1.1 	A bill for an act
1.2 	relating to financing and operation of state and local government; providing 
1.3 	conformity to certain federal tax law changes; modifying individual income and 
1.4 	corporate franchise taxes, sales and use taxes, partnership taxes, excise taxes, 
1.5 	property taxes and tax increment financing; providing provisions related to local 
1.6 	taxes and other miscellaneous taxes and tax provisions; providing for various 
1.7 	individual and corporate subtractions to income; modifying certain income tax 
1.8 	credits and authorizing new credits; providing for a pass-through entity tax; 
1.9 	modifying existing and providing new sales tax exemptions; modifying existing 
1.10 	local taxes and authorizing new local taxes; modifying classification provisions 
1.11 	related to relative homesteads and class 4d; authorizing fire protection and 
1.12 	emergency medical services special taxing districts; modifying the state general 
1.13 	tax; establishing a property tax credit; allowing for certain special assessments; 
1.14 	modifying property tax and renters' refunds; providing for supplemental aid; 
1.15 	requiring a report; appropriating money;amending Minnesota Statutes 2020, 
1.16 	sections 16A.152, subdivision 2; 116J.8737, subdivisions 5, 12; 144F.01; 270A.04, 
1.17 	by adding a subdivision; 270B.13, by adding a subdivision; 270C.445, subdivision 
1.18 	6; 273.124, subdivisions 1, 9, 13; 273.128, subdivision 2, by adding subdivisions; 
1.19 	273.13, subdivisions 25, 34; 273.1392; 273.1393; 275.025, subdivisions 1, 2; 
1.20 	275.065, subdivision 3; 275.066; 276.04, subdivision 2; 289A.08, by adding a 
1.21 	subdivision; 289A.20, subdivision 4; 289A.31, subdivision 1; 289A.37, subdivision 
1.22 	2; 289A.38, subdivisions 7, 8, 9, 10; 289A.42; 289A.60, subdivision 24; 290.0132, 
1.23 	subdivision 4, by adding subdivisions; 290.06, subdivision 22, by adding a 
1.24 	subdivision; 290.0674, subdivision 2; 290.0681, subdivisions 3, 4, 10, by adding 
1.25 	a subdivision; 290.31, subdivision 1; 290.92, subdivisions 4b, 4c; 290A.03, 
1.26 	subdivision 3; 297A.70, subdivision 13; 297A.71, by adding a subdivision; 
1.27 	297A.75, subdivisions 1, 2, 3; 297A.993, subdivision 2; 297F.10, subdivision 1; 
1.28 	297F.17, subdivision 6; 297G.16, subdivision 7; 297I.20, by adding a subdivision; 
1.29 	298.28, subdivisions 5, 9b; 429.021, subdivision 1; 429.031, subdivision 3; 
1.30 	453A.04, subdivision 21, by adding a subdivision; 465.71; 469.319, subdivision 
1.31 	4; 475.56; 475.58, subdivision 3b; 475.60, subdivision 1; 475.67, subdivision 8; 
1.32 	477A.016; Laws 2019, First Special Session chapter 6, article 6, section 27; 
1.33 	proposing coding for new law in Minnesota Statutes, chapters 270C; 273; 289A; 
1.34 	290; 299C; 462A; repealing Minnesota Statutes 2020, section 469.055, subdivision 
1.35 	7.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	FEDERAL UPDATE

2.4 	Section 1. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision 
2.5 	to read:
2.6 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
2.7 	terms have the meanings given:
2.8 	(1) "income" has the meaning given in subdivision 7, paragraph (j), except that the 
2.9 	provisions that apply to a partnership apply to a qualifying entity and the provisions that 
2.10 	apply to a partner apply to a qualifying owner. The income of both a resident and nonresident 
2.11 	qualifying owner is allocated and assigned to this state as provided for nonresident partners 
2.12 	and shareholders under section 290.17;
2.13 	(2) "qualifying owner" means a resident or nonresident individual, estate, or trust that 
2.14 	is a partner, member, or shareholder of a qualifying entity; and
2.15 	(3) "qualifying entity" means a partnership, limited liability company, or corporation 
2.16 	organized under subchapter S of the Internal Revenue Code for federal income tax purposes, 
2.17 	including a qualified subsidiary also organized under subchapter S of the Internal Revenue 
2.18 	Code. Qualifying entity does not include a partnership, limited liability company, or 
2.19 	corporation that has a partnership, limited liability company, or corporation as a partner, 
2.20 	member, or shareholder.
2.21 	(b) A qualifying entity may elect to file a return and pay the pass-through entity tax 
2.22 	imposed under paragraph (c). The election:
2.23 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
2.24 	pass-through entity tax return;
2.25 	(2) may only be made by qualifying owners who hold more than a 50 percent ownership 
2.26 	interest in a qualifying entity; and
2.27 	(3) is binding on all qualifying owners who have an ownership interest in the qualifying 
2.28 	entity.
2.29 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
2.30 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
3.1 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
3.2 	of the qualifying owner's income multiplied by the tax rates and brackets used to determine 
3.3 	the tax liability for married individuals filing separate returns, estates, and trusts under 
3.4 	section 290.06, subdivision 2c. When making this determination:
3.5 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
3.6 	and
3.7 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
3.8 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
3.9 	liability under paragraph (d) must also be used to determine that qualifying owner's individual 
3.10 	income tax liability under chapter 290.
3.11 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
3.12 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
3.13 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
3.14 	tax liability as determined under paragraph (d) is satisfied when the qualifying entity pays 
3.15 	estimated tax in the manner prescribed in section 289A.25 for composite estimated tax.
3.16 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
3.17 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
3.18 	under paragraph (b) is not made.
3.19 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
3.20 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
3.21 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
3.22 	return.
3.23 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
3.24 	tax under this subdivision.
3.25 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
3.26 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
3.27 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
3.28 	nonresident qualifying owner must not have any Minnesota source income other than the 
3.29 	income from the qualifying entity and other electing qualifying entities. If it is determined 
3.30 	that the nonresident qualifying owner has other Minnesota source income, the inclusion of 
3.31 	the income and tax liability for that owner under this provision will not constitute a return 
3.32 	to satisfy the requirements of subdivision 1. The tax paid for the individual as part of the 
4.1 	pass-through entity tax return is allowed as a payment of the tax by the individual on the 
4.2 	date on which the pass-through entity tax return payment was made.

4.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.4 	31, 2020.

4.5 	Sec. 2. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
4.6 	to read:
4.7 		Subd. 31.Certain unemployment insurance compensation payments. For taxable 
4.8 	years beginning after December 31, 2019, and before January 1, 2021, 18 percent of the 
4.9 	amount of unemployment compensation received by an individual under section 2104 of 
4.10 	the CARES Act, Public Law 116-136, is a subtraction. The subtraction is reduced by $1 for 
4.11 	every $4 of adjusted gross income over:
4.12 	(1) $150,000 for married couples filing a joint return or surviving spouses;
4.13 	(2) $112,500 for head of household filers; and
4.14 	(3) $75,000 for all other filers.

4.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.16 	31, 2019, and before January 1, 2021.

4.17 	Sec. 3. Minnesota Statutes 2020, section 290.06, subdivision 22, is amended to read:
4.18 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
4.19 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
4.20 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
4.21 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
4.22 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
4.23 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
4.24 	this credit unless the state of domicile does not allow a similar credit.
4.25 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
4.26 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
4.27 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
4.28 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
4.29 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
4.30 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
4.31 	or assigned to Minnesota under sections 290.081 and 290.17.
5.1 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
5.2 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
5.3 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
5.4 	state by the taxpayer's Minnesota taxable income.
5.5 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
5.6 	tax so paid to the other state on the gross income earned within the other state subject to 
5.7 	tax under this chapter; and
5.8 	(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 
5.9 	amount less than what would be assessed if the gross income earned within the other state 
5.10 	were excluded from taxable net income.
5.11 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
5.12 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
5.13 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
5.14 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
5.15 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
5.16 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
5.17 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
5.18 	properly apportioned to that distribution.
5.19 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
5.20 	in such other state on that same income after the Minnesota statute of limitations has expired, 
5.21 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
5.22 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
5.23 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
5.24 	proof to show entitlement to a credit.
5.25 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
5.26 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
5.27 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
5.28 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
5.29 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
5.30 	income.
5.31 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
5.32 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
5.33 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
5.34 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
6.1 	income" tax means any tax imposed on or measured by a partnership's net income. For 
6.2 	purposes of this paragraph, "partnership" includes a limited liability company and "partner" 
6.3 	includes a member of a limited liability company.
6.4 	(i) For the purposes of this subdivision, "another state":
6.5 	(1) includes:
6.6 	(i) the District of Columbia; and
6.7 	(ii) a province or territory of Canada; but
6.8 	(2) excludes Puerto Rico and the several territories organized by Congress.
6.9 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
6.10 	by state basis.
6.11 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
6.12 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
6.13 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
6.14 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
6.15 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
6.16 	tax that qualifies for the credit under this subdivision.
6.17 	(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 
6.18 	qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 
6.19 	calculated by multiplying:
6.20 	(i) the difference between the preliminary credit and the credit calculated under paragraphs 
6.21 	(b) and (d), by
6.22 	(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 
6.23 	consists of compensation for performance of personal or professional services by the total 
6.24 	amount of income subject to tax in the qualifying state.
6.25 	(2) If the amount of the credit that a qualifying individual is eligible to receive under 
6.26 	clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 
6.27 	the application of the credit calculated under clause (1), the commissioner shall refund the 
6.28 	excess to the qualifying individual. An amount sufficient to pay the refunds required by this 
6.29 	subdivision is appropriated to the commissioner from the general fund.
6.30 	(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 
6.31 	individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 
6.32 	state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 
7.1 	means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 
7.2 	compensation during the taxable year for the performance of personal or professional services 
7.3 	within a qualifying state; and "qualifying state" means a state with which an agreement 
7.4 	under section 290.081 is not in effect for the taxable year but was in effect for a taxable 
7.5 	year beginning before January 1, 2010.

7.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.7 	31, 2020.

7.8 	Sec. 4. Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to 
7.9 	read:
7.10 		Subd. 40.Pass-through entity tax credit. (a) A qualifying owner of a qualifying entity 
7.11 	that elects to pay the pass-through entity tax under section 289A.08, subdivision 7a, may 
7.12 	claim a credit against the tax due under this chapter equal to the amount of the owner's tax 
7.13 	liability as calculated under section 289A.08, subdivision 7a, paragraph (d).
7.14 	(b) If the amount of the credit the taxpayer may claim under this subdivision exceeds 
7.15 	the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the 
7.16 	excess to the taxpayer. The amount necessary to pay the claim for the refund provided in 
7.17 	this subdivision is appropriated from the general fund to the commissioner of revenue.
7.18 	(c) For purposes of this subdivision, "qualifying entity," "qualifying owner," and "tax 
7.19 	liability" have the meanings given in section 289A.08, subdivision 7a, paragraphs (a) and 
7.20 	(d).

7.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.22 	31, 2020.

7.23 	Sec. 5. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:
7.24 		Subd. 4b.Withholding by partnerships. (a) A partnership shall deduct and withhold 
7.25 	a tax as provided in paragraph (b) for nonresident individual partners based on their 
7.26 	distributive shares of partnership income for a taxable year of the partnership.
7.27 	(b) The amount of tax withheld is determined by multiplying the partner's distributive 
7.28 	share allocable to Minnesota under section 290.17, paid or credited during the taxable year 
7.29 	by the highest rate used to determine the income tax liability for an individual under section 
7.30 	290.06, subdivision 2c, except that the amount of tax withheld may be determined by the 
7.31 	commissioner if the partner submits a withholding exemption certificate under subdivision 
7.32 	5.
8.1 	(c) The commissioner may reduce or abate the tax withheld under this subdivision if the 
8.2 	partnership had reasonable cause to believe that no tax was due under this section.
8.3 	(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold 
8.4 	tax for a nonresident partner if:
8.5 	(1) the partner elects to have the tax due paid as part of the partnership's composite return 
8.6 	under section 289A.08, subdivision 7;
8.7 	(2) the partner has Minnesota assignable federal adjusted gross income from the 
8.8 	partnership of less than $1,000; or
8.9 	(3) the partnership is liquidated or terminated, the income was generated by a transaction 
8.10 	related to the termination or liquidation, and no cash or other property was distributed in 
8.11 	the current or prior taxable year;
8.12 	(4) the distributive shares of partnership income are attributable to:
8.13 	(i) income required to be recognized because of discharge of indebtedness;
8.14 	(ii) income recognized because of a sale, exchange, or other disposition of real estate, 
8.15 	depreciable property, or property described in section 179 of the Internal Revenue Code; 
8.16 	or
8.17 	(iii) income recognized on the sale, exchange, or other disposition of any property that 
8.18 	has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of 
8.19 	the Internal Revenue Code
8.20 	to the extent that the income does not include cash received or receivable or, if there is cash 
8.21 	received or receivable, to the extent that the cash is required to be used to pay indebtedness 
8.22 	by the partnership or a secured debt on partnership property; or
8.23 	(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the 
8.24 	Internal Revenue Code.; or
8.25 	(6) the partnership has elected to pay the pass-through entity tax under section 289A.08, 
8.26 	subdivision 7a.
8.27 	(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
8.28 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an 
8.29 	employer.
8.30 	(f) To the extent that income is exempt from withholding under paragraph (d), clause 
8.31 	(4), the commissioner has a lien in an amount up to the amount that would be required to 
8.32 	be withheld with respect to the income of the partner attributable to the partnership interest, 
9.1 	but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
9.2 	from the date of assessment of the tax against the partner, and attaches to that partner's share 
9.3 	of the profits and any other money due or to become due to that partner in respect of the 
9.4 	partnership. Notice of the lien may be sent by mail to the partnership, without the necessity 
9.5 	for recording the lien. The notice has the force and effect of a levy under section 270C.67, 
9.6 	and is enforceable against the partnership in the manner provided by that section. Upon 
9.7 	payment in full of the liability subsequent to the notice of lien, the partnership must be 
9.8 	notified that the lien has been satisfied.

