended to read:
111.28 		Subd. 13d.Homestead data.  On or before April 30 each year beginning in 2007, each 
111.29 	county must provide the commissioner with the following data for each parcel of homestead 
111.30 	property by electronic means as defined in section 289A.02, subdivision 8:
112.1 	(1) the property identification number assigned to the parcel for purposes of taxes payable 
112.2 	in the current year;
112.3 	(2) the name and Social Security number or individual tax identification number of each 
112.4 	occupant of homestead property who is the property owner or qualifying relative of a property 
112.5 	owner, and the spouse of the property owner who occupies homestead property or spouse 
112.6 	of a qualifying relative of a property owner who occupies homestead property;
112.7 	(3) the classification of the property under section 273.13 for taxes payable in the current 
112.8 	year and in the prior year;
112.9 	(4) an indication of whether the property was classified as a homestead for taxes payable 
112.10 	in the current year because of occupancy by a relative of the owner or by a spouse of a 
112.11 	relative;
112.12 	(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
112.13 	current year and the prior year;
112.14 	(6) the market value of improvements to the property first assessed for tax purposes for 
112.15 	taxes payable in the current year;
112.16 	(7) the assessor's estimated market value assigned to the property for taxes payable in 
112.17 	the current year and the prior year;
112.18 	(8) the taxable market value assigned to the property for taxes payable in the current 
112.19 	year and the prior year;
112.20 	(9) whether there are delinquent property taxes owing on the homestead;
112.21 	(10) the unique taxing district in which the property is located; and
112.22 	(11) such other information as the commissioner decides is necessary.
112.23 	The commissioner shall use the information provided on the lists as appropriate under 
112.24 	the law, including for the detection of improper claims by owners, or relatives of owners, 
112.25 	under chapter 290A.

112.26 	EFFECTIVE DATE. This section is effective for homestead data provided to the 
112.27 	commissioner of revenue in 2022 and thereafter.

112.28 	Sec. 13. Minnesota Statutes 2020, section 273.124, subdivision 14, is amended to read:
112.29 		Subd. 14.Agricultural homesteads; special provisions. (a) Real estate of less than ten 
112.30 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
112.31 	subdivision 23, paragraph (a), if:
113.1 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
113.2 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
113.3 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
113.4 	taxes are paid under sections 477A.11 to 477A.14;
113.5 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
113.6 	acres;
113.7 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
113.8 	combination of townships or cities from the homestead; and
113.9 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
113.10 	at least 50 percent of the market value of the house, garage, and one acre of land.
113.11 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
113.12 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
113.13 	properties, as long as the homestead remains under the same ownership, the owner owns a 
113.14 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
113.15 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
113.16 	to property that qualified under this paragraph for the 1998 assessment.
113.17 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
113.18 	extent as other agricultural homestead property, if all of the following criteria are met:
113.19 	(1) the agricultural property consists of at least 40 acres including undivided government 
113.20 	lots and correctional 40's;
113.21 	(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 
113.22 	or of the owner's spouse, is actively farming the agricultural property, either on the person's 
113.23 	own behalf as an individual or on behalf of a partnership operating a family farm, family 
113.24 	farm corporation, joint family farm venture, or limited liability company of which the person 
113.25 	is a partner, shareholder, or member;
113.26 	(3) both the owner of the agricultural property and the person who is actively farming 
113.27 	the agricultural property under clause (2), are Minnesota residents;
113.28 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
113.29 	in Minnesota; and
113.30 	(5) neither the owner nor the person actively farming the agricultural property lives 
113.31 	farther than four townships or cities, or a combination of four townships or cities, from the 
113.32 	agricultural property, except that if the owner or the owner's spouse is required to live in 
113.33 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
114.1 	the agricultural property, may live more than four townships or cities, or combination of 
114.2 	four townships or cities from the agricultural property.
114.3 	The relationship under this paragraph may be either by blood or marriage.
114.4 	(ii) Property containing the residence of an owner who owns qualified property under 
114.5 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
114.6 	is also used for noncommercial storage or drying of agricultural crops.
114.7 	(iii) As used in this paragraph, "agricultural property" means class 2a property and any 
114.8 	class 2b property that is contiguous to and under the same ownership as the class 2a property.
114.9 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
114.10 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
114.11 	land is located in the same township or city, or not farther than four townships or cities or 
114.12 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
114.13 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
114.14 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
114.15 	of the other county.
114.16 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
114.17 	holding a vested remainder interest in it must be classified as a homestead under section 
114.18 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
114.19 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
114.20 	interests who are actively engaged in farming the property, and up to one acre of the land 
114.21 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
114.22 	must also be assessed class 2a.
114.23 	(e) Agricultural land and buildings that were class 2a homestead property under section 
114.24 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
114.25 	agricultural homesteads for subsequent assessments if:
114.26 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
114.27 	homestead as a result of the April 1997 floods;
114.28 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
114.29 	Wilkin;
114.30 	(3) the agricultural land and buildings remain under the same ownership for the current 
114.31 	assessment year as existed for the 1997 assessment year and continue to be used for 
114.32 	agricultural purposes;
115.1 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
115.2 	of one of the parcels of agricultural land that is owned by the taxpayer; and
115.3 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
115.4 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
115.5 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
115.6 	property continues to meet all the requirements in this paragraph and any dwellings on the 
115.7 	agricultural land remain uninhabited.
115.8 	(f) Agricultural land and buildings that were class 2a homestead property under section 
115.9 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
115.10 	agricultural homesteads for subsequent assessments if:
115.11 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
115.12 	homestead as a result of damage caused by a March 29, 1998, tornado;
115.13 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 
115.14 	Nicollet, Nobles, or Rice;
115.15 	(3) the agricultural land and buildings remain under the same ownership for the current 
115.16 	assessment year as existed for the 1998 assessment year;
115.17 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
115.18 	one of the parcels of agricultural land that is owned by the taxpayer; and
115.19 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
115.20 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
115.21 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
115.22 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
115.23 	are not required if the property continues to meet all the requirements in this paragraph and 
115.24 	any dwellings on the agricultural land remain uninhabited.
115.25 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
115.26 	farm limited liability company, or partnership operating a family farm as described under 
115.27 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
115.28 	property, if all of the following criteria are met:
115.29 	(1) the property consists of at least 40 acres including undivided government lots and 
115.30 	correctional 40's;
115.31 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
115.32 	property;
116.1 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
116.2 	is a Minnesota resident;
116.3 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
116.4 	member, or partner claims another agricultural homestead in Minnesota; and
116.5 	(5) that shareholder, member, or partner does not live farther than four townships or 
116.6 	cities, or a combination of four townships or cities, from the agricultural property.
116.7 	Homestead treatment applies under this paragraph even if:
116.8 	(i) the shareholder, member, or partner of that entity is actively farming the agricultural 
116.9 	property on the shareholder's, member's, or partner's own behalf; or
116.10 	(ii) the family farm is operated by a family farm corporation, joint family farm venture, 
116.11 	partnership, or limited liability company other than the family farm corporation, joint family 
116.12 	farm venture, partnership, or limited liability company that owns the land, provided that:
116.13 	(A) the shareholder, member, or partner of the family farm corporation, joint family 
116.14 	farm venture, partnership, or limited liability company that owns the land who is actively 
116.15 	farming the land is a shareholder, member, or partner of the family farm corporation, joint 
116.16 	family farm venture, partnership, or limited liability company that is operating the farm; 
116.17 	and
116.18 	(B) more than half of the shareholders, members, or partners of each family farm 
116.19 	corporation, joint family farm venture, partnership, or limited liability company are persons 
116.20 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
116.21 	paragraphs (c) and (d).
116.22 	Homestead treatment applies under this paragraph for property leased to a family farm 
116.23 	corporation, joint farm venture, limited liability company, or partnership operating a family 
116.24 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
116.25 	or partner in the entity.
116.26 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
116.27 	full application must be submitted to the county assessor where the property is located. 
116.28 	Owners and the persons who are actively farming the property shall be required to complete 
116.29 	only a one-page abbreviated version of the application in each subsequent year provided 
116.30 	that none of the following items have changed since the initial application:
116.31 	(1) the day-to-day operation, administration, and financial risks remain the same;
117.1 	(2) the owners and the persons actively farming the property continue to live within the 
117.2 	four townships or city criteria and are Minnesota residents;
117.3 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
117.4 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
117.5 	(5) the property's acreage is unchanged; and
117.6 	(6) none of the property's acres have been enrolled in a federal or state farm program 
117.7 	since the initial application.
117.8 	The owners and any persons who are actively farming the property must include the 
117.9 	appropriate Social Security numbers or individual tax identification numbers, and sign and 
117.10 	date the application. If any of the specified information has changed since the full application 
117.11 	was filed, the owner must notify the assessor, and must complete a new application to 
117.12 	determine if the property continues to qualify for the special agricultural homestead. The 
117.13 	commissioner of revenue shall prepare a standard reapplication form for use by the assessors.
117.14 	(i) Agricultural land and buildings that were class 2a homestead property under section 
117.15 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
117.16 	agricultural homesteads for subsequent assessments if:
117.17 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
117.18 	homestead as a result of damage caused by the August 2007 floods;
117.19 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
117.20 	Wabasha, or Winona;
117.21 	(3) the agricultural land and buildings remain under the same ownership for the current 
117.22 	assessment year as existed for the 2007 assessment year;
117.23 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
117.24 	one of the parcels of agricultural land that is owned by the taxpayer; and
117.25 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
117.26 	floods, and the owner furnishes the assessor any information deemed necessary by the 
117.27 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
117.28 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
117.29 	are not required if the property continues to meet all the requirements in this paragraph and 
117.30 	any dwellings on the agricultural land remain uninhabited.
118.1 	(j) Agricultural land and buildings that were class 2a homestead property under section 
118.2 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
118.3 	agricultural homesteads for subsequent assessments if:
118.4 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
118.5 	homestead as a result of the March 2009 floods;
118.6 	(2) the property is located in the county of Marshall;
118.7 	(3) the agricultural land and buildings remain under the same ownership for the current 
118.8 	assessment year as existed for the 2008 assessment year and continue to be used for 
118.9 	agricultural purposes;
118.10 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
118.11 	of one of the parcels of agricultural land that is owned by the taxpayer; and
118.12 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
118.13 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
118.14 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
118.15 	property continues to meet all the requirements in this paragraph and any dwellings on the 
118.16 	agricultural land remain uninhabited.

118.17 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
118.18 	2021 and thereafter.

118.19 	Sec. 14. Minnesota Statutes 2020, section 273.1245, subdivision 1, is amended to read:
118.20 		Subdivision 1.Private or nonpublic data. The following data are private or nonpublic 
118.21 	data as defined in section 13.02, subdivisions 9 and 12, when they are submitted to a county 
118.22 	or local assessor under section 273.124, 273.13, or another section, to support a claim for 
118.23 	the property tax homestead classification under section 273.13, or other property tax 
118.24 	classification or benefit:
118.25 	(1) Social Security numbers;
118.26 	(2) individual tax identification numbers;
118.27 	(2) (3) copies of state or federal income tax returns; and
118.28 	(3) (4) state or federal income tax return information, including the federal income tax 
118.29 	schedule F.

118.30 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
118.31 	2021 and thereafter.

119.1 	Sec. 15. Minnesota Statutes 2020, section 273.13, subdivision 23, is amended to read:
119.2 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
119.3 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
119.4 	2a land under the same ownership. The market value of the house and garage and immediately 
119.5 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
119.6 	under subdivision 22. The value of the remaining land including improvements up to the 
119.7 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
119.8 	percent of market value. The remaining property over the first tier has a classification rate 
119.9 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
119.10 	limit of agricultural homestead property" and "first tier" means the limit certified under 
119.11 	section 273.11, subdivision 23.
119.12 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
119.13 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
119.14 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
119.15 	property must also include any property that would otherwise be classified as 2b, but is 
119.16 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
119.17 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
119.18 	and other similar land that is impractical for the assessor to value separately from the rest 
119.19 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
119.20 	An assessor may classify the part of a parcel described in this subdivision that is used 
119.21 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
119.22 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
119.23 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
119.24 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
119.25 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
119.26 	defined by the commissioner of revenue does not disqualify the property from classification 
119.27 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
119.28 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
119.29 	assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled 
119.30 	in the sustainable forest management incentive program under chapter 290C, the number 
119.31 	of acres assigned to the split parcel improved with a structure that is not a minor, ancillary 
119.32 	nonresidential structure must equal three acres or the number of acres excluded from the 
119.33 	sustainable forest incentive act covenant due to the structure, whichever is greater. Class 
119.34 	2b property has a classification rate of one percent of market value unless it is part of an 
119.35 	agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
120.1 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
120.2 	acres statewide per taxpayer that is being managed under a forest management plan that 
120.3 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
120.4 	management incentive program. It has a classification rate of .65 percent, provided that the 
120.5 	owner of the property must apply to the assessor in order for the property to initially qualify 
120.6 	for the reduced rate and provide the information required by the assessor to verify that the 
120.7 	property qualifies for the reduced rate. If the assessor receives the application and information 
120.8 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
120.9 	year. If the assessor receives the application and information after April 30 in an assessment 
120.10 	year, the property may not qualify until the next assessment year. The commissioner of 
120.11 	natural resources must concur that the land is qualified. The commissioner of natural 
120.12 	resources shall annually provide county assessors verification information on a timely basis. 
120.13 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
120.14 	of revenue does not disqualify the property from classification under this paragraph.
120.15 	(e) Agricultural land as used in this section means:
120.16 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
120.17 	agricultural purposes; or
120.18 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
120.19 	poultry confinement operation, provided that land used only for pasturing or grazing does 
120.20 	not qualify under this clause.
120.21 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
120.22 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
120.23 	support of agricultural production by the same farm entity. For a property to be classified 
120.24 	as agricultural based only on the drying or storage of agricultural products, the products 
120.25 	being dried or stored must have been produced by the same farm entity as the entity operating 
120.26 	the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local 
120.27 	conservation program or the Reinvest in Minnesota program under sections 103F.501 to 
120.28 	103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 
120.29 	or a similar state or federal conservation program if the property was classified as agricultural 
120.30 	(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying 
120.31 	program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use 
120.32 	of land, not to exceed three acres, to provide environmental benefits such as buffer strips, 
120.33 	old growth forest restoration or retention, or retention ponds to prevent soil erosion. For 
120.34 	purposes of this section, a "local conservation program" means a program administered by 
120.35 	a town, statutory or home rule charter city, or county, including a watershed district, water 
121.1 	management organization, or soil and water conservation district, in which landowners 
121.2 	voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 
121.3 	exchange for use or other restrictions placed on the land. In order for property to qualify 
121.4 	under the local conservation program provision, a taxpayer must apply to the assessor by 
121.5 	February 1 of the assessment year and must submit the information required by the assessor, 
121.6 	including but not limited to a copy of the program requirements, the specific agreement 
121.7 	between the land owner and the local agency, if applicable, and a map of the conservation 
121.8 	area. Agricultural classification shall not be based upon the market value of any residential 
121.9 	structures on the parcel or contiguous parcels under the same ownership.
121.10 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
121.11 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
121.12 	of, a set of contiguous tax parcels under that section that are owned by the same person.
121.13 	(f) Agricultural land under this section also includes:
121.14 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
121.15 	preceding year for raising or cultivating agricultural products; or
121.16 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
121.17 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
121.18 	used in the preceding year for one or more of the following three uses:
121.19 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
121.20 	equipment storage activities used to support agricultural activities on other parcels of property 
121.21 	operated by the same farming entity;
121.22 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
121.23 	are considered agricultural land; or
121.24 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
121.25 	means the cultivation of one or more fruits or vegetables or production of animal or other 
121.26 	agricultural products for sale to local markets by the farmer or an organization with which 
121.27 	the farmer is affiliated.
121.28 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
121.29 	described in section 272.193, or all of a set of contiguous tax parcels under that section that 
121.30 	are owned by the same person.
121.31 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
121.32 	of that property is the leasing to, or use by another person for agricultural purposes.
122.1 	Classification under this subdivision is not determinative for qualifying under section 
122.2 	273.111.
122.3 	(h) The property classification under this section supersedes, for property tax purposes 
122.4 	only, any locally administered agricultural policies or land use restrictions that define 
122.5 	minimum or maximum farm acreage.
122.6 	(i) The term "agricultural products" as used in this subdivision includes production for 
122.7 	sale of:
122.8 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
122.9 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 
122.10 	and apiary products by the owner;
122.11 	(2) aquacultural products for sale and consumption, as defined under section 17.47, if 
122.12 	the aquaculture occurs on land zoned for agricultural use;
122.13 	(3) the commercial boarding of horses, which may include related horse training and 
122.14 	riding instruction, if the boarding is done on property that is also used for raising pasture 
122.15 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
122.16 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
122.17 	activities, excluding racing;
122.18 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
122.19 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
122.20 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
122.21 	birds were raised or used for breeding stock on the property during the preceding year and 
122.22 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
122.23 	shooting preserve licensed under section 97A.115;
122.24 	(6) insects primarily bred to be used as food for animals;
122.25 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
122.26 	for timber, lumber, wood, or wood products; and
122.27 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
122.28 	Department of Agriculture under chapter 28A as a food processor.
122.29 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
122.30 	purposes, including but not limited to:
122.31 	(1) wholesale and retail sales;
122.32 	(2) processing of raw agricultural products or other goods;
123.1 	(3) warehousing or storage of processed goods; and
123.2 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
123.3 	(3),
123.4 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
123.5 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
123.6 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
123.7 	an agricultural purpose. A greenhouse or other building where horticultural or nursery 
123.8 	products are grown that is also used for the conduct of retail sales must be classified as 
123.9 	agricultural if it is primarily used for the growing of horticultural or nursery products from 
123.10 	seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 
123.11 	Use of a greenhouse or building only for the display of already grown horticultural or nursery 
123.12 	products does not qualify as an agricultural purpose.
123.13 	(k) The assessor shall determine and list separately on the records the market value of 
123.14 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
123.15 	farm buildings or structures are located on this homesteaded acre of land, their market value 
123.16 	shall not be included in this separate determination.
123.17 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
123.18 	privately owned public use airport. It has a classification rate of one percent of market value. 
123.19 	To qualify for classification under this paragraph, a privately owned public use airport must 
123.20 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
123.21 	area" means that part of a privately owned public use airport properly cleared, regularly 
123.22 	maintained, and made available to the public for use by aircraft and includes runways, 
123.23 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
123.24 	area also includes land underlying both the primary surface and the approach surfaces that 
123.25 	comply with all of the following:
123.26 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
123.27 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
123.28 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
123.29 	(ii) the land is part of the airport property; and
123.30 	(iii) the land is not used for commercial or residential purposes.
123.31 	The land contained in a landing area under this paragraph must be described and certified 
123.32 	by the commissioner of transportation. The certification is effective until it is modified, or 
123.33 	until the airport or landing area no longer meets the requirements of this paragraph. For 
124.1 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
124.2 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
124.3 	airport.
124.4 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
124.5 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
124.6 	located in a county that has elected to opt-out of the aggregate preservation program as 
124.7 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
124.8 	market value. To qualify for classification under this paragraph, the property must be at 
124.9 	least ten contiguous acres in size and the owner of the property must record with the county 
124.10 	recorder of the county in which the property is located an affidavit containing:
124.11 	(1) a legal description of the property;
124.12 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
124.13 	actively being mined but is present on the entire parcel enrolled;
124.14 	(3) documentation that the conditional use under the county or local zoning ordinance 
124.15 	of this property is for mining; and
124.16 	(4) documentation that a permit has been issued by the local unit of government or the 
124.17 	mining activity is allowed under local ordinance. The disclosure must include a statement 
124.18 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
124.19 	and certifying that it is a commercial aggregate deposit.
124.20 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
124.21 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
124.22 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
124.23 	in preparation for excavation or excavation of a commercial deposit.
124.24 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
124.25 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
124.26 	day any aggregate is removed stating the number of acres of the property that is actively 
124.27 	being mined. The acres actively being mined must be (1) valued and classified under 
124.28 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
124.29 	resource preservation property tax program under section 273.1115, if the land was enrolled 
124.30 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
124.31 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
124.32 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
124.33 	time a subsequent portion of the property is actively mined, provided that the minimum 
125.1 	acreage change is five acres, even if the actual mining activity constitutes less than five 
125.2 	acres.
125.3 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
125.4 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
125.5 	section 14.386 concerning exempt rules do not apply.

125.6 	EFFECTIVE DATE. This section is effective for assessment year 2022 and thereafter.

125.7 	Sec. 16. Minnesota Statutes 2020, section 273.13, subdivision 25, is amended to read:
125.8 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
125.9 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
125.10 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
125.11 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
125.12 	under section 272.02, and contiguous property used for hospital purposes, without regard 
125.13 	to whether the property has been platted or subdivided. The market value of class 4a property 
125.14 	has a classification rate of 1.25 percent.
125.15 	(b) Class 4b includes:
125.16 	(1) residential real estate containing less than four units, including property rented as a 
125.17 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
125.18 	as class 4bb, other than seasonal residential recreational property;
125.19 	(2) manufactured homes not classified under any other provision;
125.20 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
125.21 	classified under subdivision 23, paragraph (b) containing two or three units; and
125.22 	(4) unimproved property that is classified residential as determined under subdivision 
125.23 	33.
125.24 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
125.25 	residential real estate rented for periods of less than 30 consecutive days.
125.26 	The market value of class 4b property has a classification rate of 1.25 percent.
125.27 	(c) Class 4bb includes:
125.28 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
125.29 	residential recreational property;
125.30 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
125.31 	nonhomestead farm classified under subdivision 23, paragraph (b); and
126.1 	(3) a condominium-type storage unit having an individual property identification number 
126.2 	that is not used for a commercial purpose.
126.3 	Class 4bb property has the same classification rates as class 1a property under subdivision 
126.4 	22.
126.5 	Property that has been classified as seasonal residential recreational property at any time 
126.6 	during which it has been owned by the current owner or spouse of the current owner does 
126.7 	not qualify for class 4bb.
126.8 	(d) Class 4c property includes:
126.9 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
126.10 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
126.11 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
126.12 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
126.13 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
126.14 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
126.15 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
126.16 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
126.17 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
126.18 	under this clause regardless of the term of the rental agreement, as long as the use of the 
126.19 	camping pad does not exceed 250 days. In order for a property to be classified under this 
126.20 	clause, either (i) the business located on the property must provide recreational activities, 
126.21 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
126.22 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
126.23 	bookings by lodging guests during the year must be for periods of at least two consecutive 
126.24 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
126.25 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
126.26 	and must be located in a township or a city with a population of 2,500 or less located outside 
126.27 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
126.28 	of a state trail administered by the Department of Natural Resources. For purposes of item 
126.29 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
126.30 	property also includes commercial use real property used exclusively for recreational 
126.31 	purposes in conjunction with other class 4c property classified under this clause and devoted 
126.32 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
126.33 	two acres, provided the property is not devoted to commercial recreational use for more 
126.34 	than 250 days in the year preceding the year of assessment and is located within two miles 
126.35 	of the class 4c property with which it is used. In order for a property to qualify for 
127.1 	classification under this clause, the owner must submit a declaration to the assessor 
127.2 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
127.3 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
127.4 	share of the land on which they are located must be designated class 4c under this clause 
127.5 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
127.6 	the land on which they are located will be designated as class 3a. The owner of property 
127.7 	desiring designation as class 4c property under this clause must provide guest registers or 
127.8 	other records demonstrating that the units for which class 4c designation is sought were not 
127.9 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
127.10 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
127.11 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
127.12 	directly related to temporary and seasonal residential occupancy for recreation purposes 
127.13 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
127.14 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
127.15 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
127.16 	and fishing tackle;
127.17 	(2) qualified property used as a golf course if:
127.18 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
127.19 	but a membership fee may not be required in order to use the property for golfing, and its 
127.20 	green fees for golfing must be comparable to green fees typically charged by municipal 
127.21 	courses; and
127.22 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
127.23 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
127.24 	the golf course is classified as class 3a property;
127.25 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
127.26 	community service oriented organization and not used for residential purposes on either a 
127.27 	temporary or permanent basis, provided that:
127.28 	(i) the property is not used for a revenue-producing activity for more than six days in 
127.29 	the calendar year preceding the year of assessment; or
127.30 	(ii) the organization makes annual charitable contributions and donations at least equal 
127.31 	to the property's previous year's property taxes and the property is allowed to be used for 
127.32 	public and community meetings or events for no charge, as appropriate to the size of the 
127.33 	facility.
128.1 	For purposes of this clause:
128.2 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
128.3 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
128.4 	payment of taxes, assessments, fees, auditing costs, and utility payments;
128.5 	(B) "property taxes" excludes the state general tax;
128.6 	(C) a "nonprofit community service oriented organization" means any corporation, 
128.7 	society, association, foundation, or institution organized and operated exclusively for 
128.8 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
128.9 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
128.10 	Revenue Code; and
128.11 	(D) "revenue-producing activities" shall include but not be limited to property or that 
128.12 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
128.13 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
128.14 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
128.15 	insurance business, or office or other space leased or rented to a lessee who conducts a 
128.16 	for-profit enterprise on the premises.
128.17 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
128.18 	use of the property for social events open exclusively to members and their guests for periods 
128.19 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
128.20 	the organization shall not be considered a revenue-producing activity.
128.21 	The organization shall maintain records of its charitable contributions and donations 
128.22 	and of public meetings and events held on the property and make them available upon 
128.23 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
128.24 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
128.25 	current year's assessment. The commissioner shall prescribe a uniform application form 
128.26 	and instructions;
128.27 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
128.28 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
128.29 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
128.30 	miles of the border of a college campus;
128.31 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
128.32 	including manufactured home parks described in items (ii) and (iii), (ii) manufactured home 
128.33 	parks as defined in section 327.14, subdivision 3, that are described in section 273.124, 
129.1 	subdivision 3a, and (iii) class I manufactured home parks as defined in section 327C.01, 
129.2 	subdivision 13;
129.3 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
129.4 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
129.5 	located within the metropolitan area as defined in section 473.121, subdivision 2;
129.6 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
129.7 	section 272.01, subdivision 2, and the land on which it is located, provided that:
129.8 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
129.9 	Airports Commission, or group thereof; and
129.10 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
129.11 	premise, prohibits commercial activity performed at the hangar.
129.12 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
129.13 	filed by the new owner with the assessor of the county where the property is located within 
129.14 	60 days of the sale;
129.15 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
129.16 	272.01, subdivision 2, and the land on which it is located, provided that:
129.17 	(i) the land abuts a public airport; and
129.18 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
129.19 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
129.20 	hangar; and
129.21 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
129.22 	and that is also a place of lodging, if all of the following criteria are met:
129.23 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
129.24 	or fewer days;
129.25 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
129.26 	the basic room rate;
129.27 	(iii) meals are not provided to the general public except for special events on fewer than 
129.28 	seven days in the calendar year preceding the year of the assessment; and
129.29 	(iv) the owner is the operator of the property.
129.30 	The market value subject to the 4c classification under this clause is limited to five rental 
129.31 	units. Any rental units on the property in excess of five, must be valued and assessed as 
130.1 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
130.2 	be classified as class 1a property under subdivision 22;
130.3 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
130.4 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
130.5 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
130.6 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
130.7 	of its annual gross receipts from business conducted during four consecutive months. Gross 
130.8 	receipts from the sale of alcoholic beverages must be included in determining the property's 
130.9 	qualification under item (ii). The property's primary business must be as a restaurant and 
130.10 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
130.11 	Owners of real property desiring 4c classification under this clause must submit an annual 
130.12 	declaration to the assessor by February 1 of the current assessment year, based on the 
130.13 	property's relevant information for the preceding assessment year;
130.14 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
130.15 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
130.16 	and devoted to recreational use for marina services. The marina owner must annually provide 
130.17 	evidence to the assessor that it provides services, including lake or river access to the public 
130.18 	by means of an access ramp or other facility that is either located on the property of the 
130.19 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
130.20 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
130.21 	a marina for marina services, including but not limited to buildings used to provide food 
130.22 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
130.23 	as class 3a property; and
130.24 	(12) real and personal property devoted to noncommercial temporary and seasonal 
130.25 	residential occupancy for recreation purposes.
130.26 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
130.27 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
130.28 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
130.29 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
130.30 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
130.31 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
130.32 	shareholders in the cooperative corporation or association and a classification rate of one 
130.33 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
130.34 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 have 
130.35 	a classification rate of 0.75 percent, (iii) commercial-use seasonal residential recreational 
131.1 	property and marina recreational land as described in clause (11), has a classification rate 
131.2 	of one percent for the first $500,000 of market value, and 1.25 percent for the remaining 
131.3 	market value, (iv) the market value of property described in clause (4) has a classification 
131.4 	rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) 
131.5 	has a classification rate of 1.25 percent, (vi) that portion of the market value of property in 
131.6 	clause (9) qualifying for class 4c property has a classification rate of 1.25 percent, and (vii) 
131.7 	property qualifying for classification under clause (3) that is owned or operated by a 
131.8 	congressionally chartered veterans organization has a classification rate of one percent. The 
131.9 	commissioner of veterans affairs must provide a list of congressionally chartered veterans 
131.10 	organizations to the commissioner of revenue by June 30, 2017, and by January 1, 2018, 
131.11 	and each year thereafter.
131.12 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
131.13 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
131.14 	the units in the building qualify as low-income rental housing units as certified under section 
131.15 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
131.16 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
131.17 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
131.18 	the qualifying low-income rental housing units are to the total units in the building. For all 
131.19 	properties qualifying as class 4d, the market value determined by the assessor must be based 
131.20 	on the normal approach to value using normal unrestricted rents.
131.21 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
131.22 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
131.23 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
131.24 	the market value of each housing unit up to the first tier limit. For the purposes of this 
131.25 	paragraph, all class 4d property value must be assigned to individual housing units. The 
131.26 	first tier limit is $100,000 $174,000 for assessment year 2014 2022 and assessment year 
131.27 	2023. For subsequent years, the limit is adjusted each year by the average statewide change 
131.28 	in estimated market value of property classified as class 4a and 4d under this section for 
131.29 	the previous assessment year, excluding valuation change due to new construction, rounded 
131.30 	to the nearest $1,000, provided, however, that the limit may never be less than $100,000. 
131.31 	Beginning with assessment year 2015, the commissioner of revenue must certify the limit 
131.32 	for each assessment year by November 1 of the previous year.

131.33 	EFFECTIVE DATE; APPLICATION. (a) The amendment to paragraph (d) is effective 
131.34 	beginning with property taxes payable in 2023 and thereafter.
131.35 	(b) The amendment to paragraph (f) is effective beginning with assessment year 2022.

132.1 	Sec. 17. Minnesota Statutes 2020, section 273.13, subdivision 34, is amended to read:
132.2 		Subd. 34.Homestead of veteran with a disability or family caregiver. (a) All or a 
132.3 	portion of the market value of property owned by a veteran and serving as the veteran's 
132.4 	homestead under this section is excluded in determining the property's taxable market value 
132.5 	if the veteran has a service-connected disability of 70 percent or more as certified by the 
132.6 	United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 
132.7 	the veteran must have been honorably discharged from the United States armed forces, as 
132.8 	indicated by United States Government Form DD214 or other official military discharge 
132.9 	papers.
132.10 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
132.11 	except as provided in clause (2); and
132.12 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
132.13 	excluded.
132.14 	(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph 
132.15 	(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 
132.16 	spouse holds the legal or beneficial title to the homestead and permanently resides there, 
132.17 	the exclusion shall carry over to the benefit of the veteran's spouse until such time as the 
132.18 	spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise 
132.19 	provided in paragraph (n). Qualification under this paragraph requires an application under 
132.20 	paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's 
132.21 	marital status, ownership of the property, or use of the property as a permanent residence.
132.22 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
132.23 	who dies due to a service-connected cause while serving honorably in active service, as 
132.24 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
132.25 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
132.26 	benefit described in paragraph (b), clause (2), until such time as the spouse remarries or 
132.27 	sells, transfers, or otherwise disposes of the property, except as otherwise provided in 
132.28 	paragraph (n).
132.29 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
132.30 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
132.31 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
132.32 	for under paragraph (b).
133.1 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
133.2 	of the house and garage and immediately surrounding one acre of land qualifies for the 
133.3 	valuation exclusion under this subdivision.
133.4 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
133.5 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
133.6 	paragraph (b).
133.7 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
133.8 	apply to the assessor by December 15 31 of the first assessment year for which the exclusion 
133.9 	is sought. For an application received after December 15, the exclusion shall become effective 
133.10 	for the following assessment year. Except as provided in paragraph (c), the owner of a 
133.11 	property that has been accepted for a valuation exclusion must notify the assessor if there 
133.12 	is a change in ownership of the property or in the use of the property as a homestead.
133.13 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
133.14 	paragraph (d) must be made any time within two years of the death of the service member.
133.15 	(j) For purposes of this subdivision:
133.16 	(1) "active service" has the meaning given in section 190.05;
133.17 	(2) "own" means that the person's name is present as an owner on the property deed;
133.18 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
133.19 	United States Department of Veterans Affairs for assistance as the primary provider of 
133.20 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
133.21 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
133.22 	(4) "veteran" has the meaning given the term in section 197.447.
133.23 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
133.24 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
133.25 	under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise 
133.26 	disposes of the property, except as otherwise provided in paragraph (n), if:
133.27 	(1) the spouse files a first-time application within two years of the death of the service 
133.28 	member or by June 1, 2019, whichever is later;
133.29 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
133.30 	homestead and permanently resides there;
133.31 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
133.32 	(4) the United States Department of Veterans Affairs certifies that:
134.1 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
134.2 	paragraph (b), clause (2); or
134.3 	(ii) the spouse has been awarded dependency and indemnity compensation.
134.4 	(l) The purpose of this provision of law providing a level of homestead property tax 
134.5 	relief for veterans with a disability, their primary family caregivers, and their surviving 
134.6 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
134.7 	those burdens most heavily.
134.8 	(m) By July 1, the county veterans service officer must certify the disability rating and 
134.9 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
134.10 	(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds 
134.11 	the legal or beneficial title to the property may continue to receive the exclusion for a 
134.12 	property other than the property for which the exclusion was initially granted until the spouse 
134.13 	remarries or sells, transfers, or otherwise disposes of the property, provided that:
134.14 	(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed 
134.15 	under this paragraph;
134.16 	(2) the spouse holds the legal or beneficial title to the property for which the continuation 
134.17 	of the exclusion is sought under this paragraph, and permanently resides there;
134.18 	(3) the estimated market value of the property for which the exclusion is sought under 
134.19 	this paragraph is less than or equal to the estimated market value of the property that first 
134.20 	received the exclusion, based on the value of each property on the date of the sale of the 
134.21 	property that first received the exclusion; and
134.22 	(4) the spouse has not previously received the benefit under this paragraph for a property 
134.23 	other than the property for which the exclusion is sought.

134.24 	EFFECTIVE DATE. This section is effective beginning with assessments in 2021.

134.25 	Sec. 18. Minnesota Statutes 2020, section 273.1315, subdivision 2, is amended to read:
134.26 		Subd. 2.Class 1b homestead declaration 2009 and thereafter. (a) Any property owner 
134.27 	seeking classification and assessment of the owner's homestead as class 1b property pursuant 
134.28 	to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the 
134.29 	county assessor a class 1b homestead declaration, on a form prescribed by the commissioner 
134.30 	of revenue. The declaration must contain the following information:
135.1 	(1) the information necessary to verify that, on or before June 30 of the filing year, the 
135.2 	property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 
135.3 	22, paragraph (b), for class 1b classification; and
135.4 	(2) any additional information prescribed by the commissioner.
135.5 	(b) The declaration must be filed on or before October 1 to be effective for property 
135.6 	taxes payable during the succeeding calendar year. The Social Security numbers, individual 
135.7 	tax identification numbers, and income and medical information received from the property 
135.8 	owner pursuant to this subdivision are private data on individuals as defined in section 
135.9 	13.02. If approved by the assessor, the declaration remains in effect until the property no 
135.10 	longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the 
135.11 	assessor within 30 days that the property no longer qualifies under that paragraph because 
135.12 	of a sale, change in occupancy, or change in the status or condition of an occupant shall 
135.13 	result in the penalty provided in section 273.124, subdivision 13b, computed on the basis 
135.14 	of the class 1b benefits for the property, and the property shall lose its current class 1b 
135.15 	classification.

135.16 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
135.17 	2021 and thereafter.

135.18 	Sec. 19. Minnesota Statutes 2020, section 275.025, subdivision 1, is amended to read:
135.19 		Subdivision 1.Levy amount. The state general levy is levied against 
135.20 	commercial-industrial property and seasonal residential recreational property, as defined 
135.21 	in this section. The state general levy for commercial-industrial property is $737,090,000
135.22 	$716,990,000 for taxes payable in 2020 2022 and thereafter. The state general levy for 
135.23 	seasonal-recreational property is $41,690,000 for taxes payable in 2020 and thereafter. The 
135.24 	tax under this section is not treated as a local tax rate under section 469.177 and is not the 
135.25 	levy of a governmental unit under chapters 276A and 473F.
135.26 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
135.27 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
135.28 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
135.29 	information is available to the commissioner at the time the rates for a year must be certified, 
135.30 	and for the following reasons:
135.31 	(1) an erroneous report of taxable value by a local official;
135.32 	(2) an erroneous calculation by the commissioner; and
136.1 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
136.2 	residential recreational property reported to the commissioner under section 270C.85, 
136.3 	subdivision 2, clause (4), for the same year.
136.4 	The commissioner may, but need not, make adjustments if the total difference in the tax 
136.5 	levied for the year would be less than $100,000.

136.6 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
136.7 	in 2022 and thereafter.

136.8 	Sec. 20. Minnesota Statutes 2020, section 275.025, subdivision 2, is amended to read:
136.9 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
136.10 	"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 
136.11 	as class 3 or class 5(1) under section 273.13, excluding:
136.12 	(1) the tax capacity attributable to the first $100,000 $150,000 of market value of each 
136.13 	parcel of commercial-industrial property as defined under section 273.13, subdivision 24, 
136.14 	clauses (1) and (2);
136.15 	(2) electric generation attached machinery under class 3; and
136.16 	(3) property described in section 473.625.
136.17 	County commercial-industrial tax capacity amounts are not adjusted for the captured 
136.18 	net tax capacity of a tax increment financing district under section 469.177, subdivision 2, 
136.19 	the net tax capacity of transmission lines deducted from a local government's total net tax 
136.20 	capacity under section 273.425, or fiscal disparities contribution and distribution net tax 
136.21 	capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures 
136.22 	for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and 
136.23 	(2), shall apply in determining the portion of a property eligible to be considered within the 
136.24 	first $100,000 $150,000 of market value.

136.25 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
136.26 	in 2022 and thereafter.

136.27 	Sec. 21. Minnesota Statutes 2020, section 275.065, subdivision 1, is amended to read:
136.28 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
136.29 	on or before September 30, each county, home rule charter or statutory city, town, and 
136.30 	special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito 
136.31 	Control Commission, shall certify to the county auditor the proposed property tax levy for 
137.1 	taxes payable in the following year. For towns, the final certified levy shall also be considered 
137.2 	the proposed levy.
137.3 	(b) Each county and city with a population of at least 500 must annually notify the public 
137.4 	of its revenue, expenditures, fund balances, and other relevant budget information that is 
137.5 	used to establish the proposed property tax levy. Each county and city with a population of 
137.6 	at least 500 must hold a public meeting on the budget and proposed levy. The meeting must 
137.7 	be held at least seven days prior to the day that the proposed levy under this subdivision is 
137.8 	certified, the public must be allowed to speak at the meeting, and the meeting must not 
137.9 	begin before 6:00 p.m.
137.10 	(b) (c) Notwithstanding any law or charter to the contrary, on or before September 15, 
137.11 	the Metropolitan Council and the Metropolitan Mosquito Control Commission shall adopt 
137.12 	and certify to the county auditor a proposed property tax levy for taxes payable in the 
137.13 	following year.
137.14 	(c) (d) On or before September 30, each school district that has not mutually agreed with 
137.15 	its home county to extend this date shall certify to the county auditor the proposed property 
137.16 	tax levy for taxes payable in the following year. Each school district that has agreed with 
137.17 	its home county to delay the certification of its proposed property tax levy must certify its 
137.18 	proposed property tax levy for the following year no later than October 7. The school district 
137.19 	shall certify the proposed levy as:
137.20 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
137.21 	and non-voter-approved levies and between referendum market value and tax capacity 
137.22 	levies; or
137.23 	(2) the maximum levy limitation certified by the commissioner of education according 
137.24 	to section 126C.48, subdivision 1.
137.25 	(d) (e) If the board of estimate and taxation or any similar board that establishes maximum 
137.26 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
137.27 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
137.28 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
137.29 	jurisdictions.
137.30 	(e) (f) For purposes of this section, "special taxing district" means a special taxing district 
137.31 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
137.32 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.445, and 
137.33 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
137.34 	taxing districts for purposes of this section.
138.1 	(f) (g) At the meeting at which a taxing authority, other than a town, adopts its proposed 
138.2 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
138.3 	any subsequent regularly scheduled meetings at which the budget and levy will be discussed 
138.4 	and at which the public will be allowed to speak. The time and place of those meetings must 
138.5 	be included in the proceedings or summary of proceedings published in the official newspaper 
138.6 	of the taxing authority under section 123B.09, 375.12, or 412.191.