9.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.10 	31, 2020.

9.11 	Sec. 6. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:
9.12 		Subd. 4c.Withholding by S corporations. (a) A corporation having a valid election in 
9.13 	effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b) 
9.14 	for nonresident individual shareholders their share of the corporation's income for the taxable 
9.15 	year.
9.16 	(b) The amount of tax withheld is determined by multiplying the amount of income 
9.17 	allocable to Minnesota under section 290.17 by the highest rate used to determine the income 
9.18 	tax liability of an individual under section 290.06, subdivision 2c, except that the amount 
9.19 	of tax withheld may be determined by the commissioner if the shareholder submits a 
9.20 	withholding exemption certificate under subdivision 5.
9.21 	(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold 
9.22 	tax for a nonresident shareholder, if:
9.23 	(1) the shareholder elects to have the tax due paid as part of the corporation's composite 
9.24 	return under section 289A.08, subdivision 7;
9.25 	(2) the shareholder has Minnesota assignable federal adjusted gross income from the 
9.26 	corporation of less than $1,000; or
9.27 	(3) the corporation is liquidated or terminated, the income was generated by a transaction 
9.28 	related to the termination or liquidation, and no cash or other property was distributed in 
9.29 	the current or prior taxable year.; or
9.30 	(4) the S corporation has elected to pay the pass-through entity tax under section 289A.08, 
9.31 	subdivision 7a.
10.1 	(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, 
10.2 	paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an 
10.3 	employer.

10.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.5 	31, 2020.

10.6 	Sec. 7. CLARIFICATION OF SECTION 179 EXPENSING CONFORMITY.
 10.7 	For taxable years beginning after December 31, 2019, no addition is required under 
10.8 	Minnesota Statutes, sections 290.0131, subdivision 10, and 290.0133, subdivision 12, for 
10.9 	property placed in service in taxable years beginning before January 1, 2020, including the 
10.10 	following:
10.11 	(1) the addition for carryover amounts pursuant to section 179(b)(3) of the Internal 
10.12 	Revenue Code for property placed in service in taxable years beginning before January 1, 
10.13 	2020; and
10.14 	(2) the addition for property placed in service in taxable years beginning before January 
10.15 	1, 2020, resulting from being a shareholder or partner in an S-corporation or partnership 
10.16 	with a taxable year that began before January 1, 2020.

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

10.19 	Sec. 8. CLARIFICATION OF NET OPERATING LOSS TREATMENT.
 10.20 	The reference to the Internal Revenue Code in section 9, subdivision 2, clauses (1) to 
10.21 	(3):
10.22 	(1) applies only to:
10.23 	(i) the exclusion from gross income under section 1106 of Public Law 116-136;
10.24 	(ii) modifications to Paycheck Protection Program loan requirements under Public Laws 
10.25 	116-142, 116-139, and 116-147; and
10.26 	(iii) deductions allowed under section 276 of Public Law 116-260; and
10.27 	(2) does not apply to the modifications to treatment of net operating losses under section 
10.28 	2303 of Public Law 116-136, as modified by section 281 of Public Law 116-260.

11.1 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
11.2 	that changes incorporated by federal changes are effective retroactively at the same time 
11.3 	the changes were effective for federal purposes.

11.4 	Sec. 9. EXCLUSION FROM GROSS INCOME FOR CERTAIN FORGIVEN PPP 
11.5 	LOANS AND EDUCATOR EXPENSES.
 11.6 		Subdivision 1.Scope. This section applies for the purpose of calculating:
11.7 	(1) net income, as defined in Minnesota Statutes, section 290.01, subdivision 19;
11.8 	(2) income, as defined in Minnesota Statutes, section 290.0674, subdivision 2a;
11.9 	(3) alternative minimum taxable income, as defined in Minnesota Statutes, section 
11.10 	290.091, subdivision 2;
11.11 	(4) alternative minimum taxable income, as defined in Minnesota Statutes, section 
11.12 	290.0921, subdivision 3; and
11.13 	(5) income, as defined in Minnesota Statutes, section 290A.03, subdivision 3.
11.14 		Subd. 2.Adopting federal changes related to the paycheck protection program and 
11.15 	certain educator expenses. "Internal Revenue Code" has the meaning given in Minnesota 
11.16 	Statutes, section 290.01, subdivision 31, as amended through the date specified in that 
11.17 	subdivision, but including the following amendments:
11.18 	(1) the exclusion from gross income under section 1106 of Public Law 116-136;
11.19 	(2) section 276 of Public Law 116-260;
11.20 	(3) all modifications to the Internal Revenue Code in Public Laws 116-142 and 116-147; 
11.21 	and
11.22 	(4) for taxable years beginning after December 31, 2019, and before January 1, 2022, 
11.23 	the exclusion from gross income of educator expenses, including personal protective 
11.24 	equipment, disinfectant, and other supplies used for the prevention of the spread of 
11.25 	COVID-19 under section 275 of Public Law 116-260.
11.26 		Subd. 3.No denial of deduction. Notwithstanding Minnesota Statutes, section 290.10, 
11.27 	the commissioner of revenue must not deny a taxpayer a deduction that is allowed under 
11.28 	section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260.

11.29 	EFFECTIVE DATE. This section is effective retroactively at the same time the 
11.30 	provisions of federal law specified in subdivision 2, clauses (1) to (3), were effective for 
11.31 	federal purposes, except that the provision of federal law specified in subdivision 2, clause 
12.1 	(4), is effective for taxable years beginning after December 31, 2019, and before January 
12.2 	1, 2022.

12.3 	ARTICLE 2
12.4 	INCOME AND CORPORATE FRANCHISE TAXES

12.5 	Section 1. Minnesota Statutes 2020, section 116J.8737, subdivision 5, is amended to read:
12.6 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for a credit 
12.7 	equal to 25 percent of the qualified investment in a qualified small business. Investments 
12.8 	made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The 
12.9 	commissioner must not allocate more than $10,000,000 in credits to qualified investors or 
12.10 	qualified funds for each of the taxable years listed in paragraph (i), clauses (1) to (3). For 
12.11 	each taxable year, 50 percent must be allocated to credits for qualified investments in 
12.12 	qualified greater Minnesota businesses and minority-owned, women-owned, or 
12.13 	veteran-owned qualified small businesses in Minnesota. Any portion of a taxable year's 
12.14 	credits that is reserved for qualified investments in greater Minnesota businesses and 
12.15 	minority-owned, women-owned, or veteran-owned qualified small businesses in Minnesota 
12.16 	that is not allocated by September 30 of the taxable year is available for allocation to other 
12.17 	credit applications beginning on October 1. Any portion of a taxable year's credits that is 
12.18 	not allocated by the commissioner does not cancel and may be carried forward to subsequent 
12.19 	taxable years until all credits have been allocated.
12.20 	(b) The commissioner may not allocate more than a total maximum amount in credits 
12.21 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
12.22 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
12.23 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
12.24 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
12.25 	over all taxable years for qualified investments in any one qualified small business.
12.26 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
12.27 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
12.28 	is proposed:
12.29 	(1) the investor is an officer or principal of the qualified small business; or
12.30 	(2) the investor, either individually or in combination with one or more members of the 
12.31 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
12.32 	outstanding securities of the qualified small business.
13.1 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
13.2 	credit under this section. For a married couple filing a joint return, the limitations in this 
13.3 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
13.4 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
13.5 	267(e) of the Internal Revenue Code apply.
13.6 	(d) Applications for tax credits for 2010 must be made available on the department's 
13.7 	website by September 1, 2010 each year, and the department must begin accepting 
13.8 	applications by September 1, 2010 each year. Applications for subsequent years must be 
13.9 	made available by November 1 of the preceding year.
13.10 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
13.11 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
13.12 	tax credit request applications are filed with the department. The commissioner must approve 
13.13 	or reject tax credit request applications within 15 days of receiving the application. The 
13.14 	investment specified in the application must be made within 60 days of the allocation of 
13.15 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
13.16 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
13.17 	specified in the application, within 60 days of allocation of the credits, must notify the 
13.18 	commissioner of the failure to invest within five business days of the expiration of the 
13.19 	60-day investment period.
13.20 	(f) All tax credit request applications filed with the department on the same day must 
13.21 	be treated as having been filed contemporaneously. If two or more qualified investors or 
13.22 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
13.23 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
13.24 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
13.25 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
13.26 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
13.27 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
13.28 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
13.29 	denominator of which is the total of all credit allocation claims filed on behalf of all 
13.30 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
13.31 	taxable year.
13.32 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
13.33 	behalf, must notify the commissioner when an investment for which credits were allocated 
13.34 	has been made, and the taxable year in which the investment was made. A qualified fund 
13.35 	must also provide the commissioner with a statement indicating the amount invested by 
14.1 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
14.2 	fund at the time of the qualified investment. After receiving notification that the investment 
14.3 	was made, the commissioner must issue credit certificates for the taxable year in which the 
14.4 	investment was made to the qualified investor or, for an investment made by a qualified 
14.5 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
14.6 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
14.7 	hold the investment in the qualified small business for at least three years, consisting of the 
14.8 	calendar year in which the investment was made and the two following years. The three-year 
14.9 	holding period does not apply if:
14.10 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
14.11 	the end of the three-year period;
14.12 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
14.13 	of the three-year period;
14.14 	(3) the qualified small business is sold before the end of the three-year period;
14.15 	(4) the qualified small business's common stock begins trading on a public exchange 
14.16 	before the end of the three-year period; or
14.17 	(5) the qualified investor dies before the end of the three-year period.
14.18 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
14.19 	issued under this section.
14.20 	(i) The credit allowed under this subdivision is effective for each of the following taxable 
14.21 	years:
14.22 	(1) taxable years beginning after December 31, 2018, and before January 1, 2020; and
14.23 	(2) taxable years beginning after December 31, 2020, and before January 1, 2022; and
14.24 	(3) taxable years beginning after December 31, 2021, and before January 1, 2023.

14.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.26 	31, 2021, and before January 1, 2023.

14.27 	Sec. 2. Minnesota Statutes 2020, section 116J.8737, subdivision 12, is amended to read:
14.28 		Subd. 12.Sunset. This section expires for taxable years beginning after December 31, 
14.29 	2021 2022, except that reporting requirements under subdivision 6 and revocation of credits 
14.30 	under subdivision 7 remain in effect through 2023 2024 for qualified investors and qualified 
14.31 	funds, and through 2025 2026 for qualified small businesses, reporting requirements under 
15.1 	subdivision 9 remain in effect through 2021 2022, and the appropriation in subdivision 11 
15.2 	remains in effect through 2025 2026.

15.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.4 	31, 2021, and before January 1, 2023.

15.5 	Sec. 3. Minnesota Statutes 2020, section 290.0132, subdivision 4, is amended to read:
15.6 		Subd. 4.Education expenses. (a) Subject to the limits in paragraph (b), the following 
15.7 	amounts paid to others for each qualifying child are a subtraction:
15.8 	(1) education-related expenses; plus
15.9 	(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 
15.10 	1, clause (4), that are not included in education-related expenses; less
15.11 	(3) any amount used to claim the credit under section 290.0674.
15.12 	(b) The maximum subtraction allowed under this subdivision is:
15.13 	(1) $1,625 $1,640 for each qualifying child in kindergarten through grade 6; and
15.14 	(2) $2,500 $2,530 for each qualifying child in grades 7 through 12.
15.15 	(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.
15.16 	(d) The commissioner shall annually adjust the dollar amounts in paragraph (b), clauses 
15.17 	(1) and (2), as provided in section 270C.22. The statutory year is 2021.

15.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.19 	31, 2020.

15.20 	Sec. 4. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
15.21 	to read:
15.22 		Subd. 30.Volunteer driver reimbursement. (a) A taxpayer is allowed a subtraction 
15.23 	equal to the amount of mileage reimbursement paid by a charitable organization to the 
15.24 	taxpayer for work as a volunteer driver. The subtraction is limited to amounts paid by the 
15.25 	organization that:
15.26 	(1) are in excess of the mileage rate for use of an automobile in rendering gratuitous 
15.27 	services to a charitable organization under section 170(i) of the Internal Revenue Code; and
15.28 	(2) do not exceed the standard mileage rate for businesses established under Code of 
15.29 	Federal Regulations, title 26, section 1.274-5(j)(2).
16.1 	(b) For the purposes of this section, "charitable organization" means an organization 
16.2 	eligible for a charitable contribution under section 170(c) of the Internal Revenue Code.

16.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.4 	31, 2020.

16.5 	Sec. 5. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
16.6 	to read:
16.7 		Subd. 31.Education savings accounts. The amount deposited in an education savings 
16.8 	account in a taxable year for each of the taxpayer's dependents is a subtraction. For purposes 
16.9 	of this subdivision, "education savings account" means an account established in a bill styled 
16.10 	as 2021 House File No. 1065, first unofficial engrossment, article 2, section 36, that creates 
16.11 	an education savings account program for parents to pay for specified educational services.

16.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.13 	31, 2020, only upon enactment in the 2021 regular session of a bill styled as House File 
16.14 	No. 1065, first unofficial engrossment, article 2, section 36.

16.15 	Sec. 6. Minnesota Statutes 2020, section 290.0674, subdivision 2, is amended to read:
16.16 		Subd. 2.Limitations. (a) For claimants with income not greater than $33,500 $33,840, 
16.17 	the maximum credit allowed for a family is $1,000 $1,010 multiplied by the number of 
16.18 	qualifying children in kindergarten through grade 12 in the family. The maximum credit 
16.19 	for families with one qualifying child in kindergarten through grade 12 is reduced by $1 
16.20 	for each $4 of household income over $33,500, and the maximum credit for families with 
16.21 	two or more qualifying children in kindergarten through grade 12 is reduced by $2 for each 
16.22 	$4 of household income over $33,500, but in no case is the credit less than zero.
16.23 	(b) In the case of a married claimant, a credit is not allowed unless a joint income tax 
16.24 	return is filed.
16.25 	(c) For a nonresident or part-year resident, the credit determined under subdivision 1 
16.26 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
16.27 	calculated in section 290.06, subdivision 2c, paragraph (e).
16.28 	(d) The commissioner shall annually adjust the $33,840 income limitation amount and 
16.29 	the $1,010 credit amount in paragraph (a) as provided in section 270C.22. The statutory 
16.30 	year is 2021.

16.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.32 	31, 2020.

17.1 	Sec. 7. Minnesota Statutes 2020, section 290.0681, subdivision 3, is amended to read:
17.2 		Subd. 3.Applications; allocations. (a) To qualify for a credit or grant under this section, 
17.3 	the developer of a project must apply to the office before the rehabilitation begins. The 
17.4 	application must contain the information and be in the form prescribed by the office. The 
17.5 	office may collect a fee for application of up to 0.5 percent of qualified rehabilitation 
17.6 	expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to 
17.7 	offset costs associated with personnel and administrative expenses related to administering 
17.8 	the credit and preparing the economic impact report in subdivision 9. Application fees are 
17.9 	deposited in the account. The application must indicate if the application is for a credit or 
17.10 	a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying 
17.11 	for the credit or the recipient of the grant.
17.12 	(b) For applications received before July 1, 2021, upon approving an application for 
17.13 	credit, the office shall issue allocation certificates that:
17.14 	(1) verify eligibility for the credit or grant;
17.15 	(2) state the amount of credit or grant anticipated with the project, with the credit amount 
17.16 	equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated 
17.17 	in the application;
17.18 	(3) state that the credit or grant allowed may increase or decrease if the federal credit 
17.19 	the project receives at the time it is placed in service is different than the amount anticipated 
17.20 	at the time the allocation certificate is issued; and
17.21 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or 
17.22 	grant recipient is entitled to receive one-fifth of the total amount of either the credit or the 
17.23 	grant at the time the project is placed in service, provided that date is within three calendar 
17.24 	years following the issuance of the allocation certificate.
17.25 	(c) The office, in consultation with the commissioner, shall determine if the project is 
17.26 	eligible for a credit or a grant under this section and must notify the developer in writing 
17.27 	of its determination. Eligibility for the credit is subject to review and audit by the 
17.28 	commissioner.
17.29 	(d) The federal credit recapture and repayment requirements under section 50 of the 
17.30 	Internal Revenue Code do not apply to the credit allowed under this section.
17.31 	(e) Any decision of the office under paragraph (c) may be challenged as a contested case 
17.32 	under chapter 14. The contested case proceeding must be initiated within 45 days of the 
17.33 	date of written notification by the office.

18.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
18.2 	applies to applications received before July 1, 2021.

18.3 	Sec. 8. Minnesota Statutes 2020, section 290.0681, is amended by adding a subdivision 
18.4 	to read:
18.5 		Subd. 3a.Certain allocations on pro rata basis. (a) This subdivision applies to 
18.6 	applications received after June 30, 2021, and before July 1, 2022.
18.7 	(b) Upon approving an application for credit, the office shall verify eligibility for a credit 
18.8 	or grant and notify the taxpayer of eligibility.
18.9 	(c) By November 1, 2022, the office shall calculate the total amount of credits or grants 
18.10 	for which all taxpayers would be eligible under subdivision 3, paragraph (b), clause (2).
18.11 	(d) The office must not allocate more than $14,000,000 in credits or grants under this 
18.12 	subdivision. If the total amount of credits or grants calculated under paragraph (c) exceeds 
18.13 	$14,000,000, the commissioner of administration shall calculate the credit or grant amount 
18.14 	for each taxpayer on a pro rata basis.
18.15 	(e) The provisions of subdivision 3, paragraphs (a), (b), clauses (3) and (4), and (c) to 
18.16 	(e), apply to credit or grants calculated under this subdivision.

18.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
18.18 	applies to applications received after June 30, 2021, and before July 1, 2022.

18.19 	Sec. 9. Minnesota Statutes 2020, section 290.0681, subdivision 4, is amended to read:
18.20 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
18.21 	office has issued an allocation certificate must notify the office when the project is placed 
18.22 	in service. Upon verifying that the project has been placed in service, and was allowed a 
18.23 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
18.24 	application or must issue a grant to the recipient designated in the application. The credit 
18.25 	certificate must state the amount of the credit.
18.26 	(2) The credit amount equals the federal credit allowed for the project, or for credit 
18.27 	certificates issued under subdivision 3a, the amount stated in the allocation certificate.
18.28 	(3) The grant amount equals 90 percent of the federal credit allowed for the project, or 
18.29 	for grants issued under subdivision 3a, the amount stated in the allocation certificate.
18.30 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer 
18.31 	before the first one-fifth payment is claimed, which is then allowed the credit under this 
19.1 	section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee 
19.2 	notifies the commissioner within 30 days of the date that the assignment is made. The 
19.3 	commissioner shall prescribe the forms necessary for notifying the commissioner of the 
19.4 	assignment of a credit certificate and for claiming a credit by assignment.
19.5 	(c) Credits passed through to partners, members, shareholders, or owners pursuant to 
19.6 	subdivision 5 are not an assignment of a credit certificate under this subdivision.
19.7 	(d) A grant agreement between the office and the recipient of a grant may allow the 
19.8 	grant to be issued to another individual or entity.

19.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
19.10 	applies to applications received after June 30, 2021, and before July 1, 2022.

19.11 	Sec. 10. Minnesota Statutes 2020, section 290.0681, subdivision 10, is amended to read:
19.12 		Subd. 10.Sunset. This section expires after fiscal year 2021 2022, except that the office's 
19.13 	authority to issue credit certificates under subdivision 4 based on allocation certificates that 
19.14 	were issued before fiscal year 2022 2023 remains in effect through 2024 2025, and the 
19.15 	reporting requirements in subdivision 9 remain in effect through the year following the year 
19.16 	in which all allocation certificates have either been canceled or resulted in issuance of credit 
19.17 	certificates, or 2025 2026, whichever is earlier.

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

19.19 	Sec. 11. [290.0683] MINNESOTA HOUSING TAX CREDIT.
19.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
19.21 	the meanings given.
19.22 	(b) "Agency" means the Minnesota Housing Finance Agency.
19.23 	(c) "Minnesota housing tax credit contribution fund" or "fund" means the fund established 
19.24 	in section 462A.40.
19.25 	(d) "Qualified project" means a project that qualifies for a grant or loan under section 
19.26 	462A.40.
19.27 	(e) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer 
19.28 	as defined in section 297I.01, subdivision 16.
19.29 		Subd. 2.Credit allowed. (a) A taxpayer is allowed a credit against the tax imposed 
19.30 	under this chapter and the premiums tax under chapter 297I for contributions of no less than 
19.31 	$100 and no more than $2,000,000 to the Minnesota housing tax credit contribution fund. 
20.1 	The credit equals 90 percent of the amount the taxpayer contributed to the fund during the 
20.2 	taxable year.
20.3 	(b) The credit may be claimed only after certification by the agency as provided in 
20.4 	subdivision 3.
20.5 	(c) To receive the credit, a taxpayer must claim the credit in the manner prescribed by 
20.6 	the commissioner and file with the return a copy of the credit certificate issued by the agency 
20.7 	under subdivision 3, paragraph (c).
20.8 	(d) The taxpayer must claim the credit for the taxable year in which the contribution 
20.9 	payment is received by the fund.
20.10 	(e) If the amount of the credit under this section exceeds the taxpayer's liability for tax 
20.11 	under this chapter, the excess is a credit carryover to each of the ten succeeding taxable 
20.12 	years. The entire amount of the excess unused credit for the taxable year must be carried 
20.13 	first to the earliest of the taxable years to which the credit may be carried and then to each 
20.14 	successive year to which the credit may be carried. The amount of the unused credit that 
20.15 	may be added under this paragraph may not exceed the taxpayer's liability for tax, less any 
20.16 	credit for the current taxable year.
20.17 	(f) The contribution amount used to calculate the credit under this section may not be 
20.18 	used to calculate any other state income tax deduction or credit allowed by law.
20.19 	(g) For nonresidents and part-year residents, the credit must be allocated based on the 
20.20 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
20.21 		Subd. 3.Allocation. (a) To qualify for the credit, a taxpayer must contribute to the 
20.22 	Minnesota housing tax credit contribution fund. A taxpayer may indicate that a contribution 
20.23 	is intended for a specific qualified project. A taxpayer is prohibited from contributing to 
20.24 	certain projects as provided in section 462A.40, subdivision 3.
20.25 	(b) The aggregate amount of tax credits allowed to all eligible contributors is limited to 
20.26 	$10,000,000 annually.
20.27 	(c) Within 30 days after a taxpayer contributes to the fund, the agency must file with 
20.28 	the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer 
20.29 	as provided in this paragraph. The agency must send a copy of the credit certificate to the 
20.30 	commissioner of revenue. If there are insufficient credits to match the contribution, the 
20.31 	agency must not issue a credit certificate for the amount of the contribution for which there 
20.32 	are insufficient credits, and must return that amount to the taxpayer before issuing any credit 
20.33 	certificate.
21.1 	(d) The credit certificate must state the dollar amount of the contribution made by the 
21.2 	taxpayer, the date the payment was received by the fund, and indicate if the contribution 
21.3 	was intended for a specific qualified project.
21.4 		Subd. 4.Partnerships; multiple owners. Credits granted to a partnership, a limited 
21.5 	liability company taxed as a partnership, S corporation, or multiple owners of property are 
21.6 	passed through to the partners, members, shareholders, or owners, respectively, pro rata to 
21.7 	each partner, member, shareholder, or owner based on their share of the entity's assets or 
21.8 	as specially allocated in their organizational documents or any other executed document, 
21.9 	as of the last day of the taxable year.
21.10 		Subd. 5.Recapture. (a) Credits claimed under this section are not subject to recapture.
21.11 	(b) If a grant or loan made under section 462A.40 is canceled or recaptured, the grant 
21.12 	or loan is returned to the housing tax credit contribution fund. The agency is not required 
21.13 	to return contributions to taxpayers who indicated that a contribution was intended for a 
21.14 	project for which the loan or grant is recaptured or canceled.
21.15 		Subd. 6.Audit powers. Notwithstanding the credit certificate issued by the commissioner 
21.16 	of the Minnesota Housing Finance Agency under subdivision 3, the commissioner of revenue 
21.17 	may use any audit and examination powers under chapter 270C or 289A to the extent 
21.18 	necessary to verify that the taxpayer is eligible for the credit and to assess for the amount 
21.19 	of any improperly claimed credit.

21.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.21 	31, 2022, and before January 1, 2025.