138.7 	EFFECTIVE DATE. This section is effective for property taxes payable in 2022 and 
138.8 	thereafter.

138.9 	Sec. 22. Minnesota Statutes 2020, section 275.065, subdivision 3, is amended to read:
138.10 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
138.11 	the county treasurer shall deliver after November 10 and on or before November 24 each 
138.12 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
138.13 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
138.14 	the treasurer may send the notice in electronic form or by electronic mail e-mail instead of 
138.15 	on paper or by ordinary mail.
138.16 	(b) The commissioner of revenue shall prescribe the form of the notice.
138.17 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
138.18 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
138.19 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
138.20 	The notice must clearly state for each city that has a population over 500, county, school 
138.21 	district, regional library authority established under section 134.201, and metropolitan taxing 
138.22 	districts as defined in paragraph (i), and fire protection special taxing districts established 
138.23 	under section 299O.01, the time and place of a meeting for each taxing authority in which 
138.24 	the budget and levy will be discussed and public input allowed, prior to the final budget 
138.25 	and levy determination. The taxing authorities must provide the county auditor with the 
138.26 	information to be included in the notice on or before the time it certifies its proposed levy 
138.27 	under subdivision 1. The public must be allowed to speak at that meeting, which must occur 
138.28 	after November 24 and must not be held before 6:00 p.m. The notice must state for each 
138.29 	city that has a population over 500, county, and school district, the time and place of the 
138.30 	meeting to be held pursuant to subdivision 11. The taxing authorities must provide the 
138.31 	county auditor with the information to be included in the notice on or before the time it 
138.32 	certifies its proposed levy under subdivision 1. It must provide a telephone number for the 
138.33 	taxing authority that taxpayers may call if they have questions related to the notice and an 
138.34 	address where comments will be received by mail, except that no notice required under this 
139.1 	section shall be interpreted as requiring the printing of a personal telephone number or 
139.2 	address as the contact information for a taxing authority. If a taxing authority does not 
139.3 	maintain public offices where telephone calls can be received by the authority, the authority 
139.4 	may inform the county of the lack of a public telephone number and the county shall not 
139.5 	list a telephone number for that taxing authority.
139.6 	(d) The notice must state for each parcel:
139.7 	(1) the market value of the property as determined under section 273.11, and used for 
139.8 	computing property taxes payable in the following year and for taxes payable in the current 
139.9 	year as each appears in the records of the county assessor on November 1 of the current 
139.10 	year; and, in the case of residential property, whether the property is classified as homestead 
139.11 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
139.12 	values apply and that the values are final values;
139.13 	(2) the items listed below, shown separately by county, city or town, and state general 
139.14 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
139.15 	credit under section 273.1387, voter approved school levy, other local school levy, and the 
139.16 	sum of the special taxing districts, and as a total of all taxing authorities:
139.17 	(i) the actual tax for taxes payable in the current year; and
139.18 	(ii) the proposed tax amount.
139.19 	If the county levy under clause (2) includes an amount for a lake improvement district 
139.20 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
139.21 	must be separately stated from the remaining county levy amount.
139.22 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
139.23 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
139.24 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
139.25 	in the school district at the November general election, the county auditor must note next 
139.26 	to the school district's proposed amount that a referendum is pending and that, if approved 
139.27 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
139.28 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
139.29 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
139.30 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
139.31 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
139.32 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
139.33 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
139.34 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
140.1 	capacity subject to the areawide tax must each be stated separately and not included in the 
140.2 	sum of the special taxing districts; and
140.3 	(3) the increase or decrease between the total taxes payable in the current year and the 
140.4 	total proposed taxes, expressed as a percentage.
140.5 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
140.6 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
140.7 	property tax before subtraction of the deferred property tax amount.
140.8 	(e) The notice must clearly state that the proposed or final taxes do not include the 
140.9 	following:
140.10 	(1) special assessments;
140.11 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
140.12 	bond referenda and school district levy referenda;
140.13 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
140.14 	in November of the levy year as provided under section 275.73;
140.15 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
140.16 	after the date the proposed taxes are certified;
140.17 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
140.18 	final after the date the proposed taxes are certified; and
140.19 	(6) the contamination tax imposed on properties which received market value reductions 
140.20 	for contamination.
140.21 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
140.22 	county treasurer to deliver the notice as required in this section does not invalidate the 
140.23 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
140.24 	(g) If the notice the taxpayer receives under this section lists the property as 
140.25 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
140.26 	applicable deadline, and the property qualifies for the homestead classification in that 
140.27 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
140.28 	in the following year.
140.29 	(h) In the case of class 4 residential property used as a residence for lease or rental 
140.30 	periods of 30 days or more, the taxpayer must either:
140.31 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
140.32 	or lessee; or
141.1 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
141.2 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
141.3 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
141.4 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
141.5 	notice must be mailed in order to fulfill the requirements of this paragraph.
141.6 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
141.7 	districts" means the following taxing districts in the seven-county metropolitan area that 
141.8 	levy a property tax for any of the specified purposes listed below:
141.9 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
141.10 	473.521, 473.547, or 473.834;
141.11 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
141.12 	(3) Metropolitan Mosquito Control Commission under section 473.711.
141.13 	For purposes of this section, any levies made by the regional rail authorities in the county 
141.14 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
141.15 	shall be included with the appropriate county's levy.
141.16 	(j) The governing body of a county, city, or school district may, with the consent of the 
141.17 	county board, include supplemental information with the statement of proposed property 
141.18 	taxes about the impact of state aid increases or decreases on property tax increases or 
141.19 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
141.20 	information may include information for the following year, the current year, and for as 
141.21 	many consecutive preceding years as deemed appropriate by the governing body of the 
141.22 	county, city, or school district. It may include only information regarding:
141.23 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
141.24 	government purchases;
141.25 	(2) population growth and decline;
141.26 	(3) state or federal government action; and
141.27 	(4) other financial factors that affect the level of property taxation and local services 
141.28 	that the governing body of the county, city, or school district may deem appropriate to 
141.29 	include.
141.30 	The information may be presented using tables, written narrative, and graphic 
141.31 	representations and may contain instruction toward further sources of information or 
141.32 	opportunity for comment.

142.1 	EFFECTIVE DATE. This section is effective for property taxes payable in 2022 and 
142.2 	thereafter.

142.3 	Sec. 23. Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision 
142.4 	to read:
142.5 		Subd. 3b.Notice of proposed property taxes required supplemental information. (a) 
142.6 	The county auditor must prepare a separate statement to be delivered with the notice of 
142.7 	proposed taxes described in subdivision 3. The statement must fit on one sheet of paper and 
142.8 	contain for each parcel:
142.9 	(1) for the county, city or township, and school district in which the parcel lies, the 
142.10 	certified levy for the current taxes payable year, the proposed levy for taxes payable in the 
142.11 	following year, and the increase or decrease between these two amounts, expressed as a 
142.12 	percentage;
142.13 	(2) summary budget information listed in paragraph (b); and
142.14 	(3) information on how to access each taxing authority's website where the taxpayer can 
142.15 	find the proposed budget and information on how to participate in person and remotely in 
142.16 	the Minnesota Property Taxpayer's Day meetings, held pursuant to subdivision 11.
142.17 	(b) Summary budget information must contain budget data from the county, city, and 
142.18 	school district that proposes a property tax levy on the parcel for taxes payable the following 
142.19 	year. For the school district, the summary budget data must include the information provided 
142.20 	to the public under section 123B.10, subdivision 1, paragraph (b), for the current year and 
142.21 	prior year. For the county and city, the reported summary budget data must contain the same 
142.22 	information, in the same categories, and in the same format as provided to the Office of the 
142.23 	State Auditor as required by section 6.745. The statement must provide the governmental 
142.24 	revenues and current expenditures information in clauses (1) and (2) for the taxing authority's 
142.25 	budget for taxes payable the following year and the taxing authority's budget from taxes 
142.26 	payable in the current year, as well as the percent change between the two years. The city 
142.27 	must provide the county auditor with the summary budget data at the same time as the 
142.28 	information required under subdivision 3. Only cities with a population of at least 500 are 
142.29 	required to report the data described in this paragraph. If a city with a population over 500 
142.30 	fails to report the required information to the county auditor, the county auditor must list 
142.31 	the city as "budget information not reported" on the portion of the statement dedicated to 
142.32 	the city's budget information. The statement may take the same format as the annual summary 
142.33 	budget report for cities and counties issued by the Office of the State Auditor. The summary 
142.34 	budget data must include:
143.1 	(1) a governmental revenues category, including and separately stating:
143.2 	(i) "property taxes" defined as property taxes levied on an assessed valuation of real 
143.3 	property and personal property, if applicable, by the city and county, including fiscal 
143.4 	disparities;
143.5 	(ii) "special assessments" defined as levies made against certain properties to defray all 
143.6 	or part of the costs of a specific improvement, such as new sewer and water mains, deemed 
143.7 	to benefit primarily those properties;
143.8 	(iii) "state general purpose aid" defined as aid received from the state that has no 
143.9 	restrictions on its use, including local government aid, county program aid, and market 
143.10 	value credits; and
143.11 	(iv) "state categorical aid" defined as revenues received for a specific purpose, such as 
143.12 	streets and highways, fire relief, and flood control, including but not limited to police and 
143.13 	fire state aid and out-of-home placement aid; and
143.14 	(2) a current expenditures category, including and separately stating:
143.15 	(i) "general government" defined as administration costs of city or county governments, 
143.16 	including salaries of officials and maintenance of buildings;
143.17 	(ii) "public safety" defined as costs related to the protection of persons and property, 
143.18 	such as police, fire, ambulance services, building inspections, animal control, and flood 
143.19 	control;
143.20 	(iii) "streets and highways" defined as costs associated with the maintenance and repair 
143.21 	of local highways, streets, bridges, and street equipment, such as patching, seal coating, 
143.22 	street lighting, street cleaning, and snow removal;
143.23 	(iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed 
143.24 	and pest control;
143.25 	(v) "human services" defined as activities designed to provide public assistance and 
143.26 	institutional care for individuals economically unable to provide for themselves;
143.27 	(vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection, 
143.28 	communicable disease control, and various health services and clinics;
143.29 	(vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing, 
143.30 	planting, removal of trees, festivals, bands, museums, community centers, cable television, 
143.31 	baseball fields, and organized recreation activities;
144.1 	(viii) "conservation of natural resources" defined as the conservation and development 
144.2 	of natural resources, including agricultural and forestry programs and services, weed 
144.3 	inspection services, and soil and water conservation services;
144.4 	(ix) "economic development and housing" defined as costs for development and 
144.5 	redevelopment activities in blighted or otherwise economically disadvantaged areas, including 
144.6 	low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and 
144.7 	other physical facilities, and other assistance to those wanting to provide housing and 
144.8 	economic opportunity within a disadvantaged area; and
144.9 	(x) "all other current expenditures" defined as costs not classified elsewhere, such as 
144.10 	airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs, 
144.11 	and public transportation costs.
144.12 	(c) If a taxing authority reporting this data does not have revenues or expenditures in a 
144.13 	category listed in paragraph (b), then the taxing authority must designate the amount as "0" 
144.14 	for that specific category.
144.15 	(d) The supplemental statement provided under this subdivision must be sent in electronic 
144.16 	form or by e-mail if the taxpayer requests an electronic version the notice of proposed 
144.17 	property taxes under subdivision 3, paragraph (a).

144.18 	EFFECTIVE DATE. This section is effective for property taxes payable in 2022 and 
144.19 	thereafter.

144.20 	Sec. 24. Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision 
144.21 	to read:
144.22 		Subd. 11.Minnesota Property Taxpayer's Day. (a) Notwithstanding any other provision 
144.23 	of law, on the first Wednesday following the first Monday in December, each county, city 
144.24 	with a population of at least 500, and each school district must annually hold a meeting to 
144.25 	discuss each taxing authority's budget and levy, prior to the final budget and levy 
144.26 	determination. The meeting shall be known as "Minnesota Property Taxpayer's Day."
144.27 	(b) Counties must begin a meeting at 6:00 p.m. and discuss the county's budget and levy. 
144.28 	The public must be allowed to speak no later than 20 minutes after the start of the meeting. 
144.29 	Cities must begin a meeting to discuss their budget and levy at 7:00 p.m. and must allow 
144.30 	the public to speak no later than 20 minutes after the start of the meeting. School districts 
144.31 	must begin a meeting to discuss their budget and levy at 8:00 p.m. and must allow the public 
144.32 	to speak no later than 20 minutes after the start of the meeting.
145.1 	(c) Each taxing jurisdiction must broadcast the meeting virtually and provide a method 
145.2 	for the public to participate in person and remotely. Information about the meeting, including 
145.3 	instructions on how to participate remotely, must be posted on the website of each taxing 
145.4 	jurisdiction required to hold a meeting under this subdivision by November 10.

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

145.6 	Sec. 25. Minnesota Statutes 2020, section 275.066, is amended to read:
145.7 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
145.8 	For the purposes of property taxation and property tax state aids, the term "special taxing 
145.9 	districts" includes the following entities:
145.10 	(1) watershed districts under chapter 103D;
145.11 	(2) sanitary districts under sections 442A.01 to 442A.29;
145.12 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
145.13 	(4) regional public library districts under section 134.201;
145.14 	(5) park districts under chapter 398;
145.15 	(6) regional railroad authorities under chapter 398A;
145.16 	(7) hospital districts under sections 447.31 to 447.38;
145.17 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
145.18 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
145.19 	(10) regional development commissions under sections 462.381 to 462.398;
145.20 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
145.21 	(12) port authorities under sections 469.048 to 469.068;
145.22 	(13) economic development authorities under sections 469.090 to 469.1081;
145.23 	(14) Metropolitan Council under sections 473.123 to 473.549;
145.24 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
145.25 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
145.26 	(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 
145.27 	437, section 1;
145.28 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
146.1 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 
146.2 	1 to 6;
146.3 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 
146.4 	section 39;
146.5 	(21) Middle Mississippi River Watershed Management Organization under sections 
146.6 	103B.211 and 103B.241;
146.7 	(22) emergency medical services special taxing districts under section 144F.01;
146.8 	(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
146.9 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
146.10 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
146.11 	(25) an airport authority created under section 360.0426; and
146.12 	(26) fire protection special taxing districts under section 299O.01; and
146.13 	(27) any other political subdivision of the state of Minnesota, excluding counties, school 
146.14 	districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 
146.15 	county auditor, as determined by the commissioner of revenue.

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

146.17 	Sec. 26. Minnesota Statutes 2020, section 290A.25, is amended to read:
146.18 	290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
146.19 	Annually, the commissioner of revenue shall furnish a list to the county assessor 
146.20 	containing the names and, Social Security numbers, and individual tax identification numbers
146.21 	of persons who have applied for both homestead classification under section 273.13 and a 
146.22 	property tax refund as a renter under this chapter.
146.23 	Within 90 days of the notification, the county assessor shall investigate to determine if 
146.24 	the homestead classification was improperly claimed. If the property owner does not qualify, 
146.25 	the county assessor shall notify the county auditor who will determine the amount of 
146.26 	homestead benefits that has been improperly allowed. For the purpose of this section, 
146.27 	"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county 
146.28 	auditor shall send a notice to persons who owned the affected property at the time the 
146.29 	homestead application related to the improper homestead was filed, demanding 
146.30 	reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead 
146.31 	benefits. The person notified may appeal the county's determination with the Minnesota 
147.1 	Tax Court within 60 days of the date of the notice from the county as provided in section 
147.2 	273.124, subdivision 13b.
147.3 	If the amount of homestead benefits and penalty is not paid within 60 days, and if no 
147.4 	appeal has been filed, the county auditor shall certify the amount of taxes and penalty to 
147.5 	the county treasurer. The county treasurer will add interest to the unpaid homestead benefits 
147.6 	and penalty amounts at the rate provided for delinquent personal property taxes for the 
147.7 	period beginning 60 days after demand for payment was made until payment. If the person 
147.8 	notified is the current owner of the property, the treasurer may add the total amount of 
147.9 	benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property 
147.10 	in the following year. If the person notified is not the current owner of the property, the 
147.11 	treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, 
147.12 	or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce 
147.13 	payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent 
147.14 	tax obligations of the person who owned the property at the time the application related to 
147.15 	the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 
147.16 	personal liability for the benefits, penalty, interest, and costs, and instead extend those 
147.17 	amounts on the tax lists against the property for taxes payable in the following year to the 
147.18 	extent that the current owner agrees in writing.
147.19 	Any amount of homestead benefits recovered by the county from the property owner 
147.20 	shall be distributed to the county, city or town, and school district where the property is 
147.21 	located in the same proportion that each taxing district's levy was to the total of the three 
147.22 	taxing districts' levy for the current year. Any amount recovered attributable to taconite 
147.23 	homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the 
147.24 	taconite property tax relief account. Any amount recovered that is attributable to supplemental 
147.25 	homestead credit is to be transmitted to the commissioner of revenue for deposit in the 
147.26 	general fund of the state treasury. The total amount of penalty collected must be deposited 
147.27 	in the county general fund.

147.28 	EFFECTIVE DATE. This section is effective for lists furnished by the commissioner 
147.29 	of revenue to county assessors in 2021 and thereafter.

147.30 	Sec. 27. [299O.01] FIRE PROTECTION SPECIAL TAXING DISTRICTS.
147.31 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
147.32 	the meanings given unless the context clearly indicates otherwise.
147.33 	(b) "City" means a statutory or home rule charter city.
148.1 	(c) "Governing body" means for a city, the city council; for a county, the county board; 
148.2 	and for a town, the board of supervisors.
148.3 	(d) "Political subdivision" means a county, city, or township organized to provide town 
148.4 	government.
148.5 		Subd. 2.Authority to establish. (a) Two or more political subdivisions may establish, 
148.6 	by resolution of their governing bodies, a special taxing district to provide fire protection 
148.7 	or emergency medical services or both in the area of the district, comprising the jurisdiction 
148.8 	of each of the political subdivisions forming the district. For a county that participates in 
148.9 	establishing a district, the county's jurisdiction comprises the unorganized territory of the 
148.10 	county that it designates in its resolution for inclusion in the district. The area of the special 
148.11 	taxing district does not need to be contiguous or its boundaries continuous.
148.12 	(b) Before establishing a district under this section, the participating political subdivisions 
148.13 	must enter an agreement that specifies how any liabilities, other than debt issued under 
148.14 	subdivision 6, and assets of the district will be distributed if the district is dissolved. The 
148.15 	agreement may also include other terms, including a method for apportioning the levy of 
148.16 	the district among participating political subdivisions under subdivision 4, paragraph (b), 
148.17 	as the political subdivisions determine appropriate. The agreement must be adopted no later 
148.18 	than upon passage of the resolution establishing the district under paragraph (a), but may 
148.19 	be later amended by agreement of each of the political subdivisions participating in the 
148.20 	district.
148.21 	(c) If the special taxing district includes the operation of a fire department, the resolution 
148.22 	under paragraph (a) or agreement under paragraph (b) must specify which, if any, volunteer 
148.23 	firefighter pension plan is associated with the district. A special taxing district that operates 
148.24 	a fire department under this section may be associated with only one volunteer firefighting 
148.25 	relief association or one account in the voluntary statewide volunteer firefighting retirement 
148.26 	plan at one time.
148.27 	(d) If the special taxing district includes the operation of a fire department, it must file 
148.28 	its resolution establishing the fire protection special taxing district, and any agreements 
148.29 	required for the establishment of the special taxing district, with the commissioner of revenue, 
148.30 	including any amendments to those documents. If the resolution or agreement does not 
148.31 	include sufficient information defining the fire department service area of the fire protection 
148.32 	special taxing district, the secretary of the district board must file a written statement with 
148.33 	the commissioner defining the fire department service area.
149.1 		Subd. 3.Board. The special taxing district established under this section is governed 
149.2 	by a board made up initially of representatives of each participating political subdivision 
149.3 	in the proportions set out in the establishing resolution, subject to change as provided in the 
149.4 	district's charter, if any, or in the district's bylaws. Each participating political subdivision's 
149.5 	representative must be an elected member of the governing body of the political subdivision 
149.6 	and serves at the pleasure of that participant's governing body.
149.7 		Subd. 4.Property tax levy. (a) The board may levy a tax on the taxable real and personal 
149.8 	property in the district. The proceeds of the levy must be used as provided in subdivision 
149.9 	5. The board shall certify the levy at the times provided under section 275.07. The board 
149.10 	shall provide the county with whatever information is necessary to identify the property 
149.11 	that is located within the district. If the boundaries include a part of a parcel, the entire parcel 
149.12 	is included in the district. The county auditor must spread, collect, and distribute the proceeds 
149.13 	of the tax at the same time and in the same manner as provided by law for all other property 
149.14 	taxes.
149.15 	(b) As an alternative to paragraph (a), the board may apportion its levy among the political 
149.16 	subdivisions that are members of the district under a formula or method, such as population, 
149.17 	number of service calls, cost of providing service, the market value of improvements, or 
149.18 	other measure or measures, that was approved by the governing body of each of the political 
149.19 	subdivisions that is a member of the district. The amount of the levy allocated to each 
149.20 	political subdivision must be added to that political subdivision's levy and spread at the 
149.21 	same time and in the same manner as provided by law for other taxes. The proceeds of the 
149.22 	levy must be collected and remitted to the district and used as provided in subdivision 5.
149.23 		Subd. 5.Use of levy proceeds. The proceeds of property taxes levied under this section 
149.24 	must be used to provide fire protection or emergency medical services to residents of the 
149.25 	district and property located in the district, as well as to pay debt issued under subdivision 
149.26 	6. Services may be provided by employees of the district or by contracting for services 
149.27 	provided by other governmental or private entities.
149.28 		Subd. 6.Debt. (a) The district may incur debt under chapter 475 when the board 
149.29 	determines doing so is necessary to accomplish its duties.
149.30 	(b) In addition, the board of the district may issue certificates of indebtedness or capital 
149.31 	notes under section 412.301 to purchase capital equipment. In applying section 412.301, 
149.32 	paragraph (e), to the district the following rules apply:
149.33 	(1) the taxable property of the entire district must be used to calculate the percent of 
149.34 	estimated market value; and
150.1 	(2) "the number of voters at the last municipal election" means the sum of the number 
150.2 	of voters at the last municipal election for each of the cities that is a member of the district 
150.3 	plus the number of registered voters in each town that is a participating member of the 
150.4 	district.
150.5 		Subd. 7.Powers. (a) In addition to authority expressly granted in this section, a special 
150.6 	taxing district may exercise any power that may be exercised by any of its participating 
150.7 	political subdivisions and that is necessary or reasonable to support the services set out in 
150.8 	subdivision 5. The district may only levy the taxes authorized in subdivision 4. These powers 
150.9 	include, without limitation, the authority to participate in state programs and to enforce or 
150.10 	carry out state laws related to fire protection or emergency medical services, including 
150.11 	programs providing state aid, reimbursement or funding of employee benefits, authorizing 
150.12 	local enforcement of state standards, and similar, to the extent the special taxing district 
150.13 	meets the qualification criteria and requirements of a program. These include but are not 
150.14 	limited to fire protection related programs and political subdivision powers or responsibilities 
150.15 	under chapters 299A, 424A, and 477B; sections 6.495, 353.64, and 423A.022; and any 
150.16 	administrative rules related to the fire code.
150.17 	(b) To the extent that the district's authority under this subdivision overlaps with or may 
150.18 	conflict with the authority of the participating political subdivision, the agreement under 
150.19 	subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities 
150.20 	between the participating political subdivisions and the district and may provide for resolution 
150.21 	of conflicts in the exercise of those powers.
150.22 		Subd. 8.Additions and withdrawals. (a) The board of the district may add additional 
150.23 	eligible political subdivisions to a special taxing district under this section. The governing 
150.24 	body of the proposed eligible political subdivision must agree to the addition in a resolution 
150.25 	of its governing body. No political subdivision may be added to the district if it would cause 
150.26 	the district to be out of compliance with subdivision 2, paragraph (c).
150.27 	(b) A political subdivision may withdraw from a special taxing district under this section 
150.28 	by resolution of its governing body. The political subdivision must notify the board of the 
150.29 	special taxing district of the withdrawal by providing a copy of the resolution at least two 
150.30 	years in advance of the proposed withdrawal. The taxable property of the withdrawing 
150.31 	member is subject to the property tax levy under subdivision 4 for the two taxes payable 
150.32 	years following the notice of the withdrawal, unless the board and the withdrawing member 
150.33 	agree otherwise by a resolution adopted by each of their governing bodies. If a political 
150.34 	subdivision withdraws from a district for which debt was issued under subdivision 6 when 
150.35 	the political subdivision was a participating member of the district and which is outstanding 
151.1 	when the political subdivision withdraws from the district, the taxable property of the 
151.2 	withdrawing political subdivision remains subject to the special taxing district debt levy 
151.3 	until that outstanding debt has been paid or defeased. If the district's property levy to repay 
151.4 	the debt was apportioned among the political subdivisions under an alternative formula or 
151.5 	method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject 
151.6 	to the same percentage of the debt levy as applied in the taxes payable year immediately 
151.7 	before its withdrawal from the district.
151.8 	(c) Notwithstanding subdivision 2, a special taxing district comprised of two political 
151.9 	subdivisions continues to exist even if one of the political subdivisions withdraws.
151.10 		Subd. 9.Dissolution. The special taxing district may be dissolved by resolution approved 
151.11 	by majority vote of the board. If the special taxing district is dissolved, the assets and 
151.12 	liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public 
151.13 	purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or 
151.14 	otherwise agreed to by the participating political subdivisions. A district may not be dissolved 
151.15 	until all debt issued under subdivision 6 has been paid or defeased.

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

151.17 	Sec. 28. Minnesota Statutes 2020, section 429.021, subdivision 1, is amended to read:
151.18 		Subdivision 1.Improvements authorized. The council of a municipality shall have 
151.19 	power to make the following improvements:
151.20 	(1) To acquire, open, and widen any street, and to improve the same by constructing, 
151.21 	reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking 
151.22 	strips of any material, or by grading, graveling, oiling, or otherwise improving the same, 
151.23 	including the beautification thereof and including storm sewers or other street drainage and 
151.24 	connections from sewer, water, or similar mains to curb lines.
151.25 	(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary 
151.26 	sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps, 
151.27 	lift stations, service connections, and other appurtenances of a sewer system, within and 
151.28 	without the corporate limits.
151.29 	(3) To construct, reconstruct, extend, and maintain steam heating mains.
151.30 	(4) To install, replace, extend, and maintain street lights and street lighting systems and 
151.31 	special lighting systems.
152.1 	(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems, 
152.2 	including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, 
152.3 	treatment plants, and other appurtenances of a water works system, within and without the 
152.4 	corporate limits.
152.5 	(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational 
152.6 	facilities within or without the corporate limits.
152.7 	(7) To plant trees on streets and provide for their trimming, care, and removal.
152.8 	(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private 
152.9 	property and to fill the same.
152.10 	(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
152.11 	(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
152.12 	(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and 
152.13 	promote a pedestrian skyway system. Such improvement may be made upon a petition 
152.14 	pursuant to section 429.031, subdivision 3.
152.15 	(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote 
152.16 	underground pedestrian concourses.
152.17 	(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public 
152.18 	malls, plazas or courtyards.
152.19 	(14) To construct, reconstruct, extend, and maintain district heating systems.
152.20 	(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection 
152.21 	systems in existing buildings, but only upon a petition pursuant to section 429.031, 
152.22 	subdivision 3.
152.23 	(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway 
152.24 	sound barriers.
152.25 	(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution 
152.26 	facilities owned by a municipal gas or electric utility.
152.27 	(18) To purchase, install, and maintain signs, posts, and other markers for addressing 
152.28 	related to the operation of enhanced 911 telephone service.
152.29 	(19) To improve, construct, extend, and maintain facilities for Internet access and other 
152.30 	communications purposes, if the council finds that:
153.1 	(i) the facilities are necessary to make available Internet access or other communications 
153.2 	services that are not and will not be available through other providers or the private market 
153.3 	in the reasonably foreseeable future; and
153.4 	(ii) the service to be provided by the facilities will not compete with service provided 
153.5 	by private entities.
153.6 	(20) To assess affected property owners for all or a portion of the costs agreed to with 
153.7 	an electric utility, telecommunications carrier, or cable system operator to bury or alter a 
153.8 	new or existing distribution system within the public right-of-way that exceeds the utility's 
153.9 	design and construction standards, or those set by law, tariff, or franchise, but only upon 
153.10 	petition under section 429.031, subdivision 3.
153.11 	(21) To assess affected property owners for repayment of voluntary energy improvement 
153.12 	financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.
153.13 	(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy 
153.14 	improvement projects in existing buildings, provided that:
153.15 	(i) a petition for the improvement is made by a property owner under section 429.031, 
153.16 	subdivision 3;
153.17 	(ii) the municipality funds and administers the energy improvement project;
153.18 	(iii) project funds are only used for the installation of improvements to heating, 
153.19 	ventilation, and air conditioning equipment and building envelope and for the installation 
153.20 	of renewable energy systems;
153.21 	(iv) each property owner petitioning for the improvement receives notice that free or 
153.22 	low-cost energy improvements may be available under federal, state, or utility programs;
153.23 	(v) for energy improvement projects on residential property, only residential property 
153.24 	with five or more units may obtain financing for projects under this clause; and
153.25 	(vi) prior to financing an energy improvement project or imposing an assessment for a 
153.26 	project, written notice is provided to the mortgage lender of any mortgage encumbering or 
153.27 	otherwise secured by the property proposed to be improved.

153.28 	EFFECTIVE DATE. This section is effective for special assessments payable in 2022 
153.29 	and thereafter.

154.1 	Sec. 29. Minnesota Statutes 2020, section 429.031, subdivision 3, is amended to read:
154.2 		Subd. 3.Petition by all owners. Whenever all owners of real property abutting upon 
154.3 	any street named as the location of any improvement shall petition the council to construct 
154.4 	the improvement and to assess the entire cost against their property, the council may, without 
154.5 	a public hearing, adopt a resolution determining such fact and ordering the improvement. 
154.6 	The validity of the resolution shall not be questioned by any taxpayer or property owner or 
154.7 	the municipality unless an action for that purpose is commenced within 30 days after adoption 
154.8 	of the resolution as provided in section 429.036. Nothing herein prevents any property 
154.9 	owner from questioning the amount or validity of the special assessment against the owner's 
154.10 	property pursuant to section 429.081. In the case of a petition for the municipality to own 
154.11 	and install a fire protection system, energy improvement projects, a pedestrian skyway 
154.12 	system, or on-site water contaminant improvements, the petition must contain or be 
154.13 	accompanied by an undertaking satisfactory to the city by the petitioner that the petitioner 
154.14 	will grant the municipality the necessary property interest in the building to permit the city 
154.15 	to enter upon the property and the building to construct, maintain, and operate the fire 
154.16 	protection system, energy improvement projects, pedestrian skyway system, or on-site water 
154.17 	contaminant improvements. In the case of a petition for the installation of a privately owned 
154.18 	fire protection system, energy improvement projects, a privately owned pedestrian skyway 
154.19 	system, or privately owned on-site water contaminant improvements, the petition shall 
154.20 	contain the plans and specifications for the improvement, the estimated cost of the 
154.21 	improvement and a statement indicating whether the city or the owner will contract for the 
154.22 	construction of the improvement. If the owner is contracting for the construction of the 
154.23 	improvement, the city shall not approve the petition until it has reviewed and approved the 
154.24 	plans, specifications, and cost estimates contained in the petition. The construction cost 
154.25 	financed under section 429.091 shall not exceed the amount of the cost estimate contained 
154.26 	in the petition. In the case of a petition for the installation of a fire protection system, energy 
154.27 	improvement projects, a pedestrian skyway system, or on-site water contaminant 
154.28 	improvements, the petitioner may request abandonment of the improvement at any time 
154.29 	after it has been ordered pursuant to subdivision 1 and before contracts have been awarded 
154.30 	for the construction of the improvement under section 429.041, subdivision 2. If such a 
154.31 	request is received, the city council shall abandon the proceedings but in such case the 
154.32 	petitioner shall reimburse the city for any and all expenses incurred by the city in connection 
154.33 	with the improvement.

154.34 	EFFECTIVE DATE. This section is effective for special assessments payable in 2022 
154.35 	and thereafter.

155.1 	Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 
155.2 	2013, chapter 143, article 4, section 37, and Laws 2019, First Special Session chapter 6, 
155.3 	article 4, section 34, is amended to read:
155.4 		Subd. 3.Tax. The district board may impose a property tax on taxable property as 
155.5 	provided in this subdivision to pay the costs of providing fire or ambulance services, or 
155.6 	both, throughout the district. The board shall annually determine the total amount of the 
155.7 	levy that is attributable to the cost of providing fire services and the cost of providing 
155.8 	ambulance services within the primary service area. For those municipalities that only 
155.9 	receive ambulance services, the costs for the provision of ambulance services shall be levied 
155.10 	against taxable property within those municipalities at a rate necessary not to exceed 0.019 
155.11 	percent of the estimated market value. For those municipalities that receive both fire and 
155.12 	ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent 
155.13 	of estimated market value.
155.14 	When a member municipality opts to receive fire service from the district or an additional 
155.15 	municipality becomes a member of the district, the cost of providing fire services to that 
155.16 	community shall be determined by the board and added to the maximum levy amount.
155.17 	Each county auditor of a county that contains a municipality subject to the tax under 
155.18 	this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. 
155.19 	The district may also impose other fees or charges as allowed by law for the provision of 
155.20 	fire and ambulance services.

155.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
155.22 	Cloquet Area Fire and Ambulance Special Taxing District and its chief clerical officer 
155.23 	comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

155.24 	Sec. 31. SUSTAINABLE FOREST INCENTIVE ACT; VIOLATIONS.
 155.25 	Land that was split-classified under Minnesota Statutes 2018, section 273.13, subdivision 
155.26 	23, paragraph (c), while enrolled in the sustainable forest incentive act management program 
155.27 	under Minnesota Statutes, chapter 290C, is not in violation of the conditions of enrollment 
155.28 	under Minnesota Statutes, sections 290C.03 and 290C.11, if, at the time of enrollment, a 
155.29 	structure that is not a minor, ancillary nonresidential structure, or an excluded area three 
155.30 	acres or larger that now contains a structure that is not a minor, ancillary nonresidential 
155.31 	structure, was identified on the covenant required under Minnesota Statutes, section 290C.04, 
155.32 	and appropriate acreage was excluded in accordance with Minnesota Statutes, section 
155.33 	290C.03.

156.1 	EFFECTIVE DATE. This section is effective for determinations of violations of the 
156.2 	conditions of enrollment after June 30, 2021.

156.3 	Sec. 32. REPEALER.
 156.4 	Minnesota Statutes 2020, sections 327C.01, subdivision 13; and 327C.16, are repealed.

156.5 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
156.6 	in 2023.

156.7 	ARTICLE 8
156.8 	AIDS AND CREDITS

156.9 	Section 1. Minnesota Statutes 2020, section 477A.013, subdivision 13, is amended to 
156.10 	read:
156.11 		Subd. 13.Certified aid adjustments. (a) A city that received an aid base increase under 
156.12 	Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its 
156.13 	total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 
156.14 	2014 through 2018.
156.15 	(b) (a) A city that received an aid base increase under Minnesota Statutes 2012, section 
156.16 	477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased 
156.17 	by an amount equal to $160,000 for aids payable in 2014 and thereafter.
156.18 	(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 
156.19 	477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased 
156.20 	by an amount equal to $1,000,000 for aids payable in 2014 only.
156.21 	(b) The city of Floodwood shall have its total aid under subdivision 9 increased by 
156.22 	$250,000 for aids payable in 2022 through 2026.
156.23 	(c) The city of Staples shall have its total aid under subdivision 9 increased by $320,000 
156.24 	for aids payable in 2022 through 2026.
156.25 	(d) The city of Warren shall have its total aid under subdivision 9 increased by $320,000 
156.26 	for aids payable in 2022 through 2026.

156.27 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2022 
156.28 	and thereafter.

157.1 	Sec. 2. Minnesota Statutes 2020, section 477A.03, subdivision 2a, is amended to read:
157.2 		Subd. 2a.Cities. For aids payable in 2016 and 2017, the total aid paid under section 
157.3 	477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid 
157.4 	paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the 
157.5 	total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids payable in 
157.6 	2021 and thereafter, the total aid payable under section 477A.013, subdivision 9, is 
157.7 	$564,398,012. For aids payable in 2022 through 2026, the total aid payable under section 
157.8 	477A.013, subdivision 9, is $565,288,012. For aids payable in 2027 and thereafter, the total 
157.9 	aid payable under section 477A.013, subdivision 9, is $564,398,012.

157.10 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2022 
157.11 	and thereafter.

157.12 	Sec. 3. Minnesota Statutes 2020, section 477A.03, subdivision 2b, is amended to read:
157.13 		Subd. 2b.Counties. (a) For aids payable in 2018 and 2019, the total aid payable under 
157.14 	section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated 
157.15 	as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020, 
157.16 	the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which 
157.17 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
157.18 	6. For aids payable in 2021 through 2024, the total aid payable under section 477A.0124, 
157.19 	subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as required under 
157.20 	Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the 
157.21 	total aid payable under section 477A.0124, subdivision 3, is $115,795,000. Each calendar 
157.22 	year On or before the first installment date provided in section 477A.015, paragraph (a), 
157.23 	$500,000 of this appropriation shall be retained transferred each year by the commissioner 
157.24 	of revenue to make reimbursements to the commissioner of management and budget the 
157.25 	Board of Public Defense for payments made the payment of services under section 611.27. 
157.26 	The reimbursements shall be to defray the additional costs associated with court-ordered 
157.27 	counsel under section 611.27. Any retained transferred amounts not used for reimbursement 
157.28 	in a year expended or encumbered in a fiscal year shall be certified by the board of public 
157.29 	defense to the commissioner of revenue on or before October 1 and shall be included in the 
157.30 	next distribution certification of county need aid that is certified to the county auditors for 
157.31 	the purpose of property tax reduction for the next taxes payable year.
157.32 	(b) For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision 
157.33 	4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124, 
157.34 	subdivision 4, is $143,873,444. For aids payable in 2021 and thereafter, the total aid under 
158.1 	section 477A.0124, subdivision 4, is $145,873,444. The commissioner of revenue shall 
158.2 	transfer to the commissioner of management and budget $207,000 annually for the cost of 
158.3 	preparation of local impact notes as required by section 3.987, and other local government 
158.4 	activities. The commissioner of revenue shall transfer to the commissioner of education 
158.5 	$7,000 annually for the cost of preparation of local impact notes for school districts as 
158.6 	required by section 3.987. The commissioner of revenue shall deduct the amounts transferred 
158.7 	under this paragraph from the appropriation under this paragraph. The amounts transferred 
158.8 	are appropriated to the commissioner of management and budget and the commissioner of 
158.9 	education respectively.