21.22 	Sec. 12. [290.0693] CREDIT FOR ETHANOL RETAILERS.
21.23 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
21.24 	the meanings given:
21.25 	(1) "dealer" has the meaning given in section 296A.01, subdivision 13; and
21.26 	(2) "higher ethanol blend" means gasoline blended with ethanol as defined in section 
21.27 	239.761, subdivision 4, that contains at least 15 percent ethanol but no more than 85 percent 
21.28 	ethanol.
21.29 		Subd. 2.Credit allowed. A dealer that is subject to the tax imposed under section 290.03 
21.30 	is allowed a credit against the tax imposed under this chapter equal to five cents per gallon 
21.31 	of higher ethanol blend the dealer sells and dispenses through metered pumps at the dealer's 
22.1 	retail service station in a taxable year. The credit must not exceed a dealer's tax liability 
22.2 	under this chapter.
22.3 		Subd. 3.Pass-through entities. Credits granted to a partnership, a limited liability 
22.4 	company taxed as a partnership, or an S corporation are passed through to the partners, 
22.5 	members, shareholders, or owners, respectively, pro rata to each partner, member, 
22.6 	shareholder, or owner based on their share of the entity's assets or as specially allocated in 
22.7 	their organizational documents or any other executed agreement as of the last day of the 
22.8 	taxable year.
22.9 		Subd. 4.Sunset. This section expires for taxable years beginning after December 31, 
22.10 	2030.

22.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.12 	31, 2020.

22.13 	Sec. 13. [462A.40] MINNESOTA HOUSING TAX CREDIT CONTRIBUTION 
22.14 	FUND.
22.15 		Subdivision 1.Fund created. The Minnesota housing tax credit contribution fund is 
22.16 	created as a revolving fund in the state treasury. The fund is administered by the 
22.17 	commissioner of the Minnesota Housing Finance Agency. Amounts contributed to the fund 
22.18 	are appropriated to the commissioner. The commissioner may use the amounts appropriated 
22.19 	to direct disbursements from the fund as loans or grants to eligible recipients as provided 
22.20 	in this section.
22.21 		Subd. 2.Use of funds; grant and loan program. (a) The commissioner may award 
22.22 	grants and loans to be used for multifamily and single family developments for persons and 
22.23 	families of low and moderate income. Allowable use of the funds include: gap financing, 
22.24 	as defined in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; 
22.25 	demolition or removal of existing structures; construction financing; permanent financing; 
22.26 	interest rate reduction; and refinancing.
22.27 	(b) The commissioner may give preference for grants and loans to comparable proposals 
22.28 	that include regulatory changes or waivers that result in identifiable cost avoidance or cost 
22.29 	reductions, including but not limited to increased density, flexibility in site development 
22.30 	standards, or zoning code requirements.
22.31 	(c) Separate from the amounts set aside in paragraph (d), the commissioner shall set 
22.32 	aside ten percent of grants and loans for housing units located in a township or city with a 
23.1 	population of 2,500 or less that is located outside the metropolitan area, as defined in section 
23.2 	473.121, subdivision 2.
23.3 	(d) The commissioner shall separately set aside:
23.4 	(1) 35 percent of the financing under this section for housing for persons and families 
23.5 	whose income is 50 percent or less of the area median income for the applicable county or 
23.6 	metropolitan area as published by the Department of Housing and Urban Development, as 
23.7 	adjusted for household size; and
23.8 	(2) 15 percent of the financing under this section for housing for persons and families 
23.9 	whose income is 30 percent or less of the area median income for the applicable county or 
23.10 	metropolitan area as published by the Department of Housing and Urban Development, as 
23.11 	adjusted for household size.
23.12 	(e) If by June 1 of each year, the commissioner does not receive requests to use all of 
23.13 	the amounts set aside under paragraphs (c) and (d), the commissioner may use any remaining 
23.14 	financing for other projects eligible under this section.
23.15 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The 
23.16 	commissioner may award a loan to any recipient that qualifies under subdivision 2. The 
23.17 	commissioner must not award a grant to a disqualified individual or disqualified business.
23.18 	(b) For the purposes of this subdivision disqualified individual means an individual who:
23.19 	(1) made a contribution to the fund in the current or prior taxable year and received a 
23.20 	credit certificate;
23.21 	(2) owns the housing for which the grant or loan will be used and is using that housing 
23.22 	as their domicile;
23.23 	(3) meets the following criteria:
23.24 	(i) the individual is an officer or principal of a business entity; and
23.25 	(ii) that business entity made a contribution to the fund in the current or previous taxable 
23.26 	year and received a credit certificate; or
23.27 	(4) meets the following criteria:
23.28 	(i) the individual owns, controls, or holds the power to vote 20 percent or more of the 
23.29 	outstanding securities of a business entity; and
23.30 	(ii) that business entity made a contribution to the fund in the current or previous taxable 
23.31 	year and received a credit certificate.
24.1 	(c) For the purposes of this subdivision disqualified business means a business entity 
24.2 	that:
24.3 	(1) made a contribution to the fund in the current or prior taxable year and received a 
24.4 	credit certificate;
24.5 	(2) has an officer or principal who is an individual who made a contribution to the fund 
24.6 	in the current or previous taxable year and received a credit certificate; or
24.7 	(3) meets the following criteria:
24.8 	(i) the business entity is owned, controlled, or is subject to the power to vote 20 percent 
24.9 	or more of the outstanding securities by an individual or business entity; and
24.10 	(ii) that controlling individual or business entity made a contribution to the fund in the 
24.11 	current or previous taxable year and received a credit certificate.
24.12 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
24.13 	disqualified either individually or in combination with one or more members of the taxpayer's 
24.14 	family, as defined in the Internal Revenue Code, section 267(c)(4). For a married couple 
24.15 	filing a joint return, the limitations in this paragraph apply collectively to the taxpayer and 
24.16 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
24.17 	(a), clause (4), the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
24.18 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
24.19 	disqualifications under this subdivision do not apply. The commissioner of the Minnesota 
24.20 	Housing Finance Agency must prescribe the form of the disclosure.
24.21 	(f) The commissioner may award grants or loans to a city as defined in section 462A.03, 
24.22 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
24.23 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
24.24 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
24.25 	authority or agency authorized by law to exercise any of the powers granted by sections 
24.26 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
24.27 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
24.28 	recipients apply to grants and loans awarded under this paragraph.
24.29 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), eligible recipients 
24.30 	must use the funds to serve households that meet the income limits as provided in section 
24.31 	462A.33, subdivision 5.
24.32 		Subd. 4.Recapture. A loan or grant awarded under this section is subject to repayment 
24.33 	or recapture under rules adopted by the commissioner. Any amount of a loan or grant that 
25.1 	is repaid or recaptured must be redeposited in the fund and is not returned to the taxpayer 
25.2 	who made the contribution.
25.3 		Subd. 5.Report. The commissioner shall report by January 15 each year to the chairs 
25.4 	and ranking minority members of the legislative policy and finance committees with 
25.5 	jurisdiction over housing on the tax credits and financing provided in the previous fiscal 
25.6 	year. The report shall provide a breakdown of the tax credits, grants, and loans by region 
25.7 	of the state. The report shall also include information on planned financing in the current 
25.8 	fiscal year.

25.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
25.10 	31, 2022, and before January 1, 2025.

25.11 	Sec. 14. TEMPORARY TAX CREDIT FOR CERTAIN BREWERS, LIQUOR 
25.12 	RETAILERS, AND WHOLESALERS.
 25.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
25.14 	the meanings given.
25.15 	(b) "Closure or limited capacity" means:
25.16 	(1) closed to ingress, egress, use, and occupancy by members of the public by Executive 
25.17 	Order 20-04, as extended, amended, and otherwise modified by any related executive order; 
25.18 	or
25.19 	(2) subject to the requirements and limitations, including operating at reduced capacity, 
25.20 	of Executive Order 20-74, as extended, amended, and otherwise modified by any related 
25.21 	executive order.
25.22 	(c) "Liquor spoilage" means:
25.23 	(1) for a qualified brewer, the dollar amount of product purchased back from a liquor 
25.24 	wholesaler or liquor retailer, and the dollar amount of any product disposed of as unsalable, 
25.25 	due to closure or limited capacity;
25.26 	(2) for a qualified retailer, the dollar amount of product returned without reimbursement 
25.27 	to a liquor wholesaler or manufacturer, and the dollar amount of any product disposed of 
25.28 	as unsalable, due to closure or limited capacity; and
25.29 	(3) for a qualified wholesaler, the dollar amount of product purchased back from liquor 
25.30 	retailer, the dollar amount of product returned without reimbursement to a manufacturer, 
25.31 	and the dollar amount of any product disposed of as unsalable, due to closure or limited 
25.32 	capacity.
26.1 	(d) "Qualified brewer" means a brewer licensed under Minnesota Statutes, section 
26.2 	340A.301, subdivision 6, clauses (c), (d), (i), and (j).
26.3 	(e) "Qualified retailer" means any on-sale liquor licensee under Minnesota Statutes, 
26.4 	chapter 340A, that was subject to closure or limited capacity.
26.5 	(f) "Qualified wholesaler" means a wholesaler as defined in Minnesota Statutes, section 
26.6 	340A.101, subdivision 28.
26.7 	(g) Except as otherwise provided in this subdivision, the definitions in Minnesota Statutes, 
26.8 	chapter 340A, apply to this section.
26.9 		Subd. 2.Credit allowed. (a) A qualified brewer, qualified retailer, and qualified 
26.10 	wholesaler are allowed a credit, equal to the amount of liquor spoilage in the taxable year, 
26.11 	against the tax imposed under Minnesota Statutes, chapter 290. The credit must be claimed 
26.12 	in a manner prescribed by the commissioner of revenue.
26.13 	(b) The amounts used to calculate the credit under this section may not be used to 
26.14 	calculate any other credit or subtraction under Minnesota Statutes, chapter 290.
26.15 		Subd. 3.Partnerships; multiple owners. Credits granted to a partnership, a limited 
26.16 	liability company taxed as a partnership, an S corporation, or multiple owners of property 
26.17 	are passed through to the partners, members, shareholders, or owners, respectively, pro rata 
26.18 	to each partner, member, shareholder, or owner based on their share of the entity's assets 
26.19 	or as specially allocated in their organizational documents or any other executed agreement, 
26.20 	as of the last day of the taxable year.
26.21 		Subd. 4.Credit refundable; appropriation; administration. (a) If a taxpayer's total 
26.22 	credit under this section exceeds the taxpayer's liability for tax under Minnesota Statutes, 
26.23 	chapter 290, the commissioner must refund the excess to the taxpayer. The amount necessary 
26.24 	to pay the refunds under this section is appropriated to the commissioner of revenue from 
26.25 	the general fund.
26.26 	(b) The administrative provisions of Minnesota Statutes, chapters 270C, 289A, and 290, 
26.27 	apply to the credit under this section.

26.28 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
26.29 	after December 31, 2019, and before January 1, 2022.

27.1 	ARTICLE 3
27.2 	SALES AND USE; EXCISE TAXES

27.3 	Section 1. Minnesota Statutes 2020, section 16A.152, subdivision 2, is amended to read:
27.4 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
27.5 	revenues and expenditures, the commissioner of management and budget determines that 
27.6 	there will be a positive unrestricted budgetary general fund balance at the close of the 
27.7 	biennium, the commissioner of management and budget must allocate money to the following 
27.8 	accounts and purposes in priority order:
27.9 	(1) the cash flow account established in subdivision 1 until that account reaches 
27.10 	$350,000,000;
27.11 	(2) the budget reserve account established in subdivision 1a until that account reaches 
27.12 	$1,596,522,000;
27.13 	(3) the amount necessary to increase the aid payment schedule for school district aids 
27.14 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
27.15 	tenth of a percent without exceeding the amount available and with any remaining funds 
27.16 	deposited in the budget reserve;
27.17 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
27.18 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
27.19 	subdivision 5, by the same amount;
27.20 	(5) the clean water fund established in section 114D.50 until $22,000,000 has been 
27.21 	transferred into the fund; and
27.22 	(6) (5) the amount necessary to increase the Minnesota 21st century fund by not more 
27.23 	than the difference between $5,000,000 and the sum of the amounts credited and canceled 
27.24 	to it in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the 
27.25 	sum of all transfers under this section and all amounts credited or canceled under Laws 
27.26 	2020, chapter 71, article 1, section 11, equals $20,000,000.; and
27.27 	(6) for a forecast in November only, the amount remaining after the transfer under clause 
27.28 	(5) must be used to reduce the percentage of accelerated June liability sales tax payments 
27.29 	required under section 289A.20, subdivision 4, paragraph (b), until the percentage equals 
27.30 	zero, rounded to the nearest tenth of a percent. By March 1 each year, the commissioner of 
27.31 	revenue must certify the percentage of June liability owed by qualifying vendors based on 
27.32 	the reduction required by this clause.
28.1 	(b) The amounts necessary to meet the requirements of this section are appropriated 
28.2 	from the general fund within two weeks after the forecast is released or, in the case of 
28.3 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
28.4 	schedules otherwise established in statute.
28.5 	(c) The commissioner of management and budget shall certify the total dollar amount 
28.6 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
28.7 	The commissioner of education shall increase the aid payment percentage and reduce the 
28.8 	property tax shift percentage by these amounts and apply those reductions to the current 
28.9 	fiscal year and thereafter.
28.10 	(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been 
28.11 	made.

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

28.13 	Sec. 2. Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:
28.14 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
28.15 	to the commissioner monthly on or before the 20th day of the month following the month 
28.16 	in which the taxable event occurred, or following another reporting period as the 
28.17 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
28.18 	or (g), except that use taxes due on an annual use tax return as provided under section 
28.19 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
28.20 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30 
28.21 	must remit the June liability for the next year in the following manner:
28.22 	(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must 
28.23 	remit 87.5 percent of the estimated June liability to the commissioner. Two business days 
28.24 	before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or 
28.25 	a reduced percentage as certified by the commissioner under section 16A.152, subdivision 
28.26 	2, paragraph (a), clause (6), of the estimated June liability to the commissioner.
28.27 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
28.28 	tax not remitted in June.
28.29 	(c) A vendor having a liability of:
28.30 	(1) $10,000 or more, but less than $250,000, during a fiscal year ending June 30, 2013, 
28.31 	and fiscal years thereafter, must remit by electronic means all liabilities on returns due for 
28.32 	periods beginning in all subsequent calendar years on or before the 20th day of the month 
29.1 	following the month in which the taxable event occurred, or on or before the 20th day of 
29.2 	the month following the month in which the sale is reported under section 289A.18, 
29.3 	subdivision 4; or
29.4 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
29.5 	thereafter, must remit by electronic means all liabilities in the manner provided in paragraph 
29.6 	(a) on returns due for periods beginning in the subsequent calendar year, except for 90 
29.7 	percent of the estimated June liability, which is due two business days before June 30. The 
29.8 	remaining amount of the June liability is due on August 20.
29.9 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
29.10 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
29.11 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
29.12 	form prescribed by the commissioner. No extra fee may be charged to a person making 
29.13 	payment by mail under this paragraph. The payment must be postmarked at least two business 
29.14 	days before the due date for making the payment in order to be considered paid on a timely 
29.15 	basis.
29.16 	(e) Paragraph (b) expires after the percentage of estimated payment is reduced to zero 
29.17 	in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).

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

29.19 	Sec. 3. Minnesota Statutes 2020, section 297A.70, subdivision 13, is amended to read:
29.20 		Subd. 13.Fund-raising sales by or for nonprofit groups. (a) The following sales by 
29.21 	the specified organizations for fund-raising purposes are exempt, subject to the limitations 
29.22 	listed in paragraph (b):
29.23 	(1) all sales made by a nonprofit organization that exists solely for the purpose of 
29.24 	providing educational or social activities for young people primarily age 18 and under;
29.25 	(2) all sales made by an organization that is a senior citizen group or association of 
29.26 	groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 
29.27 	and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no 
29.28 	part of its net earnings inures to the benefit of any private shareholders;
29.29 	(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the 
29.30 	beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under 
29.31 	section 501(c)(3) of the Internal Revenue Code; and
30.1 	(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides 
30.2 	educational and social activities primarily for young people age 18 and under.
30.3 	(b) The exemptions listed in paragraph (a) are limited in the following manner:
30.4 	(1) the exemption under paragraph (a), clauses (1) and (2), applies only to the first 
30.5 	$20,000 of the gross annual receipts of the organization from fund-raising; and
30.6 	(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived 
30.7 	from admission charges or from activities for which the money must be deposited with the 
30.8 	school district treasurer under section 123B.49, subdivision 2, or; and
30.9 	(3) the exemption under paragraph (a), clause (1), does not apply if the sales are derived 
30.10 	from admission charges or from activities for which the money must be recorded in the 
30.11 	same manner as other revenues or expenditures of the school district under section 123B.49, 
30.12 	subdivision 4., unless the following conditions are both met:
30.13 	(i) the sales are made for fund-raising purposes of a club, association, or other 
30.14 	organization of elementary or secondary school students organized for the purpose of 
30.15 	carrying on sports activities, educational activities, or other extracurricular activities; and
30.16 	(ii) the school district reserves revenue raised for extracurricular activities, as provided 
30.17 	in section 123B.49, subdivision 4, paragraph (e), and spends the revenue raised by a particular 
30.18 	extracurricular activity only for that extracurricular activity.
30.19 	(c) Sales of tangible personal property and services are exempt if the entire proceeds, 
30.20 	less the necessary expenses for obtaining the property or services, will be contributed to a 
30.21 	registered combined charitable organization described in section 43A.50, to be used 
30.22 	exclusively for charitable, religious, or educational purposes, and the registered combined 
30.23 	charitable organization has given its written permission for the sale. Sales that occur over 
30.24 	a period of more than 24 days per year are not exempt under this paragraph.
30.25 	(d) For purposes of this subdivision, a club, association, or other organization of 
30.26 	elementary or secondary school students organized for the purpose of carrying on sports, 
30.27 	educational, or other extracurricular activities is a separate organization from the school 
30.28 	district or school for purposes of applying the $20,000 limit.

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

31.1 	Sec. 4. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to 
31.2 	read:
31.3 		Subd. 53.Public safety facilities. (a) Materials and supplies used or consumed in and 
31.4 	equipment incorporated into the construction, remodeling, expansion, or improvement of 
31.5 	a fire station or police station, including related facilities, owned and operated by a local 
31.6 	government, as defined in section 297A.70, subdivision 2, paragraph (d), are exempt.
31.7 	(b) For purposes of this subdivision, "related facilities" includes access roads, lighting, 
31.8 	sidewalks, and utility components on or adjacent to the property on which the fire station 
31.9 	or police station is located that are necessary for safe access to and use of those buildings.
31.10 	(c) The tax must be imposed and collected as if the rate under section 297A.62, 
31.11 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.

31.12 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
31.13 	30, 2021.

31.14 	Sec. 5. Minnesota Statutes 2020, section 297A.75, subdivision 1, is amended to read:
31.15 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
31.16 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
31.17 	section 297A.62, subdivision 1, applied. The exempt items include:
31.18 	(1) building materials for an agricultural processing facility exempt under section 
31.19 	297A.71, subdivision 13;
31.20 	(2) building materials for mineral production facilities exempt under section 297A.71, 
31.21 	subdivision 14;
31.22 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
31.23 	(4) building materials used in a residence for veterans with a disability exempt under 
31.24 	section 297A.71, subdivision 11;
31.25 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
31.26 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
31.27 	subdivision 23;
31.28 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
31.29 	section 297A.71, subdivision 35;
32.1 	(8) equipment and materials used for the generation, transmission, and distribution of 
32.2 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
32.3 	37;
32.4 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
32.5 	(a), clause (10);
32.6 	(10) materials, supplies, and equipment for construction or improvement of projects and 
32.7 	facilities under section 297A.71, subdivision 40;
32.8 	(11) materials, supplies, and equipment for construction, improvement, or expansion of 
32.9 	a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
32.10 	(12) enterprise information technology equipment and computer software for use in a 
32.11 	qualified data center exempt under section 297A.68, subdivision 42;
32.12 	(13) materials, supplies, and equipment for qualifying capital projects under section 
32.13 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
32.14 	(14) items purchased for use in providing critical access dental services exempt under 
32.15 	section 297A.70, subdivision 7, paragraph (c);
32.16 	(15) items and services purchased under a business subsidy agreement for use or 
32.17 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
32.18 	44;
32.19 	(16) building materials, equipment, and supplies for constructing or replacing real 
32.20 	property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51; and
32.21 	(17) building materials, equipment, and supplies for qualifying capital projects under 
32.22 	section 297A.71, subdivision 52.; and
32.23 	(18) building materials, equipment, and supplies for constructing, remodeling, expanding, 
32.24 	or improving a fire station, police station, or related facilities exempt under section 297A.71, 
32.25 	subdivision 53.

32.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
32.27 	30, 2021.

32.28 	Sec. 6. Minnesota Statutes 2020, section 297A.75, subdivision 2, is amended to read:
32.29 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
32.30 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
32.31 	be paid to the applicant. Only the following persons may apply for the refund:
33.1 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
33.2 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
33.3 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
33.4 	provided in United States Code, title 38, chapter 21;
33.5 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
33.6 	property;
33.7 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
33.8 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
33.9 	joint venture of municipal electric utilities;
33.10 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
33.11 	business;
33.12 	(8) for subdivision 1, clauses (9), (10), (13), and (17), and (18), the applicant must be 
33.13 	the governmental entity that owns or contracts for the project or facility; and
33.14 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
33.15 	building or project.

33.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
33.17 	30, 2021.

33.18 	Sec. 7. Minnesota Statutes 2020, section 297A.75, subdivision 3, is amended to read:
33.19 		Subd. 3.Application. (a) The application must include sufficient information to permit 
33.20 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
33.21 	or builder, under subdivision 1, clauses (3) to (13) or (15) to (17) (18), the contractor, 
33.22 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
33.23 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
33.24 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
33.25 	this section.
33.26 	(b) An applicant may not file more than two applications per calendar year for refunds 
33.27 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

33.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
33.29 	30, 2021.

34.1 	Sec. 8. Minnesota Statutes 2020, section 297F.10, subdivision 1, is amended to read:
34.2 		Subdivision 1.Tax and use tax on cigarettes. Revenue received from cigarette taxes, 
34.3 	as well as related penalties, interest, license fees, and miscellaneous sources of revenue 
34.4 	shall be deposited by the commissioner in the state treasury and credited as follows:
34.5 	(1) $22,250,000 each year must be credited to the Academic Health Center special 
34.6 	revenue fund hereby created and is annually appropriated to the Board of Regents at the 
34.7 	University of Minnesota for Academic Health Center funding at the University of Minnesota; 
34.8 	and
34.9 	(2) $3,937,000 each year must be credited to the medical education and research costs 
34.10 	account hereby created in the special revenue fund and is annually appropriated to the 
34.11 	commissioner of health for distribution under section 62J.692, subdivision 4; and
34.12 	(3) $5,000,000 in fiscal year 2022 only must be credited to the tobacco use prevention 
34.13 	and cessation account hereby created in the special revenue fund and is appropriated to the 
34.14 	commissioner of health for tobacco use prevention and cessation projects consistent with 
34.15 	the duties specified in section 144.392; a public information program under section 144.393; 
34.16 	the development of health promotion and health education materials about tobacco use 
34.17 	prevention and cessation; tobacco use prevention activities under section 144.396; and 
34.18 	statewide tobacco cessation services under section 144.397. In activities funded under this 
34.19 	clause, the commissioner of health must prioritize preventing youth use of commercial 
34.20 	tobacco and electronic delivery devices, must promote racial and health equity, and must 
34.21 	use strategies that are evidence-based or based on promising practices. For purposes of this 
34.22 	clause, "tobacco" and "electronic delivery device" have the meanings given in section 
34.23 	609.685, subdivision 1. Any unexpended or unencumbered amount from fiscal year 2022 
34.24 	may be carried into fiscal year 2023; and
34.25 	(3) (4) the balance of the revenues derived from taxes, penalties, and interest (under this 
34.26 	chapter) and from license fees and miscellaneous sources of revenue shall be credited to 
34.27 	the general fund.

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

34.29 	Sec. 9. Minnesota Statutes 2020, section 297I.20, is amended by adding a subdivision to 
34.30 	read:
34.31 		Subd. 4.Minnesota housing tax credit. A taxpayer may claim a credit against the 
34.32 	premiums tax imposed under this chapter equal to the amount indicated on the credit 
34.33 	certificate statement issued to the taxpayer under section 290.0683. If the amount of the 
35.1 	credit exceeds the liability for tax under this chapter, the excess is a credit carryover to each 
35.2 	of the ten succeeding taxable years. The entire amount of the excess unused credit for the 
35.3 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
35.4 	be carried and then to each successive year to which the credit may be carried. This credit 
35.5 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
35.6 	under section 477C.03.

35.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
35.8 	31, 2022, and before January 1, 2025.

35.9 	Sec. 10. Minnesota Statutes 2020, section 477A.016, is amended to read:
35.10 	477A.016 NEW TAXES PROHIBITED.
35.11 	(a) No county, city, town or other taxing authority shall increase a present tax or impose 
35.12 	a new tax on sales or income.
35.13 	(b) No county, city, town, or other taxing authority shall increase a present excise tax 
35.14 	or fee or impose a new excise tax or fee on either:
35.15 	(1) the manufacture, distribution, wholesale, or retail sale of food, based on volume of 
35.16 	product sold, product sales value, or the type of product manufactured, distributed, or sold; 
35.17 	or
35.18 	(2) any container or instrument used for transporting, protecting, or consuming food.
35.19 	(c) For purposes of this section:
35.20 	(1) "food" has the meaning given in section 34A.01, subdivision 4; and
35.21 	(2) "container or instrument" means a bottle, cup, can, bag, or other packaging that is 
35.22 	made from plastic, aluminum, glass, paper, cardboard, or other material.
35.23 	(d) This section does not apply to reasonable license fees lawfully imposed by a county, 
35.24 	city, town, or other licensing authority in the exercise of its regulatory authority to license 
35.25 	a trade, profession, or business.