158.10 	Sec. 4. [477A.30] LOCAL HOMELESS PREVENTION AID.
158.11 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
158.12 	meanings given:
158.13 	(1) "city" means a statutory or home rule charter city;
158.14 	(2) "distribution factor" means the total number of students experiencing homelessness 
158.15 	in a county in the current school year and the previous two school years divided by the total 
158.16 	number of students experiencing homelessness in all counties in the current school year and 
158.17 	the previous two school years; and
158.18 	(3) "families" means families and persons 24 years of age or younger.
158.19 		Subd. 2.Purpose. The purpose of this section is to help local governments ensure no 
158.20 	child is homeless within a local jurisdiction by keeping families from losing housing and 
158.21 	helping those experiencing homelessness find housing.
158.22 		Subd. 3.Distribution. The money appropriated to local homeless prevention aid under 
158.23 	this section must be allocated to counties by multiplying each county's distribution factor 
158.24 	by the total distribution available under this section. Distribution factors must be based on 
158.25 	the most recent counts of students experiencing homelessness in each county, as certified 
158.26 	by the commissioner of education to the commissioner of revenue by July 1 of the year the 
158.27 	aid is certified to the counties under subdivision 5.
158.28 		Subd. 4.Use of proceeds. (a) Counties that receive a distribution under this section must 
158.29 	use the proceeds to fund new or existing family homeless prevention and assistance projects 
158.30 	or programs. These projects or programs may be administered by a county, a group of 
158.31 	contiguous counties jointly acting together, a city, a group of contiguous cities jointly acting 
158.32 	together, a Tribe, a group of Tribes, or a community-based nonprofit organization. Each 
158.33 	project or program must include plans for:
159.1 	(1) targeting families with children who are eligible for a prekindergarten through grade 
159.2 	12 academic program and are:
159.3 	(i) living in overcrowded conditions in their current housing;
159.4 	(ii) paying more than 50 percent of their income for rent; or
159.5 	(iii) lacking a fixed, regular, and adequate nighttime residence;
159.6 	(2) targeting unaccompanied youth in need of an alternative residential setting;
159.7 	(3) connecting families with the social services necessary to maintain the families' 
159.8 	stability in their homes, including but not limited to housing navigation, legal representation, 
159.9 	and family outreach; and
159.10 	(4) one or more of the following:
159.11 	(i) providing rental assistance for a specified period of time which may exceed 24 months; 
159.12 	or
159.13 	(ii) providing support and case management services to improve housing stability, 
159.14 	including but not limited to housing navigation and family outreach.
159.15 	(b) Counties may choose not to spend all or a portion of the distribution under this 
159.16 	section. Any unspent funds must be returned to the commissioner of revenue by December 
159.17 	31 of the year following the year that the aid was received. Any funds returned to the 
159.18 	commissioner under this paragraph must be added to the overall distribution of aids certified 
159.19 	under this section in the following year. Any unspent funds returned to the commissioner 
159.20 	after the expiration under subdivision 8 are canceled to the general fund.
159.21 		Subd. 5.Payments. The commissioner of revenue must compute the amount of local 
159.22 	homeless prevention aid payable to each county under this section. On or before August 1 
159.23 	of each year, the commissioner shall certify the amount to be paid to each county in the 
159.24 	following year. The commissioner shall pay local homeless prevention aid annually at the 
159.25 	times provided in section 477A.015.
159.26 		Subd. 6.Appropriation. $25,000,000 is annually appropriated from the general fund 
159.27 	to the commissioner of revenue to make payments required under this section.
159.28 		Subd. 7.Report. (a) No later than January 15, 2024, the commissioner of revenue must 
159.29 	produce a report on projects and programs funded by counties under this section. The report 
159.30 	must include a list of the projects and programs, the number of people served by each, and 
159.31 	an assessment of how each project and program impacts people who are currently 
159.32 	experiencing homelessness or who are at risk of experiencing homelessness, as reported by 
160.1 	the counties to the commissioner by December 31 each year on a form prescribed by the 
160.2 	commissioner. The commissioner must provide a copy of the report to the chairs and ranking 
160.3 	minority members of the legislative committees with jurisdiction over property taxes and 
160.4 	services for persons experiencing homelessness.
160.5 	(b) The report in paragraph (a) must be updated every two years and the commissioner 
160.6 	of revenue must provide copies of the updated reports to the chairs and ranking minority 
160.7 	members of the legislative committees with jurisdiction over property taxes and services 
160.8 	for persons experiencing homelessness by January 15 of the year the report is due. Report 
160.9 	requirements under this subdivision expire following the report which includes the final 
160.10 	distribution preceding the expiration in subdivision 8.
160.11 		Subd. 8.Expiration. Distributions under this section expire after aids payable in 2029 
160.12 	have been distributed.

160.13 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2022 and 
160.14 	thereafter.

160.15 	Sec. 5. COUNTY RELIEF GRANTS TO LOCAL BUSINESSES; APPROPRIATION.
 160.16 		Subdivision 1.Appropriation. (a) $69,750,000 in fiscal year 2022 is appropriated from 
160.17 	the general fund to the commissioner of revenue for payments to counties for relief grants 
160.18 	under this section. This is a onetime appropriation. The appropriation under this section 
160.19 	must be used for the following purposes:
160.20 	(1) $63,000,000 must be used for grants under subdivision 2;
160.21 	(2) $2,000,000 must be used for grants under subdivision 3; and
160.22 	(3) $4,750,000 must be used for grants under subdivision 4.
160.23 	(b) Each county may use the greater of $6,250 or 2.5 percent of the total amount received 
160.24 	under subdivisions 1 and 2 for administrative costs incurred from making grants under this 
160.25 	section. A county may contract with a third party to administer the grant program on behalf 
160.26 	of the county.
160.27 		Subd. 2.Business relief grants. (a) From the amount appropriated under subdivision 
160.28 	1, paragraph (a), clause (1), each county shall be issued a payment in the amount of $100,000 
160.29 	or a per capita amount determined by reference to the population of each county according 
160.30 	to the most recently available 2019 population estimate from the state demographer as of 
160.31 	December 1, 2020, whichever is greater.
161.1 	(b) Counties shall use the funds under this subdivision to make grants to individual 
161.2 	businesses, nonprofits, and establishments operated by congressionally chartered veterans' 
161.3 	organizations that, to the extent it is feasible for the county to determine:
161.4 	(1) are located in the applicable county in the state, in a county with which there is a 
161.5 	collaborative agreement under paragraph (g), or on adjacent Tribal land;
161.6 	(2) have no current tax liens on record with the secretary of state as of the time of 
161.7 	application for a grant under this section; and
161.8 	(3) were impacted by an executive order related to the COVID-19 pandemic.
161.9 	(c) A county shall determine grant recipients and the grant amount awarded per grant. 
161.10 	A county may award a grant to a business that is owned by a Tribal government and located 
161.11 	on Tribal land if the business has voluntarily complied with Executive Order No. 20-99. 
161.12 	Nonprofits, including nonprofit arts organizations, museums, and fitness centers, that earn 
161.13 	revenue similar to businesses, including but not limited to ticket sales and membership fees, 
161.14 	are eligible for grants under this section.
161.15 	(d) Grant funds must be used by an eligible business or nonprofit for operating expenses 
161.16 	incurred during the COVID-19 pandemic.
161.17 	(e) Grants under this subdivision must be awarded by July 31, 2021.
161.18 	(f) Grants and the process of making grants under this subdivision are exempt from the 
161.19 	following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3; 
161.20 	16B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third party to 
161.21 	administer grants is exempt from Minnesota Statutes, section 471.345, in the selection of 
161.22 	the third-party administrator. The exemptions under this paragraph expire July 31, 2021.
161.23 	(g) Two or more counties may enter into a collaborative agreement and combine payments 
161.24 	received under paragraph (a). These combined funds must be used to make grants as allowed 
161.25 	by this subdivision.
161.26 	(h) By January 31, 2022, the commissioner of employment and economic development 
161.27 	shall report to the legislative committees with jurisdiction over economic development 
161.28 	policy and finance on the grants provided under this subdivision.
161.29 	(i) Any amount from the appropriation in subdivision 1, paragraph (a), clause (1), 
161.30 	unexpended after August 15, 2021, is canceled.
161.31 		Subd. 3.Northwest Angle grants. (a) Lake of the Woods County shall be issued a 
161.32 	payment equal to the amount appropriated under subdivision 1, paragraph (a), clause (2), 
162.1 	to make grants to individual businesses, nonprofits, and establishments operated by 
162.2 	congressionally chartered veterans' organizations that, to the extent it is feasible for the 
162.3 	county to determine:
162.4 	(1) are located in Angle Township; and
162.5 	(2) have no current tax liens on record with the secretary of state as of the time of 
162.6 	application for a grant under this section.
162.7 	(b) The county shall determine grant recipients and the grant amount awarded per grant.
162.8 	(c) Grants under this subdivision must be awarded by July 31, 2021.
162.9 	(d) Grants and the process of making grants under this subdivision are exempt from the 
162.10 	following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3; 
162.11 	16B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third party to 
162.12 	administer grants is exempt from Minnesota Statutes, section 471.345, in the selection of 
162.13 	the third-party administrator. The exemptions under this paragraph expire July 31, 2021.
162.14 	(e) By January 31, 2022, the commissioner of employment and economic development 
162.15 	shall report to the legislative committees with jurisdiction over economic development 
162.16 	policy and finance on the grants provided under this subdivision.
162.17 	(f) Any amount from the appropriation in subdivision 1, paragraph (a), clause (2), 
162.18 	unexpended after August 15, 2021, is canceled.
162.19 		Subd. 4.Damage remediation grants. (a) Hennepin County shall be issued a payment 
162.20 	equal to the amount appropriated under subdivision 1, paragraph (a), clause (3), for grants 
162.21 	to remediate the effects of fires and vandalism that occurred due to the unrest in the city of 
162.22 	Minneapolis and surrounding communities after May 24, 2020, and before June 16, 2020.
162.23 	(b) A grant recipient must use the money issued under this subdivision for remediation 
162.24 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
162.25 	costs, reimbursement for equipment costs, and reimbursement for property tax abatements, 
162.26 	incurred by public or private entities as a result of the fires and vandalism. This appropriation 
162.27 	under subdivision 1, paragraph (a), clause (3), is available until June 30, 2023.

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

163.1 	ARTICLE 9
163.2 	LOCAL TAXES

163.3 	Section 1. Laws 2019, First Special Session chapter 6, article 6, section 25, is amended 
163.4 	to read:
163.5 	Sec. 25. CITY OF PLYMOUTH; LOCAL LODGING TAX AUTHORIZED.
 163.6 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
163.7 	law, ordinance, or city charter, the city council for the city of Plymouth may impose by 
163.8 	ordinance a tax of up to three percent on the gross receipts subject to the lodging tax under 
163.9 	Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 
163.10 	Minnesota Statutes, section 469.190, and the total tax imposed under that section and this 
163.11 	provision must not exceed six percent.
163.12 	(b) Two-thirds of the revenue from the tax imposed under this section must be dedicated 
163.13 	and used for capital improvements to public recreational facilities and marketing and 
163.14 	promotion of the community, and the remaining one-third of the revenue must be used for 
163.15 	the same purposes as a tax imposed under Minnesota Statutes, section 469.190.
163.16 	(c) The tax imposed under this authority terminates at the earlier of: (1) ten years after 
163.17 	the tax is first imposed; or (2) December 31, 2030 when the city council determines that 
163.18 	the amount received from the tax is sufficient to retire bonds issued before January 1, 2022, 
163.19 	for capital improvements under paragraph (b), plus an amount sufficient to pay costs, 
163.20 	including interest costs, related to the issuance of the bonds.

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

163.22 	Sec. 2. Laws 2019, First Special Session chapter 6, article 6, section 27, is amended to 
163.23 	read:
163.24 	Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
 163.25 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
163.26 	section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved 
163.27 	by voters at the November 3, 2020, a general election, or at a special election held before 
163.28 	November 3, 2020 pursuant to a resolution adopted by its governing body, the city of Sartell 
163.29 	may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food 
163.30 	and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the 
164.1 	city, that is located within the city. For purposes of this section, "food and beverages" include 
164.2 	retail on-sale of intoxicating liquor and fermented malt beverages.
164.3 		Subd. 2.Use of proceeds from authorized taxes. The proceeds of the taxes imposed 
164.4 	under subdivision 1 must be used by the city to fund capital or operational costs for new 
164.5 	and existing recreational facilities and related amenities within the city. Authorized expenses 
164.6 	include securing or paying debt service on bonds or other obligations issued to finance 
164.7 	construction and improvement projects.
164.8 		Subd. 3.Termination of taxes. The tax imposed under subdivision 1 expires five years 
164.9 	after the tax is first imposed.
164.10 		Subd. 4.Collection, administration, and enforcement. The city may enter into an 
164.11 	agreement with the commissioner of revenue to administer, collect, and enforce the taxes 
164.12 	under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota 
164.13 	Statutes, sections 270C.171 and 297A.99, related to collection, administration, and 
164.14 	enforcement apply.

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

164.18 	Sec. 3. CARLTON COUNTY; LOCAL SALES AND USE TAX AUTHORIZED.
 164.19 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
164.20 	sections 297A.99, subdivision 2, paragraph (b), and 477A.016, or any other law or ordinance, 
164.21 	and if approved by the voters at a general election as required under Minnesota Statutes, 
164.22 	section 297A.99, subdivision 3, Carlton County may impose, by ordinance, a sales and use 
164.23 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
164.24 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
164.25 	imposition, administration, collection, and enforcement of the tax authorized under this 
164.26 	subdivision.
164.27 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
164.28 	under subdivision 1 must be used by Carlton County to pay the costs of collecting and 
164.29 	administering the tax, and to finance up to $60,000,000 for the construction of a new law 
164.30 	enforcement center and jail serving a regional female offender program. Authorized costs 
164.31 	include related parking, design, construction, reconstruction, mechanical upgrades, and 
164.32 	engineering costs, as well as the associated bond costs for any bonds issued under subdivision 
164.33 	3.
165.1 		Subd. 3.Bonding authority. (a) Carlton County may issue bonds under Minnesota 
165.2 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
165.3 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
165.4 	not exceed $60,000,000, plus an amount applied to the payment of costs of issuing the 
165.5 	bonds. The bonds may be paid from or secured by any funds available to the county, 
165.6 	including the tax authorized under subdivision 1. The issuance of bonds under this 
165.7 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
165.8 	(b) The bonds are not included in computing any debt limitation applicable to the county. 
165.9 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
165.10 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
165.11 	under Minnesota Statutes, section 475.58, is not required.
165.12 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
165.13 	earlier of: (1) 30 years after the tax is first imposed; or (2) when the county determines that 
165.14 	it has received from this tax $60,000,000 to fund the project listed in subdivision 2, plus an 
165.15 	amount sufficient to pay costs, including interest costs, related to the issuance of the bonds 
165.16 	authorized in subdivision 3. Except as otherwise provided in Minnesota Statutes, section 
165.17 	297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the allowed 
165.18 	costs due to timing of the termination of the tax under Minnesota Statutes, section 297A.99, 
165.19 	subdivision 12, shall be placed in the county's general fund. The tax imposed under 
165.20 	subdivision 1 may expire at an earlier time if the county determines by ordinance.

165.21 	EFFECTIVE DATE. This section is effective the day after the governing body of 
165.22 	Carlton County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
165.23 	subdivisions 2 and 3.

165.24 	Sec. 4. CITY OF CLOQUET; TAXES AUTHORIZED.
 165.25 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
165.26 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
165.27 	and if approved by the voters at a general election as required under Minnesota Statutes, 
165.28 	section 297A.99, subdivision 3, the city of Cloquet may impose by ordinance a sales and 
165.29 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
165.30 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
165.31 	govern the imposition, administration, collection, and enforcement of the tax authorized 
165.32 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
165.33 	sales and use tax imposed under any other special law.
166.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
166.2 	under subdivision 1 must be used by the city of Cloquet to pay the costs of collecting and 
166.3 	administering the tax and the capital and administrative costs of any or all of the projects 
166.4 	listed in this subdivision. The amount spent on each project is limited to the amount set 
166.5 	forth below plus an amount equal to interest on and the costs of issuing any bonds:
166.6 	(1) construction, reconstruction, expansion, or improvement related to the Pine Valley 
166.7 	Regional Park Project, including ski jump repairs, chalet replacement, and parking and 
166.8 	lighting improvements, in an amount not to exceed $2,124,700; and
166.9 	(2) restoration, repair, and upgrading of the Cloquet Ice Arena in an amount not to exceed 
166.10 	$6,025,500.
166.11 		Subd. 3.Bonding authority. (a) The city of Cloquet may issue bonds under Minnesota 
166.12 	Statutes, chapter 475, to finance up to $8,150,200 of the portion of the costs of the facilities 
166.13 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
166.14 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
166.15 	issued under this subdivision may not exceed $8,150,200 plus an amount to be applied to 
166.16 	the payment of the costs of issuing the bonds. The bonds may be paid from or secured by 
166.17 	any funds available to the city of Cloquet, including the tax authorized under subdivision 
166.18 	1. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 
166.19 	275.60 and 275.61.
166.20 	(b) The bonds are not included in computing any debt limitation applicable to the city 
166.21 	of Cloquet, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
166.22 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
166.23 	the bonds under Minnesota Statutes, section 475.58, is not required.
166.24 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
166.25 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 10 years 
166.26 	after the tax is first imposed, or (2) when the city council determines that the amount received 
166.27 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
166.28 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
166.29 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
166.30 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
166.31 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
166.32 	any funds remaining after payment of the allowed costs due to the timing of the termination 
166.33 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
167.1 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
167.2 	if the city so determines by ordinance.

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

167.6 	Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.
 167.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
167.8 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
167.9 	and if approved by the voters at a general election as required under Minnesota Statutes, 
167.10 	section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use 
167.11 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
167.12 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
167.13 	imposition, administration, collection, and enforcement of the tax authorized under this 
167.14 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
167.15 	use tax imposed under any other special law.
167.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
167.17 	under subdivision 1 must be used by the city of Edina to pay the costs of collecting and 
167.18 	administering the tax and paying for the following projects in the city, including securing 
167.19 	and paying debt service on bonds issued to finance all or part of the following projects:
167.20 	(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park 
167.21 	as identified in the Fred Richards Park Master Plan; and
167.22 	(2) $21,600,000 plus associated bonding costs for improvements to Braemar Park as 
167.23 	identified in the Braemar Park Master Plan.
167.24 		Subd. 3.Bonding authority. (a) The city of Edina may issue bonds under Minnesota 
167.25 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
167.26 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
167.27 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
167.28 	under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision 
167.29 	2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds; 
167.30 	and (2) $21,600,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
167.31 	applied to the payment of the costs of issuing the bonds. The bonds may be paid from or 
167.32 	secured by any funds available to the city of Edina, including the tax authorized under 
168.1 	subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
168.2 	Statutes, sections 275.60 and 275.61.
168.3 	(b) The bonds are not included in computing any debt limitation applicable to the city 
168.4 	of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
168.5 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
168.6 	the bonds under Minnesota Statutes, section 475.58, is not required.
168.7 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
168.8 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years 
168.9 	after the tax is first imposed, or (2) when the city council determines that the amount received 
168.10 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
168.11 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
168.12 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
168.13 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
168.14 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
168.15 	any funds remaining after payment of the allowed costs due to the timing of the termination 
168.16 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
168.17 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
168.18 	if the city so determines by ordinance.

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

168.22 	Sec. 6. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
 168.23 		Subdivision 1.Sales and use tax; authorization. Notwithstanding Minnesota Statutes, 
168.24 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
168.25 	the city of Fergus Falls may, if approved by the voters at a general election as required under 
168.26 	Minnesota Statutes, section 297A.99, subdivision 3, impose, by ordinance, a sales and use 
168.27 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
168.28 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
168.29 	imposition, administration, collection, and enforcement of the tax authorized under this 
168.30 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
168.31 	use tax imposed under any other special law.
168.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
168.33 	under subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting 
169.1 	and administering the tax and for the following projects in the city, including securing and 
169.2 	paying debt service, on bonds issued to finance all or part of the following projects:
169.3 	(1) $7,800,000 for an aquatics center; and
169.4 	(2) $5,200,000 for the DeLagoon Improvement Project.
169.5 		Subd. 3.Bonding authority. (a) The city of Fergus Falls may issue bonds under 
169.6 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
169.7 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
169.8 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
169.9 	issued under this subdivision may not exceed:
169.10 	(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed 
169.11 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
169.12 	the bonds; and
169.13 	(2) $5,200,000 for the project listed in subdivision 2, clause (2), plus an amount needed 
169.14 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
169.15 	the bonds.
169.16 	(b) The bonds may be paid from or secured by any funds available to the city of Fergus 
169.17 	Falls, including the tax authorized under subdivision 1. The issuance of bonds under this 
169.18 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
169.19 	(c) The bonds are not included in computing any debt limitation applicable to the city 
169.20 	of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
169.21 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
169.22 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
169.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
169.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) December 
169.25 	31, 2037, or (2) when the city council determines that the amount received from the tax is 
169.26 	sufficient to pay for the project costs authorized under subdivision 2 for projects approved 
169.27 	by voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph 
169.28 	(a), plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
169.29 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
169.30 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
169.31 	after payment of the allowed costs due to the timing of the termination of the tax under 
169.32 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
170.1 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
170.2 	determines by ordinance.

170.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
170.4 	city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 
170.5 	645.021, subdivisions 2 and 3.

170.6 	Sec. 7. CITY OF GRAND RAPIDS; TAXES AUTHORIZED.
 170.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
170.8 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
170.9 	and if approved by the voters at a general election as required under Minnesota Statutes, 
170.10 	section 297A.99, subdivision 3, the city of Grand Rapids may impose by ordinance a sales 
170.11 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
170.12 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
170.13 	govern the imposition, administration, collection, and enforcement of the tax authorized 
170.14 	under this subdivision.
170.15 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
170.16 	under subdivision 1 must be used by the city of Grand Rapids to pay the costs of collecting 
170.17 	and administering the tax including securing and paying debt service on bonds issued and 
170.18 	to finance up to $5,980,000 for reconstruction, remodeling, and upgrades to the Grand 
170.19 	Rapids IRA Civic Center. Authorized costs include design, construction, reconstruction, 
170.20 	mechanical upgrades, and engineering costs, as well as the associated bond costs for any 
170.21 	bonds issued under subdivision 3.
170.22 		Subd. 3.Bonding authority. (a) The city of Grand Rapids may issue bonds under 
170.23 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
170.24 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
170.25 	subdivision may not exceed $5,980,000, plus an amount to be applied to the payment of 
170.26 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
170.27 	to the city of Grand Rapids, including the tax authorized under subdivision 1. The issuance 
170.28 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
170.29 	275.61.
170.30 	(b) The bonds are not included in computing any debt limitation applicable to the city 
170.31 	of Grand Rapids, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
170.32 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
170.33 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
171.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
171.2 	earlier of: (1) seven years after the tax is first imposed; or (2) when the city council 
171.3 	determines that $5,980,000, plus an amount sufficient to pay the costs related to issuance 
171.4 	of any bonds authorized under subdivision 3, including interest on the bonds, has been 
171.5 	received from the tax to pay the costs of the project authorized under subdivision 2, and 
171.6 	approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision 
171.7 	3. Any funds remaining after payment of all such costs and retirement or redemption of the 
171.8 	bonds shall be placed in the general fund of the city, except for funds required to be retained 
171.9 	in the state general fund under Minnesota Statutes, section 297A.99, subdivision 3. The tax 
171.10 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
171.11 	ordinance.

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

171.15 	Sec. 8. CITY OF HERMANTOWN; TAXES AUTHORIZED.
 171.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
171.17 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
171.18 	and if approved by the voters at a general election as required under Minnesota Statutes, 
171.19 	section 297A.99, subdivision 3, the city of Hermantown may impose by ordinance a sales 
171.20 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
171.21 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
171.22 	govern the imposition, administration, collection, and enforcement of the tax authorized 
171.23 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
171.24 	sales and use tax imposed under any other special law.
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 Hermantown to pay the costs of collecting 
171.27 	and administering the tax and paying for the following projects in the city related to a 
171.28 	Community Recreational Initiative, including securing and paying debt service on bonds 
171.29 	issued to finance all or part of the following projects:
171.30 	(1) $10,840,000 for an addition of a second ice sheet with locker rooms and other facilities 
171.31 	and upgrades to the Hermantown Hockey Arena; and
171.32 	(2) $4,570,000 for construction of the Hermantown-Proctor trail running from the Essentia 
171.33 	Wellness Center to the border with Proctor and eventually connecting to the Munger Trail.
172.1 		Subd. 3.Bonding authority. (a) The city of Hermantown may issue bonds under 
172.2 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
172.3 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
172.4 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
172.5 	issued under this subdivision may not exceed: (1) $10,840,000 for the project listed in 
172.6 	subdivision 2, clause (1), plus an amount to be applied to the payment of the costs of issuing 
172.7 	the bonds; and (2) $4,570,000 for the project listed in subdivision 2, clause (2), plus an 
172.8 	amount to be applied to the payment of the costs of issuing the bonds. The bonds may be 
172.9 	paid from or secured by any funds available to the city of Hermantown, including the tax 
172.10 	authorized under subdivision 1. The issuance of bonds under this subdivision is not subject 
172.11 	to Minnesota Statutes, sections 275.60 and 275.61.
172.12 	(b) The bonds are not included in computing any debt limitation applicable to the city 
172.13 	of Hermantown, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
172.14 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
172.15 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
172.16 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
172.17 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 16 years 
172.18 	after being first imposed, or (2) when the city council determines that the amount received 
172.19 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
172.20 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
172.21 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
172.22 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
172.23 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
172.24 	any funds remaining after payment of the allowed costs due to the timing of the termination 
172.25 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
172.26 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
172.27 	if the city so determines by ordinance.

172.28 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
172.29 	city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 
172.30 	645.021, subdivisions 2 and 3.

172.31 	Sec. 9. ITASCA COUNTY; TAXES AUTHORIZED.
 172.32 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
172.33 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance and if approved 
172.34 	by the voters at a general election as required under Minnesota Statutes, section 297A.99, 
173.1 	subdivision 3, Itasca County may impose by ordinance a sales and use tax of one percent 
173.2 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
173.3 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
173.4 	collection, and enforcement of the tax authorized under this subdivision.
173.5 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
173.6 	under subdivision 1 must be used by Itasca County to pay the costs of collecting and 
173.7 	administering the tax and paying for up to $75,000,000 for new construction of or upgrades 
173.8 	to correctional facilities, new construction of or upgrades to court facilities including ancillary 
173.9 	support accommodations, and new construction of or upgrades to county offices, plus an 
173.10 	amount needed for securing and paying debt service on bonds issued for the project.
173.11 		Subd. 3.Bonding authority. (a) Itasca County may issue bonds under Minnesota Statutes, 
173.12 	chapter 475, to finance the costs of the facility authorized in subdivision 2. The aggregate 
173.13 	principal amount of bonds issued under this subdivision may not exceed $75,000,000 for 
173.14 	the project listed in subdivision 2, plus an amount to be applied to the payment of the costs 
173.15 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
173.16 	county, including the tax authorized under subdivision 1. The issuance of bonds under this 
173.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
173.18 	(b) The bonds are not included in computing any debt limitation applicable to the county, 
173.19 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
173.20 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
173.21 	under Minnesota Statutes, section 475.58, is not required.
173.22 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
173.23 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
173.24 	after the tax is first imposed, or (2) when the county board determines that the amount 
173.25 	received from the tax is sufficient to pay $75,000,000 in project costs authorized under 
173.26 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
173.27 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
173.28 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
173.29 	after payment of the allowed costs due to the timing of the termination of the tax under 
173.30 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
173.31 	the county. The tax imposed under subdivision 1 may expire at an earlier time if the county 
173.32 	so determines by ordinance.

174.1 	EFFECTIVE DATE. This section is effective the day after the governing body of Itasca 
174.2 	County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
174.3 	subdivisions 2 and 3.

174.4 	Sec. 10. CITY OF LITCHFIELD; TAXES AUTHORIZED.
 174.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
174.6 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
174.7 	and if approved by the voters at a general election as required under Minnesota Statutes, 
174.8 	section 297A.99, subdivision 3, the city of Litchfield may impose by ordinance a sales and 
174.9 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
174.10 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
174.11 	govern the imposition, administration, collection, and enforcement of the tax authorized 
174.12 	under this subdivision.
174.13 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
174.14 	under subdivision 1 must be used by the city of Litchfield to pay the costs of collecting and 
174.15 	administering the tax and for up to $10,000,000 for the cost of constructing a community 
174.16 	wellness/recreation center that will include a gymnasium and general fitness spaces, a 
174.17 	dedicated walking section, a community room, and any locker rooms and mechanical 
174.18 	equipment needed for future additions to the facility.
174.19 		Subd. 3.Bonding authority. (a) The city of Litchfield may issue bonds under Minnesota 
174.20 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
174.21 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
174.22 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
174.23 	under this subdivision may not exceed $10,000,000 for the project listed in subdivision 2 
174.24 	plus an amount to be applied to the payment of the costs of issuing the bonds. The bonds 
174.25 	may be paid from or secured by any funds available to the city of Litchfield, including the 
174.26 	tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
174.27 	subject to Minnesota Statutes, sections 275.60 and 275.61.
174.28 	(b) The bonds are not included in computing any debt limitation applicable to the city 
174.29 	of Litchfield and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
174.30 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
174.31 	the bonds under Minnesota Statutes, section 475.58, is not required.
174.32 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
174.33 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
174.34 	after being first imposed, or (2) when the city council determines that the amount received 
175.1 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
175.2 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
175.3 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
175.4 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
175.5 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
175.6 	any funds remaining after payment of the allowed costs due to the timing of the termination 
175.7 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
175.8 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
175.9 	if the city so determines by ordinance.

175.10 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
175.11 	city of Litchfield and its chief clerical officer comply with Minnesota Statutes, section 
175.12 	645.021, subdivisions 2 and 3.

175.13 	Sec. 11. CITY OF LITTLE FALLS; TAXES AUTHORIZED.
 175.14 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
175.15 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
175.16 	and if approved by the voters at a general election as required under Minnesota Statutes, 
175.17 	section 297A.99, subdivision 3, the city of Little Falls may impose by ordinance a sales and 
175.18 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
175.19 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
175.20 	govern the imposition, administration, collection, and enforcement of the tax authorized 
175.21 	under this subdivision.
175.22 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
175.23 	under subdivision 1 must be used by the city of Little Falls to pay the costs of collecting 
175.24 	and administering the tax and for up to $17 million for the cost of constructing a community 
175.25 	recreational facility that includes a gymnasium with an indoor track, multipurpose rooms 
175.26 	for meeting and educational spaces, office and storage space, and outdoor recreational 
175.27 	facilities for aquatic recreation with a master plan to incorporate future additions to the 
175.28 	facility.
175.29 		Subd. 3.Bonding authority. (a) The city of Little Falls may issue bonds under Minnesota 
175.30 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
175.31 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
175.32 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
175.33 	under this subdivision may not exceed $17,000,000 for the project listed in subdivision 2 
175.34 	plus an amount needed to pay capitalized interest and an amount to be applied to the payment 
176.1 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
176.2 	available to the city of Little Falls, including the tax authorized under subdivision 1. The 
176.3 	issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 
176.4 	and 275.61.
176.5 	(b) The bonds are not included in computing any debt limitation applicable to the city 
176.6 	of Little Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
176.7 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
176.8 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
176.9 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
176.10 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
176.11 	after being first imposed, or (2) when the city council determines that the amount received 
176.12 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the 
176.13 	project if approved by voters as required under Minnesota Statutes, section 297A.99, 
176.14 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
176.15 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
176.16 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
176.17 	any funds remaining after payment of the allowed costs due to the timing of the termination 
176.18 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
176.19 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
176.20 	if the city so determines by ordinance.

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

176.24 	Sec. 12. CITY OF MAPLE GROVE; TAXES AUTHORIZED.
 176.25 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
176.26 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
176.27 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
176.28 	the city of Maple Grove may impose by ordinance a sales and use tax of one-half of one 
176.29 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
176.30 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
176.31 	administration, collection, and enforcement of the tax authorized under this subdivision. 
176.32 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
176.33 	under any other special law.
177.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
177.2 	under subdivision 1 must be used by the city of Maple Grove to pay the costs of collecting 
177.3 	and administering the tax, and to finance up to $90,000,000 for the expansion and renovation 
177.4 	of the Maple Grove Community Center, plus an amount needed for securing and paying 
177.5 	debt service on bonds issued to finance the project.
177.6 		Subd. 3.Bonding authority. (a) The city of Maple Grove may issue bonds under 
177.7 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
177.8 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
177.9 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
177.10 	issued under this subdivision may not exceed $90,000,000, plus an amount applied to the 
177.11 	payment of the costs of issuing the bonds. The bonds may be paid from or secured by any 
177.12 	funds available to the city, including the tax authorized under subdivision 1. The issuance 
177.13 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
177.14 	275.61.
177.15 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
177.16 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
177.17 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
177.18 	under Minnesota Statutes, section 475.58, is not required.
177.19 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
177.20 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
177.21 	that the amount received from the tax is sufficient to pay for the project costs authorized 
177.22 	under subdivision 2 for the project approved by voters as required under Minnesota Statutes, 
177.23 	section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs 
177.24 	related to issuance of any bonds authorized under subdivision 3, including interest on the 
177.25 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
177.26 	3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of 
177.27 	the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall 
177.28 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
177.29 	at an earlier time if the city so determines by ordinance.

177.30 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.31 	city of Maple Grove and its chief clerical officer comply with Minnesota Statutes, section 
177.32 	645.021, subdivisions 2 and 3.

178.1 	Sec. 13. COUNTY OF MILLE LACS; TAXES AUTHORIZED.
 178.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
178.3 	section 477A.016, or any other law or ordinance, and if approved by the voters at a general 
178.4 	election as required under Minnesota Statutes, section 297A.99, subdivision 3, Mille Lacs 
178.5 	County may impose by ordinance a sales and use tax of one-half of one percent for the 
178.6 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
178.7 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
178.8 	collection, and enforcement of the tax authorized under this subdivision.
178.9 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
178.10 	under subdivision 1 must be used by Mille Lacs County to pay the costs of collecting and 
178.11 	administering the tax, and to finance up to $10,000,000 for the construction of a public 
178.12 	works building in Mille Lacs County, plus an amount needed for securing and paying debt 
178.13 	service on bonds issued to finance the project.
178.14 		Subd. 3.Bonding authority. (a) Mille Lacs County may issue bonds under Minnesota 
178.15 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
178.16 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
178.17 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
178.18 	under this subdivision may not exceed $10,000,000, plus an amount applied to the payment 
178.19 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
178.20 	available to the county, including the tax authorized under subdivision 1. The issuance of 
178.21 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
178.22 	275.61.
178.23 	(b) The bonds are not included in computing any debt limitation applicable to the county. 
178.24 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
178.25 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
178.26 	under Minnesota Statutes, section 475.58, is not required.
178.27 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
178.28 	earlier of: (1) eight years after the tax is first imposed; or (2) when the county board 
178.29 	determines that the amount received from the tax is sufficient to pay for the project costs 
178.30 	authorized under subdivision 2 for the project approved by voters as required under 
178.31 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient 
178.32 	to pay the costs related to issuance of any bonds authorized under subdivision 3, including 
178.33 	interest on the bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, 
178.34 	subdivision 3, paragraph (f), any funds remaining after payment of allowed costs due to the 
179.1 	timing of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 
179.2 	12, shall be placed in the general fund of the county. The tax imposed under subdivision 1 
179.3 	may expire at an earlier time if the county so determines by ordinance.

179.4 	EFFECTIVE DATE. This section is effective the day after the governing body of Mille 
179.5 	Lacs County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
179.6 	subdivisions 2 and 3.

179.7 	Sec. 14. CITY OF MOORHEAD; TAXES AUTHORIZED.
 179.8 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
179.9 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
179.10 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
179.11 	the city of Moorhead may impose by ordinance a sales and use tax of one-half of one percent 
179.12 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
179.13 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
179.14 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
179.15 	under this subdivision is in addition to any local sales and use tax imposed under any other 
179.16 	special law.
179.17 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
179.18 	under subdivision 1 must be used by the city of Moorhead to pay the costs of collecting and 
179.19 	administering the tax, and to finance up to $31,590,000 for the construction of a regional 
179.20 	library and community center in the city of Moorhead, plus an amount needed for securing 
179.21 	and paying debt service on bonds issued to finance the project.
179.22 		Subd. 3.Bonding authority. (a) The city of Moorhead may issue bonds under Minnesota 
179.23 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
179.24 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
179.25 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
179.26 	under this subdivision may not exceed $31,590,000, plus an amount applied to the payment 
179.27 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
179.28 	available to the city, including the tax authorized under subdivision 1. The issuance of bonds 
179.29 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
179.30 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
179.31 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
179.32 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
179.33 	under Minnesota Statutes, section 475.58, is not required.
180.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
180.2 	earlier of: (1) 22 years after the tax is first imposed; or (2) when the city council determines 
180.3 	that the amount received from the tax is sufficient to pay for the project costs authorized 
180.4 	under subdivision 2 for the project approved by voters as required under Minnesota Statutes, 
180.5 	section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs 
180.6 	related to issuance of any bonds authorized under subdivision 3, including interest on the 
180.7 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
180.8 	3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of 
180.9 	the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall 
180.10 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
180.11 	at an earlier time if the city so determines by ordinance.

180.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
180.13 	city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section 
180.14 	645.021, subdivisions 2 and 3.

180.15 	Sec. 15. CITY OF OAKDALE; TAXES AUTHORIZED.
 180.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
180.17 	section 477A.016, or any other ordinance or city charter, and if approved by the voters at 
180.18 	a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
180.19 	the city of Oakdale may impose, by ordinance, a sales and use tax of one-half of one percent 
180.20 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
180.21 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
180.22 	collection, and enforcement of the tax authorized under this subdivision.
180.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
180.24 	under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and 
180.25 	administering the tax and paying for the following projects in the city, including securing 
180.26 	and paying debt service on bonds issued to finance all or part of the following projects:
180.27 	(1) $22,000,000 plus associated bonding costs for construction of a new public works 
180.28 	facility; and
180.29 	(2) $15,000,000 plus associated bonding costs for expansion of the police department 
180.30 	facility.
180.31 		Subd. 3.Bonding authority. (a) The city of Oakdale may issue bonds under Minnesota 
180.32 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
180.33 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
181.1 	not exceed: (1) $22,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
181.2 	applied to the payment of costs of issuing the bonds; and (2) $15,000,000 for the projects 
181.3 	listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing 
181.4 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
181.5 	Oakdale, including the tax authorized under subdivision 1. The issuance of bonds under 
181.6 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
181.7 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
181.8 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
181.9 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
181.10 	under Minnesota Statutes, section 475.58, is not required.
181.11 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
181.12 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
181.13 	that the city has received from this tax $37,000,000 to fund the projects listed in subdivision 
181.14 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
181.15 	the bonds authorized in subdivision 3. Except as otherwise provided under Minnesota 
181.16 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
181.17 	of the allowed costs due to timing of the termination under Minnesota Statutes, section 
181.18 	297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 1 
181.19 	may expire at an earlier time if the city so determines by ordinance.

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

181.23 	Sec. 16. CITY OF ST. CLOUD; TAXES AUTHORIZED.
 181.24 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
181.25 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
181.26 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
181.27 	the city of St. Cloud may impose, by ordinance, a sales and use tax of one-half of one percent 
181.28 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
181.29 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
181.30 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
181.31 	under this subdivision is in addition to any local sales and use tax imposed under any other 
181.32 	special law.
181.33 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
181.34 	under subdivision 1 must be used by the city of St. Cloud to pay the costs of collecting and 
182.1 	administering the tax, including securing and paying debt service on bonds issued, and to 
182.2 	finance up to $21,100,000 plus associated bonding costs for expansion and improvement 
182.3 	of St. Cloud's Municipal Athletic Complex.
182.4 		Subd. 3.Bonding authority. (a) The city of St. Cloud may issue bonds under Minnesota 
182.5 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
182.6 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
182.7 	not exceed $21,100,000 plus an amount applied to the payment of costs of issuing the bonds. 
182.8 	The bonds may be paid from or secured by any funds available to the city of St. Cloud, 
182.9 	including the tax authorized under subdivision 1. The issuance of bonds under this 
182.10 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
182.11 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
182.12 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
182.13 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
182.14 	under Minnesota Statutes, section 475.58, is not required.
182.15 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
182.16 	earlier of: (1) five years after the tax is first imposed; or (2) when the city council determines 
182.17 	that the amount received from the tax is sufficient to pay for the project costs authorized 
182.18 	under subdivision 2, and approved by the voters as required under Minnesota Statutes, 
182.19 	section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest 
182.20 	costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining 
182.21 	after payment of the allowed costs due to timing of the termination under Minnesota Statutes, 
182.22 	section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 
182.23 	1 may expire at an earlier time if the city so determines by ordinance.