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

35.27 	Sec. 11. SALES TAX EXEMPTION FOR CERTAIN PURCHASES RELATED TO 
35.28 	COVID-19.
 35.29 	(a) Notwithstanding Minnesota Statutes, section 289A.50, or any law to the contrary, 
35.30 	the sale and purchase of any materials, supplies, or equipment used in this state by a restaurant 
36.1 	to adapt to health guidelines or any executive order related to COVID-19 is exempt from 
36.2 	sales and use taxes imposed under Minnesota Statutes, chapter 297A. For the purposes of 
36.3 	this section, "restaurant" means an establishment used as, maintained as, advertised as, or 
36.4 	held out to be an operation that prepares, serves, or otherwise provides food or beverages, 
36.5 	or both, for human consumption, which operates from a location for more than 21 days 
36.6 	annually. Restaurant does not include food carts, mobile food units, grocery stores, 
36.7 	convenience stores, gas stations, bakeries, or delis.
36.8 	(b) The maximum refund allowed under this section is $1,000 per federal employer 
36.9 	identification number or Minnesota tax identification number, whichever number is used 
36.10 	to file sales tax returns. A business using a consolidated return to report sales tax information 
36.11 	from more than one restaurant location, as provided in Minnesota Statutes, section 289A.11, 
36.12 	subdivision 1, paragraph (a), is eligible for a refund of up to $1,000, per restaurant location 
36.13 	reported.
36.14 	(c) The tax on the gross receipts from the sale of the items exempt under paragraph (a) 
36.15 	must be imposed and collected as if the sale were taxable and the rate under Minnesota 
36.16 	Statutes, section 297A.62, subdivision 1, applied. Refunds for eligible purchases must not 
36.17 	be issued until after June 30, 2021.
36.18 	(d) Upon application on forms prescribed by the commissioner, a refund equal to the 
36.19 	tax paid on the gross receipts of the exempt items or $1,000, whichever is less, must be paid 
36.20 	to the applicant. Only the owner of the restaurant may apply for the refund. The application 
36.21 	must include sufficient information to permit the commissioner to verify the tax paid and 
36.22 	that the applicant is the owner of the restaurant.

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

36.26 	ARTICLE 4
36.27 	PROPERTY TAXES AND AIDS AND CREDITS

36.28 	Section 1. Minnesota Statutes 2020, section 144F.01, is amended to read:
36.29 	144F.01 FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES 
36.30 	SPECIAL TAXING DISTRICTS.
36.31 		Subdivision 1.Political subdivision defined Definitions. For purposes of this section, 
36.32 	the following terms have the meanings given.
37.1 	In this section, (a) "Political subdivision" means a county, a statutory or home rule charter 
37.2 	city, or a township organized to provide town government.
37.3 	(b) "Governing body" means a city council for a city, a county board for a county, and 
37.4 	a board of supervisors for a town.
37.5 	(c) "Emergency medical services" means supporting the providing of out-of-hospital 
37.6 	emergency medical services including, but not limited to, first responder or rescue squads 
37.7 	recognized by the district, ambulance services licensed under chapter 144E and recognized 
37.8 	by the district, medical control functions set out in chapter 144E, communications equipment 
37.9 	and systems, and programs of regional emergency medical services authorized by regional 
37.10 	boards described in section 144E.52.
37.11 		Subd. 2.Who mayAuthority to establish. (a) Two or more political subdivisions, or 
37.12 	parts of them, may establish, by resolution of their governing bodies, a special taxing district 
37.13 	for to provide fire protection or emergency medical services. The participating territory of 
37.14 	a participating political subdivision need not abut any other participating territory to be in 
37.15 	the special taxing district, or both, in the area of the district, comprising the jurisdiction of 
37.16 	each of the political subdivisions forming the district. For a county that participates  in 
37.17 	establishing a district, the county's jurisdiction comprises the unorganized territory of the 
37.18 	county that it designated in its resolution for inclusion in the district. The area of the special 
37.19 	taxing district need not be contiguous or its boundaries continuous.
37.20 	(b) Before establishing a district under this section, the participating political subdivisions 
37.21 	must enter into an agreement that specifies how any liabilities, other than debt issued under 
37.22 	subdivision 6, and assets of the district will be distributed if the district is dissolved. The 
37.23 	agreement may also include other terms, including a method for apportioning the levy of 
37.24 	the district among participating political subdivisions under subdivision 4, paragraph (b), 
37.25 	as the political subdivisions determine appropriate. The agreement must be adopted no later 
37.26 	than upon passage of the resolution establishing the district under paragraph (a), but may 
37.27 	be later amended by agreement of each of the political subdivisions participating in the 
37.28 	district.
37.29 	(c) If two or more political subdivisions that currently operate separate fire departments 
37.30 	seek to merge fire departments into one fire department, or if a political subdivision with 
37.31 	an existing fire department requests to join a special taxing district with an established fire 
37.32 	department, the resolution under paragraph (a) or agreement under paragraph (b) must 
37.33 	specify which, if any, volunteer firefighter pension plan is associated with the district. A 
37.34 	special taxing district that operates a fire department under this section may be associated 
38.1 	with only one volunteer firefighting relief association or one account in the voluntary 
38.2 	statewide volunteer firefighting retirement plan at one time.
38.3 	(d) If the special taxing district includes the operation of a fire department, it must file 
38.4 	its resolution establishing the fire protection special taxing district, and any agreements 
38.5 	required for the establishment of the special taxing district, with the commissioner of revenue, 
38.6 	including any subsequent amendments. If the resolution or agreement does not include 
38.7 	sufficient information defining the fire department service area of the fire protection special 
38.8 	taxing district, the secretary of the district board must file a written statement with the 
38.9 	commissioner defining the fire department service area.
38.10 		Subd. 3.Board. The special taxing district established under this section is governed 
38.11 	by a board made up initially of representatives of each participating political subdivision 
38.12 	in the proportions set out in the establishing resolution, subject to change as provided in the 
38.13 	district's charter, if any, or in the district's bylaws. If a township states in its resolution that 
38.14 	less than the entire township will participate in the district, the partial townships shall be 
38.15 	represented on the board by only one member, appointed from among those townships so 
38.16 	participating. The method for appointment shall be governed by the bylaws of the district's 
38.17 	joint powers agreement. Each participant's representative serves at the pleasure of that 
38.18 	participant's governing body or bodies Each participating political subdivision's representative 
38.19 	must be an elected member of the governing body of the political subdivision and shall 
38.20 	serve at the pleasure of that participant's governing body.
38.21 		Subd. 4.Property tax levy authority. (a) The district's board may levy a tax on the 
38.22 	taxable real and personal property in the district. The ad valorem tax levy may not exceed 
38.23 	0.048 percent of the estimated market value of the district or $550,000, whichever is less.
38.24 	The proceeds of the levy must be used as provided in subdivision 5. The board shall certify 
38.25 	the levy at the times as provided under section 275.07. The board shall provide the county 
38.26 	with whatever information is necessary to identify the property that is located within the 
38.27 	district. If the boundaries include a part of a parcel, the entire parcel shall be included in 
38.28 	the district. The county auditors must spread, collect, and distribute the proceeds of the tax 
38.29 	at the same time and in the same manner as provided by law for all other property taxes.
38.30 	(b) As an alternative to paragraph (a), the board may apportion its levy among the political 
38.31 	subdivisions that are members of the district under a formula or method, with factors such 
38.32 	as population, number of service calls, costs of providing service, the market value of 
38.33 	improvements, or other measures approved by the governing body of each of the participating 
38.34 	political subdivisions. The amount of the levy allocated to each political subdivision must 
38.35 	be added to that political subdivision's levy and spread at the same time and in the same 
39.1 	manner as provided by law for all other property taxes. The proceeds of the levy must be 
39.2 	collected and remitted to the district and used as provided in subdivision 5.
39.3 		Subd. 5.Use of levy proceeds. The proceeds of property taxes levied under this section 
39.4 	must be used to support the providing of out-of-hospital emergency medical services 
39.5 	including, but not limited to, first responder or rescue squads recognized by the district, 
39.6 	ambulance services licensed under chapter 144E and recognized by the district, medical 
39.7 	control functions set out in chapter 144E, communications equipment and systems, and 
39.8 	programs of regional emergency medical services authorized by regional boards described 
39.9 	in section 144E.52 provide fire protection, emergency medical services, or both, to residents 
39.10 	of the district and property located in the district, as well as to pay debt issued under 
39.11 	subdivision 6. Services may be provided by employees of the district or by contracting for 
39.12 	services provided by other governmental or private entities.
39.13 		Subd. 6.Advisory committee Debt. A special taxing district board under this section 
39.14 	must have an advisory committee to advise the board on issues involving emergency medical 
39.15 	services and EMS communications. The committee's membership must be comprised of 
39.16 	representatives of first responders, ambulance services, ambulance medical directors, and 
39.17 	EMS communication experts. The advisory committee members serve at the pleasure of 
39.18 	the appointing board (a) The district may incur debt under chapter 475 when the board 
39.19 	determines doing so is necessary to accomplish its duties.
39.20 	(b) In addition, the district board may issue certificates of indebtedness or capital notes 
39.21 	under section 412.301 to purchase capital equipment. In applying section 412.301, paragraph 
39.22 	(e), the following rules apply:
39.23 	(1) the taxable property of the entire district must be used to calculate the percent of 
39.24 	estimated market value; and
39.25 	(2) "the number of voters at the last municipal election" means the sum of the number 
39.26 	of voters at the last municipal election for each of the cities that is a member of the district 
39.27 	plus the number of registered voters in each town that is a participating member of the 
39.28 	district.
39.29 		Subd. 7.Powers. (a) In addition to authority expressly granted in this section, a special 
39.30 	taxing district established under this section may exercise any power that may be exercised 
39.31 	by any of its participating political subdivisions, except that the board may not incur debt. 
39.32 	The special taxing district may only use the power to do what that is necessary or reasonable 
39.33 	to support the services set out in subdivision 5. These powers include the authority to 
39.34 	participate in state programs and to enforce or carry out state laws related to fire protection 
40.1 	or emergency medical services, including programs providing state aid, reimbursement or 
40.2 	funding of employee benefits, and authorizing local enforcement of state standards including 
40.3 	fire protection related programs and political subdivision powers or responsibilities under 
40.4 	chapters 299A, 424A, and 477B; sections 6.495, 353.64, and 423A.022; and any other 
40.5 	administrative rules related to the fire code, to the extent the special taxing district meets 
40.6 	the qualification criteria and requirements of a program.
40.7 	(b) Notwithstanding paragraph (a), To the extent the district's authority under this 
40.8 	subdivision overlaps with or may conflict with the authority of the participating political 
40.9 	subdivision, the agreement under subdivision 2, paragraph (b), must provide for allocation 
40.10 	of those powers or responsibilities between the participating political subdivisions and the 
40.11 	district, and may provide for resolution of conflicts in the exercise of those powers.
40.12 	(c) The district may only levy the taxestax authorized in this section subdivision 4.
40.13 		Subd. 8.Additions and withdrawals. (a) Additional eligible political subdivisions may 
40.14 	be added to a special taxing district established under this section as provided by the board 
40.15 	of the district and agreed to in a resolution of the governing body of the political subdivision 
40.16 	proposed to be added. The addition of a political subdivision to the district may not cause 
40.17 	the district to be out of compliance with subdivision 2, paragraph (c).
40.18 	(b) A political subdivision may withdraw from a special taxing district under this section 
40.19 	by resolution of its governing body. The political subdivision must notify the board of the 
40.20 	special taxing district of the withdrawal by providing a copy of the resolution at least one 
40.21 	yeartwo years in advance of the proposed withdrawal. The taxable property of the 
40.22 	withdrawing member is subject to the property tax levy under subdivision 4 for the two 
40.23 	taxes payable yearyears following the notice of the withdrawal, unless the board and the 
40.24 	withdrawing member agree otherwise by action of their governing bodies. If a political 
40.25 	subdivision withdraws from a district for which debt was issued under subdivision 6 when 
40.26 	the political subdivision was a participating member, and which is outstanding when the 
40.27 	political subdivision withdraws from the district, the taxable property of the withdrawing 
40.28 	political subdivision remains subject to the special taxing district levy until the outstanding 
40.29 	debt has been paid or defeased. If the district's property tax levy to repay debt was 
40.30 	apportioned among the political subdivisions under an alternative formula or method under 
40.31 	subdivision 4, paragraph (b), the withdrawing political subdivision is subject to the same 
40.32 	percentage of the debt levy as applied in the taxes payable year immediately preceding its 
40.33 	withdrawal from the district.
41.1 	(c) Notwithstanding subdivision 2, if the district is comprised of only two political 
41.2 	subdivisions and one of the political subdivisions withdraws, the district can continue to 
41.3 	exist.
41.4 		Subd. 9.Dissolution. The special taxing district may be dissolved by resolution approved 
41.5 	by a majority vote of the board. If the special taxing district is dissolved, the assets and 
41.6 	liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public 
41.7 	purposes as provided by law in the agreement adopted under subdivision 2, paragraph (b), 
41.8 	or otherwise agreed to by each participating political subdivision. A district may not be 
41.9 	dissolved until all debt issued under subdivision 6 has been paid or defeased.
41.10 		Subd. 10.Reports. (a) On or before March 15, 2005 2024, and March 15, 2007 2026, 
41.11 	the special taxing district shall submit a levy and expenditure report to the commissioner 
41.12 	of revenue and to the chairs of the house of representatives and senate committees with 
41.13 	jurisdiction over taxes and property taxes. Each report must include the amount of the 
41.14 	district's levies for taxes payable for each of the two previous years and its actual expenditures 
41.15 	of those revenues. Expenditures must be reported by general service category, as listed in 
41.16 	subdivision 5, and include a separate category for administrative expenses.
41.17 	(b) On or before March 15, 2024, and March 15, 2026, a political subdivision that has 
41.18 	established or joined a special taxing district authorized under this section after June 30, 
41.19 	2021, shall submit a levy and expenditure report to the commissioner of revenue and to the 
41.20 	house of representatives and senate committees with jurisdiction over taxes and property 
41.21 	taxes. The report must include:
41.22 	(1) the amount of the political subdivision's levy, and its actual expenditure of the 
41.23 	subdivision's levy revenues, including the amount attributable to fire protection and 
41.24 	emergency medical services, for taxes payable in each of the two taxes payable years prior 
41.25 	to establishing or joining a special taxing district authorized under this section;
41.26 	(2) the political subdivision's levy, and its actual expenditure of the subdivision's levy 
41.27 	revenues, for taxes payable in each of the taxes payable years after establishing or joining 
41.28 	a special taxing district authorized under this section, up to, and including, taxes payable 
41.29 	in 2024, and taxes payable in 2026; and
41.30 	(3) a certification from the political subdivision that the subdivision's levy for each of 
41.31 	the taxes payable years after establishing or joining a special taxing district authorized under 
41.32 	this section, up to, and including, taxes payable in 2024, and taxes payable in 2026, does 
41.33 	not include expenditures for fire protection, emergency medical services, or both, except 
42.1 	as provided in subdivision 4, paragraph (b), or those necessary to establish, or join, a district 
42.2 	as provided in this section.