182.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
182.25 	city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section 
182.26 	645.021, subdivisions 2 and 3.

182.27 	Sec. 17. CITY OF ST. PETER; TAXES AUTHORIZED.
 182.28 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
182.29 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
182.30 	and if approved by the voters at a general election as required under Minnesota Statutes, 
182.31 	section 297A.99, subdivision 3, the city of St. Peter may impose by ordinance a sales and 
182.32 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
182.33 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
183.1 	govern the imposition, administration, collection, and enforcement of the tax authorized 
183.2 	under this subdivision.
183.3 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
183.4 	under subdivision 1 must be used by the city of St. Peter to pay the costs of collecting and 
183.5 	administering the tax and paying for up to $9,121,000 for construction of a new fire station, 
183.6 	plus an amount needed for securing and paying debt service on bonds issued to finance the 
183.7 	project.
183.8 		Subd. 3.Bonding authority. (a) The city of St. Peter may issue bonds under Minnesota 
183.9 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
183.10 	aggregate principal amount of bonds issued under this subdivision may not exceed $9,121,000 
183.11 	for the project listed in subdivision 2, plus an amount to be applied to the payment of the 
183.12 	costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
183.13 	to the city of St. Peter, including the tax authorized under subdivision 1. The issuance of 
183.14 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
183.15 	275.61.
183.16 	(b) The bonds are not included in computing any debt limitation applicable to the city 
183.17 	of St. Peter; and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
183.18 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
183.19 	the bonds under Minnesota Statutes, section 475.58, is not required.
183.20 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
183.21 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 40 years 
183.22 	after the tax is first imposed, or (2) when the city council determines that the amount received 
183.23 	from the tax is sufficient to pay for the $9,121,000 in project costs authorized under 
183.24 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
183.25 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
183.26 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
183.27 	after payment of the allowed costs due to the timing of the termination of the tax under 
183.28 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
183.29 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
183.30 	determines by ordinance.

183.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
183.32 	city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
183.33 	subdivisions 2 and 3.

184.1 	Sec. 18. CITY OF WADENA; TAXES AUTHORIZED.
 184.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
184.3 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
184.4 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
184.5 	the city of Wadena may impose, by ordinance, a sales and use tax of one-quarter of one 
184.6 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
184.7 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
184.8 	administration, collection, and enforcement of the tax authorized under this subdivision.
184.9 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
184.10 	under subdivision 1 must be used by the city of Wadena to pay the costs of collecting and 
184.11 	administering the tax and to finance up to $3,000,000, plus associated bonding costs including 
184.12 	securing and paying debt service on bonds issued, for the Wadena Library Rehabilitation 
184.13 	Project.
184.14 		Subd. 3.Bonding authority. (a) The city of Wadena may issue bonds under Minnesota 
184.15 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
184.16 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
184.17 	not exceed $3,000,000, plus an amount applied to the payment of costs of issuing the bonds. 
184.18 	The bonds may be paid from or secured by any funds available to the city of Wadena, 
184.19 	including the tax authorized under subdivision 1. The issuance of bonds under this 
184.20 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
184.21 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
184.22 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
184.23 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
184.24 	under Minnesota Statutes, section 475.58, is not required.
184.25 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
184.26 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
184.27 	that the amount received from the tax is sufficient to pay for the project costs authorized 
184.28 	under subdivision 2, and approved by the voters as required under Minnesota Statutes, 
184.29 	section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest 
184.30 	costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining 
184.31 	after payment of the allowed costs due to timing of the termination under Minnesota Statutes, 
184.32 	section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 
184.33 	1 may expire at an earlier time if the city so determines by ordinance.

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

185.4 	Sec. 19. CITY OF WAITE PARK; TAXES AUTHORIZED.
 185.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
185.6 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
185.7 	and if approved by the voters at a general election as required under Minnesota Statutes, 
185.8 	section 297A.99, subdivision 3, the city of Waite Park may impose by ordinance a sales 
185.9 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
185.10 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
185.11 	govern the imposition, administration, collection, and enforcement of the tax authorized 
185.12 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
185.13 	sales and use tax imposed under any other special law.
185.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
185.15 	under subdivision 1 must be used by the city of Waite Park to pay the costs of collecting 
185.16 	and administering the tax and for the following projects in the city, including securing and 
185.17 	paying debt service on bonds issued to finance all or part of the following projects:
185.18 	(1) up to $7,500,000 plus associated bonding costs for regional trail connections; and
185.19 	(2) up to $20,000,000 plus associated bonding costs for construction and equipping of 
185.20 	a public safety facility.
185.21 		Subd. 3.Bonding authority. (a) The city of Waite Park may issue bonds under Minnesota 
185.22 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
185.23 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
185.24 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
185.25 	under this subdivision may not exceed:
185.26 	(1) $7,500,000 for the project listed in subdivision 2, clause (1), plus an amount needed 
185.27 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
185.28 	the bonds; and
185.29 	(2) $20,000,000 for the project listed in subdivision 2, clause (2), plus an amount needed 
185.30 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
185.31 	the bonds.
186.1 	The bonds may be paid from or secured by any funds available to the city of Waite Park, 
186.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
186.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
186.4 	(b) The bonds are not included in computing any debt limitation applicable to the city 
186.5 	of Waite Park, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
186.6 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
186.7 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
186.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
186.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years 
186.10 	after the tax is first imposed, or (2) when the city council determines that the amount received 
186.11 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
186.12 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
186.13 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
186.14 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
186.15 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
186.16 	any funds remaining after payment of the allowed costs due to the timing of the termination 
186.17 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
186.18 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
186.19 	if the city so determines by ordinance.

186.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
186.21 	city of Waite Park and its chief clerical officer comply with Minnesota Statutes, section 
186.22 	645.021, subdivisions 2 and 3.

186.23 	ARTICLE 10
186.24 	TAX INCREMENT FINANCING

186.25 	Section 1. Minnesota Statutes 2020, section 469.176, is amended by adding a subdivision 
186.26 	to read:
186.27 		Subd. 4n.Temporary use of increment authorized. (a) Notwithstanding any other 
186.28 	provision of this section or any other law to the contrary, except the requirements to pay 
186.29 	bonds to which increments are pledged, the authority may elect by resolution to transfer 
186.30 	unobligated increments from a district either (1) to the municipality for deposit into the 
186.31 	municipality's general fund upon the request of the municipality, or (2) to provide 
186.32 	improvements, loans, interest rate subsidies, or assistance in any form to businesses impacted 
186.33 	by COVID-19. The authority may transfer increments under this subdivision after the 
187.1 	spending plan and public hearing requirements under paragraph (c) are met. The municipality 
187.2 	may expend transferred increments under clause (1) for any purpose permitted under the 
187.3 	municipality's general fund.
187.4 	(b) For each calendar year for which transfers are permitted under this subdivision, the 
187.5 	maximum transfer equals the excess of the district's unobligated increments which includes 
187.6 	any increment not required for payments of obligations due during the six months following 
187.7 	the transfer on outstanding bonds, binding contracts, and other outstanding financial 
187.8 	obligations of the district to which the district's increments are pledged.
187.9 	(c) The authority may transfer increments permitted under this subdivision after creating 
187.10 	a written spending plan that authorizes the authority to take the action described in paragraph 
187.11 	(a) and details the use of transferred increments. Additionally, the municipality must approve 
187.12 	the authority's spending plan after holding a public hearing. The municipality must publish 
187.13 	notice of the hearing in a newspaper of general circulation in the municipality and on the 
187.14 	municipality's public website at least ten days, but not more than 30 days, prior to the date 
187.15 	of the hearing.
187.16 	(d) Increment that is improperly retained, received, spent, or transferred is not eligible 
187.17 	for a transfer under this subdivision.
187.18 	(e) An authority making a transfer under this subdivision must provide to the Office of 
187.19 	the State Auditor a copy of the spending plan approved and signed by the municipality.
187.20 	(f) The authority to transfer increments under this subdivision expires on December 31, 
187.21 	2022. All transferred increments must be spent by December 31, 2022. If the municipality 
187.22 	cannot spend the transferred increments by December 31, 2022, the municipality must adopt 
187.23 	a spending plan that details the use of transferred increments, and must provide a copy of 
187.24 	this spending plan to the Office of the State Auditor.

187.25 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
187.26 	final enactment and applies to increments from any district that are unobligated as of the 
187.27 	date of final enactment regardless of when the authority made a request for certification.

187.28 	Sec. 2. Minnesota Statutes 2020, section 469.1763, subdivision 2, is amended to read:
187.29 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
187.30 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
187.31 	by properties in the district must be expended on activities in the district or to pay bonds, 
187.32 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
187.33 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
188.1 	than redevelopment districts for which the request for certification was made after June 30, 
188.2 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
188.3 	more than 25 percent of the total revenue derived from tax increments paid by properties 
188.4 	in the district may be expended, through a development fund or otherwise, on activities 
188.5 	outside of the district but within the defined geographic area of the project except to pay, 
188.6 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
188.7 	redevelopment districts for which the request for certification was made after June 30, 1995, 
188.8 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues 
188.9 	derived from tax increments paid by properties in the district that are expended on costs 
188.10 	under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating 
188.11 	the percentages that must be expended within and without the district.
188.12 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
188.13 	subdivision 11, is an activity in the district. the following are considered to be activities in 
188.14 	the district:
188.15 	(1) a housing project, as defined in section 469.174, subdivision 11; and
188.16 	(2) a transfer of increments to an affordable housing trust fund established pursuant to 
188.17 	section 462C.16, for expenditures made in conformity with the political subdivision's 
188.18 	ordinance and policy establishing the trust fund. Any transfers made pursuant to this clause 
188.19 	are not subject to the annual reporting requirements imposed by section 469.175, subdivision 
188.20 	6, except that the amount of any transfer must be reported.
188.21 	(c) All administrative expenses are for activities outside of the district, except that if the 
188.22 	only expenses for activities outside of the district under this subdivision are for the purposes 
188.23 	described in paragraph (d), administrative expenses will be considered as expenditures for 
188.24 	activities in the district.
188.25 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
188.26 	by up to ten 25 percentage points the permitted amount of expenditures for activities located 
188.27 	outside the geographic area of the district under paragraph (a). As permitted by section 
188.28 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
188.29 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
188.30 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
188.31 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
188.32 	under this paragraph, the expenditures must:
189.1 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
189.2 	low-income building, as that term is used in section 42 of the Internal Revenue Code, or to 
189.3 	assist owner-occupied housing that meets the requirements of section 469.1761; and
189.4 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
189.5 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
189.6 	Revenue Code; and
189.7 	(3) be used to:
189.8 	(i) acquire and prepare the site of the housing;
189.9 	(ii) acquire, construct, or rehabilitate the housing; or
189.10 	(iii) make public improvements directly related to the housing; or
189.11 	(4) be used to develop housing:
189.12 	(i) if the market value of the housing does not exceed the lesser of:
189.13 	(A) 150 percent of the average market value of single-family homes in that municipality; 
189.14 	or
189.15 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
189.16 	473.121, or $125,000 for all other municipalities; and
189.17 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
189.18 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
189.19 	the parcel contains a residence containing one to four family dwelling units that has been 
189.20 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
189.21 	7, but without regard to whether the residence is the owner's principal residence, and only 
189.22 	after the redemption period has expired.
189.23 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
189.24 	Increments may continue to be expended under this authority after that date, if they are used 
189.25 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
189.26 	December 31, 2016, is considered to be the last date of the five-year period after certification 
189.27 	under that provision.

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

190.1 	Sec. 3. Minnesota Statutes 2020, section 469.1763, subdivision 3, is amended to read:
190.2 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
190.3 	in the district are considered to have been expended on an activity within the district under 
190.4 	subdivision 2 only if one of the following occurs:
190.5 	(1) before or within five years after certification of the district, the revenues are actually 
190.6 	paid to a third party with respect to the activity;
190.7 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
190.8 	sold to a third party before or within five years after certification, the revenues are spent to 
190.9 	repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 
190.10 	expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 
190.11 	temporary period within the meaning of the use of that term under section 148(c)(1) of the 
190.12 	Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 
190.13 	fund;
190.14 	(3) binding contracts with a third party are entered into for performance of the activity 
190.15 	before or within five years after certification of the district and the revenues are spent under 
190.16 	the contractual obligation;
190.17 	(4) costs with respect to the activity are paid before or within five years after certification 
190.18 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
190.19 	including interest on unreimbursed costs; or
190.20 	(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 
190.21 	(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 
190.22 	2, paragraph (e).
190.23 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
190.24 	original refunded bonds meet the requirements of paragraph (a), clause (2).
190.25 	(c) For a redevelopment district or a renewal and renovation district certified after June 
190.26 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
190.27 	extended to ten years after certification of the district. For a redevelopment district certified 
190.28 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
190.29 	(a) are extended to eight years after certification of the district. This extension is provided 
190.30 	primarily to accommodate delays in development activities due to unanticipated economic 
190.31 	circumstances.
190.32 	(d) For a redevelopment district that was certified after December 31, 2017, the five-year 
190.33 	periods described in paragraph (a) are extended to ten years after certification of the district.

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

191.2 	Sec. 4. Minnesota Statutes 2020, section 469.1763, subdivision 4, is amended to read:
191.3 		Subd. 4.Use of revenues for decertification. (a) In each year beginning with the sixth 
191.4 	year following certification of the district, or beginning with the 11th year following 
191.5 	certification of the district for districts whose five-year rule is extended to ten years under 
191.6 	subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived 
191.7 	from tax increments paid by properties in the district exceeds the amount of expenditures 
191.8 	that have been made for costs permitted under subdivision 3, an amount equal to the 
191.9 	difference between the in-district percent of the revenues derived from tax increments paid 
191.10 	by properties in the district and the amount of expenditures that have been made for costs 
191.11 	permitted under subdivision 3 must be used and only used to pay or defease the following 
191.12 	or be set aside to pay the following:
191.13 	(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
191.14 	(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
191.15 	(3) credit enhanced bonds to which the revenues derived from tax increments are pledged, 
191.16 	but only to the extent that revenues of the district for which the credit enhanced bonds were 
191.17 	issued are insufficient to pay the bonds and to the extent that the increments from the 
191.18 	applicable pooling percent share for the district are insufficient; or
191.19 	(4) the amount provided by the tax increment financing plan to be paid under subdivision 
191.20 	2, paragraphs (b), (d), and (e).
191.21 	(b) The district must be decertified and the pledge of tax increment discharged when 
191.22 	the outstanding bonds have been defeased and when sufficient money has been set aside to 
191.23 	pay, based on the increment to be collected through the end of the calendar year, the following 
191.24 	amounts:
191.25 	(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and 
191.26 	(4);
191.27 	(2) the amount specified in the tax increment financing plan for activities qualifying 
191.28 	under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds 
191.29 	qualifying under paragraph (a), clause (1); and
191.30 	(3) the additional expenditures permitted by the tax increment financing plan for housing 
191.31 	activities under an election under subdivision 2, paragraph (d), that have not been funded 
191.32 	with the proceeds of bonds qualifying under paragraph (a), clause (1).

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

192.2 	Sec. 5. CITY OF BLOOMINGTON; TIF AUTHORITY; AMERICAN BOULEVARD.
 192.3 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
192.4 	2, the housing and redevelopment authority of the city of Bloomington or the city of 
192.5 	Bloomington may establish a redevelopment district within the city of Bloomington, limited 
192.6 	to the following parcels, identified by tax identification numbers, together with adjacent 
192.7 	roads and rights-of-way: 04-027-24-11-0032, 04-027-24-11-0033, and 04-027-24-11-0034.
192.8 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
192.9 	district under this section, the following special rules apply:
192.10 	(1) the district meets all the requirements of Minnesota Statutes, section 469.174, 
192.11 	subdivision 10;
192.12 	(2) expenditures incurred in connection with the development of the property described 
192.13 	in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision 
192.14 	4j; and
192.15 	(3) increments generated from the district may be expended on undergrounding or 
192.16 	overhead power lines, transformers, and related utility infrastructure within the project area 
192.17 	and all such expenditures are deemed expended on activities within the district for purposes 
192.18 	of Minnesota Statutes, section 469.1763.

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

192.22 	Sec. 6. CITY OF BLOOMINGTON; TIF AUTHORITY; 98TH & ALDRICH.
 192.23 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
192.24 	2, the housing and redevelopment authority of the city of Bloomington or the city of 
192.25 	Bloomington may establish a redevelopment district within the city of Bloomington, limited 
192.26 	to the following parcels, identified by tax identification numbers, together with adjacent 
192.27 	roads and rights-of-way: 16-027-24-41-0010, 16-027-24-41-0011, and 16-027-24-41-0012.
192.28 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
192.29 	district under this section, the following special rules apply:
192.30 	(1) the district meets all the requirements of Minnesota Statutes, section 469.174, 
192.31 	subdivision 10; and
193.1 	(2) expenditures incurred in connection with the development of the property described 
193.2 	in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision 
193.3 	4j.

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

193.7 	Sec. 7. CITY OF BURNSVILLE; TIF AUTHORITY.
 193.8 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
193.9 	economic development authority of the city of Burnsville or the city of Burnsville may 
193.10 	establish one or more redevelopment districts located wholly within the area of the city of 
193.11 	Burnsville, Dakota County, Minnesota, limited to the parcels comprising the Burnsville 
193.12 	Center mall together with adjacent roads and rights-of-way.
193.13 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
193.14 	district under this section, the following special rules apply:
193.15 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
193.16 	469.174, subdivision 10;
193.17 	(2) expenditures incurred in connection with the development of the property described 
193.18 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
193.19 	subdivision 4j; and
193.20 	(3) increments generated from the districts may be expended for the construction and 
193.21 	acquisition of property for a bridge, tunnel, or other connector from the property described 
193.22 	in subdivision 1 across adjacent roads and rights-of-way and all such expenditures are 
193.23 	deemed expended on activities within the district for purposes of Minnesota Statutes, section 
193.24 	469.1763.

193.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
193.26 	city of Burnsville and its chief clerical officer comply with the requirements of Minnesota 
193.27 	Statutes, section 645.021, subdivisions 2 and 3.

193.28 	Sec. 8. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; SPECIAL 
193.29 	RULES.
 193.30 		Subdivision 1.Housing program uses. Notwithstanding Minnesota Statutes, section 
193.31 	469.176, subdivision 4j, or 469.1763, subdivision 2, or any law to the contrary, the governing 
193.32 	body of the city of Fridley or its development authority may elect to spend tax increments 
194.1 	from Tax Increment Financing District No. 20 on housing programs outside of the district. 
194.2 	The authorized housing programs include but are not limited to:
194.3 	(1) the revolving rehab loan program;
194.4 	(2) the multifamily improvement loan program;
194.5 	(3) the mobile home improvement loan program;
194.6 	(4) the last resort emergency deferred loan program;
194.7 	(5) the senior deferred loan program;
194.8 	(6) the down payment assistance loan program;
194.9 	(7) the residential major project grant program;
194.10 	(8) the residential paint rebate grant program; and
194.11 	(9) the front door grant program.
194.12 		Subd. 2.Decertification. The five-year rule under Minnesota Statutes, section 469.1763, 
194.13 	subdivision 3, and the use of revenues for decertification in Minnesota Statutes, section 
194.14 	469.1763, subdivision 4, do not apply to Tax Increment Financing District No. 20.
194.15 		Subd. 3.Expiration. The authority to make the election under this section expires 
194.16 	December 31, 2023.

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

194.20 	Sec. 9. CITY OF MINNETONKA; USE OF INCREMENT AUTHORIZED.
 194.21 	(a) Notwithstanding Minnesota Statutes, section 469.1763, or any law to the contrary, 
194.22 	tax increments from any redevelopment tax increment financing district in the city of 
194.23 	Minnetonka may be used to assist affordable housing development that meets the 
194.24 	requirements of Minnesota Statutes, section 469.1761, subdivision 2 or 3.
194.25 	(b) The city of Minnetonka, or its economic development authority, is authorized to 
194.26 	transfer tax increments from tax increment districts in the city of Minnetonka to the affordable 
194.27 	housing trust fund established by the city of Minnetonka pursuant to Minnesota Statutes, 
194.28 	section 462C.16, for expenditures made in conformity with the city ordinance establishing 
194.29 	the trust fund. Transfers made pursuant to this paragraph are in addition to tax increment 
194.30 	expenditures under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d). Any 
194.31 	transfers made pursuant to this paragraph are not subject to the annual reporting requirements 
195.1 	imposed by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of 
195.2 	any transfer must be reported.

195.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
195.4 	city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota 
195.5 	Statutes, section 645.021, subdivisions 2 and 3.

195.6 	Sec. 10. CITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE 
195.7 	EXTENSION.
 195.8 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
195.9 	must be undertaken within a five-year period from the date of certification of a tax increment 
195.10 	financing district, is extended by a five-year period for Tax Increment Financing District 
195.11 	No. 1-8, administered by the city of Mountain Lake or its economic development authority.
195.12 	(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to 
195.13 	the use of increment after the expiration of the five-year period in Minnesota Statutes, 
195.14 	section 469.1763, subdivision 3, is extended to the district's 11th year.

195.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
195.16 	city of Mountain Lake and its chief clerical officer comply with Minnesota Statutes, section 
195.17 	645.021, subdivisions 2 and 3.

195.18 	Sec. 11. CITY OF RICHFIELD; USE OF TAX INCREMENT AUTHORIZED.
 195.19 	(a) Notwithstanding Minnesota Statutes, section 469.1763, or any law to the contrary, 
195.20 	tax increments from any tax increment financing district in the city of Richfield may be 
195.21 	used to assist affordable housing development that meets the requirements of Minnesota 
195.22 	Statutes, section 469.1761, subdivision 2 or 3.
195.23 	(b) The city of Richfield, or its housing and redevelopment authority, is authorized to 
195.24 	transfer up to 15 percent of tax increments from redevelopment tax increment districts in 
195.25 	the city of Richfield, including amounts previously accumulated, to the Affordable Housing 
195.26 	Trust Fund established by the city of Richfield pursuant to Minnesota Statutes, section 
195.27 	462C.16, for expenditures made in conformity with the city ordinance establishing the trust 
195.28 	fund. Transfers made pursuant to this paragraph are in addition to tax increment expenditures 
195.29 	under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d). Any transfers 
195.30 	made pursuant to this paragraph are not subject to the annual reporting requirements imposed 
195.31 	by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of any transfer 
195.32 	must be reported.
196.1 	(c) The authority to make transfers of tax increments pursuant to this section expires 
196.2 	December 31, 2030.

196.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
196.4 	city of Richfield and its chief clerical officer comply with the requirements of Minnesota 
196.5 	Statutes, section 645.021, subdivisions 2 and 3.

196.6 	Sec. 12. CITY OF ST. LOUIS PARK; USE OF INCREMENT AUTHORIZED.
 196.7 	(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d), 
196.8 	or any law to the contrary, tax increment from any district for which the economic 
196.9 	development authority of St. Louis Park has elected to increase the permitted amount of 
196.10 	expenditures for activities located outside the district's area, as allowed by Minnesota 
196.11 	Statutes, section 469.1763, subdivision 2, paragraph (d), clause (1), must be used exclusively 
196.12 	to assist housing development that meets either the requirements of Minnesota Statutes, 
196.13 	section 469.1761, subdivision 2, or Minnesota Statutes, section 469.1763, subdivision 2, 
196.14 	paragraph (d), clauses (1) to (3).
196.15 	(b) The economic development authority of St. Louis Park is authorized to make 
196.16 	permanent transfers of tax increments accumulated for housing development pursuant to 
196.17 	either Minnesota Statutes, section 469.1763, subdivision 2, paragraph (b) or (d), from the 
196.18 	tax increment accounts to the Affordable Housing Trust Fund established by the city of St. 
196.19 	Louis Park pursuant to Minnesota Statutes, section 462C.16, for expenditures made in 
196.20 	conformity with the city ordinance and policy establishing such trust fund. Any transfers 
196.21 	made pursuant to this paragraph are not subject to the annual reporting requirements imposed 
196.22 	by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of any transfer 
196.23 	must be reported.

196.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
196.25 	city of St. Louis Park and its chief clerical officer comply with the requirements of Minnesota 
196.26 	Statutes, section 645.021, subdivisions 2 and 3.

196.27 	Sec. 13. CITY OF WAYZATA; TIF DISTRICT NO. 6.
 196.28 	Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of Wayzata 
196.29 	may expend increments generated from Tax Increment Financing District No. 6 for the 
196.30 	design and construction of the lakefront pedestrian walkway and community transient lake 
196.31 	public access infrastructure related to the Panoway on Wayzata Bay project, and all such 
196.32 	expenditures are deemed expended on activities within the district.

197.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
197.2 	city of Wayzata and its chief clerical officer comply with the requirements of Minnesota 
197.3 	Statutes, section 645.021, subdivisions 2 and 3.

197.4 	Sec. 14. CITY OF WINDOM; TIF DISTRICT 1-22; FIVE-YEAR RULE EXTENDED.
 197.5 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
197.6 	must be undertaken within a five-year period from the date of certification of a tax increment 
197.7 	financing district, is considered to be met for Tax Increment Financing District 1-22, 
197.8 	administered by the city of Windom or its economic development authority, if activities are 
197.9 	undertaken within ten years of the district's certification.
197.10 	(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to 
197.11 	the use of increment after the expiration of the five-year period in Minnesota Statutes, 
197.12 	section 469.1763, subdivision 3, is extended to the district's 11th year.

197.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
197.14 	city of Windom and its chief clerical officer comply with Minnesota Statutes, section 
197.15 	645.021, subdivisions 2 and 3.

197.16 	Sec. 15. CITY OF WINDOM; TIF DISTRICT 1-22; DURATION EXTENSION.
 197.17 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 
197.18 	to the contrary, the city of Windom or its economic development authority may elect to 
197.19 	extend the duration limit of Tax Increment Financing District 1-22 by five years.

197.20 	EFFECTIVE DATE. This section is effective upon compliance by the city of Windom, 
197.21 	Cottonwood County, and Independent School District No. 177 with the requirements of 
197.22 	Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and 3.

197.23 	ARTICLE 11
197.24 	PUBLIC FINANCE

197.25 	Section 1. Minnesota Statutes 2020, section 297A.993, subdivision 2, is amended to read:
197.26 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
197.27 	exclusively to: (1) payment of the capital cost of a specific transportation project or 
197.28 	improvement; (2) payment of the costs, which may include both capital and operating costs, 
197.29 	of a specific transit project or improvement; (3) payment of the capital costs of a safe routes 
197.30 	to school program under section 174.40; or (4) payment of transit operating costs; or (5) 
197.31 	payment of the capital cost of constructing buildings and other facilities for maintaining 
198.1 	transportation or transit projects or improvements. The transportation or transit project or 
198.2 	improvement must be designated by the board of the county, or more than one county acting 
198.3 	under a joint powers agreement. Except for taxes for operating costs of a transit project or 
198.4 	improvement, or for transit operations, the taxes must terminate when revenues raised are 
198.5 	sufficient to finance the project. Nothing in this subdivision prohibits the exclusive dedication 
198.6 	of the proceeds of the taxes to payments for more than one project or improvement. After 
198.7 	a public hearing a county may, by resolution, dedicate the proceeds of the tax for a new 
198.8 	enumerated project.

198.9 	Sec. 2. Minnesota Statutes 2020, section 453A.04, subdivision 21, is amended to read:
198.10 		Subd. 21.All other powers Exercising powers of a municipal power agency. It may 
198.11 	exercise all other powers not inconsistent with the Constitution of the state of Minnesota 
198.12 	or the United States Constitution, which powers may be reasonably necessary or appropriate 
198.13 	for or incidental to the effectuation of its authorized purposes or to the exercise of any of 
198.14 	the powers enumerated in this section, and generally may exercise in connection with its 
198.15 	property and affairs, and in connection with property within its control, any and all powers 
198.16 	which might be exercised by a natural person or a private corporation in connection with 
198.17 	similar property and affairs. It may exercise the powers of a municipal power agency under 
198.18 	chapter 453, for the limited purpose of engaging in tax-exempt prepayments and related 
198.19 	transactions as described in section 148(b)(4) of the Internal Revenue Code of 1986, as 
198.20 	amended, and the Code of Federal Regulations, title 26, part 1, section 1.148-1(e)(2)(iii), 
198.21 	both as may be amended from time to time, or as may otherwise be authorized by statute 
198.22 	or the Commissioner of Internal Revenue.

198.23 	Sec. 3. Minnesota Statutes 2020, section 453A.04, is amended by adding a subdivision to 
198.24 	read:
198.25 		Subd. 22.All other powers. It may exercise all other powers not inconsistent with the 
198.26 	Constitution of the state of Minnesota or the United States Constitution, which powers may 
198.27 	be reasonably necessary or appropriate for or incidental to the effectuation of its authorized 
198.28 	purposes or to the exercise of any of the powers enumerated in this section, and generally 
198.29 	may exercise in connection with its property and affairs, and in connection with property 
198.30 	within its control, any and all powers which might be exercised by a natural person or a 
198.31 	private corporation in connection with similar property and affairs.

199.1 	Sec. 4. Minnesota Statutes 2020, section 465.71, is amended to read:
199.2 	465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN, 
199.3 	SCHOOL.
199.4 	A home rule charter city, statutory city, county, town, or school district may purchase 
199.5 	personal property under an installment contract, or lease real or personal property with an 
199.6 	option to purchase under a lease-purchase agreement, by which contract or agreement title 
199.7 	is retained by the seller or vendor or assigned to a third party as security for the purchase 
199.8 	price, including interest, if any, but such purchases are subject to statutory and charter 
199.9 	provisions applicable to the purchase of real or personal property. For purposes of the bid 
199.10 	requirements contained in section 471.345, "the amount of the contract" shall include the 
199.11 	total of all lease payments for the entire term of the lease under a lease-purchase agreement. 
199.12 	The obligation created by an installment contract or a lease-purchase agreement for personal 
199.13 	property, or an installment contract or a lease-purchase agreement for real property if the 
199.14 	amount of the contract for purchase of the real property is less than $1,000,000, shall not 
199.15 	be included in the calculation of net debt for purposes of section 475.53, and shall not 
199.16 	constitute debt under any other statutory provision. No election shall be required in 
199.17 	connection with the execution of an installment contract or a lease-purchase agreement 
199.18 	authorized by this section. The city, county, town, or school district must have the right to 
199.19 	terminate a lease-purchase agreement at the end of any fiscal year during its term.

199.20 	Sec. 5. Minnesota Statutes 2020, section 475.56, is amended to read:
199.21 	475.56 INTEREST RATE.
199.22 	(a) Any municipality issuing obligations under any law may issue obligations bearing 
199.23 	interest at a single rate or at rates varying from year to year which may be lower or higher 
199.24 	in later years than in earlier years. Such higher rate for any period prior to maturity may be 
199.25 	represented in part by separate coupons designated as additional coupons, extra coupons, 
199.26 	or B coupons, but the The highest aggregate rate of interest contracted to be so paid for any 
199.27 	period shall not exceed the maximum rate authorized by law. Such higher rate may also be 
199.28 	represented in part by the issuance of additional obligations of the same series, over and 
199.29 	above but not exceeding two percent of the amount otherwise authorized to be issued, and 
199.30 	the amount of such additional obligations shall not be included in the amount required by 
199.31 	section 475.59 to be stated in any bond resolution, notice, or ballot, or in the sale price 
199.32 	required by section 475.60 or any other law to be paid; but if the principal amount of the 
199.33 	entire series exceeds its cash sale price, such excess shall not, when added to the total amount 
199.34 	of interest payable on all obligations of the series to their stated maturity dates, cause and
200.1 	the average annual rate of such interest to may not exceed the maximum rate authorized by 
200.2 	law. This section does not authorize a provision in any such obligations for the payment of 
200.3 	a higher rate of interest after maturity than before.
200.4 	(b) Any municipality issuing obligations under any law may sell original issue discount 
200.5 	or premium obligations having a stated principal amount in excess of the authorized amount 
200.6 	and the sale price, provided that:. To determine the average annual rate of interest on the 
200.7 	obligations, any discount shall be added to, and any premium subtracted from, the total 
200.8 	amount of interest on the obligations to their stated maturity dates.
200.9 	(1) the sale price does not exceed by more than two percent the amount of obligations 
200.10 	otherwise authorized to be issued;
200.11 	(2) the underwriting fee, discount, or other sales or underwriting commission does not 
200.12 	exceed two percent of the sale price; and
200.13 	(3) the discount rate necessary to present value total principal and interest payments 
200.14 	over the term of the issue to the sale price does not exceed the lesser of the maximum rate 
200.15 	permitted by law for municipal obligations or ten percent.
200.16 	(c) Any obligation may bear interest at a rate varying periodically at the time or times 
200.17 	and on the terms, including convertibility to a fixed rate of interest, determined by the 
200.18 	governing body of the municipality, but the rate of interest for any period shall not exceed 
200.19 	any maximum rate of interest for the obligations established by law. For purposes of section 
200.20 	475.61, subdivisions 1 and 3, the interest payable on variable rate obligations for their term 
200.21 	shall be determined as if their rate of interest is the lesser of the maximum rate of interest 
200.22 	payable on the obligations in accordance with their terms or the rate estimated for such 
200.23 	purpose by the governing body, but if the interest rate is subsequently converted to a fixed 
200.24 	rate the levy may be modified to provide at least five percent in excess of amounts necessary 
200.25 	to pay principal of and interest at the fixed rate on the obligations when due. For purposes 
200.26 	of computing debt service or interest pursuant to section 475.67, subdivision 12, interest 
200.27 	throughout the term of bonds issued pursuant to this subdivision is deemed to accrue at the 
200.28 	rate of interest first borne by the bonds. The provisions of this paragraph do not apply to 
200.29 	general obligations issued by a statutory or home rule charter city with a population of less 
200.30 	than 7,500, as defined in section 477A.011, subdivision 3, or to general obligations that are 
200.31 	not rated A or better, or an equivalent subsequently established rating, by Standard and 
200.32 	Poor's Corporation, Moody's Investors Service or other similar nationally recognized rating 
200.33 	agency, except that any statutory or home rule charter city, regardless of population or bond 
201.1 	rating, may issue variable rate obligations as a participant in a bond pooling program 
201.2 	established by the League of Minnesota Cities that meets this bond rating requirement.

201.3 	Sec. 6. Minnesota Statutes 2020, section 475.58, subdivision 3b, is amended to read:
201.4 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
201.5 	without regard to the election requirement under subdivision 1, issue and sell obligations 
201.6 	for street reconstruction or bituminous overlays, if the following conditions are met:
201.7 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 
201.8 	that describes the street reconstruction or overlay to be financed, the estimated costs, and 
201.9 	any planned reconstruction or overlay of other streets in the municipality over the next five 
201.10 	years, and the plan and issuance of the obligations has been approved by a vote of a two-thirds 
201.11 	majority of the members of the governing body present at the meeting following a public 
201.12 	hearing for which notice has been published in the official newspaper at least ten days but 
201.13 	not more than 28 days prior to the hearing; and
201.14 	(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 
201.15 	of the votes cast in the last municipal general election and is filed with the municipal clerk 
201.16 	within 30 days of the public hearing, the municipality may issue the bonds only after 
201.17 	obtaining the approval of a majority of the voters voting on the question of the issuance of 
201.18 	the obligations. If the municipality elects not to submit the question to the voters, the 
201.19 	municipality shall not propose the issuance of bonds under this section for the same purpose 
201.20 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
201.21 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
201.22 	of section 475.58, subdivision 1a, shall apply.
201.23 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
201.24 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
201.25 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
201.26 	includes include but are not limited to: utility replacement and relocation and other activities 
201.27 	incidental to the street reconstruction,; the addition or reconstruction of turn lanes, bicycle 
201.28 	lanes, sidewalks, paths, and other improvements having a substantial public safety function,;
201.29 	realignments, and other modifications to intersect with state and county roads,; and the local 
201.30 	share of state and county road projects. For purposes of this subdivision, "street 
201.31 	reconstruction" includes expenditures for street reconstruction that have been incurred by 
201.32 	a municipality before approval of a street reconstruction plan, if such expenditures are 
201.33 	included in a street reconstruction plan approved on or before the date of the public hearing 
201.34 	under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
202.1 	(d) Except in the case of turn lanes, bicycle lanes, sidewalks, paths, and other safety 
202.2 	improvements,; realignments,; intersection modifications,; and the local share of state and 
202.3 	county road projects, street reconstruction and bituminous overlays does not include the 
202.4 	portion of project cost allocable to widening a street or adding curbs and gutters where none 
202.5 	previously existed.

202.6 	Sec. 7. Minnesota Statutes 2020, section 475.60, subdivision 1, is amended to read:
202.7 		Subdivision 1.Advertisement. All obligations shall be negotiated and sold by the 
202.8 	governing body, except when authority therefor is delegated by the governing body or by 
202.9 	the charter of the municipality to a board, department, or officers of the municipality. Except 
202.10 	as provided in section 475.56, obligations shall be sold at not less than par value plus accrued 
202.11 	interest to date of delivery and not greater than two percent greater than the amount 
202.12 	authorized to be issued plus accrued interest. Except as provided in subdivision 2 all 
202.13 	obligations shall be sold at competitive sale after notice given as provided in subdivision 
202.14 	3.

202.15 	Sec. 8. Minnesota Statutes 2020, section 475.67, subdivision 8, is amended to read:
202.16 		Subd. 8.Escrow account securities. Securities purchased for the escrow account shall 
202.17 	be limited to:
202.18 	(1) general obligations of the United States, securities whose principal and interest 
202.19 	payments are guaranteed by the United States, including but not limited to Resolution 
202.20 	Funding Corporation Interest Separate Trading of Registered Interest and Principal of 
202.21 	Securities and United States Agency for International Development Bonds, and securities 
202.22 	issued by the following agencies of the United States: Banks for Cooperatives, United States 
202.23 	government-sponsored enterprises including but not limited to Federal Home Loan Banks, 
202.24 	Federal Intermediate Credit Banks, Federal Land Banks, and the Federal Farm Credit System,
202.25 	the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation; 
202.26 	or
202.27 	(2) obligations issued or guaranteed by any state or any political subdivision of a state, 
202.28 	which at the date of purchase are rated in the highest or the next highest rating category by 
202.29 	Standard and Poor's Corporation, Moody's Investors Service, or a similar nationally 
202.30 	recognized rating agency, but not less than the rating on the refunded bonds immediately 
202.31 	prior to the refunding.
203.1 	"Rating category," as used in this subdivision, means a generic securities rating category, 
203.2 	without regard in the case of a long-term rating category to any refinement or gradation of 
203.3 	such long-term rating category by a numerical modifier or otherwise.

203.4 	Sec. 9. REPEALER.
 203.5 	Minnesota Statutes 2020, section 469.055, subdivision 7, is repealed.

203.6 	ARTICLE 12
203.7 	TAX EXPENDITURE REVIEW

203.8 	Section 1. Minnesota Statutes 2020, section 3.192, is amended to read:
203.9 	3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
203.10 	(a) Any bill that creates, renews, or continues a tax expenditure must include a statement 
203.11 	of intent that clearly provides the purpose of the tax expenditure and a standard or goal 
203.12 	against which its effectiveness may be measured.
203.13 	(b) For purposes of this section, "tax expenditure" has the meaning given in section 
203.14 	270C.11, subdivision 6.
203.15 	(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure 
203.16 	must include an expiration date for the tax expenditure that is no more than eight years from 
203.17 	the day the provision takes effect.

203.18 	EFFECTIVE DATE. This section is effective beginning with the 2022 legislative 
203.19 	session.

203.20 	Sec. 2. Minnesota Statutes 2020, section 3.8853, subdivision 2, is amended to read:
203.21 		Subd. 2.Director; staff. (a) The Legislative Budget Office Oversight Commission must 
203.22 	appoint a director and establish the director's duties. The director may hire staff necessary 
203.23 	to do the work of the office. The director serves in the unclassified service for a term of six 
203.24 	years and may not be removed during a term except for cause after a public hearing.
203.25 	(b) The director and staff hired under this section must provide professional and technical 
203.26 	assistance to the Tax Expenditure Review Commission under section 3.8855.

203.27 	Sec. 3. [3.8855] TAX EXPENDITURE REVIEW COMMISSION.
203.28 		Subdivision 1.Establishment. The Tax Expenditure Review Commission is created to 
203.29 	review Minnesota's tax expenditures and evaluate their effectiveness and fiscal impact.
204.1 		Subd. 2.Definitions. For the purposes of this section, "significant tax expenditure," 
204.2 	"tax," and "tax expenditure" have the meanings given in section 270C.11, subdivision 6.
204.3 		Subd. 3.Membership. (a) The commission consists of:
204.4 	(1) two senators appointed by the senate majority leader;
204.5 	(2) two senators appointed by the senate minority leader;
204.6 	(3) two representatives appointed by the speaker of the house;
204.7 	(4) two representatives appointed by the minority leader of the house of representatives; 
204.8 	and
204.9 	(5) the commissioner of revenue or the commissioner's designee.
204.10 	(b) Each appointing authority must make appointments by January 31 of the regular 
204.11 	legislative session in the odd-numbered year.
204.12 	(c) If the chair of the house or senate committee with primary jurisdiction over taxes is 
204.13 	not an appointed member, the chair is an ex officio, nonvoting member of the commission.
204.14 		Subd. 4.Duties. (a) In the first three years after the commission is established, the 
204.15 	commission must complete an initial review of the state's tax expenditures. The initial review 
204.16 	must identify the purpose of each of the state's tax expenditures, if none was identified in 
204.17 	the enacting legislation in accordance with section 3.192. The commission may also identify 
204.18 	metrics for evaluating the effectiveness of an expenditure.
204.19 	(b) In each year following the initial review under paragraph (a), the commission must 
204.20 	review and evaluate Minnesota's tax expenditures on a regular, rotating basis. The 
204.21 	commission must establish a review schedule that ensures each tax expenditure will be 
204.22 	reviewed by the commission at least once every ten years. The commission may review 
204.23 	expenditures affecting similar constituencies or policy areas in the same year, but the 
204.24 	commission must review a subset of the tax expenditures within each tax type each year. 
204.25 	To the extent possible, the commission must review a similar number of tax expenditures 
204.26 	within each tax type each year. The commission may decide not to review a tax expenditure 
204.27 	that is adopted by reference to federal law.
204.28 	(c) Before December 1 of the year a tax expenditure is included in a commission report, 
204.29 	the commission must hold a public hearing on the expenditure, including but not limited to 
204.30 	a presentation of the review components in subdivision 5.
204.31 		Subd. 5.Components of review. (a) When reviewing a tax expenditure, the commission 
204.32 	must at a minimum:
205.1 	(1) provide an estimate of the annual revenue lost as a result of the expenditure;
205.2 	(2) identify the purpose of the tax expenditure if none was identified in the enacting 
205.3 	legislation in accordance with section 3.192;
205.4 	(3) estimate the measurable impacts and efficiency of the tax expenditure in 
205.5 	accomplishing the purpose of the expenditure;
205.6 	(4) compare the effectiveness of the tax expenditure and a direct expenditure with the 
205.7 	same purpose;
205.8 	(5) identify potential modifications to the tax expenditure to increase its efficiency or 
205.9 	effectiveness;
205.10 	(6) estimate the amount by which the tax rate for the relevant tax could be reduced if 
205.11 	the revenue lost due to the tax expenditure were applied to a rate reduction;
205.12 	(7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the 
205.13 	tax expenditure and the effect of the expenditure on the incidence of the state's tax system;
205.14 	(8) consider the cumulative fiscal impacts of other state and federal taxes providing 
205.15 	benefits to taxpayers for similar activities; and
205.16 	(9) recommend whether the expenditure be continued, repealed, or modified.
205.17 	(b) The commission may omit a component in paragraph (a) if the commission determines 
205.18 	it is not feasible due to the lack of available data, third-party research, staff resources, or 
205.19 	lack of a majority support for a recommendation.
205.20 		Subd. 6.Department of Revenue; research support. (a) The research division of the 
205.21 	Department of Revenue must provide the commission with the data required to complete 
205.22 	the review components in subdivision 5, paragraph (a), clauses (1), (6), (7), and (8).
205.23 	(b) At the request of the commission, the research division of the Department of Revenue 
205.24 	must provide the commission with summary data on a tax expenditure in support of a review.
205.25 	(c) Data shared under this section must comply with the rules governing statistical studies 
205.26 	under section 270B.04.
205.27 		Subd. 7.Report to legislature. (a) By December 15 of each year, the commission must 
205.28 	submit a written report to the legislative committees with jurisdiction over tax policy. The 
205.29 	report must detail the results of the commission's review of tax expenditures in the previous 
205.30 	calendar year, including the review components detailed in subdivision 5.
206.1 	(b) Notwithstanding paragraph (a), during the period of initial review under subdivision 
206.2 	4, the report may be limited to the purpose statements and metrics for evaluating the 
206.3 	effectiveness of expenditures, as identified by the commission. The report may also include 
206.4 	relevant publicly available data on an expenditure.
206.5 	(c) The report may include any additional information the commission deems relevant 
206.6 	to the review of an expenditure.
206.7 	(d) The legislative committees with jurisdiction over tax policy must hold a public 
206.8 	hearing on the report during the regular legislative session in the year following the year in 
206.9 	which the report was submitted.
206.10 		Subd. 8.Terms; vacancies. (a) Members of the commission serve a term beginning 
206.11 	upon appointment and ending at the beginning of the regular legislative session in the next 
206.12 	odd-numbered year. The appropriate appointing authority must fill a vacancy for a seat of 
206.13 	a current legislator for the remainder of the unexpired term. Members may be removed or 
206.14 	replaced at the pleasure of the appointing authority.
206.15 	(b) If a commission member ceases to be a member of the legislative body from which 
206.16 	the member was appointed, the member vacates membership on the commission.
206.17 		Subd. 9.Officers. The commission shall elect a chair and vice-chair as presiding officers. 
206.18 	The chair and vice-chair must alternate every two years between members of the house of 
206.19 	representatives and senate. The chair and vice-chair may not be from the same legislative 
206.20 	chamber.
206.21 		Subd. 10.Staff. Legislative Budget Office staff hired under section 3.8853, subdivision 
206.22 	2, must provide professional and technical assistance to the commission as the commission 
206.23 	deems necessary, including assistance with the report under subdivision 7.
206.24 		Subd. 11.Expenses. The members of the commission and its staff shall be reimbursed 
206.25 	for all expenses actually and necessarily incurred in the performance of their duties. 
206.26 	Reimbursement for expenses incurred shall be made in accordance with policies adopted 
206.27 	by the Legislative Coordinating Commission.

206.28 	EFFECTIVE DATE; SPECIAL PROVISIONS. (a) This section is effective the day 
206.29 	following final enactment.
206.30 	(b) Appointing authorities for the commission must make initial appointments by January 
206.31 	15, 2022. The speaker of the house must designate one member of the commission to convene 
206.32 	the first meeting of the commission by July 1, 2022. The first report of the commission 
206.33 	under Minnesota Statutes, section 3.8855, subdivision 7, is due on December 15, 2022.

207.1 	Sec. 4. Minnesota Statutes 2020, section 270B.14, is amended by adding a subdivision to 
207.2 	read:
207.3 		Subd. 22.Tax Expenditure Review Commission. The commissioner must disclose to 
207.4 	the Tax Expenditure Review Commission the data required under section 3.8855, subdivision 
207.5 	6.

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

207.7 	Sec. 5. Minnesota Statutes 2020, section 270C.11, subdivision 2, is amended to read:
207.8 		Subd. 2.Preparation; submission. The commissioner shall prepare a tax expenditure 
207.9 	budget for the state. The tax expenditure budget report shall be submitted to the legislature 
207.10 	by February November 1 of each even-numbered year.

207.11 	EFFECTIVE DATE. This section is effective for tax expenditure budgets due on or 
207.12 	after November 1, 2023.

207.13 	Sec. 6. Minnesota Statutes 2020, section 270C.11, subdivision 4, is amended to read:
207.14 		Subd. 4.Contents. (a) The report shall detail for each tax expenditure item:
207.15 	(1) the amount of tax revenue forgone,;
207.16 	(2) a citation of the statutory or other legal authority for the expenditure, and;
207.17 	(3) the year in which it was enacted or the tax year in which it became effective.;
207.18 	(4) the purpose of the expenditure, as identified in the enacting legislation in accordance 
207.19 	with section 3.192 or by the Tax Expenditure Review Commission;
207.20 	(5) the incidence of the expenditure, if it is a significant sales or income tax expenditure; 
207.21 	and
207.22 	(6) the revenue-neutral amount by which the relevant tax rate could be reduced if the 
207.23 	expenditure were repealed.
207.24 	(b) The report may contain additional information which the commissioner considers 
207.25 	relevant to the legislature's consideration and review of individual tax expenditure items. 
207.26 	This may include, but is not limited to, statements of the intended purpose of the tax 
207.27 	expenditure, analysis of whether the expenditure is achieving that objective, and the effect 
207.28 	of the expenditure device on the distribution of the tax burden and administration of the tax 
207.29 	system.

208.1 	EFFECTIVE DATE. This section is effective for tax expenditure budgets due on or 
208.2 	after November 1, 2023.

208.3 	Sec. 7. Minnesota Statutes 2020, section 270C.11, subdivision 6, is amended to read:
208.4 		Subd. 6.Definitions. For purposes of this section, the following terms have the meanings 
208.5 	given:
208.6 	(1) "business tax credit" means:
208.7 	(i) a credit against the corporate franchise tax claimed by a C corporation; or
208.8 	(ii) a credit against the individual or fiduciary income tax claimed by a pass-through 
208.9 	entity that is allocated to its partners, members, or shareholders;
208.10 	(2) "pass-through entity" means a partnership, limited liability corporation, or S 
208.11 	corporation;
208.12 	(3) "significant tax expenditure" means a tax expenditure, but excluding any tax 
208.13 	expenditure that:
208.14 	(i) is incorporated into state law by reference to a federal definition of income;
208.15 	(ii) results in a revenue reduction of less than $10,000,000 per biennium; or
208.16 	(iii) is a business tax credit;
208.17 	(4) "tax expenditure" means a tax provision which provides a gross income definition, 
208.18 	deduction, exemption, credit, or rate for certain persons, types of income, transactions, or 
208.19 	property that results in reduced tax revenue, but excludes provisions used to mitigate tax 
208.20 	pyramiding; and
208.21 	(2) (5) "tax" means any tax of statewide application or any tax authorized by state law 
208.22 	to be levied by local governments generally. It does not include a special local tax levied 
208.23 	pursuant to special law or to a special local tax levied pursuant to general authority that is 
208.24 	no longer applicable to local governments generally.; and
208.25 	(6) "tax pyramiding" means imposing sales taxes under chapter 297A on intermediate 
208.26 	business-to-business transactions rather than sales to final consumers.

208.27 	EFFECTIVE DATE. This section is effective for tax expenditure budgets due on or 
208.28 	after November 1, 2023.

209.1 	Sec. 8. Minnesota Statutes 2020, section 270C.13, subdivision 1, is amended to read:
209.2 		Subdivision 1.Biennial report. (a) The commissioner shall report to the legislature by 
209.3 	March 1 of each odd-numbered year on the overall incidence of the income tax, sales and 
209.4 	excise taxes, and property tax.
209.5 	(b) The commissioner must submit the report:
209.6 	(1) by March 1, 2021; and
209.7 	(2) by March 1, 2024, and each even-numbered year thereafter.
209.8 	(c) The report shall present information on the distribution of the tax burden as follows: 
209.9 	(1) for the overall income distribution, using a systemwide incidence measure such as the 
209.10 	Suits index or other appropriate measures of equality and inequality; (2) by income classes, 
209.11 	including at a minimum deciles of the income distribution; and (3) by other appropriate 
209.12 	taxpayer characteristics.

209.13 	EFFECTIVE DATE. This section is effective for tax incidence reports due on or after 
209.14 	March 1, 2021.

209.15 	Sec. 9. STATEMENT OF INTENT; TAX EXPENDITURE PURPOSE 
209.16 	STATEMENTS.
 209.17 	The intent of sections 10 to 15 is to identify purpose statements for the tax expenditures 
209.18 	identified, in accordance with Minnesota Statutes, section 3.192. The purpose statements 
209.19 	in this act for previously enacted expenditures were included in proposed legislation, but 
209.20 	were omitted from the legislation that enacted the expenditures. The provisions of this act 
209.21 	are intended to provide context for evaluating the effectiveness of the tax expenditures 
209.22 	referenced and are not intended to have a substantive effect on the meaning or administration 
209.23 	of the laws referenced.

209.24 	Sec. 10. PURPOSE STATEMENTS; 2021 OMNIBUS TAX BILL.
 209.25 		Subdivision 1.Intent. In accordance with the requirements in Minnesota Statutes, section 
209.26 	3.192, the purpose and goals for the tax expenditures in this act are listed in this section.
209.27 		Subd. 2.Sales tax purpose statements. (a) The purpose of the exemption in article 4, 
209.28 	section 1, is to create parity between the purchase of season tickets in a preferred viewing 
209.29 	location for a college sporting event with the purchase of suite licenses in a stadium for an 
209.30 	amusement or athletic event. The standard against which effectiveness is to be measured is 
209.31 	the increase in the number of college sporting event season tickets purchased.
210.1 	(b) The purpose of the exemption in article 4, section 2, is to allow student groups to 
210.2 	make fund-raising sales without the requirement of collecting sales tax and to restore the 
210.3 	exemption that existed prior to a 2019 law change that imposed the requirement for student 
210.4 	groups to collect sales tax on fund-raising sales when the proceeds are deposited into a 
210.5 	school district account. The standard against which effectiveness is to be measured is the 
210.6 	amount of time school districts spent collecting and filing sales tax and to increase the 
210.7 	amount raised by school groups.
210.8 	(c) The purpose of the exemption in article 4, section 3, is to reduce the cost to nonprofit 
210.9 	organizations for providing prepared food through their charitable missions. The standard 
210.10 	against which effectiveness is to be measured is the number of meals nonprofit organizations 
210.11 	provided to those in need.
210.12 	(d) The purpose of the exemptions in article 4, sections 4, 5, and 11 to 19, is to reduce 
210.13 	the cost of constructions of public safety facilities and other publicly owned buildings. The 
210.14 	standard against which effectiveness is to be measured is the decrease in the growth in local 
210.15 	property taxes and services in these communities.
210.16 	(e) The purpose of the exemptions in article 4, sections 9, 10, and 20, is to encourage 
210.17 	rebuilding in the damaged area of each city. The standard against which effectiveness is to 
210.18 	be measured is whether these properties returned to the tax rolls at the same or greater value.
210.19 	(f) The purpose of the exemption in article 4, section 21, is to reduce the cost to 
210.20 	restaurants for purchasing items that adapt the building to health guidelines surrounding 
210.21 	COVID-19. The standard against which effectiveness is to be measured is the profitability 
210.22 	of restaurants affected by the peacetime health emergency.
210.23 		Subd. 3.Income and corporate franchise tax purpose statements. (a) The purpose 
210.24 	of the tax expenditure in article 2, sections 2 and 3, extending the sunset date for the small 
210.25 	business investment credit is to encourage investment in innovative small businesses in 
210.26 	Minnesota. The standard against which effectiveness is to be measured is the increase in 
210.27 	the number of these businesses in the state, the number of people employed by these 
210.28 	businesses in the state, the productivity of these businesses, or the sales of these businesses.
210.29 	(b) The purpose of the tax expenditure in article 2, sections 5, 21, and 40, establishing 
210.30 	the film production credit is to encourage investment in Minnesota film productions. The 
210.31 	standard against which effectiveness is to be measured is the increase in the number of these 
210.32 	productions and people employed in the state's film industry.
210.33 	(c) The purpose of the tax expenditure in article 2, section 27, extending the sunset date 
210.34 	for the credit for historic structure rehabilitation is to encourage investment in rehabilitating 
211.1 	historic buildings. The standard against which effectiveness is to be measured is the increase 
211.2 	in the number of historic rehabilitation projects in the state.
211.3 	(d) The purpose of the tax expenditures in article 1, sections 1, 2, 3, 13, and 14, 
211.4 	conforming Minnesota individual income, corporate franchise, and estate taxes to changes 
211.5 	in federal law through December 31, 2020, is to simplify compliance with and administration 
211.6 	of those taxes. The standard against which effectiveness is to be measured is the reduction 
211.7 	in the number of income tax forms and text in the instructions for taxpayers resulting from 
211.8 	this provision.
211.9 	(e) The purpose of the tax expenditure in article 1, section 17, providing a subtraction 
211.10 	for a portion of unemployment compensation is to provide financial support to unemployed 
211.11 	persons and to encourage economic activity in the state. The standard against which 
211.12 	effectiveness is to be measured is the increase in after-tax income of unemployed persons 
211.13 	and gross state product.
211.14 	(f) The purpose of the tax expenditure in article 1, section 15, subdivisions 2 and 3, 
211.15 	providing a subtraction for gross income related to the federal employer credits for paid 
211.16 	family and medical leave is to provide financial support to businesses in Minnesota. The 
211.17 	standard against which effectiveness is to be measured is the amount of tax paid by small 
211.18 	businesses receiving the federal credits and the number of individuals employed by businesses 
211.19 	receiving the federal credits.
211.20 	(g) The purpose of the tax expenditure in article 1, section 15, subdivisions 4 and 5, 
211.21 	providing a subtraction for wages used to claim the federal employee retention credit is to 
211.22 	encourage businesses to retain their employees. The standard against which effectiveness 
211.23 	is to be measured is the employment rate in Minnesota and the number of individuals 
211.24 	employed by businesses receiving the federal credits.
211.25 		Subd. 4.Property tax purpose statements. (a) The provision in article 7, section 3, 
211.26 	creating a property tax exemption for certain property owned by an Indian Tribe is intended 
211.27 	to reduce the tax burden on Tribe-owned property that fails to qualify for an exemption 
211.28 	under Minnesota Statutes, section 272.02, subdivision 7, because the Tribe is not exempt 
211.29 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code. The 
211.30 	standard against which effectiveness is to be measured is the reduction in property tax levied 
211.31 	on Tribe-owned property.
211.32 	(b) The provision in article 7, section 16, which sets the classification rate of all 
211.33 	manufactured home park property at 0.75 percent is intended to reduce the tax burden on 
211.34 	manufactured home parks and preserve manufactured home parks as an affordable housing 
212.1 	option in Minnesota. The standard against which effectiveness is to be measured is the 
212.2 	reduction in property tax burden on manufactured home parks and the number of 
212.3 	manufactured home parks in Minnesota.

212.4 	Sec. 11. PURPOSE STATEMENTS; 2019 OMNIBUS TAX BILL.
 212.5 		Subdivision 1.Source of purpose statements. The purpose statements in this section 
212.6 	were originally included in the 2019 bill styled as House File 2125, the third engrossment, 
212.7 	in the 91st Legislature. The tax expenditures referenced were enacted in Laws 2019, First 
212.8 	Special Session chapter 6.
212.9 		Subd. 2.Sales tax purpose statements. (a) The purpose of the exemption in Minnesota 
212.10 	Statutes, section 297A.67, subdivision 37, is to level the playing field for costs between 
212.11 	local governments and private entities of managing invasive species in lakes. The goal is 
212.12 	an increase in the number of lakes where invasive species are being controlled.
212.13 	(b) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision 
212.14 	10, paragraph (c), is to reduce the cost of providing education on the state's farming history. 
212.15 	The goal is to decrease the public cost of access to this facility.
212.16 	(c) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision 
212.17 	20, is to decrease maintenance costs for the ice arena. The goal is to increase local recreation 
212.18 	opportunities and reduce local participation costs.
212.19 	(d) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision 
212.20 	21, is to help county agricultural societies maintain county fairgrounds. The goal is to 
212.21 	increase spending on fairground maintenance and capital improvements.
212.22 	(e) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision 
212.23 	50, is to encourage rebuilding in the damaged area of each city. The goal is to have these 
212.24 	properties returned to the tax rolls at the same or greater value.
212.25 	(f) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision 
212.26 	51, is to encourage rebuilding in the damaged area of each city. The goal is to have these 
212.27 	properties returned to the tax rolls at the same or greater value.
212.28 	(g) The purpose of the exemption in Minnesota Statutes, section 297A.71, subdivision 
212.29 	52, is to reduce the cost of providing local public services in these communities. The goal 
212.30 	is to decrease the growth in local property taxes and service fees in these communities.
212.31 		Subd. 3.Income and corporate franchise tax purpose statements. (a) The purpose 
212.32 	and goal of the tax expenditure under Minnesota Statutes, sections 290.0132, subdivision 
213.1 	29; 290.0134, subdivision 18; 290.0921, subdivisions 2 and 3; relating to disallowed expenses 
213.2 	under section 280E of the Internal Revenue Code, is to provide equitable state tax treatment 
213.3 	between medical cannabis manufacturers that are not allowed to deduct their business 
213.4 	expenses under the Internal Revenue Code and manufacturers of other goods who may 
213.5 	deduct these expenses.
213.6 	(b) The purpose of the tax expenditures under Minnesota Statutes, section 116J.8737, 
213.7 	subdivision 1, relating to the minimum qualified investment threshold for minority-, veteran-, 
213.8 	or women-owned businesses; subdivision 5, relating to the $10,000,000 allocation for taxable 
213.9 	years beginning after December 31, 2018, and before January 1, 2020, and beginning after 
213.10 	December 31, 2020, and before January 1, 2022; and subdivision 12, relating to the extension 
213.11 	of the sunset date; is to encourage investment in innovative small businesses in Minnesota 
213.12 	and the goal of the these expenditures is to increase the number of these businesses in the 
213.13 	state, the number of people employed by these businesses in the state, the productivity of 
213.14 	these businesses, or the sales of these businesses.

213.15 	Sec. 12. PURPOSE STATEMENTS; 2017 OMNIBUS TAX BILL.
 213.16 		Subdivision 1.Source of purpose statements. The purpose statements in this section 
213.17 	were originally included in the 2015 bill styled as House File 848, the third engrossment, 
213.18 	in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2017, First 
213.19 	Special Session chapter 1.
213.20 		Subd. 2.Sales tax purpose statements. (a) The provision of Minnesota Statutes, section 
213.21 	297A.67, subdivision 34, is intended to provide equitable tax treatment for different types 
213.22 	of investments. The standard against which effectiveness is to be measured is the increase 
213.23 	in precious metal bullion sold in the state and in number of coin and precious metal trade 
213.24 	shows held in the state.
213.25 	(b) The provisions of Minnesota Statutes, section 297A.70, subdivision 14, are intended 
213.26 	to increase the ability of the nonprofit to provide opportunities for educating the public on 
213.27 	the history of farming. The standard against which effectiveness is to be measured is an 
213.28 	increase in the percent of the organization's budget being used for direct spending for its 
213.29 	mission.
213.30 		Subd. 3.Income and corporate franchise tax purpose statements. (a) The provisions 
213.31 	of Minnesota Statutes, section 290.0132, subdivision 26, are intended to attract to Minnesota 
213.32 	recipients of Social Security benefits and to retain those already present, by providing a 
213.33 	phased-in subtraction of Social Security benefits. The standard against which effectiveness 
214.1 	is to be measured is the change over time in the number of Social Security recipients in 
214.2 	Minnesota, after adjusting for demographic changes.
214.3 	(b) The provisions of Minnesota Statutes, section 290.0132, subdivision 23, and 
214.4 	Minnesota Statutes, section 290.0684, are intended to increase saving for higher education 
214.5 	expenses. The standard against which effectiveness is to be measured is the change over 
214.6 	time, as tracked by the Minnesota Office of Higher Education, in: (1) the estimated number 
214.7 	of Minnesota residents making contributions to the Minnesota College Savings Plan, and 
214.8 	(2) the amount contributed.
214.9 	(c) The modifications to Minnesota Dependent Care Credit amending Minnesota Statutes, 
214.10 	section 290.067, subdivision 1, and repealing Minnesota Statutes, section 290.067, 
214.11 	subdivision 2, modifying the limitations for claiming the credit, are intended to simplify 
214.12 	the dependent care credit by tying it more closely to the federal credit and to recognize an 
214.13 	increased burden in dependent care expenses as a cost of workforce participation for parents. 
214.14 	The standard against which effectiveness is to be measured is the change in the error rate 
214.15 	on claims for dependent care credits and the change in the average credit amount claimed 
214.16 	by parents in the income range eligible for the credit under present law.
214.17 	(d) The provisions of Minnesota Statutes, section 290.0686, are intended to improve the 
214.18 	quality of teaching in Minnesota kindergarten through grade 12 schools by encouraging 
214.19 	teachers to obtain master's degrees in the subject areas they teach. The standard against 
214.20 	which effectiveness is to be measured is the change over time in the number of kindergarten 
214.21 	through grade 12 classroom teachers with master's degrees in the subject area that they 
214.22 	teach.
214.23 	(e) The provisions of Minnesota Statutes, section 290.0682, are intended to reduce the 
214.24 	debt burden of recent graduates of higher education programs and to reduce and potentially 
214.25 	reverse the current net demographic loss of young adults in Minnesota. The standard against 
214.26 	which effectiveness is to be measured is the change over time in the number of young adults 
214.27 	choosing to move to or remain in Minnesota, as measured by the state demographer.
214.28 	(f) The purpose of the tax expenditures under Minnesota Statutes, sections 290.01, 
214.29 	subdivision 19; 289A.02, subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision 
214.30 	15; conforming Minnesota individual income, corporate franchise, and estate taxes to changes 
214.31 	in federal law through December 16, 2016, are intended to simplify compliance with and 
214.32 	administration of those taxes. The standard against which effectiveness is to be measured 
214.33 	is the reduction in the number of income tax forms and text in the instructions for taxpayers 
214.34 	resulting from this provision.
215.1 		Subd. 4.Other purpose statements. (a ) The provisions in Minnesota Statutes, section 
215.2 	290.06, subdivision 38, are intended to reduce the effect of school bond referenda on owners 
215.3 	of agricultural property. The standard against which the effectiveness of the credit is to be 
215.4 	measured is the amount of property tax reductions provided to owners of agricultural land.
215.5 	(b) The provisions in Minnesota Statutes, section 298.24, subdivision 1, are intended to 
215.6 	encourage the production of direct reduced ore and the establishment of more direct reduced 
215.7 	ore production facilities in Minnesota. The standard against which this effectiveness is to 
215.8 	be measured is the amount of direct reduced ore produced and the number of producers of 
215.9 	direct reduced ore before and after enactment.

215.10 	Sec. 13. PURPOSE STATEMENTS; 2017 TAX CONFORMITY BILL.
 215.11 		Subdivision 1.Source of purpose statements. The purpose statements in this section 
215.12 	were originally included in the 2015 bill styled as House File 848, the third engrossment, 
215.13 	in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2017, chapter 
215.14 	1.
215.15 		Subd. 2.Income and corporate franchise tax purpose statements. The purpose of 
215.16 	the tax expenditures under Minnesota Statutes, sections 290.01, subdivision 19; 289A.02, 
215.17 	subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision 15; conforming Minnesota 
215.18 	individual income, corporate franchise, and estate taxes to changes in federal law through 
215.19 	December 16, 2016, are intended to simplify compliance with and administration of those 
215.20 	taxes. The standard against which effectiveness is to be measured is the reduction in the 
215.21 	number of income tax forms and text in the instructions for taxpayers resulting from this 
215.22 	provision.

215.23 	Sec. 14. PURPOSE STATEMENTS; 2016 OMNIBUS SUPPLEMENTAL SPENDING 
215.24 	BILL.
 215.25 		Subdivision 1.Source of purpose statements. The purpose statements in this section 
215.26 	were originally included in the 2015 bill styled as House File 848, the third engrossment, 
215.27 	in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2016, chapter 
215.28 	189.
215.29 		Subd. 2.Income and corporate franchise tax purpose statements. The provisions of 
215.30 	Minnesota Statutes, section 290.0132, subdivision 21, are intended to attract to Minnesota 
215.31 	military retirees, and to retain those already present, by allowing a subtraction from income 
215.32 	tied to the number of years of military service provided. The standard against which 
216.1 	effectiveness is to be measured is the change over time in the number of military retirees 
216.2 	in Minnesota.

216.3 	Sec. 15. PURPOSE STATEMENTS; 2014 OMNIBUS TAX BILL.
 216.4 		Subdivision 1.Source of purpose statements. The purpose statements in this section 
216.5 	were originally included in the 2014 bill styled as House File 3167, the third engrossment, 
216.6 	in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2014, chapter 
216.7 	308.
216.8 		Subd. 2.Sales tax purpose statements. (a) The provision of Minnesota Statutes, section 
216.9 	297A.68, subdivision 3a, defining certain coin-operated amusement devices as sales for 
216.10 	resale is intended to reduce tax pyramiding by exempting an input to a taxable service.
216.11 	(b) The provision of Minnesota Statutes, section 297A.70, subdivision 2, paragraph (b), 
216.12 	clause (5), modifying the sales tax on certain local government purchases is intended to 
216.13 	reduce the cost of providing local government services, remove a barrier for 
216.14 	intergovernmental cooperation, and reduce existing compliance and administration costs 
216.15 	for local governments.
216.16 	(c) The provisions of Minnesota Statutes, section 297A.70, subdivision 13, raising the 
216.17 	limit on tax exempt fund-raising by nonprofit organizations are intended to reflect the impact 
216.18 	on inflation over time on the limit and reduce compliance costs for groups that exceed the 
216.19 	limit.
216.20 	(d) The provision of Minnesota Statutes, section 297G.03, subdivision 5, allowing a 
216.21 	microdistillery credit is to relieve small distillers of the burden of paying excise tax on the 
216.22 	distribution of free samples of their products and to encourage the development and marketing 
216.23 	of products by niche distillers in the state.
216.24 		Subd. 3.Income and corporate franchise tax purpose statements. The modifications 
216.25 	to the National Guard subtraction contained in Laws 2014, chapter 308, article 4, section 
216.26 	12, are intended to provide equitable tax treatment to Minnesota residents who are members 
216.27 	of the National Guard and serve full time in Active Guard/Reserve status by allowing an 
216.28 	income tax subtraction for military pay equivalent to that allowed under Minnesota Statutes 
216.29 	2014, section 290.01, subdivision 19b, clause (11), now codified as Minnesota Statutes, 
216.30 	section 290.0132, subdivision 11, for Minnesota residents who serve full time in the armed 
216.31 	forces of the United States.
216.32 		Subd. 4.Other purpose statements. The purpose of the tax expenditure under Minnesota 
216.33 	Statutes, section 291.005, subdivision 1, clause (8), subclause (iii), deeming certain qualified 
217.1 	art on loan to Minnesota nonprofit entities as property with a situs outside Minnesota under 
217.2 	the estate tax is intended to prevent the Minnesota estate tax from discouraging nonresident 
217.3 	owners of art from loaning it to Minnesota nonprofit museums.

217.4 	Sec. 16. APPROPRIATION; TAX EXPENDITURE REVIEW.
 217.5 	(a) $36,000 in fiscal year 2022 and $766,000 in fiscal year 2023 are appropriated from 
217.6 	the general fund to the Legislative Coordinating Commission for the Tax Expenditure 
217.7 	Review Commission under Minnesota Statutes, section 3.8855. The base for this 
217.8 	appropriation is $745,000 in fiscal year 2024 and $796,000 in fiscal year 2025.
217.9 	(b) $148,000 in fiscal year 2023 is appropriated from the general fund to the commissioner 
217.10 	of revenue to provide research support to the Tax Expenditure Review Commission under 
217.11 	Minnesota Statutes, section 3.8855.

217.12 	ARTICLE 13
217.13 	MISCELLANEOUS TAX PROVISIONS

217.14 	Section 1. [16A.067] TAXPAYER RECEIPT.
217.15 	(a) The commissioner, in consultation with the commissioner of revenue, must develop 
217.16 	and publish on the Department of Management and Budget's website an interactive taxpayer 
217.17 	receipt in accordance with this section. The receipt must describe the share of state general 
217.18 	fund expenditures represented by major expenditure categories in the most recent fiscal 
217.19 	year for which data is available. The receipt must show the approximate allocation of motor 
217.20 	vehicle fuel taxes among eligible transportation purposes.
217.21 	(b) For each expenditure category, the receipt must include select data on the performance 
217.22 	goals and outcomes for the category, based on the goals and outcomes data required under 
217.23 	section 16A.10, subdivision 1b.
217.24 	(c) The website must allow a user to input an income amount, and must estimate the 
217.25 	amount of major state taxes paid by the user. The website must allocate the user's estimated 
217.26 	state tax liability to each major expenditure category based on the category's percentage 
217.27 	share of total state general fund spending. For the purposes of this section, "major state 
217.28 	taxes" means income, sales, alcohol, tobacco, and motor vehicle fuels taxes.
217.29 	(d) Using the income amount entered by the user, the website must estimate the amount 
217.30 	of income and direct sales taxes paid based upon the taxpayer's income. The website must 
217.31 	allow a user to indicate whether the user used tobacco, consumed alcohol, or purchased 
218.1 	motor vehicle fuel in the previous year, and provide a corresponding estimate of the cigarette, 
218.2 	alcohol, and motor vehicle fuel taxes paid by the user.
218.3 	(e) The commissioner, in consultation with the commissioner of revenue, must update 
218.4 	the receipt by December 31 of each year, and must annually promote to the public the 
218.5 	availability of the website.

218.6 	Sec. 2. Minnesota Statutes 2020, section 16A.152, subdivision 2, is amended to read:
218.7 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
218.8 	revenues and expenditures, the commissioner of management and budget determines that 
218.9 	there will be a positive unrestricted budgetary general fund balance at the close of the 
218.10 	biennium, the commissioner of management and budget must allocate money to the following 
218.11 	accounts and purposes in priority order:
218.12 	(1) the cash flow account established in subdivision 1 until that account reaches 
218.13 	$350,000,000;
218.14 	(2) the budget reserve account established in subdivision 1a until that account reaches 
218.15 	$1,596,522,000;
218.16 	(3) the amount necessary to increase the aid payment schedule for school district aids 
218.17 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
218.18 	tenth of a percent without exceeding the amount available and with any remaining funds 
218.19 	deposited in the budget reserve;
218.20 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
218.21 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
218.22 	subdivision 5, by the same amount;
218.23 	(5) the clean water fund established in section 114D.50 until $22,000,000 has been 
218.24 	transferred into the fund; and
218.25 	(6) (5) the amount necessary to increase the Minnesota 21st century fund by not more 
218.26 	than the difference between $5,000,000 and the sum of the amounts credited and canceled 
218.27 	to it in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the 
218.28 	sum of all transfers under this section and all amounts credited or canceled under Laws 
218.29 	2020, chapter 71, article 1, section 11, equals $20,000,000.; and
218.30 	(6) for a forecast in November only, the amount necessary to reduce the percentage of 
218.31 	accelerated June liability tax payments required under sections 289A.20, subdivision 4, 
218.32 	paragraph (b); 297F.09, subdivision 10; and 297G.09, subdivision 9, until the percentage 
219.1 	equals zero, rounded to the nearest tenth of a percent with any remaining funds deposited 
219.2 	in the budget reserve.By March 15 following the November forecast, the commissioner 
219.3 	must provide the commissioner of revenue with the percentage of accelerated June liability 
219.4 	owed based on the reduction required by this clause. By April 15 each year, the commissioner 
219.5 	of revenue must certify that percentage to qualifying vendors and distributors.
219.6 	(b) The amounts necessary to meet the requirements of this section are appropriated 
219.7 	from the general fund within two weeks after the forecast is released or, in the case of 
219.8 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
219.9 	schedules otherwise established in statute.
219.10 	(c) The commissioner of management and budget shall certify the total dollar amount 
219.11 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
219.12 	The commissioner of education shall increase the aid payment percentage and reduce the 
219.13 	property tax shift percentage by these amounts and apply those reductions to the current 
219.14 	fiscal year and thereafter.
219.15 	(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been 
219.16 	made.

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

219.18 	Sec. 3. Minnesota Statutes 2020, section 270A.03, subdivision 2, is amended to read:
219.19 		Subd. 2.Claimant agency. "Claimant agency" means any state agency, as defined by 
219.20 	section 14.02, subdivision 2, the regents of the University of Minnesota, any district court 
219.21 	of the state, any county, any statutory or home rule charter city, including a city that is 
219.22 	presenting a claim for a municipal hospital or a public library or a municipal ambulance 
219.23 	service, a hospital district, a private nonprofit hospital that leases its building from the county 
219.24 	or city in which it is located, any ambulance service licensed under chapter 144E, any public 
219.25 	agency responsible for child support enforcement, any public agency responsible for the 
219.26 	collection of court-ordered restitution, and any public agency established by general or 
219.27 	special law that is responsible for the administration of a low-income housing program.

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

219.29 	Sec. 4. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to 
219.30 	read:
219.31 		Subd. 18.Taxpayer receipt. (a) The commissioner must offer all individual income 
219.32 	taxpayers the opportunity to elect to receive information about a taxpayer receipt via e-mail 
220.1 	or United States mail. In the manner selected by the taxpayer, the commissioner must provide 
220.2 	the taxpayer with information about how to access the taxpayer receipt website established 
220.3 	under section 16A.067. The commissioner must allow a taxpayer to elect not to receive 
220.4 	information about the receipt.
220.5 	(b) Both the long and short forms described in subdivision 13 must include the 
220.6 	opportunity to elect to receive information about the receipt.

220.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
220.8 	31, 2020.

220.9 	Sec. 5. Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:
220.10 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
220.11 	to the commissioner monthly on or before the 20th day of the month following the month 
220.12 	in which the taxable event occurred, or following another reporting period as the 
220.13 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
220.14 	or (g), except that use taxes due on an annual use tax return as provided under section 
220.15 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
220.16 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30 
220.17 	must remit the June liability for the next year in the following manner:
220.18 	(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must 
220.19 	remit 87.5 percent of the estimated June liability to the commissioner. Two business days 
220.20 	before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or 
220.21 	a reduced percentage as certified by the commissioner under section 16A.152, subdivision 
220.22 	2, paragraph (a), clause (6), of the estimated June liability to the commissioner.
220.23 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
220.24 	tax not remitted in June.
220.25 	(c) A vendor having a liability of:
220.26 	(1) $10,000 or more, but less than $250,000, during a fiscal year ending June 30, 2013, 
220.27 	and fiscal years thereafter, must remit by electronic means all liabilities on returns due for 
220.28 	periods beginning in all subsequent calendar years on or before the 20th day of the month 
220.29 	following the month in which the taxable event occurred, or on or before the 20th day of 
220.30 	the month following the month in which the sale is reported under section 289A.18, 
220.31 	subdivision 4; or
221.1 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
221.2 	thereafter, must remit by electronic means all liabilities in the manner provided in paragraph 
221.3 	(a) on returns due for periods beginning in the subsequent calendar year, except for 90 
221.4 	percent of the estimated June liability, which is due two business days before June 30. The 
221.5 	remaining amount of the June liability is due on August 20.
221.6 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
221.7 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
221.8 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
221.9 	form prescribed by the commissioner. No extra fee may be charged to a person making 
221.10 	payment by mail under this paragraph. The payment must be postmarked at least two business 
221.11 	days before the due date for making the payment in order to be considered paid on a timely 
221.12 	basis.
221.13 	(e) Paragraph (b) expires after the percentage of estimated payment is reduced to zero 
221.14 	in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).