42.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
42.4 	applies to districts established after June 30, 2021, except that districts established prior to 
42.5 	June 30, 2021, are eligible for changes made to subdivisions 4 and 6 beginning with property 
42.6 	taxes payable in 2022.

42.7 	Sec. 2. Minnesota Statutes 2020, section 273.124, subdivision 1, is amended to read:
42.8 		Subdivision 1.General rule. (a) Residential real estate that is occupied and used for 
42.9 	the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential 
42.10 	homestead.
42.11 	Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used 
42.12 	as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.
42.13 	Dates for establishment of a homestead and homestead treatment provided to particular 
42.14 	types of property are as provided in this section.
42.15 	Property held by a trustee under a trust is eligible for homestead classification if the 
42.16 	requirements under this chapter are satisfied.
42.17 	The assessor shall require proof, as provided in subdivision 13, of the facts upon which 
42.18 	classification as a homestead may be determined. Notwithstanding any other law, the assessor 
42.19 	may at any time require a homestead application to be filed in order to verify that any 
42.20 	property classified as a homestead continues to be eligible for homestead status. 
42.21 	Notwithstanding any other law to the contrary, the Department of Revenue may, upon 
42.22 	request from an assessor, verify whether an individual who is requesting or receiving 
42.23 	homestead classification has filed a Minnesota income tax return as a resident for the most 
42.24 	recent taxable year for which the information is available.
42.25 	When there is a name change or a transfer of homestead property, the assessor may 
42.26 	reclassify the property in the next assessment unless a homestead application is filed to 
42.27 	verify that the property continues to qualify for homestead classification.
42.28 	(b) For purposes of this section, homestead property shall include property which is used 
42.29 	for purposes of the homestead but is separated from the homestead by a road, street, lot, 
42.30 	waterway, or other similar intervening property. The term "used for purposes of the 
42.31 	homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings 
42.32 	commonly associated with a homestead, but shall not include vacant land held primarily 
42.33 	for future development. In order to receive homestead treatment for the noncontiguous 
43.1 	property, the owner must use the property for the purposes of the homestead, and must apply 
43.2 	to the assessor, both by the deadlines given in subdivision 9. After initial qualification for 
43.3 	the homestead treatment, additional applications for subsequent years are not required.
43.4 	(c) Residential real estate that is occupied and used for purposes of a homestead by a 
43.5 	relative of the owner is a homestead but only to the extent of the homestead treatment that 
43.6 	would be provided if the related owner occupied the property. For purposes of this paragraph 
43.7 	and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent, 
43.8 	grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood 
43.9 	or marriage. Property that has been classified as seasonal residential recreational property 
43.10 	at any time during which it has been owned by the current owner or spouse of the current 
43.11 	owner will not be reclassified as a homestead unless it is occupied as a homestead by the 
43.12 	owner; this prohibition also applies to property that, in the absence of this paragraph, would 
43.13 	have been classified as seasonal residential recreational property at the time when the 
43.14 	residence was constructed. Neither the related occupant nor the owner of the property may 
43.15 	claim a property tax refund under chapter 290A for a homestead occupied by a relative. In 
43.16 	the case of a residence located on agricultural land, only the house, garage, and immediately 
43.17 	surrounding one acre of land shall be classified as a homestead under this paragraph, except 
43.18 	as provided in paragraph (d).
43.19 	(d) Agricultural property that is occupied and used for purposes of a homestead by a 
43.20 	relative of the owner, is a homestead, only to the extent of the homestead treatment that 
43.21 	would be provided if the related owner occupied the property, and only if all of the following 
43.22 	criteria are met:
43.23 	(1) the relative who is occupying the agricultural property is a grandchild, child, sibling, 
43.24 	or parent, grandparent, stepparent, stepchild, uncle, aunt, nephew, or niece of the owner of 
43.25 	the agricultural property or of the spouse of the owner;
43.26 	(2) the owner of the agricultural property must be a Minnesota resident;
43.27 	(3) the owner of the agricultural property must not receive homestead treatment on any 
43.28 	other agricultural property in Minnesota; and
43.29 	(4) the owner of the agricultural property is limited to only one agricultural homestead 
43.30 	per family under this paragraph.
43.31 	Neither the related occupant nor the owner of the property may claim a property tax 
43.32 	refund under chapter 290A for a homestead occupied by a relative qualifying under this 
43.33 	paragraph. For purposes of this paragraph, "agricultural property" means the house, garage, 
43.34 	other farm buildings and structures, and agricultural land.
44.1 	Application must be made to the assessor by the owner of the agricultural property to 
44.2 	receive homestead benefits under this paragraph. The assessor may require the necessary 
44.3 	proof that the requirements under this paragraph have been met.
44.4 	(e) In the case of property owned by a property owner who is married, the assessor must 
44.5 	not deny homestead treatment in whole or in part if only one of the spouses occupies the 
44.6 	property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2) 
44.7 	legal separation, (3) employment or self-employment in another location, or (4) other 
44.8 	personal circumstances causing the spouses to live separately, not including an intent to 
44.9 	obtain two homestead classifications for property tax purposes. To qualify under clause (3), 
44.10 	the spouse's place of employment or self-employment must be at least 50 miles distant from 
44.11 	the other spouse's place of employment, and the homesteads must be at least 50 miles distant 
44.12 	from each other.
44.13 	(f) The assessor must not deny homestead treatment in whole or in part if:
44.14 	(1) in the case of a property owner who is not married, the owner is absent due to 
44.15 	residence in a nursing home, boarding care facility, or an elderly assisted living facility 
44.16 	property as defined in section 273.13, subdivision 25a, and the property is not otherwise 
44.17 	occupied; or
44.18 	(2) in the case of a property owner who is married, the owner or the owner's spouse or 
44.19 	both are absent due to residence in a nursing home, boarding care facility, or an elderly 
44.20 	assisted living facility property as defined in section 273.13, subdivision 25a, and the property 
44.21 	is not occupied or is occupied only by the owner's spouse.
44.22 	(g) If an individual is purchasing property with the intent of claiming it as a homestead 
44.23 	and is required by the terms of the financing agreement to have a relative shown on the deed 
44.24 	as a co-owner, the assessor shall allow a full homestead classification. This provision only 
44.25 	applies to first-time purchasers, whether married or single, or to a person who had previously 
44.26 	been married and is purchasing as a single individual for the first time. The application for 
44.27 	homestead benefits must be on a form prescribed by the commissioner and must contain 
44.28 	the data necessary for the assessor to determine if full homestead benefits are warranted.
44.29 	(h) If residential or agricultural real estate is occupied and used for purposes of a 
44.30 	homestead by a child of a deceased owner and the property is subject to jurisdiction of 
44.31 	probate court, the child shall receive relative homestead classification under paragraph (c) 
44.32 	or (d) to the same extent they would be entitled to it if the owner was still living, until the 
44.33 	probate is completed. For purposes of this paragraph, "child" includes a relationship by 
44.34 	blood or by marriage.
45.1 	(i) If a single-family home, duplex, or triplex classified as either residential homestead 
45.2 	or agricultural homestead is also used to provide licensed child care, the portion of the 
45.3 	property used for licensed child care must be classified as a part of the homestead property.

45.4 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
45.5 	in 2022.

45.6 	Sec. 3. Minnesota Statutes 2020, section 273.124, subdivision 9, is amended to read:
45.7 		Subd. 9.Homestead established after assessment date. Any property that was not 
45.8 	used for the purpose of a homestead on the assessment date, but which was used for the 
45.9 	purpose of a homestead on December 1 31 of a year, constitutes class 1 or class 2a.
45.10 	Any taxpayer meeting the requirements of this subdivision must notify the county 
45.11 	assessor, or the assessor who has the powers of the county assessor under section 273.063, 
45.12 	in writing, by December 15 31 of the year of occupancy in order to qualify under this 
45.13 	subdivision. The assessor must not deny full homestead treatment to a property that is 
45.14 	partially homesteaded on January 2 but occupied for the purpose of a full homestead on 
45.15 	December 1 31 of a year.
45.16 	The county assessor and the county auditor may make the necessary changes on their 
45.17 	assessment and tax records to provide for proper homestead classification as provided in 
45.18 	this subdivision.
45.19 	If homestead classification has not been requested as of December 15 31, the assessor 
45.20 	will classify the property as nonhomestead for the current assessment year for taxes payable 
45.21 	in the following year, provided that the owner of any property qualifying under this 
45.22 	subdivision, which has not been accorded the benefits of this subdivision, may be entitled 
45.23 	to receive homestead classification by proper application as provided in section 375.192.
45.24 	The county assessor may publish in a newspaper of general circulation within the county 
45.25 	a notice requesting the public to file an application for homestead as soon as practicable 
45.26 	after acquisition of a homestead, but no later than December 15 31.
45.27 	The county assessor shall publish in a newspaper of general circulation within the county 
45.28 	no later than December 1 of each year a notice informing the public of the requirement to 
45.29 	file an application for homestead by December 15 31.
45.30 	In the case of manufactured homes assessed as personal property, the homestead must 
45.31 	be established, and a homestead classification requested, by May 29 of the assessment year. 
45.32 	The assessor may include information on these deadlines for manufactured homes assessed 
45.33 	as personal property in the published notice or notices.

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

46.2 	Sec. 4. Minnesota Statutes 2020, section 273.124, subdivision 13, is amended to read:
46.3 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
46.4 	under subdivision 1 must file a homestead application with the county assessor to initially 
46.5 	obtain homestead classification.
46.6 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
46.7 	application required to be filed under this chapter pursuant to section 270C.30. The 
46.8 	application must clearly inform the taxpayer that this application must be signed by all 
46.9 	owners who occupy the property or by the qualifying relative and returned to the county 
46.10 	assessor in order for the property to receive homestead treatment.
46.11 	(c) Every property owner applying for homestead classification must furnish to the 
46.12 	county assessor the Social Security number of each occupant who is listed as an owner of 
46.13 	the property on the deed of record, the name and address of each owner who does not occupy 
46.14 	the property, and the name and Social Security number of the spouse of each occupying 
46.15 	owner. The application must be signed by each owner who occupies the property and by 
46.16 	each owner's spouse who occupies the property, or, in the case of property that qualifies as 
46.17 	a homestead under subdivision 1, paragraph (c), by the qualifying relative.
46.18 	If a property owner occupies a homestead, the property owner's spouse may not claim 
46.19 	another property as a homestead unless the property owner and the property owner's spouse 
46.20 	file with the assessor an affidavit or other proof required by the assessor stating that the 
46.21 	property qualifies as a homestead under subdivision 1, paragraph (e).
46.22 	Owners or spouses occupying residences owned by their spouses and previously occupied 
46.23 	with the other spouse, either of whom fail to include the other spouse's name and Social 
46.24 	Security number on the homestead application or provide the affidavits or other proof 
46.25 	requested, will be deemed to have elected to receive only partial homestead treatment of 
46.26 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
46.27 	When an owner or spouse's name and Social Security number appear on homestead 
46.28 	applications for two separate residences and only one application is signed, the owner or 
46.29 	spouse will be deemed to have elected to homestead the residence for which the application 
46.30 	was signed.
46.31 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
46.32 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
46.33 	the property to receive homestead status, a homestead application must be filed with the 
47.1 	assessor. The Social Security number of each relative occupying the property and the name 
47.2 	and Social Security number of the spouse of a relative occupying the property shall be 
47.3 	required on the homestead application filed under this subdivision. If a different relative of 
47.4 	the owner subsequently occupies the property, the owner of the property must notify the 
47.5 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
47.6 	occupying the property or the spouse of a relative occupying the property is private data on 
47.7 	individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
47.8 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
47.9 	Act to recover personal property taxes owing, to the county treasurer.
47.10 	(e) The homestead application shall also notify the property owners that if the property 
47.11 	is granted homestead status for any assessment year, that same property shall remain 
47.12 	classified as homestead until the property is sold or transferred to another person, or the 
47.13 	owners, the spouse of the owner, or the relatives no longer use the property as their 
47.14 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
47.15 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
47.16 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
47.17 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
47.18 	shall result in the penalty provided under this subdivision and the property will lose its 
47.19 	current homestead status.
47.20 	(f) If a homestead application has not been filed with the county by December 15 31, 
47.21 	the assessor shall classify the property as nonhomestead for the current assessment year for 
47.22 	taxes payable in the following year, provided that the owner may be entitled to receive the 
47.23 	homestead classification by proper application under section 375.192.