221.15 	EFFECTIVE DATE. This section is effective for estimate payments required to be 
221.16 	made after July 1, 2021.

221.17 	Sec. 6. Minnesota Statutes 2020, section 289A.60, subdivision 15, is amended to read:
221.18 		Subd. 15.Accelerated payment of June sales tax liability; penalty for 
221.19 	underpayment. (a) For payments made after December 31, 2019 and before December 31, 
221.20 	2021, if a vendor is required by law to submit an estimation of June sales tax liabilities and 
221.21 	87.5 percent payment by a certain date, the vendor shall pay a penalty equal to ten percent 
221.22 	of the amount of actual June liability required to be paid in June less the amount remitted 
221.23 	in June. The penalty must not be imposed, however, if the amount remitted in June equals 
221.24 	the lesser of 87.5 percent of the preceding May's liability or 87.5 percent of the average 
221.25 	monthly liability for the previous calendar year.
221.26 	(b) For payments made after December 31, 2021, the penalty must not be imposed if 
221.27 	the amount remitted in June equals the lesser of 84.5 percent, or a reduced percentage as 
221.28 	certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause 
221.29 	(6), of the preceding May's liability or 84.5 percent of the average monthly liability for the 
221.30 	previous calendar year.
221.31 	(c) This subdivision expires after the percentage of estimated payment is reduced to zero 
221.32 	in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).

222.1 	EFFECTIVE DATE. This section is effective for estimate payments required to be 
222.2 	made after July 1, 2021.

222.3 	Sec. 7. Minnesota Statutes 2020, section 290A.04, subdivision 2, is amended to read:
222.4 		Subd. 2.Homeowners; homestead credit refund. A claimant whose property taxes 
222.5 	payable are in excess of the percentage of the household income stated below shall pay an 
222.6 	amount equal to the percent of income shown for the appropriate household income level 
222.7 	along with the percent to be paid by the claimant of the remaining amount of property taxes 
222.8 	payable. The state refund equals the amount of property taxes payable that remain, up to 
222.9 	the state refund amount shown below.

222.12222.11
222.10
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
222.13	$0 to 1,739
	1.0 percent
	15 percent
	$
	2,770
	
222.14	1,740 to 3,459
	1.1 percent
	15 percent
	$
	2,770
	
222.15	3,460 to 5,239
	1.2 percent
	15 percent
	$
	2,770
	
222.16	5,240 to 6,989
	1.3 percent
	20 percent
	$
	2,770
	
222.17	6,990 to 8,719
	1.4 percent
	20 percent
	$
	2,770
	
222.18	8,720 to 12,219
	1.5 percent
	20 percent
	$
	2,770
	
222.19	12,220 to 13,949
	1.6 percent
	20 percent
	$
	2,770
	
222.20	13,950 to 15,709
	1.7 percent
	20 percent
	$
	2,770
	
222.21	15,710 to 17,449
	1.8 percent
	20 percent
	$
	2,770
	
222.22	17,450 to 19,179
	1.9 percent
	25 percent
	$
	2,770
	
222.23	19,180 to 24,429
	2.0 percent
	25 percent
	$
	2,770
	
222.24	24,430 to 26,169
	2.0 percent
	30 percent
	$
	2,770
	
222.25	26,170 to 29,669
	2.0 percent
	30 percent
	$
	2,770
	
222.26	29,670 to 41,859
	2.0 percent
	35 percent
	$
	2,770
	
222.27	41,860 to 61,049
	2.0 percent
	35 percent
	$
	2,240
	
222.28	61,050 to 69,769
	2.0 percent
	40 percent
	$
	1,960
	
222.29	69,770 to 78,499
	2.1 percent
	40 percent
	$
	1,620
	
222.30	78,500 to 87,219
	2.2 percent
	40 percent
	$
	1,450
	
222.31	87,220 to 95,939
	2.3 percent
	40 percent
	$
	1,270
	
222.32	95,940 to 101,179
	2.4 percent
	45 percent
	$
	1,070
	
222.33	101,180 to 104,689
	2.5 percent
	45 percent
	$
	890
	
222.34	104,690 to 108,919
	2.5 percent
	50 percent
	$
	730
	
222.35	108,920 to 113,149
	2.5 percent
	50 percent
	$
	540

223.3223.2
223.1
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
223.4	$0 to 1,820
	1.0 percent
	15 percent
	$
	3,150
	
223.5	1,820 to 3,630
	1.1 percent
	15 percent
	$
	3,150
	
223.6	3,630 to 5,490
	1.2 percent
	15 percent
	$
	3,150
	
223.7	5,490 to 7,330
	1.3 percent
	20 percent
	$
	3,150
	
223.8	7,330 to 9,140
	1.4 percent
	20 percent
	$
	3,150
	
223.9	9,140 to 12,810
	1.5 percent
	20 percent
	$
	3,150
	
223.10	12,810 to 14,630
	1.6 percent
	20 percent
	$
	3,150
	
223.11	14,630 to 16,470
	1.7 percent
	20 percent
	$
	3,150
	
223.12	16,470 to 18,300
	1.8 percent
	20 percent
	$
	3,150
	
223.13	18,300 to 20,110
	1.9 percent
	25 percent
	$
	3,150
	
223.14	20,110 to 25,620
	2.0 percent
	25 percent
	$
	3,150
	
223.15	25,620 to 27,440
	2.0 percent
	30 percent
	$
	3,150
	
223.16	27,440 to 31,110
	2.0 percent
	30 percent
	$
	3,150
	
223.17	31,110 to 43,890
	2.0 percent
	35 percent
	$
	3,150
	
223.18	43,890 to 64,020
	2.0 percent
	35 percent
	$
	2,600
	
223.19	64,020 to 73,160
	2.0 percent
	40 percent
	$
	2,310
	
223.20	73,160 to 82,320
	2.1 percent
	40 percent
	$
	1,950
	
223.21	82,320 to 91,460
	2.2 percent
	40 percent
	$
	1,770
	
223.22	91,460 to 100,600
	2.3 percent
	40 percent
	$
	1,580
	
223.23	100,600 to 106,100
	2.4 percent
	45 percent
	$
	1,320
	
223.24	106,100 to 109,780
	2.5 percent
	45 percent
	$
	1,080
	
223.25	109,780 to 114,210
	2.5 percent
	50 percent
	$
	870
	
223.26	114,210 to 118,650
	2.5 percent
	50 percent
	$
	620
	
223.27 	The payment made to a claimant shall be the amount of the state refund calculated under 
223.28 	this subdivision. No payment is allowed if the claimant's household income is $113,150
223.29 	$118,650 or more.

223.30 	EFFECTIVE DATE. This section is effective for refunds based on property taxes 
223.31 	payable after December 31, 2021.

223.32 	Sec. 8. Minnesota Statutes 2020, section 290A.04, subdivision 2a, is amended to read:
223.33 		Subd. 2a.Renters. A claimant whose rent constituting property taxes exceeds the 
223.34 	percentage of the household income stated below must pay an amount equal to the percent 
223.35 	of income shown for the appropriate household income level along with the percent to be 
223.36 	paid by the claimant of the remaining amount of rent constituting property taxes. The state 
224.1 	refund equals the amount of rent constituting property taxes that remain, up to the maximum 
224.2 	state refund amount shown below.

224.5224.4
224.3
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
224.6	$0 to 5,269
	1.0 percent
	5 percent
	$
	2,150
	
224.7	5,270 to 6,999
	1.0 percent
	10 percent
	$
	2,150
	
224.8	7,000 to 8,749
	1.1 percent
	10 percent
	$
	2,090
	
224.9	8,750 to 12,269
	1.2 percent
	10 percent
	$
	2,040
	
224.10	12,270 to 15,779
	1.3 percent
	15 percent
	$
	1,980
	
224.11	15,780 to 17,519
	1.4 percent
	15 percent
	$
	1,930
	
224.12	17,520 to 19,259
	1.4 percent
	20 percent
	$
	1,880
	
224.13	19,260 to 22,779
	1.5 percent
	20 percent
	$
	1,820
	
224.14	22,780 to 24,529
	1.6 percent
	20 percent
	$
	1,770
	
224.15	24,530 to 26,279
	1.7 percent
	25 percent
	$
	1,770
	
224.16	26,280 to 29,789
	1.8 percent
	25 percent
	$
	1,770
	
224.17	29,790 to 31,529
	1.9 percent
	30 percent
	$
	1,770
	
224.18	31,530 to 36,789
	2.0 percent
	30 percent
	$
	1,770
	
224.19	36,790 to 42,039
	2.0 percent
	35 percent
	$
	1,770
	
224.20	42,040 to 49,059
	2.0 percent
	40 percent
	$
	1,770
	
224.21	49,060 to 50,799
	2.0 percent
	45 percent
	$
	1,610
	
224.22	50,800 to 52,559
	2.0 percent
	45 percent
	$
	1,450
	
224.23	52,560 to 54,319
	2.0 percent
	45 percent
	$
	1,230
	
224.24	54,320 to 56,059
	2.0 percent
	50 percent
	$
	1,070
	
224.25	56,060 to 57,819
	2.0 percent
	50 percent
	$
	970
	
224.26	57,820 to 59,569
	2.0 percent
	50 percent
	$
	540
	
224.27	59,570 to 61,319
	2.0 percent
	50 percent
	$
	210

224.30224.29
224.28
	Household Income
	Percent of Income
	Percent Paid by
Claimant
	Maximum 
State
Refund
	
224.31	$0 to 5,530
	1.0 percent
	5 percent
	$
	2,250
	
224.32	5,530 to 7,340
	1.0 percent
	5 percent
	$
	2,250
	
224.33	7,340 to 9,180
	1.1 percent
	5 percent
	$
	2,190
	
224.34	9,180 to 12,870
	1.2 percent
	5 percent
	$
	2,140
	
224.35	12,870 to 16,550
	1.3 percent
	10 percent
	$
	2,080
	
224.36	16,550 to 18,370
	1.4 percent
	10 percent
	$
	2,020
	
224.37	18,370 to 20,200
	1.4 percent
	15 percent
	$
	1,970
	
224.38	20,200 to 23,890
	1.5 percent
	15 percent
	$
	1,910
	
225.1	23,890 to 25,720
	1.6 percent
	15 percent
	$
	1,860
	
225.2	25,720 to 27,560
	1.7 percent
	20 percent
	$
	1,860
	
225.3	27,560 to 31,240
	1.8 percent
	20 percent
	$
	1,860
	
225.4	31,240 to 33,060
	1.9 percent
	25 percent
	$
	1,860
	
225.5	33,060 to 38,580
	2.0 percent
	25 percent
	$
	1,860
	
225.6	38,580 to 44,080
	2.0 percent
	30 percent
	$
	1,860
	
225.7	44,080 to 51,440
	2.0 percent
	30 percent
	$
	1,860
	
225.8	51,440 to 53,270
	2.0 percent
	30 percent
	$
	1,690
	
225.9	53,270 to 55,100
	2.0 percent
	30 percent
	$
	1,520
	
225.10	55,100 to 56,960
	2.0 percent
	30 percent
	$
	1,290
	
225.11	56,960 to 58,780
	2.0 percent
	35 percent
	$
	1,120
	
225.12	58,780 to 60,630
	2.0 percent
	35 percent
	$
	1,020
	
225.13	60,630 to 62,470
	2.0 percent
	35 percent
	$
	570
	
225.14	62,470 to 64,300
	2.0 percent
	35 percent
	$
	220
	
225.15 	The payment made to a claimant is the amount of the state refund calculated under this 
225.16 	subdivision. No payment is allowed if the claimant's household income is $61,320 $64,300
225.17 	or more.

225.18 	EFFECTIVE DATE. This section is effective for refunds based on rent paid after 
225.19 	December 31, 2020.

225.20 	Sec. 9. Minnesota Statutes 2020, section 297E.021, subdivision 4, is amended to read:
225.21 		Subd. 4.Appropriation; general reserve account. To the extent the commissioner 
225.22 	determines that revenues are available under subdivision 3 for the fiscal year, those amounts 
225.23 	are appropriated from the general fund for deposit in a general reserve account established 
225.24 	by order of the commissioner of management and budget until the amount in the reserve is 
225.25 	equal to $100,000,000. Amounts in this reserve are appropriated as necessary for application 
225.26 	against any shortfall in the amounts deposited to the general fund under section 297A.994
225.27 	or, after consultation with the Legislative Commission on Planning and Fiscal Policy, 
225.28 	amounts in this reserve are appropriated to the commissioner of management and budget 
225.29 	for other uses related to the stadium authorized under section 473J.03, subdivision 8, that 
225.30 	the commissioner deems financially prudent including but not limited to reimbursements 
225.31 	for capital and operating costs relating to the stadium, refundings, and prepayment of debt. 
225.32 	In no event, shall available revenues be pledged, nor shall the appropriations of available 
225.33 	revenues made by this section constitute a pledge of available revenues as security for the 
225.34 	prepayment of principal and interest on the appropriation bonds under section 16A.965.

226.1 	Sec. 10. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
226.2 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor. A 
226.3 	cigarette or tobacco products distributor having a liability of $250,000 or more during a 
226.4 	fiscal year ending June 30, shall remit the June liability for the next year in the following 
226.5 	manner:
226.6 	(a) Two business days before June 30 of calendar years 2020 and year 2021, the 
226.7 	distributor shall remit the actual May liability and 87.5 percent of the estimated June liability 
226.8 	to the commissioner and file the return in the form and manner prescribed by the 
226.9 	commissioner. Two business days before June 30 of calendar year 2022 and each calendar 
226.10 	year thereafter, the distributor must remit the actual May liability and 84.5 percent, or a 
226.11 	reduced percentage as certified by the commissioner under section 16A.152, subdivision 
226.12 	2, paragraph (a), clause (6), of the estimated June liability to the commissioner and file the 
226.13 	return in the form and manner prescribed by the commissioner.
226.14 	(b) On or before August 18 of the year, the distributor shall submit a return showing the 
226.15 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
226.16 	is imposed equal to ten percent of the amount of June liability required to be paid in June, 
226.17 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
226.18 	in June equals the lesser of:
226.19 	(1) for calendar year 2021, 87.5 percent of the actual June liability for the that calendar 
226.20 	year 2020 and 2021 June liabilities and 84.5 of the actual June liability for June 2022 and 
226.21 	thereafter or 87.5 percent of the May liability for that calendar year; or
226.22 	(2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June 
226.23 	liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter. for 
226.24 	calendar year 2022 and each calendar year thereafter, 84.5 percent, or a reduced percentage 
226.25 	as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause 
226.26 	(6), of the actual June liability for that calendar year or 84.5 percent, or a reduced percentage 
226.27 	as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause 
226.28 	(6), of the May liability for that calendar year.
226.29 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
226.30 	vendor must remit by two business days before June 30 is 84.5 percent. This subdivision 
226.31 	expires after the percentage of estimated payment is reduced to zero in accordance with 
226.32 	section 16A.152, subdivision 2, paragraph (a), clause (6).

226.33 	EFFECTIVE DATE. This section is effective for estimate payments required to be 
226.34 	made after July 1, 2021.

227.1 	Sec. 11. Minnesota Statutes 2020, section 297F.10, subdivision 1, is amended to read:
227.2 		Subdivision 1.Tax and use tax on cigarettes. Revenue received from cigarette taxes, 
227.3 	as well as related penalties, interest, license fees, and miscellaneous sources of revenue 
227.4 	shall be deposited by the commissioner in the state treasury and credited as follows:
227.5 	(1) $22,250,000 each year must be credited to the Academic Health Center special 
227.6 	revenue fund hereby created and is annually appropriated to the Board of Regents at the 
227.7 	University of Minnesota for Academic Health Center funding at the University of Minnesota; 
227.8 	and
227.9 	(2) $3,937,000 each year must be credited to the medical education and research costs 
227.10 	account hereby created in the special revenue fund and is annually appropriated to the 
227.11 	commissioner of health for distribution under section 62J.692, subdivision 4; and
227.12 	(3) $15,000,000 each year must be credited to the tobacco use prevention and cessation 
227.13 	account hereby created in the special revenue fund and is annually appropriated to the 
227.14 	commissioner of health for tobacco use prevention and cessation projects consistent with 
227.15 	the duties specified in section 144.392; a public information program under section 144.393; 
227.16 	the development of health promotion and health education materials about tobacco use 
227.17 	prevention and cessation; tobacco use prevention activities under section 144.396; and 
227.18 	statewide tobacco cessation services under section 144.397. In activities funded under this 
227.19 	clause, the commissioner of health must prioritize preventing youth use of commercial 
227.20 	tobacco and electronic delivery devices, must promote racial and health equity, and must 
227.21 	use strategies that are evidence-based or based on promising practices. For purposes of this 
227.22 	clause, "tobacco" and "electronic delivery device" have the meanings given in section 
227.23 	609.685, subdivision 1. This clause expires after the deposit made in fiscal year 2029; and
227.24 	(3) (4) the balance of the revenues derived from taxes, penalties, and interest (under this 
227.25 	chapter) and from license fees and miscellaneous sources of revenue shall be credited to 
227.26 	the general fund.

227.27 	EFFECTIVE DATE. This section is effective for revenue received after June 30, 2021.

227.28 	Sec. 12. Minnesota Statutes 2020, section 297G.09, subdivision 9, is amended to read:
227.29 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this chapter 
227.30 	having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the 
227.31 	June liability for the next year in the following manner:
227.32 	(a) Two business days before June 30 of calendar years 2020 and year 2021, the taxpayer 
227.33 	shall remit the actual May liability and 87.5 percent of the estimated June liability to the 
228.1 	commissioner and file the return in the form and manner prescribed by the commissioner.
228.2 	Two business days before June 30 of calendar year 2022 and each calendar year thereafter, 
228.3 	the distributor must remit the actual May liability and 84.5 percent, or a reduced percentage 
228.4 	as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause 
228.5 	(6), of the estimated June liability to the commissioner and file the return in the form and 
228.6 	manner prescribed by the commissioner.
228.7 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing the 
228.8 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
228.9 	is imposed equal to ten percent of the amount of June liability required to be paid in June 
228.10 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
228.11 	in June equals the lesser of:
228.12 	(1) for calendar year 2021, 87.5 percent of the actual June liability for the that calendar 
228.13 	year 2020 and 2021 June liabilities and 84.5 percent of the actual June liability for June 
228.14 	2022 and thereafter or 87.5 percent of the May liability for that calendar year; or
228.15 	(2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June 
228.16 	liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter. for 
228.17 	calendar year 2022 and thereafter, 84.5 percent, or a reduced percentage as certified by the 
228.18 	commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), of the actual 
228.19 	June liability for that calendar year or 84.5 percent, or a reduced percentage as certified by 
228.20 	the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), of the 
228.21 	May liability for that calendar year.
228.22 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
228.23 	vendor must remit by two business days before June 30 is 84.5 percent. This subdivision 
228.24 	expires after the percentage of estimated payment is reduced to zero in accordance with 
228.25 	section 16A.152, subdivision 2, paragraph (a), clause (6).

228.26 	EFFECTIVE DATE. This section is effective for estimate payments required to be 
228.27 	made after July 1, 2021.

228.28 	Sec. 13. [428B.01] DEFINITIONS.
228.29 		Subdivision 1.Applicability. As used in sections 428B.01 to 428B.09, the terms in this 
228.30 	section have the meanings given them.
228.31 		Subd. 2.Activity. "Activity" means but is not limited to all of the following:
228.32 	(1) promotion of tourism within the district;
229.1 	(2) promotion of business activity, including but not limited to tourism, of businesses 
229.2 	subject to the service charge within the tourism improvement district;
229.3 	(3) marketing, sales, and economic development; and
229.4 	(4) other services provided for the purpose of conferring benefits upon businesses located 
229.5 	in the tourism improvement district that are subject to the tourism improvement district 
229.6 	service charge.
229.7 		Subd. 3.Business. "Business" means the type or class of lodging business that is 
229.8 	described in the municipality's ordinance, which benefits from district activities, adopted 
229.9 	under section 428B.02.
229.10 		Subd. 4.Business owner. "Business owner" means a person recognized by a municipality 
229.11 	as the owner of a business.
229.12 		Subd. 5.City. "City" means a home rule charter or statutory city.
229.13 		Subd. 6.Clerk. "Clerk" means the chief clerical officer of the municipality.
229.14 		Subd. 7.Governing body. "Governing body" means, with respect to a city, a city council 
229.15 	or other governing body of a city. With respect to a town, governing body means a town 
229.16 	board or other governing body of a town. With respect to a county, governing body means 
229.17 	a board of commissioners or other governing body of a county.
229.18 		Subd. 8.Impacted business owners. "Impacted business owners" means a majority of 
229.19 	business owners located within a tourism improvement district.
229.20 		Subd. 9.Municipality. "Municipality" means a county, city, or town.
229.21 		Subd. 10.Tourism improvement association. "Tourism improvement association" 
229.22 	means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged 
229.23 	with promoting tourism within the tourism improvement district and that is under contract 
229.24 	with the municipality to administer the tourism improvement district and implement the 
229.25 	activities and improvements listed in the municipality's ordinance.
229.26 		Subd. 11.Tourism improvement district. "Tourism improvement district" means a 
229.27 	tourism improvement district established under this chapter.

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

230.1 	Sec. 14. [428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
230.2 		Subdivision 1.Ordinance. (a) Upon a petition by impacted business owners, a governing 
230.3 	body of a municipality may adopt an ordinance establishing a tourism improvement district 
230.4 	after holding a public hearing on the district. The ordinance must include:
230.5 	(1) a map that identifies the tourism improvement district boundaries in sufficient detail 
230.6 	to allow a business owner to reasonably determine whether a business is located within the 
230.7 	tourism improvement district boundaries;
230.8 	(2) the name of the tourism improvement association designated to administer the tourism 
230.9 	improvement district and implement the approved activities and improvements;
230.10 	(3) a list of the proposed activities and improvements in the tourism improvement district;
230.11 	(4) the time and manner of collecting the service charge and any interest and penalties 
230.12 	for nonpayment;
230.13 	(5) a definition describing the type or class of businesses to be included in the tourism 
230.14 	improvement district and subject to the service charge;
230.15 	(6) the rate, method, and basis of the service charge for the district, including the portion 
230.16 	dedicated to covering expenses listed in subdivision 4, paragraph (b); and
230.17 	(7) the number of years the service charge will be in effect.
230.18 	(b) If the boundaries of a proposed tourism improvement district overlap with the 
230.19 	boundaries of an existing special service district, the tourism improvement district ordinance 
230.20 	may list measures to avoid any impediments on the ability of the special service district to 
230.21 	continue to provide its services to benefit its property owners.
230.22 		Subd. 2.Notice. A municipality must provide notice of the hearing by publication in at 
230.23 	least two issues of the official newspaper of the municipality. The two publications must 
230.24 	be two weeks apart and the municipality must hold the hearing at least three days after the 
230.25 	last publication. Not less than ten days before the hearing, the municipality must mail notice 
230.26 	to the business owner of each business subject to the proposed service charge by the tourism 
230.27 	improvement district. The notice must include:
230.28 	(1) a map showing the boundaries of the proposed district;
230.29 	(2) the time and place of the public hearing;
230.30 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
230.31 	hearing regarding the proposed service charge; and
231.1 	(4) a brief description of the proposed activities, improvements, and service charge.
231.2 		Subd. 3.Business owner determination. A business must provide ownership information 
231.3 	to the municipality. A municipality has no obligation to obtain other information regarding 
231.4 	the ownership of businesses, and its determination of ownership shall be final for the purposes 
231.5 	of this chapter. If this chapter requires the signature of a business owner, the signature of 
231.6 	the authorized representative of a business owner is sufficient.
231.7 		Subd. 4.Service charges; relationship to services. (a) A municipality may impose a 
231.8 	service charge on a business pursuant to this chapter for the purpose of providing activities 
231.9 	and improvements that will provide benefits to a business that is located within the tourism 
231.10 	improvement district and subject to the tourism improvement district service charge. Each 
231.11 	business paying a service charge within a district must benefit directly or indirectly from 
231.12 	improvements provided by a tourism improvement association, provided, however, the 
231.13 	business need not benefit equally. Service charges must be based on a percent of gross 
231.14 	business revenue, a fixed dollar amount per transaction, or any other reasonable method 
231.15 	based upon benefit and approved by the municipality.
231.16 	(b) Service charges may be used to cover the costs of collections, as well as other 
231.17 	administrative costs associated with operating, forming, or maintaining the district.
231.18 		Subd. 5.Public hearing. At the public hearing regarding the adoption of the ordinance 
231.19 	establishing a tourism improvement district, business owners and persons affected by the 
231.20 	proposed district may testify on issues relevant to the proposed district. The hearing may 
231.21 	be adjourned from time to time. The ordinance establishing the district may be adopted at 
231.22 	any time within six months after the date of the conclusion of the hearing by a vote of the 
231.23 	majority of the governing body of the municipality.
231.24 		Subd. 6.Appeal to district court. Within 45 days after the adoption of the ordinance 
231.25 	establishing a tourism improvement district, a person aggrieved, who is not precluded by 
231.26 	failure to object before or at the public hearing, may appeal to the district court by serving 
231.27 	a notice on the clerk of the municipality or governing body. The validity of the tourism 
231.28 	improvement district and the service charge imposed under this chapter shall not be contested 
231.29 	in an action or proceeding unless the action or proceeding is commenced within 45 days 
231.30 	after the adoption of the ordinance establishing a tourism improvement district. The petitioner 
231.31 	must file notice with the court administrator of the district court within ten days after its 
231.32 	service. The clerk of the municipality must provide the petitioner with a certified copy of 
231.33 	the findings and determination of the governing body. The court may affirm the action 
231.34 	objected to or, if the petitioner's objections have merit, modify or cancel it. If the petitioner 
232.1 	does not prevail on the appeal, the costs incurred shall be taxed to the petitioner by the court 
232.2 	and judgment entered for them. All objections shall be deemed waived unless presented on 
232.3 	appeal.

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

232.5 	Sec. 15. [428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING 
232.6 	REQUIREMENT.
232.7 		Subdivision 1.Authority. A municipality may impose service charges authorized under 
232.8 	section 428B.02, subdivision 4, to finance an activity or improvement in the tourism 
232.9 	improvement district that is provided by the municipality if the activity or improvement is 
232.10 	provided in the tourism improvement district at an increased level of service. The service 
232.11 	charges may be imposed in the amount needed to pay for the increased level of service 
232.12 	provided by the activity or improvement.
232.13 		Subd. 2.Annual hearing requirement; notice. Beginning one year after the 
232.14 	establishment of the tourism improvement district, the municipality must hold an annual 
232.15 	hearing regarding continuation of the service charges in the tourism improvement district. 
232.16 	The municipality must provide notice of the hearing by publication in the official newspaper 
232.17 	at least seven days before the hearing. The municipality must mail notice of the hearing to 
232.18 	business owners subject to the service charge at least seven days before the hearing. At the 
232.19 	public hearing, a person affected by the proposed district may testify on issues relevant to 
232.20 	the proposed district. Within six months of the public hearing, the municipality may adopt 
232.21 	a resolution to continue imposing service charges within the district not exceeding the 
232.22 	amount or rate expressed in the notice. For purposes of this section, the notice must include:
232.23 	(1) a map showing the boundaries of the district;
232.24 	(2) the time and place of the public hearing;
232.25 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
232.26 	hearing regarding the proposed service charge;
232.27 	(4) a brief description of the proposed activities and improvements;
232.28 	(5) the estimated annual amount of proposed expenditures for activities and 
232.29 	improvements;
232.30 	(6) the rate of the service charge for the district during the year and the nature and 
232.31 	character of the proposed activities and improvements for the district during the year in 
232.32 	which service charges are collected;
233.1 	(7) the number of years the service charge will be in effect; and
233.2 	(8) a statement that the petition requirement of section 428B.07 has either been met or 
233.3 	does not apply to the proposed service charge.

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

233.5 	Sec. 16. [428B.04] MODIFICATION OF ORDINANCE.
233.6 		Subdivision 1.Adoption of ordinance; request for modification. Upon written request 
233.7 	of the tourism improvement association, the governing body of a municipality may adopt 
233.8 	an ordinance to modify the district after conducting a public hearing on the proposed 
233.9 	modifications. If the modification includes a change to the rate, method, and basis of 
233.10 	imposing the service charge or the expansion of the tourism improvement district's geographic 
233.11 	boundaries, a petition as described in section 428B.07 must be submitted by impacted 
233.12 	business owners to initiate proceedings for modification.
233.13 		Subd. 2.Notice of modification. A municipality must provide notice of the hearing by 
233.14 	publication in at least two issues of the municipality's official newspaper. The two 
233.15 	publications must be two weeks apart and the municipality must hold a hearing at least three 
233.16 	days after the last publication. Not less than ten days before the hearing, the municipality 
233.17 	must mail notice to the business owner of each business subject to the service charge by 
233.18 	the tourism improvement district. The notice must include:
233.19 	(1) a map showing the boundaries of the district;
233.20 	(2) the time and place of the public hearing;
233.21 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
233.22 	hearing regarding the proposed service charge; and
233.23 	(4) a brief description of the proposed modification to the ordinance.
233.24 		Subd. 3.Hearing on modification. At the public hearing regarding modification to the 
233.25 	ordinance, a person affected by the proposed modification may testify on issues relevant to 
233.26 	the proposed modification. Within six months after the conclusion of the hearing, the 
233.27 	municipality may adopt the ordinance modifying the district by a vote of the majority of 
233.28 	the governing body in accordance with the request for modification by the tourism 
233.29 	improvement association and as described in the notice.
233.30 		Subd. 4.Objection. If the modification of the ordinance includes the expansion of the 
233.31 	tourism improvement district's geographic boundaries, the ordinance modifying the district 
233.32 	may be adopted after following the notice and veto requirements in section 428B.08; 
234.1 	however, a successful objection will be determined based on a majority of business owners 
234.2 	who will pay  the service charge in the expanded area of the district. For all other 
234.3 	modifications, the ordinance modifying the district may be adopted following the notice 
234.4 	and veto requirements in section 428B.08.

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

234.6 	Sec. 17. [428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
234.7 	The service charges imposed under this chapter may be collected by the municipality, 
234.8 	tourism improvement association, or other designated agency or entity. Collection of the 
234.9 	service charges must be made at the time and in the manner set forth in the ordinance. The 
234.10 	entity collecting the service charges may charge interest and penalties on delinquent payments 
234.11 	for service charges imposed under this chapter as set forth in the municipality's ordinance.

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

234.13 	Sec. 18. [428B.06] TOURISM IMPROVEMENT ASSOCIATION.
234.14 		Subdivision 1.Composition and duties. The tourism improvement association must 
234.15 	be designated in the municipality's ordinance. The tourism improvement association shall 
234.16 	appoint a governing board or committee composed of a majority of business owners who 
234.17 	pay the tourism improvement district service charge, or the representatives of those business 
234.18 	owners. The governing board or committee must manage the funds raised by the tourism 
234.19 	improvement district and fulfill the obligations of the tourism improvement district. A 
234.20 	tourism improvement association has full discretion to select the specific activities and 
234.21 	improvements that are funded with tourism improvement district service charges within the 
234.22 	authorized activities and improvements described in the ordinance.
234.23 		Subd. 2.Annual report. The tourism improvement association must submit to the 
234.24 	municipality an annual report for each year in which a service charge is imposed. The report 
234.25 	must include a financial statement of revenue raised by the district. The municipality may 
234.26 	also, as part of the enabling ordinance, require the submission of other relevant information 
234.27 	related to the association.

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

235.1 	Sec. 19. [428B.07] PETITION REQUIRED.
235.2 	A municipality may not establish a tourism improvement district under section 428B.02 
235.3 	unless impacted business owners file a petition requesting a public hearing on the proposed 
235.4 	action with the clerk of the municipality.

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

235.6 	Sec. 20. [428B.08] VETO POWER OF OWNERS.
235.7 		Subdivision 1.Notice of right to file objections. The effective date of an ordinance or 
235.8 	resolution adopted under this chapter must be at least 45 days after it is adopted by the 
235.9 	municipality. Within five days after the municipality adopts the ordinance or resolution, 
235.10 	the municipality must mail a summary of the ordinance or resolution to each business owner 
235.11 	subject to the service charge within the tourism improvement district in the same manner 
235.12 	that notice is mailed under section 428B.02. The mailing must include a notice that business 
235.13 	owners subject to the service charge have the right to veto, by a simple majority, the 
235.14 	ordinance or resolution by filing the required number of objections with the clerk of the 
235.15 	municipality before the effective date of the ordinance or resolution and include notice that 
235.16 	a copy of the ordinance or resolution is available for public inspection with the clerk of the 
235.17 	municipality.
235.18 		Subd. 2.Requirements for veto. If impacted business owners file an objection to the 
235.19 	ordinance or resolution before the effective date of the ordinance or resolution, the ordinance 
235.20 	or resolution does not become effective.

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

235.22 	Sec. 21. [428B.09] DISESTABLISHMENT.
235.23 		Subdivision 1.Procedure for disestablishment. An ordinance adopted under this chapter 
235.24 	must provide a 30-day period each year in which business owners subject to the service 
235.25 	charge may request disestablishment of the district. Beginning one year after establishment 
235.26 	of the tourism improvement district, an annual 30-day period of disestablishment begins 
235.27 	with the anniversary of the date of establishment. Upon submission of a petition from 
235.28 	impacted business owners, the municipality may disestablish a tourism improvement district 
235.29 	by adopting an ordinance after holding a public hearing on the disestablishment. Prior to 
235.30 	the public hearing, the municipality must publish notice of the public hearing on 
235.31 	disestablishment in at least two issues of the municipality's official newspaper. The two 
235.32 	publications must be two weeks apart and the municipality must hold the hearing at least 
236.1 	three days after the last publication. Not less than ten days before the hearing, the 
236.2 	municipality must mail notice to the business owner of each business subject to the service 
236.3 	charge. The notice must include:
236.4 	(1) the time and place of the public hearing;
236.5 	(2) a statement that all interested persons will be given an opportunity to be heard at the 
236.6 	hearing regarding disestablishment;
236.7 	(3) the reason for disestablishment; and
236.8 	(4) a proposal to dispose of any assets acquired with the revenues of the service charge 
236.9 	imposed under the tourism improvement district.
236.10 		Subd. 2.Objection. An ordinance disestablishing the tourism improvement district 
236.11 	becomes effective following the notice and veto requirements in section 428B.08.
236.12 		Subd. 3.Refund to business owners. (a) Upon the disestablishment of a tourism 
236.13 	improvement district, any remaining revenues derived from the service charge, or any 
236.14 	revenues derived from the sale of assets acquired with the service charge revenues, shall 
236.15 	be refunded to business owners located and operating within the tourism improvement 
236.16 	district in which service charges were imposed by applying the same method and basis that 
236.17 	was used to calculate the service charges levied in the fiscal year in which the district is 
236.18 	disestablished.
236.19 	(b) If the disestablishment occurs before the service charge is imposed for the fiscal 
236.20 	year, the method and basis that was used to calculate the service charge imposed in the 
236.21 	immediate prior fiscal year shall be used to calculate the amount of a refund, if any.

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

236.23 	Sec. 22. [428B.10] COORDINATION OF DISTRICTS.
236.24 	If a county establishes a tourism improvement district in a city or town under this chapter, 
236.25 	a city or town may not establish a tourism improvement district in the part of the city or 
236.26 	town located in the county-established district. If a city or town establishes a tourism 
236.27 	improvement district under this chapter, a county may not establish a tourism improvement 
236.28 	district in the part of the city or town located in the city- or town-established district.

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

237.1 	Sec. 23. Minnesota Statutes 2020, section 462A.38, is amended to read:
237.2 	462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP 
237.3 	DEVELOPMENT PROGRAM.
237.4 		Subdivision 1.Establishment. A workforce and affordable homeownership development 
237.5 	program is established to award homeownership development grants and loans to cities, 
237.6 	counties, Tribal governments, nonprofit organizations, cooperatives created under chapter 
237.7 	308A or 308B, and community land trusts created for the purposes outlined in section 
237.8 	462A.31, subdivision 1, for development of workforce and affordable homeownership 
237.9 	projects. The purpose of the program is to increase the supply of workforce and affordable, 
237.10 	owner-occupied multifamily or single-family housing throughout Minnesota.
237.11 		Subd. 2.Use of funds. (a) Grant funds and loans awarded under this program may be 
237.12 	used for:
237.13 	(1) development costs;
237.14 	(2) rehabilitation;
237.15 	(3) land development; and
237.16 	(4) residential housing, including storm shelters and related community facilities.
237.17 	(b) A project funded through the grant this program shall serve households that meet 
237.18 	the income limits as provided in section 462A.33, subdivision 5, unless a project is intended 
237.19 	for the purpose outlined in section 462A.02, subdivision 6.
237.20 		Subd. 3.Application. The commissioner shall develop forms and procedures for soliciting 
237.21 	and reviewing applications for grants and loans under this section. The commissioner shall 
237.22 	consult with interested stakeholders when developing the guidelines and procedures for the 
237.23 	program. In making grants and loans, the commissioner shall establish semiannual application 
237.24 	deadlines in which grants and loans will be authorized from all or part of the available 
237.25 	appropriations.
237.26 		Subd. 4.Awarding grants and loans. Among comparable proposals, preference must 
237.27 	be given to proposals that include contributions from nonstate resources for the greatest 
237.28 	portion of the total development cost.
237.29 		Subd. 5.Statewide program. The agency shall attempt to make grants and loans in 
237.30 	approximately equal amounts to applicants outside and within the metropolitan area, as 
237.31 	defined in section 473.121, subdivision 2.
238.1 		Subd. 6.Report. Beginning January 15, 2018 2022, the commissioner must annually 
238.2 	submit a report to the chairs and ranking minority members of the senate and house of 
238.3 	representatives committees having jurisdiction over housing and workforce development 
238.4 	specifying the projects that received grants and loans under this section and the specific 
238.5 	purposes for which the grant or loan funds were used.
238.6 		Subd. 7.Workforce and affordable homeownership development account. A 
238.7 	workforce and affordable homeownership development account is established in the housing 
238.8 	development fund. Money in the account, including interest, is appropriated to the 
238.9 	commissioner of the Housing Finance Agency for the purposes of this section. The amount 
238.10 	appropriated under this section must supplement traditional sources of funding for this 
238.11 	purpose and must not be used as a substitute or to pay debt service on bonds.
238.12 		Subd. 8.Deposits; funding amount. (a) In fiscal years 2022 to 2029, an amount equal 
238.13 	to $15,000,000 of the state's portion of the proceeds derived from the mortgage registry tax 
238.14 	imposed under section 287.035 and the deed tax imposed under section 287.21 is appropriated 
238.15 	from the general fund to the commissioner of the Housing Finance Agency to transfer to 
238.16 	the housing development fund for deposit into the workforce and affordable homeownership 
238.17 	development account. The appropriation must be made annually by September 15.
238.18 	(b) All loan repayments received under this section are to be deposited into the workforce 
238.19 	and affordable homeownership development account in the housing development fund.
238.20 	(c) This subdivision expires September 16, 2028.

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

238.22 	Sec. 24. 4D AFFORDABLE HOUSING PROGRAMS REPORT.
 238.23 	(a) No later than January 15, 2022, the commissioner of revenue, in consultation with 
238.24 	the Minnesota Housing Finance Agency, must produce a report on class 4d property, as 
238.25 	defined in Minnesota Statutes, section 273.13, subdivision 25, and on local 4d affordable 
238.26 	housing programs. The commissioner must provide a copy of the report to the chairs and 
238.27 	ranking minority members of the legislative committees with jurisdiction over property 
238.28 	taxation. The report must comply with the requirements of Minnesota Statutes, sections 
238.29 	3.195 and 3.197. The report must include the following to the extent available:
238.30 	(1) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes, 
238.31 	section 273.128, subdivision 1, clauses (1) to (4), with separate amounts given for properties 
238.32 	under each clause:
239.1 	(i) the number of units classified as 4d in each property in the previous assessment year 
239.2 	as reported by each county;
239.3 	(ii) the number of units not classified as 4d in each property in the previous assessment 
239.4 	year;
239.5 	(iii) the property tax paid in 2021;
239.6 	(iv) the property tax reduction in 2021 resulting from the property being classified as 
239.7 	4d rather than 4a; and
239.8 	(v) the total number of 4d units in each of the last ten years; and
239.9 	(2) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes, 
239.10 	section 273.128, subdivision 1, clauses (1) to (4):
239.11 	(i) the percent change in each political subdivision's net tax capacity if the first-tier class 
239.12 	rate of the 4d classification was reduced from 0.75 percent to 0.25 percent;
239.13 	(ii) the number of 4d properties located within tax increment financing districts, and the 
239.14 	impact on increment generation in those districts as a result of these properties being 
239.15 	classified as 4d rather than 4a;
239.16 	(iii) the impact that a 4d class rate reduction from 0.75 percent to 0.25 percent for the 
239.17 	entire valuation would have on the property tax burden for homestead property;
239.18 	(iv) the total number of 4d units whose value qualifies for the second tier in each year 
239.19 	since 2019;
239.20 	(v) the impact that a reduction of the 4d class rate from 0.75 percent to 0.25 percent for 
239.21 	the entire valuation would have on property tax refunds received by renters and on property 
239.22 	tax refunds received by homeowners in jurisdictions that contain 4d property; and
239.23 	(vi) a profile of income limits and area median incomes used in Minnesota by the United 
239.24 	States Department of Housing and Urban Development to determine the eligibility for 
239.25 	assisted housing programs.
239.26 	(b) Counties must report to the commissioner of revenue any data required by paragraph 
239.27 	(a), clauses (1) and (2), by November 1, 2021.

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

239.29 	Sec. 25. BUDGET RESERVE REDUCTION.
 239.30 	On July 1, 2021, the balance of the budget reserve account established in Minnesota 
239.31 	Statutes, section 16A.152, subdivision 1a, is reduced by $150,000,000. This reduction is in 
240.1 	addition to the reduction authorized in Laws 2019, First Special Session chapter 6, article 
240.2 	11, section 17.

240.3 	Sec. 26. APPROPRIATIONS; FIRE REMEDIATION GRANTS.
 240.4 		Subdivision 1.City of Melrose. $643,729 in fiscal year 2022 is appropriated from the 
240.5 	general fund to the commissioner of revenue for a grant to the city of Melrose to remediate 
240.6 	the effects of fires in the city on September 8, 2016. This appropriation represents the 
240.7 	amounts that lapsed by the terms of the appropriation in Laws 2017, First Special Session 
240.8 	chapter 1, article 4, section 31. The commissioner of revenue must remit the funds to the 
240.9 	city of Melrose by July 20, 2021. The city must use the funds to administer grants to public 
240.10 	or private entities for use in accordance with subdivision 3.
240.11 		Subd. 2.City of Alexandria. $120,000 in fiscal year 2022 is appropriated from the 
240.12 	general fund to the commissioner of revenue for a grant to the city of Alexandria to remediate 
240.13 	the effects of the fire in the city on February 25, 2020. The commissioner of revenue must 
240.14 	remit the funds to the city of Alexandria by July 20, 2021. The city must use the funds to 
240.15 	administer grants to public or private entities for use in accordance with subdivision 3.
240.16 		Subd. 3.Allowed use. A grant recipient must use the money appropriated under this 
240.17 	section for remediation costs, including disaster recovery, infrastructure, reimbursement 
240.18 	for emergency personnel costs, reimbursement for equipment costs, and reimbursements 
240.19 	for property tax abatements, incurred by public or private entities as a result of the fires. 
240.20 	These appropriations are onetime and are available until June 30, 2023.

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

240.22 	Sec. 27. DEPARTMENT OF REVENUE FREE FILING REPORT.
 240.23 		Subdivision 1.Report required. (a) By February 15, 2022, the commissioner of revenue 
240.24 	must provide a written report to the chairs and ranking minority members of the legislative 
240.25 	committees with jurisdiction over taxes. The report must comply with the requirements of 
240.26 	Minnesota Statutes, sections 3.195 and 3.197, and must also provide information on free 
240.27 	electronic filing options for preparing and filing Minnesota individual income tax returns.
240.28 	(b) The commissioner must survey tax preparation software vendors for information on 
240.29 	a free electronic preparation and filing option for taxpayers to file Minnesota individual 
240.30 	income tax returns. The survey must request information from vendors that addresses the 
240.31 	following concerns:
241.1 	(1) system development, capability, security, and costs for consumer-based tax filing 
241.2 	software;
241.3 	(2) costs per return that would be charged to the state of Minnesota to provide an 
241.4 	electronic individual income tax return preparation, submission, and payment remittance 
241.5 	process;
241.6 	(3) providing customer service and issue resolution to taxpayers using the software;
241.7 	(4) providing and maintaining an appropriate link between the Department of Revenue 
241.8 	and the Internal Revenue Service Modernized Electronic Filing Program;
241.9 	(5) ensuring that taxpayer return information is maintained and protected as required by 
241.10 	Minnesota Statutes, chapters 13 and 270B, Internal Revenue Service Publication 1075, and 
241.11 	any other applicable requirements; and
241.12 	(6) current availability of products for the free filing and submitting of both Minnesota 
241.13 	and federal returns offered to customers and the income thresholds for using those products.
241.14 	(c) The report by the commissioner must include at a minimum:
241.15 	(1) a review of options that other states use for state electronic filing;
241.16 	(2) an assessment of taxpayer needs for electronic filing, including current filing practices;
241.17 	(3) an analysis of alternative options to provide free filing, such as tax credits, vendor 
241.18 	incentives, or other benefits; and
241.19 	(4) an analysis of the Internal Revenue Service Free File Program usage.
241.20 		Subd. 2.Appropriation. $175,000 in fiscal year 2022 is appropriated from the general 
241.21 	fund to the commissioner of revenue for the free filing report required under this section. 
241.22 	This is a onetime appropriation.

241.23 	Sec. 28. APPROPRIATION; TAXPAYER RECEIPT.
 241.24 	(a) $100,000 in fiscal year 2022 is appropriated from the general fund to the commissioner 
241.25 	of management and budget to develop and publish the taxpayer receipt under Minnesota 
241.26 	Statutes, section 16A.067. The base funding for this program is $47,000 in fiscal year 2023 
241.27 	and thereafter.
241.28 	(b) $19,000 in fiscal year 2022 is appropriated from the general fund to the commissioner 
241.29 	of revenue to coordinate with the commissioner of management and budget to provide 
241.30 	information that meets the requirements of the taxpayer receipt under Minnesota Statutes, 
241.31 	section 16A.067. The base funding is $8,000 in fiscal year 2023 and thereafter.

242.1 	ARTICLE 14
242.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: INCOME AND 
242.3 	CORPORATE FRANCHISE TAXES

242.4 	Section 1. Minnesota Statutes 2020, section 289A.08, subdivision 7, is amended to read:
242.5 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
242.6 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
242.7 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
242.8 	other Minnesota source income. This composite return must include the names, addresses, 
242.9 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
242.10 	electing to be covered by the composite return.
242.11 	(b) The computation of a partner's tax liability must be determined by multiplying the 
242.12 	income allocated to that partner by the highest rate used to determine the tax liability for 
242.13 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
242.14 	deductions, or personal exemptions are not allowed.
242.15 	(c) The partnership must submit a request to use this composite return filing method for 
242.16 	nonresident partners. The requesting partnership must file a composite return in the form 
242.17 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
242.18 	a request to use the composite return filing method.
242.19 	(d) The electing partner must not have any Minnesota source income other than the 
242.20 	income from the partnership and other electing partnerships. If it is determined that the 
242.21 	electing partner has other Minnesota source income, the inclusion of the income and tax 
242.22 	liability for that partner under this provision will not constitute a return to satisfy the 
242.23 	requirements of subdivision 1. The tax paid for the individual as part of the composite return 
242.24 	is allowed as a payment of the tax by the individual on the date on which the composite 
242.25 	return payment was made. If the electing nonresident partner has no other Minnesota source 
242.26 	income, filing of the composite return is a return for purposes of subdivision 1.
242.27 	(e) This subdivision does not negate the requirement that an individual pay estimated 
242.28 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
242.29 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
242.30 	pays composite estimated tax in the manner prescribed in section 289A.25.
242.31 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
242.32 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
242.33 	is zero. However, a statement showing the partner's share of gross income must be included 
242.34 	as part of the composite return.
243.1 	(g) The election provided in this subdivision is only available to a partner who has no 
243.2 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
243.3 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
243.4 	Internal Revenue Code.
243.5 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
243.6 	make an election under this paragraph. The provisions covering the partnership apply to 
243.7 	the corporation and the provisions applying to the partner apply to the shareholder.
243.8 	(i) Estates and trusts distributing current income only and the nonresident individual 
243.9 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
243.10 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
243.11 	the partner apply to the beneficiary.
243.12 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
243.13 	adjusted gross income from the partnership modified by the additions provided in section 
243.14 	290.0131, subdivisions 8 to 10 and, 16, and 17, and the subtractions provided in: (1) section 
243.15 	290.0132, subdivision subdivisions 9, 27, and 28, to the extent the amount is assignable or 
243.16 	allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The 
243.17 	subtraction allowed under section 290.0132, subdivision 9, is only allowed on the composite 
243.18 	tax computation to the extent the electing partner would have been allowed the subtraction.

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

243.21 	Sec. 2. Minnesota Statutes 2020, section 289A.09, subdivision 2, is amended to read:
243.22 		Subd. 2.Withholding statement. (a) A person required to deduct and withhold from 
243.23 	an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 
243.24 	who would have been required to deduct and withhold a tax under section 290.92, subdivision 
243.25 	2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 
243.26 	without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 
243.27 	more than one withholding exemption allowance, or who paid wages or made payments 
243.28 	not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 
243.29 	2, to an employee or person receiving royalty payments in excess of $600, or who has 
243.30 	entered into a voluntary withholding agreement with a payee under section 290.92, 
243.31 	subdivision 20, must give every employee or person receiving royalty payments in respect 
243.32 	to the remuneration paid by the person to the employee or person receiving royalty payments 
243.33 	during the calendar year, on or before January 31 of the succeeding year, or, if employment 
243.34 	is terminated before the close of the calendar year, within 30 days after the date of receipt 
244.1 	of a written request from the employee if the 30-day period ends before January 31, a written 
244.2 	statement showing the following:
244.3 	(1) name of the person;
244.4 	(2) the name of the employee or payee and the employee's or payee's Social Security 
244.5 	account number;
244.6 	(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 
244.7 	paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 
244.8 	subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal 
244.9 	Revenue Code; and the amount of royalties subject to withholding under section 290.923, 
244.10 	subdivision 2; and
244.11 	(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a 
244.12 	or 3, or 290.923, subdivision 2.
244.13 	(b) The statement required to be furnished by paragraph (a) with respect to any 
244.14 	remuneration must be furnished at those times, must contain the information required, and 
244.15 	must be in the form the commissioner prescribes.
244.16 	(c) The commissioner may prescribe rules providing for reasonable extensions of time, 
244.17 	not in excess of 30 days, to employers or payers required to give the statements to their 
244.18 	employees or payees under this subdivision.
244.19 	(d) A duplicate of any statement made under this subdivision and in accordance with 
244.20 	rules prescribed by the commissioner must be filed with the commissioner on or before 
244.21 	January 31 of the year after the payments were made.
244.22 	(e) If an employer cancels the employer's Minnesota withholding account number required 
244.23 	by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 
244.24 	with the commissioner within 30 days of the end of the quarter in which the employer 
244.25 	cancels its account number.
244.26 	(f) The employer must submit the statements required to be sent to the commissioner. 
244.27 	The commissioner shall prescribe the content, format, and manner of the statement pursuant 
244.28 	to section 270C.30.
244.29 	(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 
244.30 	(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 
244.31 	paragraph (a), with the commissioner by electronic means.

245.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
245.2 	31, 2020.

245.3 	Sec. 3. Minnesota Statutes 2020, section 290.0121, subdivision 3, is amended to read:
245.4 		Subd. 3.Inflation adjustment. For taxable years beginning after December 31, 2019, 
245.5 	the commissioner must adjust for inflation the exemption amount in subdivision 1, paragraph 
245.6 	(b), and the threshold amounts in subdivision 2, as provided in section 270C.22. The statutory 
245.7 	year is taxable year 2019. The amounts as adjusted must be rounded down to the nearest 
245.8 	$50 amount. If the amount ends in $25, the amount is rounded down to the nearest $50 
245.9 	amount. The threshold amount for married individuals filing separate returns must be one-half 
245.10 	of the adjusted amount for married individuals filing joint returns.

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

245.12 	Sec. 4. Minnesota Statutes 2020, section 290.92, subdivision 1, is amended to read:
245.13 		Subdivision 1.Definitions. (1) Wages. For purposes of this section, the term "wages" 
245.14 	means the same as that term is defined in section 3401(a), (f), and (i) of the Internal Revenue 
245.15 	Code.
245.16 	(2) Payroll period. For purposes of this section the term "payroll period" means a period 
245.17 	for which a payment of wages is ordinarily made to the employee by the employee's 
245.18 	employer, and the term "miscellaneous payroll period" means a payroll period other than a 
245.19 	daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll 
245.20 	period.
245.21 	(3) Employee. For purposes of this section the term "employee" means any resident 
245.22 	individual performing services for an employer, either within or without, or both within and 
245.23 	without the state of Minnesota, and every nonresident individual performing services within 
245.24 	the state of Minnesota, the performance of which services constitute, establish, and determine 
245.25 	the relationship between the parties as that of employer and employee. As used in the 
245.26 	preceding sentence, the term "employee" includes an officer of a corporation, and an officer, 
245.27 	employee, or elected official of the United States, a state, or any political subdivision thereof, 
245.28 	or the District of Columbia, or any agency or instrumentality of any one or more of the 
245.29 	foregoing.
245.30 	(4) Employer. For purposes of this section the term "employer" means any person, 
245.31 	including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies, 
245.32 	and corporations transacting business in or deriving any income from sources within the 
246.1 	state of Minnesota for whom an individual performs or performed any service, of whatever 
246.2 	nature, as the employee of such person, except that if the person for whom the individual 
246.3 	performs or performed the services does not have control of the payment of the wages for 
246.4 	such services, the term "employer," except for purposes of paragraph (1), means the person 
246.5 	having control of the payment of such wages. As used in the preceding sentence, the term 
246.6 	"employer" includes any corporation, individual, estate, trust, or organization which is 
246.7 	exempt from taxation under section 290.05 and further includes, but is not limited to, officers 
246.8 	of corporations who have control, either individually or jointly with another or others, of 
246.9 	the payment of the wages.
246.10 	(5) Number of withholding exemptions allowances claimed. For purposes of this 
246.11 	section, the term "number of withholding exemptions allowances claimed" means the number 
246.12 	of withholding exemptions allowances claimed in a withholding exemption allowances
246.13 	certificate in effect under subdivision 5, except that if no such certificate is in effect, the 
246.14 	number of withholding exemptions allowances claimed shall be considered to be zero.

246.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
246.16 	31, 2020.

246.17 	Sec. 5. Minnesota Statutes 2020, section 290.92, subdivision 2a, is amended to read:
246.18 		Subd. 2a.Collection at source. (1) Deductions. Every employer making payment of 
246.19 	wages shall deduct and withhold upon such wages a tax as provided in this section.
246.20 	(2) Withholding on payroll period. The employer shall withhold the tax on the basis 
246.21 	of each payroll period or as otherwise provided in this section.
246.22 	(3) Withholding tables. Unless the amount of tax to be withheld is determined as 
246.23 	provided in subdivision 3, the amount of tax to be withheld for each individual shall be 
246.24 	based upon tables to be prepared and distributed by the commissioner. The tables shall be 
246.25 	computed for the several permissible withholding periods and shall take account of 
246.26 	exemptions allowances allowed under this section; and the amounts computed for withholding 
246.27 	shall be such that the amount withheld for any individual during the individual's taxable 
246.28 	year shall approximate in the aggregate as closely as possible the tax which is levied and 
246.29 	imposed under this chapter for that taxable year, upon the individual's salary, wages, or 
246.30 	compensation for personal services of any kind for the employer.
246.31 	(4) Miscellaneous payroll period. If wages are paid with respect to a period which is 
246.32 	not a payroll period, the amount to be deducted and withheld shall be that applicable in the 
246.33 	case of a miscellaneous payroll period containing a number of days, including Sundays and 
247.1 	holidays, equal to the number of days in the period with respect to which such wages are 
247.2 	paid.
247.3 	(5) Miscellaneous payroll period. (a) In any case in which wages are paid by an 
247.4 	employer without regard to any payroll period or other period, the amount to be deducted 
247.5 	and withheld shall be that applicable in the case of a miscellaneous payroll period containing 
247.6 	a number of days equal to the number of days, including Sundays and holidays, which have 
247.7 	elapsed since the date of the last payment of such wages by such employer during the 
247.8 	calendar year, or the date of commencement of employment with such employer during 
247.9 	such year, or January 1 of such year, whichever is the later.
247.10 	(b) In any case in which the period, or the time described in clause (a), in respect of any 
247.11 	wages is less than one week, the commissioner, under rules prescribed by the commissioner, 
247.12 	may authorize an employer to determine the amount to be deducted and withheld under the 
247.13 	tables applicable in the case of a weekly payroll period, in which case the aggregate of the 
247.14 	wages paid to the employee during the calendar week shall be considered the weekly wages.
247.15 	(6) Wages computed to nearest dollar. If the wages exceed the highest bracket, in 
247.16 	determining the amount to be deducted and withheld under this subdivision, the wages may, 
247.17 	at the election of the employer, be computed to the nearest dollar.
247.18 	(7) Rules on withholding. The commissioner may, by rule, authorize employers:
247.19 	(a) to estimate the wages which will be paid to any employee in any quarter of the 
247.20 	calendar year;
247.21 	(b) to determine the amount to be deducted and withheld upon each payment of wages 
247.22 	to such employee during such quarter as if the appropriate average of the wages so estimated 
247.23 	constituted the actual wages paid; and
247.24 	(c) to deduct and withhold upon any payment of wages to such employee during such 
247.25 	quarter such amount as may be necessary to adjust the amount actually deducted and withheld 
247.26 	upon wages of such employee during such quarter to the amount required to be deducted 
247.27 	and withheld during such quarter without regard to this paragraph (7).
247.28 	(8) Additional withholding. The commissioner is authorized to provide by rule for 
247.29 	increases or decreases in the amount of withholding otherwise required under this section 
247.30 	in cases where the employee requests the changes. Such additional withholding shall for 
247.31 	all purposes be considered tax required to be deducted and withheld under this section.
247.32 	(9) Tips. In the case of tips which constitute wages, this subdivision shall be applicable 
247.33 	only to such tips as are included in a written statement furnished to the employer pursuant 
248.1 	to section 6053 of the Internal Revenue Code and only to the extent that the tax can be 
248.2 	deducted and withheld by the employer, at or after the time such statement is so furnished 
248.3 	and before the close of the calendar year in which such statement is furnished, from such 
248.4 	wages of the employee (excluding tips, but including funds turned over by the employee to 
248.5 	the employer for the purpose of such deduction and withholding) as are under the control 
248.6 	of the employer; and an employer who is furnished by an employee a written statement of 
248.7 	tips (received in a calendar month) pursuant to section 6053 of the Internal Revenue Code 
248.8 	to which subdivision 1 is applicable may deduct and withhold the tax with respect to such 
248.9 	tips from any wages of the employee (excluding tips) under the employer's control, even 
248.10 	though at the time such statement is furnished the total amount of the tips included in 
248.11 	statements furnished to the employer as having been received by the employee in such 
248.12 	calendar month in the course of employment by such employer is less than $20. Such tax 
248.13 	shall not at any time be deducted and withheld in an amount which exceeds the aggregate 
248.14 	of such wages and funds as are under the control of the employer minus any tax required 
248.15 	by other provisions of state or federal law to be collected from such wages and funds.
248.16 	(10) Vehicle fringe benefits. An employer shall not deduct and withhold any tax under 
248.17 	this section with respect to any vehicle fringe benefit provided to an employee if the employer 
248.18 	has so elected for federal purposes and the requirement of and the definition contained in 
248.19 	section 3402(s) of the Internal Revenue Code are complied with.

248.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
248.21 	31, 2020.

248.22 	Sec. 6. Minnesota Statutes 2020, section 290.92, subdivision 3, is amended to read:
248.23 		Subd. 3.Withholding, irregular period. If payment of wages is made to an employee 
248.24 	by an employer
248.25 	(a) With respect to a payroll period or other period, any part of which is included in a 
248.26 	payroll period or other period with respect to which wages are also paid to such employees 
248.27 	by such employer, or
248.28 	(b) Without regard to any payroll period or other period, but on or prior to the expiration 
248.29 	of a payroll period or other period with respect to which wages are also paid to such employee 
248.30 	by such employer, or
248.31 	(c) With respect to a period beginning in one and ending in another calendar year, or
248.32 	(d) Through an agent, fiduciary, or other person who also has the control, receipt, custody, 
248.33 	or disposal of or pays, the wages payable by another employer to such employee.
249.1 	The manner of withholding and the amount to be deducted and withheld under subdivision 
249.2 	2a shall be determined in accordance with rules prescribed by the commissioner under which 
249.3 	the withholding exemption allowance allowed to the employee in any calendar year shall 
249.4 	approximate the withholding exemption allowance allowable with respect to an annual 
249.5 	payroll period, except that if supplemental wages are not paid concurrent with a payroll 
249.6 	period the employer shall withhold tax on the supplemental payment at the rate of 6.25 
249.7 	percent as if no exemption allowance had been claimed.

249.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
249.9 	31, 2020.

249.10 	Sec. 7. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:
249.11 		Subd. 4b.Withholding by partnerships. (a) A partnership shall deduct and withhold 
249.12 	a tax as provided in paragraph (b) for nonresident individual partners based on their 
249.13 	distributive shares of partnership income for a taxable year of the partnership.
249.14 	(b) The amount of tax withheld is determined by multiplying the partner's distributive 
249.15 	share allocable to Minnesota under section 290.17, paid or credited during the taxable year 
249.16 	by the highest rate used to determine the income tax liability for an individual under section 
249.17 	290.06, subdivision 2c, except that the amount of tax withheld may be determined by the 
249.18 	commissioner if the partner submits a withholding exemption allowance certificate under 
249.19 	subdivision 5.
249.20 	(c) The commissioner may reduce or abate the tax withheld under this subdivision if the 
249.21 	partnership had reasonable cause to believe that no tax was due under this section.
249.22 	(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold 
249.23 	tax for a nonresident partner if:
249.24 	(1) the partner elects to have the tax due paid as part of the partnership's composite return 
249.25 	under section 289A.08, subdivision 7;
249.26 	(2) the partner has Minnesota assignable federal adjusted gross income from the 
249.27 	partnership of less than $1,000; or
249.28 	(3) the partnership is liquidated or terminated, the income was generated by a transaction 
249.29 	related to the termination or liquidation, and no cash or other property was distributed in 
249.30 	the current or prior taxable year;
249.31 	(4) the distributive shares of partnership income are attributable to:
249.32 	(i) income required to be recognized because of discharge of indebtedness;
250.1 	(ii) income recognized because of a sale, exchange, or other disposition of real estate, 
250.2 	depreciable property, or property described in section 179 of the Internal Revenue Code; 
250.3 	or
250.4 	(iii) income recognized on the sale, exchange, or other disposition of any property that 
250.5 	has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of 
250.6 	the Internal Revenue Code
250.7 	to the extent that the income does not include cash received or receivable or, if there is cash 
250.8 	received or receivable, to the extent that the cash is required to be used to pay indebtedness 
250.9 	by the partnership or a secured debt on partnership property; or
250.10 	(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the 
250.11 	Internal Revenue Code.
250.12 	(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
250.13 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an 
250.14 	employer.
250.15 	(f) To the extent that income is exempt from withholding under paragraph (d), clause 
250.16 	(4), the commissioner has a lien in an amount up to the amount that would be required to 
250.17 	be withheld with respect to the income of the partner attributable to the partnership interest, 
250.18 	but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
250.19 	from the date of assessment of the tax against the partner, and attaches to that partner's share 
250.20 	of the profits and any other money due or to become due to that partner in respect of the 
250.21 	partnership. Notice of the lien may be sent by mail to the partnership, without the necessity 
250.22 	for recording the lien. The notice has the force and effect of a levy under section 270C.67, 
250.23 	and is enforceable against the partnership in the manner provided by that section. Upon 
250.24 	payment in full of the liability subsequent to the notice of lien, the partnership must be 
250.25 	notified that the lien has been satisfied.

250.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
250.27 	31, 2020.

250.28 	Sec. 8. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:
250.29 		Subd. 4c.Withholding by S corporations. (a) A corporation having a valid election in 
250.30 	effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b) 
250.31 	for nonresident individual shareholders their share of the corporation's income for the taxable 
250.32 	year.
251.1 	(b) The amount of tax withheld is determined by multiplying the amount of income 
251.2 	allocable to Minnesota under section 290.17 by the highest rate used to determine the income 
251.3 	tax liability of an individual under section 290.06, subdivision 2c, except that the amount 
251.4 	of tax withheld may be determined by the commissioner if the shareholder submits a 
251.5 	withholding exemption allowance certificate under subdivision 5.
251.6 	(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold 
251.7 	tax for a nonresident shareholder, if:
251.8 	(1) the shareholder elects to have the tax due paid as part of the corporation's composite 
251.9 	return under section 289A.08, subdivision 7;
251.10 	(2) the shareholder has Minnesota assignable federal adjusted gross income from the 
251.11 	corporation of less than $1,000; or
251.12 	(3) the corporation is liquidated or terminated, the income was generated by a transaction 
251.13 	related to the termination or liquidation, and no cash or other property was distributed in 
251.14 	the current or prior taxable year.
251.15 	(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
251.16 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an 
251.17 	employer.

251.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
251.19 	31, 2020.

251.20 	Sec. 9. Minnesota Statutes 2020, section 290.92, subdivision 5, is amended to read:
251.21 		Subd. 5.Exemptions Allowances. (1) Entitlement. An employee receiving wages shall 
251.22 	on any day be entitled to claim withholding exemptions allowances in a number not to 
251.23 	exceed the number of withholding exemptions allowances that the employee claims and 
251.24 	that are allowable pursuant to section 3402(f)(1), (m), and (n) of the Internal Revenue Code 
251.25 	for federal withholding purposes, except:
251.26 	(i) the standard deduction amount for the purposes of section 3402(f)(1)(E) of the Internal 
251.27 	Revenue Code shall be the amount calculated under section 290.0123, subdivision 1; and
251.28 	(ii) the exemption allowance amount for the purposes of section 3402(f)(1)(A) of the 
251.29 	Internal Revenue Code shall be the amount calculated under section 290.0121, subdivision 
251.30 	1.;
251.31 	(iii) withholding allowances under sections 3402(f)(1)(C) and (D) of the Internal Revenue 
251.32 	Code are not allowed;
252.1 	(iv) estimated itemized deductions allowable under section 290.0122, but only if the 
252.2 	employee's spouse does not have in effect a withholding certificate electing this allowance; 
252.3 	and
252.4 	(v) any additional allowances, at the discretion of the commissioner, that are in the best 
252.5 	interests of determining the proper amount to withhold for the payment of taxes under this 
252.6 	chapter.
252.7 	(2) Withholding exemption allowance certificate. The provisions concerning exemption
252.8 	allowance certificates contained in section 3402(f)(2) and (3) of the Internal Revenue Code 
252.9 	shall apply.
252.10 	(3) Form of certificate. Withholding exemption allowance certificates shall be in such 
252.11 	form and contain such information as the commissioner may by rule prescribe.

252.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
252.13 	31, 2020.

252.14 	Sec. 10. Minnesota Statutes 2020, section 290.92, subdivision 5a, is amended to read:
252.15 		Subd. 5a.Verification of withholding exemptions allowances; appeal. (a) An employer 
252.16 	shall submit to the commissioner a copy of any withholding exemption allowance certificate 
252.17 	or any affidavit of residency received from an employee on which the employee claims any 
252.18 	of the following:
252.19 	(1) a total number of withholding exemptions allowances in excess of ten or a number 
252.20 	prescribed by the commissioner, or
252.21 	(2) a status that would exempt the employee from Minnesota withholding, including 
252.22 	where the employee is a nonresident exempt from withholding under subdivision 4a, clause 
252.23 	(3), except where the employer reasonably expects, at the time that the certificate is received, 
252.24 	that the employee's wages under subdivision 1 from the employer will not then usually 
252.25 	exceed $200 per week, or
252.26 	(3) any number of withholding exemptions allowances which the employer has reason 
252.27 	to believe is in excess of the number to which the employee is entitled.
252.28 	(b) Copies of exemption allowance certificates and affidavits of residency required to 
252.29 	be submitted by paragraph (a) shall be submitted to the commissioner within 30 days after 
252.30 	receipt by the employer unless the employer is also required by federal law to submit copies 
252.31 	to the Internal Revenue Service, in which case the employer may elect to submit the copies 
253.1 	to the commissioner at the same time that the employer is required to submit them to the 
253.2 	Internal Revenue Service.
253.3 	(c) An employer who submits a copy of a withholding exemption allowance certificate 
253.4 	in accordance with paragraph (a) shall honor the certificate until notified by the commissioner 
253.5 	that the certificate is invalid. The commissioner shall mail a copy of any such notice to the 
253.6 	employee. Upon notification that a particular certificate is invalid, the employer shall not 
253.7 	honor that certificate or any subsequent certificate unless instructed to do so by the 
253.8 	commissioner. The employer shall allow the employee the number of exemptions allowances
253.9 	and compute the withholding tax as instructed by the commissioner in accordance with 
253.10 	paragraph (d).
253.11 	(d) The commissioner may require an employee to verify entitlement to the number of 
253.12 	exemptions allowances or to the exempt status claimed on the withholding exemption
253.13 	allowance certificate or, to verify nonresidency. The employee shall be allowed at least 30 
253.14 	days to submit the verification, after which time the commissioner shall, on the basis of the 
253.15 	best information available to the commissioner, determine the employee's status and allow 
253.16 	the employee the maximum number of withholding exemptions allowances allowable under 
253.17 	this chapter. The commissioner shall mail a notice of this determination to the employee at 
253.18 	the address listed on the exemption allowance certificate in question or to the last known 
253.19 	address of the employee. Pursuant to section 270B.06, the commissioner may notify the 
253.20 	employer of this determination and instruct the employer to withhold tax in accordance with 
253.21 	the determination.
253.22 	However, where the commissioner has reasonable grounds for believing that the employee 
253.23 	is about to leave the state or that the collection of any tax due under this chapter will be 
253.24 	jeopardized by delay, the commissioner may immediately notify the employee and the 
253.25 	employer, pursuant to section 270B.06, that the certificate is invalid, and the employer must 
253.26 	not honor that certificate or any subsequent certificate unless instructed to do so by the 
253.27 	commissioner. The employer shall allow the employee the number of exemptions allowances
253.28 	and compute the withholding tax as instructed by the commissioner.
253.29 	(e) The commissioner's determination under paragraph (d) shall be appealable to Tax 
253.30 	Court in accordance with section 271.06, and shall remain in effect for withholding tax 
253.31 	purposes pending disposition of any appeal.

253.32 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
253.33 	31, 2020.

254.1 	Sec. 11. Minnesota Statutes 2020, section 290.92, subdivision 19, is amended to read:
254.2 		Subd. 19.Employees incurring no income tax liability.  Notwithstanding any other 
254.3 	provision of this section, except the provisions of subdivision 5a, an employer is not required 
254.4 	to deduct and withhold any tax under this chapter from wages paid to an employee if:
254.5 	(1) the employee furnished the employer with a withholding exemption allowance
254.6 	certificate that:
254.7 	(i) certifies the employee incurred no liability for income tax imposed under this chapter 
254.8 	for the employee's preceding taxable year;
254.9 	(ii) certifies the employee anticipates incurring no liability for income tax imposed under 
254.10 	this chapter for the current taxable year; and
254.11 	(iii) is in a form and contains any other information prescribed by the commissioner; or
254.12 	(2)(i) the employee is not a resident of Minnesota when the wages were paid; and
254.13 	(ii) the employer reasonably expects that the employer will not pay the employee enough 
254.14 	wages assignable to Minnesota under section 290.17, subdivision 2, paragraph (a)(1), to 
254.15 	meet the nonresident requirement to file a Minnesota individual income tax return for the 
254.16 	taxable year under section 289A.08, subdivision 1, paragraph (a).

254.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
254.18 	31, 2020.

254.19 	Sec. 12. Minnesota Statutes 2020, section 290.92, subdivision 20, is amended to read:
254.20 		Subd. 20.Voluntary withholding agreements Miscellaneous withholding 
254.21 	arrangements. (a) For purposes of this section, any payment of an annuity to an individual, 
254.22 	if at the time the payment is made a request that such annuity be subject to withholding 
254.23 	under this section is in effect, or distribution to an individual as defined under section 
254.24 	3405(e)(2) or (3) of the Internal Revenue Code shall be treated as if it were a payment of 
254.25 	wages by an employer to an employee for a payroll period. Any payment to an individual 
254.26 	of sick pay which does not constitute wages, determined without regard to this subdivision, 
254.27 	shall be treated as if it were a payment of wages by an employer to an employee for a payroll 
254.28 	period, if, at the time the payment is made a request that such sick pay be subject to 
254.29 	withholding under this section is in effect. Sick pay means any amount which:
254.30 	(1) is paid to an employee pursuant to a plan to which the employer is a party, and
255.1 	(2) constitutes remuneration or a payment in lieu of remuneration for any period during 
255.2 	which the employee is temporarily absent from work on account of sickness or personal 
255.3 	injuries.
255.4 	(b) A request for withholding, the amount withheld, and sick pay paid pursuant to certain 
255.5 	collective bargaining agreements shall conform with the provisions of section 3402(o)(3), 
255.6 	(4), and (5) of the Internal Revenue Code.
255.7 	(c) The commissioner is authorized by rules to provide for withholding:
255.8 	(1) from remuneration for services performed by an employee for the employer which, 
255.9 	without regard to this subdivision, does not constitute wages, and
255.10 	(2) from any other type of payment with respect to which the commissioner finds that 
255.11 	withholding would be appropriate under the provisions of this section, if the employer and 
255.12 	the employee, or in the case of any other type of payment the person making and the person 
255.13 	receiving the payment, agree to such withholding. Such agreement shall be made in such 
255.14 	form and manner as the commissioner may by rules provide. For purposes of this section 
255.15 	remuneration or other payments with respect to which such agreement is made shall be 
255.16 	treated as if they were wages paid by an employer to an employee to the extent that such 
255.17 	remuneration is paid or other payments are made during the period for which the agreement 
255.18 	is in effect.
255.19 	(d) An individual receiving a payment or distribution under paragraph (a) may elect to 
255.20 	have paragraph (a) not apply to the payment or distribution as follows.
255.21 	(1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, an 
255.22 	election remains in effect until revoked by such individual.
255.23 	(2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the 
255.24 	election is on a distribution-by-distribution basis.

255.25 	EFFECTIVE DATE. This section is effective for payments and distributions made 
255.26 	after December 31, 2021.

255.27 	Sec. 13. Minnesota Statutes 2020, section 290.923, subdivision 9, is amended to read:
255.28 		Subd. 9.Payees incurring no income tax liability. Notwithstanding any other provision 
255.29 	of this section a payor shall not be required to deduct and withhold any tax under this chapter 
255.30 	upon a payment of royalties to a payee if there is in effect with respect to the payment a 
255.31 	withholding exemption allowance certificate, in the form and containing the information 
256.1 	prescribed by the commissioner, furnished to the payor by the payee certifying that the 
256.2 	payee:
256.3 	(1) incurred no liability for income tax imposed under this chapter for the payee's 
256.4 	preceding taxable year; and
256.5 	(2) anticipates incurring no liability for income tax under this chapter for the current 
256.6 	taxable year.
256.7 	The commissioner shall provide by rule for the coordination of the provisions of this 
256.8 	subdivision with the provisions of subdivision 4.

256.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
256.10 	31, 2020.

256.11 	Sec. 14. Minnesota Statutes 2020, section 290.993, is amended to read:
256.12 	290.993 SPECIAL LIMITED ADJUSTMENT.
256.13 	(a) For an individual income taxpayer subject to tax under section 290.06, subdivision 
256.14 	2c, estate, or trust, or a partnership that elects to file a composite return under section 
256.15 	289A.08, subdivision 7, for taxable years beginning after December 31, 2017, and before 
256.16 	January 1, 2019, the following special rules apply:
256.17 	(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an 
256.18 	election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual 
256.19 	income tax purposes, regardless of the choice made on their federal return; and
256.20 	(2) there is an adjustment to tax equal to the difference between the tax calculated under 
256.21 	this chapter using the Internal Revenue Code as amended through December 16, 2016, and 
256.22 	the tax calculated under this chapter using the Internal Revenue Code amended through 
256.23 	December 31, 2018, before the application of credits. The end result must be zero additional 
256.24 	tax due or refund.
256.25 	(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to 
256.26 	sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303, 
256.27 	13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public 
256.28 	Law 115-97; and section 40411 of Public Law 115-123.

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

257.1 	ARTICLE 15
257.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: PROPERTY TAXES 
257.3 	AND LOCAL GOVERNMENT AIDS

257.4 	Section 1. Minnesota Statutes 2020, section 270.41, subdivision 3a, is amended to read:
257.5 		Subd. 3a.Report on disciplinary actions. Each odd-numbered year, When issuing the 
257.6 	report required under section 214.07, the board must publish a report detailing include the 
257.7 	number and types of disciplinary actions recommended by the commissioner of revenue 
257.8 	under section 273.0645, subdivision 2, and the disposition of those recommendations by 
257.9 	the board. The report must be presented to the house of representatives and senate committees 
257.10 	with jurisdiction over property taxes by February 1 of each odd-numbered year in addition 
257.11 	to the recipients required under section 214.07.

257.12 	EFFECTIVE DATE. This section is effective for reports issued in 2022 and thereafter.

257.13 	Sec. 2. Minnesota Statutes 2020, section 270.44, is amended to read:
257.14 	270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.
257.15 	The board shall charge the following fees:
257.16 	(1) $150 for a senior accredited Minnesota assessor license;
257.17 	(2) $125 for an accredited Minnesota assessor license;
257.18 	(3) $95 for a certified Minnesota assessor specialist license;
257.19 	(4) $85 for a certified Minnesota assessor license;
257.20 	(5) $85 for a temporary license;
257.21 	(6) $50 for a trainee registration;
257.22 	(7) $80 for grading a form appraisal;
257.23 	(8) $140 for grading a narrative appraisal; and
257.24 	(9) $50 for reinstatement; and.
257.25 	(10) $20 for record retention.

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

257.27 	Sec. 3. Minnesota Statutes 2020, section 272.029, subdivision 2, is amended to read:
257.28 		Subd. 2.Definitions. (a) For the purposes of this section:
258.1 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
258.2 	subdivision 19, and also includes a substation that is used and owned by one or more wind 
258.3 	energy conversion facilities;
258.4 	(2) "large scale wind energy conversion system" means a wind energy conversion system 
258.5 	of more than 12 megawatts, as measured by the nameplate capacity of the system or as 
258.6 	combined with other systems as provided in paragraph (b);
258.7 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
258.8 	system of over two and not more than 12 megawatts, as measured by the nameplate capacity 
258.9 	of the system or as combined with other systems as provided in paragraph (b); and
258.10 	(4) "small scale wind energy conversion system" means a wind energy conversion system 
258.11 	of two megawatts and under, as measured by the nameplate capacity of the system or as 
258.12 	combined with other systems as provided in paragraph (b).
258.13 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
258.14 	wind energy conversion system under this subdivision shall be determined according to this 
258.15 	paragraph. Unless the systems are interconnected with different distribution systems, the 
258.16 	nameplate capacity of one wind energy conversion system shall be combined with the 
258.17 	nameplate capacity of any other wind energy conversion system that is:
258.18 	(1) located within five miles of the wind energy conversion system;
258.19 	(2) constructed within the same 12-month period as the wind energy conversion system; 
258.20 	and
258.21 	(3) under common ownership.
258.22 	In the case of a dispute, the commissioner of commerce shall determine the total size of the 
258.23 	system, and shall draw all reasonable inferences in favor of combining the systems.
258.24 	For the purposes of making a determination under this paragraph, the original construction 
258.25 	date of an existing wind energy conversion system is not changed if the system is replaced, 
258.26 	repaired, or otherwise maintained or altered.
258.27 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
258.28 	determine that two wind energy conversion systems are under common ownership when 
258.29 	the underlying ownership structure contains similar persons or entities, even if the ownership 
258.30 	shares differ between the two systems. Wind energy conversion systems are not under 
258.31 	common ownership solely because the same person or entity provided equity financing for 
258.32 	the systems.

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

259.2 	Sec. 4. Minnesota Statutes 2020, section 272.0295, subdivision 2, is amended to read:
259.3 		Subd. 2.Definitions. (a) For the purposes of this section, the term "solar energy 
259.4 	generating system" means a set of devices whose primary purpose is to produce electricity 
259.5 	by means of any combination of collecting, transferring, or converting solar generated 
259.6 	energy.
259.7 	(b) The total size of a solar energy generating system under this subdivision shall be 
259.8 	determined according to this paragraph. Unless the systems are interconnected with different 
259.9 	distribution systems, the nameplate capacity of a solar energy generating system shall be 
259.10 	combined with the nameplate capacity of any other solar energy generating system that:
259.11 	(1) is constructed within the same 12-month period as the solar energy generating system; 
259.12 	and
259.13 	(2) exhibits characteristics of being a single development, including but not limited to 
259.14 	ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing 
259.15 	arrangements, and common debt or equity financing.
259.16 	In the case of a dispute, the commissioner of commerce shall determine the total size of the 
259.17 	system and shall draw all reasonable inferences in favor of combining the systems.
259.18 	For the purposes of making a determination under this paragraph, the original construction 
259.19 	date of an existing solar energy conversion system is not changed if the system is replaced, 
259.20 	repaired, or otherwise maintained or altered.
259.21 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
259.22 	determine that two solar energy generating systems are under common ownership when the 
259.23 	underlying ownership structure contains similar persons or entities, even if the ownership 
259.24 	shares differ between the two systems. Solar energy generating systems are not under 
259.25 	common ownership solely because the same person or entity provided equity financing for 
259.26 	the systems.

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

259.28 	Sec. 5. Minnesota Statutes 2020, section 272.0295, subdivision 5, is amended to read:
259.29 		Subd. 5.Notification of tax. (a) On or before February 28, the commissioner of revenue 
259.30 	shall notify the owner of each solar energy generating system of the tax due to each county 
260.1 	for the current year and shall certify to the county auditor of each county in which the system 
260.2 	is located the tax due from each owner for the current year.
260.3 	(b) If the commissioner of revenue determines that the amount of production tax has 
260.4 	been erroneously calculated, the commissioner may correct the error. The commissioner 
260.5 	must notify the owner of the solar energy generating system of the correction and the amount 
260.6 	of tax due to each county and must certify the correction to the county auditor of each county 
260.7 	in which the system is located on or before April 1 of the current year. The commissioner 
260.8 	may correct errors that are clerical in nature until December 31.

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

260.10 	Sec. 6. Minnesota Statutes 2020, section 273.063, is amended to read:
260.11 	273.063 APPLICATION; LIMITATIONS.
260.12 	The provisions of sections 272.161, 273.061, 273.062, 273.063, 273.072, 273.08, 273.10, 
260.13 	274.01, and 375.192 shall apply to all counties except Ramsey County. The following 
260.14 	limitations shall apply as to the extent of the county assessors jurisdiction:
260.15 	In counties having a city of the first class, the powers and duties of the county assessor 
260.16 	within such city shall be performed by the duly appointed city assessor. In all other cities 
260.17 	having a population of 30,000 persons or more, according to the last preceding federal 
260.18 	census, except in counties having a county assessor on January 1, 1967, the powers and 
260.19 	duties of the county assessor within such cities shall be performed by the duly appointed 
260.20 	city assessor, provided that the county assessor shall retain the supervisory duties contained 
260.21 	in section 273.061, subdivision 8. For purposes of this section, "powers and duties" means 
260.22 	the powers and duties identified in section 273.061, subdivision 8, clauses (5) to (16).

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

260.24 	Sec. 7. Minnesota Statutes 2020, section 273.0755, is amended to read:
260.25 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
260.26 	(a) Beginning with the four-year period starting on July 1, 2000 2020, every person 
260.27 	licensed by the state Board of Assessors at the Accredited Minnesota Assessor level or 
260.28 	higher, shall successfully complete a weeklong Minnesota laws course 30 hours of 
260.29 	educational coursework on Minnesota laws, assessment administration, and administrative 
260.30 	procedures sponsored by the Department of Revenue at least once in every four-year period. 
260.31 	An assessor need not attend the course if they successfully pass the test for the course.
261.1 	(b) The commissioner of revenue may require that each county, and each city for which 
261.2 	the city assessor performs the duties of county assessor, have (1) a person on the assessor's 
261.3 	staff who is certified by the Department of Revenue in sales ratio calculations, (2) an officer 
261.4 	or employee who is certified by the Department of Revenue in tax calculations, and (3) an 
261.5 	officer or employee who is certified by the Department of Revenue in the proper preparation 
261.6 	of information reported to the commissioner under section 270C.85, subdivision 2, clause 
261.7 	(4). Certifications under this paragraph expire after four years.
261.8 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
261.9 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
261.10 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
261.11 	assessment practices developed and presented by the commissioner of revenue. This 
261.12 	requirement must be met at least once in every subsequent four-year period. This requirement 
261.13 	applies to all assessors licensed for one year or more in the four-year period.
261.14 	(d) When the commissioner of revenue determines that an individual or board that 
261.15 	performs functions related to property tax administration has performed those functions in 
261.16 	a manner that is not uniform or equitable, the commissioner may require that the individual 
261.17 	or members of the board complete supplemental training. The commissioner may not require 
261.18 	that an individual complete more than 32 hours of supplemental training pursuant to this 
261.19 	paragraph. If the individual is required to complete supplemental training due to that 
261.20 	individual's membership on a local or county board of appeal and equalization, the 
261.21 	commissioner may not require that the individual complete more than two hours of 
261.22 	supplemental training.

261.23 	EFFECTIVE DATE. This section is effective retroactively for the four-year licensing 
261.24 	period starting on July 1, 2020, and thereafter.

261.25 	Sec. 8. Minnesota Statutes 2020, section 273.124, subdivision 14, is amended to read:
261.26 		Subd. 14.Agricultural homesteads; special provisions.  (a) Real estate of less than ten 
261.27 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
261.28 	subdivision 23, paragraph (a), if:
261.29 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
261.30 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
261.31 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
261.32 	taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
262.1 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
262.2 	acres;
262.3 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
262.4 	combination of townships or cities from the homestead; and
262.5 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
262.6 	at least 50 percent of the market value of the house, garage, and one acre of land.
262.7 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
262.8 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
262.9 	properties, as long as the homestead remains under the same ownership, the owner owns a 
262.10 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
262.11 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
262.12 	to property that qualified under this paragraph for the 1998 assessment.
262.13 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
262.14 	extent as other agricultural homestead property, if all of the following criteria are met:
262.15 	(1) the agricultural property consists of at least 40 acres including undivided government 
262.16 	lots and correctional 40's;
262.17 	(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 
262.18 	or of the owner's spouse, is actively farming the agricultural property, either on the person's 
262.19 	own behalf as an individual or on behalf of a partnership operating a family farm, family 
262.20 	farm corporation, joint family farm venture, or limited liability company of which the person 
262.21 	is a partner, shareholder, or member;
262.22 	(3) both the owner of the agricultural property and the person who is actively farming 
262.23 	the agricultural property under clause (2), are Minnesota residents;
262.24 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
262.25 	in Minnesota; and
262.26 	(5) neither the owner nor the person actively farming the agricultural property lives 
262.27 	farther than four townships or cities, or a combination of four townships or cities, from the 
262.28 	agricultural property, except that if the owner or the owner's spouse is required to live in 
262.29 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
262.30 	the agricultural property, may live more than four townships or cities, or combination of 
262.31 	four townships or cities from the agricultural property.
262.32 	The relationship under this paragraph may be either by blood or marriage.
263.1 	(ii) Property containing the residence of an owner who owns qualified property under 
263.2 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
263.3 	is also used for noncommercial storage or drying of agricultural crops.
263.4 	(iii) As used in this paragraph, "agricultural property" means class 2a property and any 
263.5 	class 2b property that is contiguous to and under the same ownership as the class 2a property.
263.6 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
263.7 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
263.8 	land is located in the same township or city, or not farther than four townships or cities or 
263.9 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
263.10 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
263.11 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
263.12 	of the other county.
263.13 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
263.14 	holding a vested remainder interest in it must be classified as a homestead under section 
263.15 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
263.16 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
263.17 	interests who are actively engaged in farming the property, and up to one acre of the land 
263.18 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
263.19 	must also be assessed class 2a.
263.20 	(e) Agricultural land and buildings that were class 2a homestead property under section 
263.21 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
263.22 	agricultural homesteads for subsequent assessments if:
263.23 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
263.24 	homestead as a result of the April 1997 floods;
263.25 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
263.26 	Wilkin;
263.27 	(3) the agricultural land and buildings remain under the same ownership for the current 
263.28 	assessment year as existed for the 1997 assessment year and continue to be used for 
263.29 	agricultural purposes;
263.30 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
263.31 	of one of the parcels of agricultural land that is owned by the taxpayer; and
263.32 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
263.33 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
264.1 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
264.2 	property continues to meet all the requirements in this paragraph and any dwellings on the 
264.3 	agricultural land remain uninhabited.
264.4 	(f) Agricultural land and buildings that were class 2a homestead property under section 
264.5 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
264.6 	agricultural homesteads for subsequent assessments if:
264.7 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
264.8 	homestead as a result of damage caused by a March 29, 1998, tornado;
264.9 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 
264.10 	Nicollet, Nobles, or Rice;
264.11 	(3) the agricultural land and buildings remain under the same ownership for the current 
264.12 	assessment year as existed for the 1998 assessment year;
264.13 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
264.14 	one of the parcels of agricultural land that is owned by the taxpayer; and
264.15 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
264.16 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
264.17 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
264.18 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
264.19 	are not required if the property continues to meet all the requirements in this paragraph and 
264.20 	any dwellings on the agricultural land remain uninhabited.
264.21 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
264.22 	farm limited liability company, or partnership operating a family farm as described under 
264.23 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
264.24 	property, if all of the following criteria are met:
264.25 	(1) the property consists of at least 40 acres including undivided government lots and 
264.26 	correctional 40's;
264.27 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
264.28 	property;
264.29 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
264.30 	is a Minnesota resident;
264.31 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
264.32 	member, or partner claims another agricultural homestead in Minnesota; and
265.1 	(5) that shareholder, member, or partner does not live farther than four townships or 
265.2 	cities, or a combination of four townships or cities, from the agricultural property.
265.3 	Homestead treatment applies under this paragraph even if:
265.4 	(i) the shareholder, member, or partner of that entity is actively farming the agricultural 
265.5 	property on the shareholder's, member's, or partner's own behalf; or
265.6 	(ii) the family farm is operated by a family farm corporation, joint family farm venture, 
265.7 	partnership, or limited liability company other than the family farm corporation, joint family 
265.8 	farm venture, partnership, or limited liability company that owns the land, provided that:
265.9 	(A) the shareholder, member, or partner of the family farm corporation, joint family 
265.10 	farm venture, partnership, or limited liability company that owns the land who is actively 
265.11 	farming the land is a shareholder, member, or partner of the family farm corporation, joint 
265.12 	family farm venture, partnership, or limited liability company that is operating the farm; 
265.13 	and
265.14 	(B) more than half of the shareholders, members, or partners of each family farm 
265.15 	corporation, joint family farm venture, partnership, or limited liability company are persons 
265.16 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
265.17 	paragraphs (c) and (d).
265.18 	Homestead treatment applies under this paragraph for property leased to a family farm 
265.19 	corporation, joint farm venture, limited liability company, or partnership operating a family 
265.20 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
265.21 	or partner in the entity.
265.22 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
265.23 	full application must be submitted to the county assessor where the property is located. 
265.24 	Owners and the persons who are actively farming the property shall be required to complete 
265.25 	only a one-page abbreviated version of the application in each subsequent year provided 
265.26 	that none of the following items have changed since the initial application:
265.27 	(1) the day-to-day operation, administration, and financial risks remain the same;
265.28 	(2) the owners and the persons actively farming the property continue to live within the 
265.29 	four townships or city criteria and are Minnesota residents;
265.30 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
265.31 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
265.32 	(5) the property's acreage is unchanged; and
266.1 	(6) none of the property's acres have been enrolled in a federal or state farm program 
266.2 	since the initial application.
266.3 	The owners and any persons who are actively farming the property must include the 
266.4 	appropriate Social Security numbers, and sign and date the application. If any of the specified 
266.5 	information has changed since the full application was filed, the owner must notify the 
266.6 	assessor, and must complete a new application to determine if the property continues to 
266.7 	qualify for the special agricultural homestead. The commissioner of revenue shall prepare 
266.8 	a standard reapplication form for use by the assessors.
266.9 	(i) Agricultural land and buildings that were class 2a homestead property under section 
266.10 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
266.11 	agricultural homesteads for subsequent assessments if:
266.12 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
266.13 	homestead as a result of damage caused by the August 2007 floods;
266.14 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
266.15 	Wabasha, or Winona;
266.16 	(3) the agricultural land and buildings remain under the same ownership for the current 
266.17 	assessment year as existed for the 2007 assessment year;
266.18 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
266.19 	one of the parcels of agricultural land that is owned by the taxpayer; and
266.20 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
266.21 	floods, and the owner furnishes the assessor any information deemed necessary by the 
266.22 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
266.23 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
266.24 	are not required if the property continues to meet all the requirements in this paragraph and 
266.25 	any dwellings on the agricultural land remain uninhabited.
266.26 	(j) Agricultural land and buildings that were class 2a homestead property under section 
266.27 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
266.28 	agricultural homesteads for subsequent assessments if:
266.29 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
266.30 	homestead as a result of the March 2009 floods;
266.31 	(2) the property is located in the county of Marshall;
267.1 	(3) the agricultural land and buildings remain under the same ownership for the current 
267.2 	assessment year as existed for the 2008 assessment year and continue to be used for 
267.3 	agricultural purposes;
267.4 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
267.5 	of one of the parcels of agricultural land that is owned by the taxpayer; and
267.6 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
267.7 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
267.8 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
267.9 	property continues to meet all the requirements in this paragraph and any dwellings on the 
267.10 	agricultural land remain uninhabited.

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

267.12 	Sec. 9. Minnesota Statutes 2020, section 273.18, is amended to read:
267.13 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY 
267.14 	BY COUNTY AUDITORS.
267.15 	(a) In every sixth year after the year 2010, the county auditor shall enter the description 
267.16 	of each tract of real property exempt by law from taxation, with the name of the owner, and 
267.17 	the assessor shall value and assess the same in the same manner that other real property is 
267.18 	valued and assessed, and shall designate in each case the purpose for which the property is 
267.19 	used.
267.20 	(b) The county auditor shall include in the exempt property information that the 
267.21 	commissioner may require under section 270C.85, subdivision 2, clause (4), the total number 
267.22 	of acres of all natural resources lands for which in lieu payments are made under sections 
267.23 	477A.11 to 477A.14 and 477A.17. The assessor shall estimate its market value, provided 
267.24 	that if the assessor is not able to estimate the market value of the land on a per parcel basis, 
267.25 	the assessor shall furnish the commissioner of revenue with an estimate of the average value 
267.26 	per acre of this land within the county.

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

267.28 	Sec. 10. Minnesota Statutes 2020, section 287.04, is amended to read:
267.29 	287.04 EXEMPTIONS.
267.30 	The tax imposed by section 287.035 does not apply to:
267.31 	(a) (1) a decree of marriage dissolution or an instrument made pursuant to it.;
268.1 	(b) (2) a mortgage given to correct a misdescription of the mortgaged property.;
268.2 	(c) (3) a mortgage or other instrument that adds additional security for the same debt 
268.3 	for which mortgage registry tax has been paid.;
268.4 	(d) (4) a contract for the conveyance of any interest in real property, including a contract 
268.5 	for deed.;
268.6 	(e) (5) a mortgage secured by real property subject to the minerals production tax of 
268.7 	sections 298.24 to 298.28.;
268.8 	(f) The principal amount of (6) a mortgage loan made under a low and moderate income 
268.9 	housing program, or other affordable housing program, if: (i) the mortgagee is a federal, 
268.10 	state, or local government agency.; or (ii) the assignee is a federal, state, or local government 
268.11 	agency;
268.12 	(g) (7) mortgages granted by fraternal benefit societies subject to section 64B.24.;
268.13 	(h) (8) a mortgage amendment or extension, as defined in section 287.01.;
268.14 	(i) (9) an agricultural mortgage if the proceeds of the loan secured by the mortgage are 
268.15 	used to acquire or improve real property classified under section 273.13, subdivision 23, 
268.16 	paragraph (a) or (b).; and
268.17 	(j) (10) a mortgage on an armory building as set forth in section 193.147.

268.18 	EFFECTIVE DATE. This section is effective for mortgages recorded after June 30, 
268.19 	2021.

268.20 	Sec. 11. Minnesota Statutes 2020, section 477A.10, is amended to read:
268.21 	477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.
268.22 	The purposes of sections 477A.11 to 477A.14 and 477A.17 are:
268.23 	(1) to compensate local units of government for the loss of tax base from state ownership 
268.24 	of land and the need to provide services for state land;
268.25 	(2) to address the disproportionate impact of state land ownership on local units of 
268.26 	government with a large proportion of state land; and
268.27 	(3) to address the need to manage state lands held in trust for the local taxing districts.

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

269.1 	ARTICLE 16
269.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: SALES AND USE 
269.3 	TAXES

269.4 	Section 1. Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:
269.5 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
269.6 	to the commissioner monthly on or before the 20th day of the month following the month 
269.7 	in which the taxable event occurred, or following another reporting period as the 
269.8 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
269.9 	or (g), except that use taxes due on an annual use tax return as provided under section 
269.10 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
269.11 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30 
269.12 	must remit the June liability for the next year in the following manner:
269.13 	(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must 
269.14 	remit 87.5 percent of the estimated June liability to the commissioner. Two business days 
269.15 	before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent of 
269.16 	the estimated June liability to the commissioner.
269.17 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
269.18 	tax not remitted in June.
269.19 	(c) A vendor having a liability of:
269.20 	(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013, 
269.21 	and fiscal years thereafter, must remit by electronic means all liabilities on returns due for 
269.22 	periods beginning in all subsequent calendar years on or before the 20th day of the month 
269.23 	following the month in which the taxable event occurred, or on or before the 20th day of 
269.24 	the month following the month in which the sale is reported under section 289A.18, 
269.25 	subdivision 4; or
269.26 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
269.27 	thereafter, must remit by electronic means all liabilities in the manner provided in paragraph 
269.28 	(a) on returns due for periods beginning in the subsequent calendar year, except for 90 
269.29 	percent the percentage of the estimated June liability, as provided in paragraph (b), clause 
269.30 	(1), which is due two business days before June 30. The remaining amount of the June 
269.31 	liability is due on August 20.
269.32 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
269.33 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
270.1 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
270.2 	form prescribed by the commissioner. No extra fee may be charged to a person making 
270.3 	payment by mail under this paragraph. The payment must be postmarked at least two business 
270.4 	days before the due date for making the payment in order to be considered paid on a timely 
270.5 	basis.

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

270.7 	Sec. 2. Minnesota Statutes 2020, section 295.75, subdivision 2, is amended to read:
270.8 		Subd. 2.Gross receipts tax imposed. A tax is imposed on each liquor retailer equal to 
270.9 	2.5 percent of gross receipts from retail sales in Minnesota of liquor. The liquor retailer 
270.10 	may, but is not required to, collect the tax from the purchaser. If separately stated on the 
270.11 	invoice, bill of sale, or similar document given to the purchaser, the tax is excluded from 
270.12 	the sales price for purposes of the tax imposed under chapter 297A.

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

270.14 	Sec. 3. Minnesota Statutes 2020, section 297A.66, subdivision 3, is amended to read:
270.15 		Subd. 3.Marketplace provider liability. (a) A marketplace provider is deemed the 
270.16 	retailer or seller for all retail sales it facilitates, and is subject to audit on the retail sales it 
270.17 	facilitates if it is required to collect sales and use taxes and remit them to the commissioner 
270.18 	under subdivision 2, paragraphs (b) and (c).
270.19 	(b) A marketplace provider is not liable for failing to file, collect, and remit sales and 
270.20 	use taxes to the commissioner if the marketplace provider demonstrates that the error was 
270.21 	due to incorrect or insufficient information given to the marketplace provider by the retailer. 
270.22 	This paragraph does not apply if the marketplace provider and the marketplace retailer are 
270.23 	related as defined in subdivision 4, paragraph (b).

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

270.25 	Sec. 4. REPEALER.
 270.26 	Minnesota Statutes 2020, section 270C.17, subdivision 2, is repealed.

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

271.1 	ARTICLE 17
271.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: SPECIAL TAXES

271.3 	Section 1. Minnesota Statutes 2020, section 296A.06, subdivision 2, is amended to read:
271.4 		Subd. 2.Suspension of license. (a) Notwithstanding subdivision 1, the license of a 
271.5 	distributor, special fuel dealer, or bulk purchaser that has not filed a tax return or report or 
271.6 	paid a delinquent tax or fee within five days after notice and demand by the commissioner 
271.7 	is suspended. The suspension remains in effect until the demanded tax return or report has 
271.8 	been filed and the tax and fees shown on that return or report have been paid. If the 
271.9 	commissioner determines that the failure to file or failure to pay is due to reasonable cause, 
271.10 	then a license must not be suspended, or if suspended, must be reinstated.
271.11 	(b) A licensee whose license is suspended under this subdivision may request a contested 
271.12 	case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance 
271.13 	of the notice and demand issued under paragraph (a), unless the parties agree to a later 
271.14 	hearing date. The administrative law judge's report must be issued within 20 days after the 
271.15 	close of the hearing record, unless the parties agree to a later report issuance date. The 
271.16 	commissioner must issue a final decision within 30 days after receipt of the report of the 
271.17 	administrative law judge and subsequent exceptions and argument under section 14.61. The 
271.18 	suspension imposed under paragraph (a) remains in effect during any contested case hearing 
271.19 	process requested pursuant to this paragraph.

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

271.21 	Sec. 2. Minnesota Statutes 2020, section 297F.04, subdivision 2, is amended to read:
271.22 		Subd. 2.Refusal to issue or renew; revocation. The commissioner must not issue or 
271.23 	renew a license under this chapter, and may revoke a license under this chapter, if the 
271.24 	applicant or licensee:
271.25 	(1) owes $500 or more in delinquent taxes as defined in section 270C.72, subdivision 
271.26 	2;
271.27 	(2) after demand, has not filed tax returns required by the commissioner;
271.28 	(3) had a cigarette or tobacco license revoked by the commissioner within the past two 
271.29 	years;
271.30 	(4) had a sales and use tax permit revoked by the commissioner within the past two 
271.31 	years; or
272.1 	(5) has been convicted of a crime involving cigarettes or tobacco products, including 
272.2 	but not limited to: selling stolen cigarettes or tobacco products, receiving stolen cigarettes 
272.3 	or tobacco products, or involvement in the smuggling of cigarettes or tobacco products.

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

272.5 	Sec. 3. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
272.6 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor. A 
272.7 	cigarette or tobacco products distributor having a liability of $250,000 or more during a 
272.8 	fiscal year ending June 30, shall remit the June liability for the next year in the following 
272.9 	manner:
272.10 	(a) Two business days before June 30 of calendar years 2020 and year 2021, the 
272.11 	distributor shall remit the actual May liability and 87.5 percent of the estimated June liability 
272.12 	to the commissioner and file the return in the form and manner prescribed by the 
272.13 	commissioner. Two business days before June 30 of calendar year 2022 and each calendar 
272.14 	year thereafter, the distributor must remit the actual May liability and 84.5 percent of the 
272.15 	estimated June liability to the commissioner and file the return in the form and manner 
272.16 	prescribed by the commissioner.
272.17 	(b) On or before August 18 of the year, the distributor shall submit a return showing the 
272.18 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
272.19 	is imposed equal to ten percent of the amount of June liability required to be paid in June, 
272.20 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
272.21 	in June equals the lesser of:
272.22 	(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for the
272.23 	that calendar year 2020 and 2021 June liabilities and 84.5 of the actual June liability for 
272.24 	June 2022 and thereafter or 87.5 percent of the May liability for that calendar year; or
272.25 	(2) 87.5 for calendar year 2022 and each calendar year thereafter, the lesser of 84.5
272.26 	percent of the preceding actual June liability for that calendar year or 84.5 percent of the
272.27 	May liability for the calendar year 2020 and 2021 June liabilities and 84.5 percent of the 
272.28 	preceding May liability for June 2022 and thereafter for that calendar year.
272.29 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
272.30 	vendor must remit by two business days before June 30 is 84.5 percent.

272.31 	EFFECTIVE DATE. This section is effective for estimated payments required to be 
272.32 	made after the date following final enactment.

273.1 	Sec. 4. Minnesota Statutes 2020, section 297F.13, subdivision 4, is amended to read:
273.2 		Subd. 4.Retailer and subjobber to preserve purchase invoices. Every retailer and 
273.3 	subjobber shall procure itemized invoices of all cigarettes or tobacco products purchased.
273.4 	The retailer and subjobber shall preserve a legible copy of each invoice for one year 
273.5 	from the date of the invoice or as long as the cigarette or tobacco product listed on the 
273.6 	invoice is available for sale or in their possession, whichever period is longer. The retailer 
273.7 	and subjobber shall preserve copies of the invoices at each retail location or at a central 
273.8 	location provided that the invoice must be produced and made available at a retail location 
273.9 	within one hour when requested by the commissioner or duly authorized agents and 
273.10 	employees. Copies should be numbered and kept in chronological order.
273.11 	To determine whether the business is in compliance with the provisions of this chapter, 
273.12 	at any time during usual business hours, the commissioner, or duly authorized agents and 
273.13 	employees, may enter any place of business of a retailer or subjobber without a search 
273.14 	warrant and inspect the premises, the records required to be kept under this chapter, and the 
273.15 	packages of cigarettes, tobacco products, and vending devices contained on the premises.

273.16 	EFFECTIVE DATE. This section is effective for all cigarette and tobacco products 
273.17 	available for sale or in a retailer or subjobber's possession after December 31, 2021.

273.18 	Sec. 5. Minnesota Statutes 2020, section 297F.17, subdivision 1, is amended to read:
273.19 		Subdivision 1.General rule. Except as otherwise provided in this chapter, the amount 
273.20 	of any tax due must be assessed within 3-1/2 years after a return is filed. The taxes are 
273.21 	considered assessed within the meaning of this section when the commissioner has prepared 
273.22 	a notice of tax assessment and mailed it to the person required to file a return to the post 
273.23 	office address given in the return. The notice of tax assessment must be sent by mail to the 
273.24 	post office address given in the return and the record of the mailing is presumptive evidence 
273.25 	of the giving of such notice, and such records must be preserved by the commissioner.

273.26 	EFFECTIVE DATE. This section is effective for notices of tax assessment issued after 
273.27 	the date of final enactment.

273.28 	Sec. 6. Minnesota Statutes 2020, section 297G.09, subdivision 9, is amended to read:
273.29 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this chapter 
273.30 	having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the 
273.31 	June liability for the next year in the following manner:
274.1 	(a) Two business days before June 30 of calendar years 2020 and year 2021, the taxpayer 
274.2 	shall remit the actual May liability and 87.5 percent of the estimated June liability to the 
274.3 	commissioner and file the return in the form and manner prescribed by the commissioner.
274.4 	Two business days before June 30 of calendar year 2022 and each calendar year thereafter, 
274.5 	the distributor must remit the actual May liability and 84.5 percent of the estimated June 
274.6 	liability to the commissioner and file the return in the form and manner prescribed by the 
274.7 	commissioner.
274.8 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing the 
274.9 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
274.10 	is imposed equal to ten percent of the amount of June liability required to be paid in June 
274.11 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
274.12 	in June equals the lesser of:
274.13 	(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for the
274.14 	that calendar year 2020 and 2021 June liabilities and 84.5 percent of the actual June liability 
274.15 	for June 2022 and thereafter or 87.5 percent of the May liability for that calendar year; or
274.16 	(2) 87.5 for calendar year 2022 and each calendar year thereafter, the lesser of 84.5
274.17 	percent of the preceding actual June liability for that calendar year or 84.5 percent of the
274.18 	May liability for the calendar year 2020 and 2021 June liabilities and 84.5 percent of the 
274.19 	preceding May liability for June 2022 and thereafter for that calendar year.
274.20 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
274.21 	vendor must remit by two business days before June 30 is 84.5 percent.

274.22 	EFFECTIVE DATE. This section is effective for estimated payments required to be 
274.23 	made after the date following final enactment.

274.24 	Sec. 7. Minnesota Statutes 2020, section 609B.153, is amended to read:
274.25 	609B.153 CIGARETTE AND TOBACCO DISTRIBUTOR OR SUBJOBBER 
274.26 	LICENSE; SUSPENSION OR REVOCATION.
274.27 	Under section 297F.04, the commissioner of revenue must not issue or renew a license 
274.28 	issued under chapter 297F, and may revoke a license issued under chapter 297F, if the 
274.29 	applicant has been convicted of a crime involving cigarettes or tobacco products.

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

275.1 	ARTICLE 18
275.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: MISCELLANEOUS

275.3 	Section 1. Minnesota Statutes 2020, section 270C.22, subdivision 1, is amended to read:
275.4 		Subdivision 1.Adjustment; definition; period; rounding. (a) The commissioner shall 
275.5 	annually make a cost of living adjustment to the dollar amounts noted in sections that 
275.6 	reference this section. The commissioner shall adjust the amounts based on the index as 
275.7 	provided in this section. For purposes of this section, "index" means the Chained Consumer 
275.8 	Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The 
275.9 	values of the index used to determine the adjustments under this section are the latest 
275.10 	published values when the Bureau of Labor Statistics publishes the initial value of the index 
275.11 	for August of the year preceding the year to which the adjustment applies.
275.12 	(b) For the purposes of this section, "statutory year" means the year preceding the first 
275.13 	year for which dollar amounts are to be adjusted for inflation under sections that reference 
275.14 	this section. For adjustments under chapter 290A, the statutory year refers to the year in 
275.15 	which a taxpayer's household income used to calculate refunds under chapter 290A was 
275.16 	earned and not the year in which refunds are payable. For all other adjustments, the statutory 
275.17 	year refers to the taxable year unless otherwise specified.
275.18 	(c) To determine the dollar amounts for taxable year 2020, the commissioner shall 
275.19 	determine the percentage change in the index for the 12-month period ending on August 
275.20 	31, 2019, and increase each of the unrounded dollar amounts in the sections referencing 
275.21 	this section by that percentage change. For each subsequent taxable year, the commissioner 
275.22 	shall increase the dollar amounts by the percentage change in the index from August 31 of 
275.23 	the year preceding the statutory year to August 31 of the year preceding the taxable year.
275.24 	(d) To determine the dollar amounts for refunds payable in 2020 under chapter 290A, 
275.25 	the commissioner shall determine the percentage change in the index for the 12-month 
275.26 	period ending on August 31, 2019, and increase each of the unrounded dollar amounts in 
275.27 	the sections referencing this section by that percentage change. For each subsequent year, 
275.28 	the commissioner shall increase the dollar amounts by the percentage change in the index 
275.29 	from August 31 of the year preceding the statutory year to August 31 of the year preceding 
275.30 	the year in which refunds are payable.
275.31 	(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted 
275.32 	to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest 
275.33 	$10 amount.

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

276.3 	Sec. 2. Minnesota Statutes 2020, section 270C.445, subdivision 3, is amended to read:
276.4 		Subd. 3.Standards of conduct. No tax preparer shall:
276.5 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
276.6 	complete a client's return;
276.7 	(2) obtain the signature of a client to a return or authorizing document that contains 
276.8 	blank spaces to be filled in after it has been signed;
276.9 	(3) fail to sign a client's return when compensation for services rendered has been made;
276.10 	(4) fail to provide on a client's return the preparer tax identification number when required 
276.11 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
276.12 	(5) fail or refuse to give a client a copy of any document requiring the client's signature 
276.13 	within a reasonable time after the client signs the document;
276.14 	(6) fail to retain for at least four years a copy of a client's returns;
276.15 	(7) fail to maintain a confidential relationship with clients or former clients;
276.16 	(8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
276.17 	personal information;
276.18 	(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or 
276.19 	indirectly, any false, deceptive, or misleading statement or representation relating to or in 
276.20 	connection with the offering or provision of tax preparation services;
276.21 	(10) require a client to enter into a loan arrangement in order to complete a client's return;
276.22 	(11) claim credits or deductions on a client's return for which the tax preparer knows or 
276.23 	reasonably should know the client does not qualify;
276.24 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
276.25 	preparer knows or reasonably should know is not accurate;
276.26 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
276.27 	13, 20, 20a, 26, or 28;
276.28 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
276.29 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
277.1 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
277.2 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
277.3 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
277.4 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
277.5 	(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
277.6 	refund for tax preparation services;
277.7 	(18) under any circumstances, withhold or fail to return to a client a document provided 
277.8 	by the client for use in preparing the client's return;
277.9 	(19) establish take control or ownership of a client's refund by any means, including:
277.10 	(i) directly or indirectly endorsing or otherwise negotiating a check or other refund 
277.11 	instrument, including an electronic version of a check;
277.12 	(ii) directing an electronic or direct deposit of the refund into an account unless the 
277.13 	client's name is on the account; and
277.14 	(iii) establishing or using an account in the preparer's name to receive a client's refund 
277.15 	through a direct deposit or any other instrument unless the client's name is also on the 
277.16 	account, except that a taxpayer may assign the portion of a refund representing the Minnesota 
277.17 	education credit available under section 290.0674 to a bank account without the client's 
277.18 	name, as provided under section 290.0679;
277.19 	(20) fail to act in the best interests of the client;
277.20 	(21) fail to safeguard and account for any money handled for the client;
277.21 	(22) fail to disclose all material facts of which the preparer has knowledge which might 
277.22 	reasonably affect the client's rights and interests;
277.23 	(23) violate any provision of section 332.37;
277.24 	(24) include any of the following in any document provided or signed in connection 
277.25 	with the provision of tax preparation services:
277.26 	(i) a hold harmless clause;
277.27 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
277.28 	client or appear as the client in any judicial proceeding;
277.29 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
277.30 	a debtor;
278.1 	(iv) an assignment of or an order for payment of wages or other compensation for 
278.2 	services;
278.3 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
278.4 	available;
278.5 	(vi) a waiver of any provision of this section or a release of any obligation required to 
278.6 	be performed on the part of the tax preparer; or
278.7 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
278.8 	a class basis; or
278.9 	(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all 
278.10 	disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a 
278.11 	form that may be retained by the client.

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

APPENDIX 

Repealed Minnesota Statutes: H0991-1 

270C.17 COMMISSIONER TO COLLECT CERTAIN LOCAL TAXES.Subd. 2.Development costs. 
If the commissioner determines that a new computer system will be required to collect the local taxes, the costs of development of the system will be charged to the first local units of government to be included in the system. Any additional local units of government that by agreement are added to the system will be charged for a share of the development costs. The charge will be determined by the commissioner who shall then refund to the original local units of government their portion of the development costs recovered from the additional users. 

290.01 DEFINITIONS.Subd. 7b.Resident trust. 
(a) Resident trust means a trust, except a grantor type trust, which either (1) was created by a will of a decedent who at death was domiciled in this state or (2) is an irrevocable trust, the grantor of which was domiciled in this state at the time the trust became irrevocable. For the purpose of this subdivision, a trust is considered irrevocable to the extent the grantor is not treated as the owner thereof under sections 671 to 678 of the Internal Revenue Code. The term "grantor type trust" means a trust where the income or gains of the trust are taxable to the grantor or others treated as substantial owners under sections 671 to 678 of the Internal Revenue Code. This paragraph applies to trusts, except grantor type trusts, that became irrevocable after December 31, 1995, or are first administered in Minnesota after December 31, 1995. 

(b) This paragraph applies to trusts, except grantor type trusts, that are not governed under paragraph (a). A trust, except a grantor type trust, is a resident trust only if two or more of the following conditions are satisfied: 

(1) a majority of the discretionary decisions of the trustees relative to the investment of trust assets are made in Minnesota; 

(2) a majority of the discretionary decisions of the trustees relative to the distributions of trust income and principal are made in Minnesota; 

(3) the official books and records of the trust, consisting of the original minutes of trustee meetings and the original trust instruments, are located in Minnesota. 

(c) For purposes of paragraph (b), if the trustees delegate decisions and actions to an agent or custodian, the actions and decisions of the agent or custodian must not be taken into account in determining whether the trust is administered in Minnesota, if: 

(1) the delegation was permitted under the trust agreement; 

(2) the trustees retain the power to revoke the delegation on reasonable notice; and 

(3) the trustees monitor and evaluate the performance of the agent or custodian on a regular basis as is reasonably determined by the trustees. 

Subd. 19i.Deferred foreign income. 
"Deferred foreign income" means the income of a domestic corporation that is included in net income under section 965 of the Internal Revenue Code. 

290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 18.Special deductions. 
For trusts and estates, the amount of any special deduction under section 250 or 965 of the Internal Revenue Code is an addition, to the extent not included in taxable income. 

327C.01 DEFINITIONS.Subd. 13.Class I manufactured home park. 
A "class I manufactured home park" means a park that complies with the provisions of section 327C.16. 

327C.16 CLASS I MANUFACTURED HOME PARK.Subdivision 1.Qualifications. 
(a) To qualify as a class I manufactured home park, as defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee of the manufactured home park, must satisfy 12 hours of qualifying education courses every three years, as prescribed in this subdivision. Park owners or on-site attendants may begin accumulating qualifying hours to qualify as a class I manufactured home park beginning in 2017. 

(b) The qualifying education courses required for classification under this subdivision must be continuing education courses approved by the Department of Labor and Industry or the Department of Commerce for: 

(1) continuing education in real estate; or 

(2) continuing education for residential contractors and manufactured home installers. 

(c) The qualifying education courses must include: 

(1) two hours on fair housing, approved for real estate licensure or residential contractor licensure; 

(2) one hour on the Americans with Disabilities Act, approved for real estate licensure or residential contractor licensure; 

(3) four hours on legal compliance related to any of the following: landlord/tenant, licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B, and Minnesota Rules, chapter 1350 or 4630; 

(4) three hours of general education approved for real estate, residential contractors, or manufactured home installers; and 

(5) two hours of HUD-specific manufactured home installer courses as required under section 327B.041. 

(d) If the qualifying owner or employee attendant is no longer the person meeting the requirements under this subdivision, but did qualify during the current assessment year, then the manufactured home park shall still qualify for the class rate provided for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item (iii). 

Subd. 2.Proof of compliance. 
(a) A park owner that has met the requirements of subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and that the park meets the definition of a class I manufactured home park as defined in this section, and is entitled to the property tax classification rate for class I manufactured home parks in section 273.13, subdivision 25. The park owner shall retain the original course completion certificates issued by the course sponsor under this section for three years and, upon written request for verification, provide these to the county assessor within 30 days. 

(b) A park owner must provide the county assessor written notice of any change in compliance status of the manufactured home park no later than December 15 of the assessment year. 

469.055 POWERS AND DUTIES.Subd. 7.Sale of realty. 
The authority may sell, convey, and exchange any real or personal property owned or held by it in any manner and on any terms it wishes. Real property owned by the authority must not be sold, be exchanged, or have its title transferred without approval of two-thirds of the commissioners. All commissioners must have ten days' written notice of a regular or special meeting at which a sale, conveyance, exchange, or transfer of property is to be voted on. The notice must contain a complete description of the affected real estate. The resolution authorizing the real estate transaction is not effective unless a quorum is present.