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

47.25 	Sec. 5. Minnesota Statutes 2020, section 273.128, is amended by adding a subdivision to 
47.26 	read:
47.27 		Subd. 1a.Notice. Low-income rental property classified as class 4d under section 273.13, 
47.28 	subdivision 25, must post a notice within the property that all or a portion of the property 
47.29 	is classified as low-income rental property under section 273.13, subdivision 25. The notice 
47.30 	must be posted in an area accessible to all residents and must include the rent and income 
47.31 	restrictions required under subdivision 1. The notice must be annually updated.

47.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2022.

48.1 	Sec. 6. Minnesota Statutes 2020, section 273.128, is amended by adding a subdivision to 
48.2 	read:
48.3 		Subd. 1b.Approval. A property owner must receive approval, by resolution of the 
48.4 	governing body of the city or town where the property is located, before submitting an initial 
48.5 	application to the Housing Finance Agency, as required under subdivision 2, for property 
48.6 	that has not, in whole or in part, been classified as class 4d under section 273.13, subdivision 
48.7 	25, prior to assessment year 2022. A property owner that has received approval as required 
48.8 	under this subdivision, and the certification made under subdivision 3, shall not be required 
48.9 	to seek approval under this subdivision prior to submitting an application under subdivision 
48.10 	2, in each subsequent year.

48.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2022.

48.12 	Sec. 7. Minnesota Statutes 2020, section 273.128, subdivision 2, is amended to read:
48.13 		Subd. 2.Application. (a) Application for certification under this section must be filed 
48.14 	by March 31 of the levy year, or at a later date if the Housing Finance Agency deems 
48.15 	practicable. The application must be filed with the Housing Finance Agency, on a form 
48.16 	prescribed by the agency, and must contain the information required by the Housing Finance 
48.17 	Agency.
48.18 	(b) Each application must include:
48.19 	(1) the property tax identification number; and
48.20 	(2) evidence that the property meets the requirements of subdivisionsubdivisions 1, 1a, 
48.21 	and 1b.
48.22 	(c) The Housing Finance Agency may charge an application fee approximately equal 
48.23 	to the costs of processing and reviewing the applications but not to exceed $10 per unit. If 
48.24 	imposed, the applicant must pay the application fee to the Housing Finance Agency. The 
48.25 	fee must be deposited in the housing development fund.

48.26 	EFFECTIVE DATE. This section is effective beginning with assessment year 2022.

48.27 	Sec. 8. Minnesota Statutes 2020, section 273.13, subdivision 25, is amended to read:
48.28 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
48.29 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
48.30 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
48.31 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
49.1 	under section 272.02, and contiguous property used for hospital purposes, without regard 
49.2 	to whether the property has been platted or subdivided. The market value of class 4a property 
49.3 	has a classification rate of 1.25 percent.
49.4 	(b) Class 4b includes:
49.5 	(1) residential real estate containing less than four units, including property rented as a 
49.6 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
49.7 	as class 4bb, other than seasonal residential recreational property;
49.8 	(2) manufactured homes not classified under any other provision;
49.9 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
49.10 	classified under subdivision 23, paragraph (b) containing two or three units; and
49.11 	(4) unimproved property that is classified residential as determined under subdivision 
49.12 	33.
49.13 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
49.14 	residential real estate rented for periods of less than 30 consecutive days.
49.15 	The market value of class 4b property has a classification rate of 1.25 percent.
49.16 	(c) Class 4bb includes:
49.17 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
49.18 	residential recreational property;
49.19 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
49.20 	nonhomestead farm classified under subdivision 23, paragraph (b); and
49.21 	(3) a condominium-type storage unit having an individual property identification number 
49.22 	that is not used for a commercial purpose.
49.23 	Class 4bb property has the same classification rates as class 1a property under subdivision 
49.24 	22.
49.25 	Property that has been classified as seasonal residential recreational property at any time 
49.26 	during which it has been owned by the current owner or spouse of the current owner does 
49.27 	not qualify for class 4bb.
49.28 	(d) Class 4c property includes:
49.29 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
49.30 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
49.31 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
50.1 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
50.2 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
50.3 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
50.4 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
50.5 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
50.6 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
50.7 	under this clause regardless of the term of the rental agreement, as long as the use of the 
50.8 	camping pad does not exceed 250 days. In order for a property to be classified under this 
50.9 	clause, either (i) the business located on the property must provide recreational activities, 
50.10 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
50.11 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
50.12 	bookings by lodging guests during the year must be for periods of at least two consecutive 
50.13 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
50.14 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
50.15 	and must be located in a township or a city with a population of 2,500 or less located outside 
50.16 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
50.17 	of a state trail administered by the Department of Natural Resources. For purposes of item 
50.18 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
50.19 	property also includes commercial use real property used exclusively for recreational 
50.20 	purposes in conjunction with other class 4c property classified under this clause and devoted 
50.21 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
50.22 	two acres, provided the property is not devoted to commercial recreational use for more 
50.23 	than 250 days in the year preceding the year of assessment and is located within two miles 
50.24 	of the class 4c property with which it is used. In order for a property to qualify for 
50.25 	classification under this clause, the owner must submit a declaration to the assessor 
50.26 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
50.27 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
50.28 	share of the land on which they are located must be designated class 4c under this clause 
50.29 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
50.30 	the land on which they are located will be designated as class 3a. The owner of property 
50.31 	desiring designation as class 4c property under this clause must provide guest registers or 
50.32 	other records demonstrating that the units for which class 4c designation is sought were not 
50.33 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
50.34 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
50.35 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
50.36 	directly related to temporary and seasonal residential occupancy for recreation purposes 
51.1 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
51.2 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
51.3 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
51.4 	and fishing tackle;
51.5 	(2) qualified property used as a golf course if:
51.6 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
51.7 	but a membership fee may not be required in order to use the property for golfing, and its 
51.8 	green fees for golfing must be comparable to green fees typically charged by municipal 
51.9 	courses; and
51.10 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
51.11 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
51.12 	the golf course is classified as class 3a property;
51.13 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
51.14 	community service oriented organization and not used for residential purposes on either a 
51.15 	temporary or permanent basis, provided that:
51.16 	(i) the property is not used for a revenue-producing activity for more than six days in 
51.17 	the calendar year preceding the year of assessment; or
51.18 	(ii) the organization makes annual charitable contributions and donations at least equal 
51.19 	to the property's previous year's property taxes and the property is allowed to be used for 
51.20 	public and community meetings or events for no charge, as appropriate to the size of the 
51.21 	facility.
51.22 	For purposes of this clause:
51.23 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
51.24 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
51.25 	payment of taxes, assessments, fees, auditing costs, and utility payments;
51.26 	(B) "property taxes" excludes the state general tax;
51.27 	(C) a "nonprofit community service oriented organization" means any corporation, 
51.28 	society, association, foundation, or institution organized and operated exclusively for 
51.29 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
51.30 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
51.31 	Revenue Code; and
52.1 	(D) "revenue-producing activities" shall include but not be limited to property or that 
52.2 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
52.3 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
52.4 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
52.5 	insurance business, or office or other space leased or rented to a lessee who conducts a 
52.6 	for-profit enterprise on the premises.
52.7 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
52.8 	use of the property for social events open exclusively to members and their guests for periods 
52.9 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
52.10 	the organization shall not be considered a revenue-producing activity.
52.11 	The organization shall maintain records of its charitable contributions and donations 
52.12 	and of public meetings and events held on the property and make them available upon 
52.13 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
52.14 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
52.15 	current year's assessment. The commissioner shall prescribe a uniform application form 
52.16 	and instructions;
52.17 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
52.18 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
52.19 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
52.20 	miles of the border of a college campus;
52.21 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
52.22 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
52.23 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
52.24 	3a, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision 
52.25 	13;
52.26 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
52.27 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
52.28 	located within the metropolitan area as defined in section 473.121, subdivision 2;
52.29 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
52.30 	section 272.01, subdivision 2, and the land on which it is located, provided that:
52.31 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
52.32 	Airports Commission, or group thereof; and
53.1 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
53.2 	premise, prohibits commercial activity performed at the hangar.
53.3 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
53.4 	filed by the new owner with the assessor of the county where the property is located within 
53.5 	60 days of the sale;
53.6 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
53.7 	272.01, subdivision 2, and the land on which it is located, provided that:
53.8 	(i) the land abuts a public airport; and
53.9 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
53.10 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
53.11 	hangar; and
53.12 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
53.13 	and that is also a place of lodging, if all of the following criteria are met:
53.14 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
53.15 	or fewer days;
53.16 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
53.17 	the basic room rate;
53.18 	(iii) meals are not provided to the general public except for special events on fewer than 
53.19 	seven days in the calendar year preceding the year of the assessment; and
53.20 	(iv) the owner is the operator of the property.
53.21 	The market value subject to the 4c classification under this clause is limited to five rental 
53.22 	units. Any rental units on the property in excess of five, must be valued and assessed as 
53.23 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
53.24 	be classified as class 1a property under subdivision 22;
53.25 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
53.26 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
53.27 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
53.28 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
53.29 	of its annual gross receipts from business conducted during four consecutive months. Gross 
53.30 	receipts from the sale of alcoholic beverages must be included in determining the property's 
53.31 	qualification under item (ii). The property's primary business must be as a restaurant and 
53.32 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
54.1 	Owners of real property desiring 4c classification under this clause must submit an annual 
54.2 	declaration to the assessor by February 1 of the current assessment year, based on the 
54.3 	property's relevant information for the preceding assessment year;
54.4 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
54.5 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
54.6 	and devoted to recreational use for marina services. The marina owner must annually provide 
54.7 	evidence to the assessor that it provides services, including lake or river access to the public 
54.8 	by means of an access ramp or other facility that is either located on the property of the 
54.9 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
54.10 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
54.11 	a marina for marina services, including but not limited to buildings used to provide food 
54.12 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
54.13 	as class 3a property; and
54.14 	(12) real and personal property devoted to noncommercial temporary and seasonal 
54.15 	residential occupancy for recreation purposes.
54.16 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
54.17 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
54.18 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
54.19 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
54.20 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
54.21 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
54.22 	shareholders in the cooperative corporation or association and a classification rate of one 
54.23 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
54.24 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, 
54.25 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
54.26 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
54.27 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
54.28 	property described in clause (4) has a classification rate of one percent, (v) the market value 
54.29 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
54.30 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
54.31 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
54.32 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
54.33 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
54.34 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
54.35 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
55.1 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
55.2 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
55.3 	the units in the building qualify as low-income rental housing units as certified under section 
55.4 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
55.5 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
55.6 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
55.7 	the qualifying low-income rental housing units are to the total units in the building. For all 
55.8 	properties qualifying as class 4d, the market value determined by the assessor must be based 
55.9 	on the normal approach to value using normal unrestricted rents. Class 4d property has a 
55.10 	classification rate of 0.25 percent.
55.11 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
55.12 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
55.13 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
55.14 	the market value of each housing unit up to the first tier limit. For the purposes of this 
55.15 	paragraph, all class 4d property value must be assigned to individual housing units. The 
55.16 	first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 
55.17 	adjusted each year by the average statewide change in estimated market value of property 
55.18 	classified as class 4a and 4d under this section for the previous assessment year, excluding 
55.19 	valuation change due to new construction, rounded to the nearest $1,000, provided, however, 
55.20 	that the limit may never be less than $100,000. Beginning with assessment year 2015, the 
55.21 	commissioner of revenue must certify the limit for each assessment year by November 1 
55.22 	of the previous year.

55.23 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2022.

55.24 	Sec. 9. Minnesota Statutes 2020, section 273.13, subdivision 34, is amended to read:
55.25 		Subd. 34.Homestead of veteran with a disability or family caregiver. (a) All or a 
55.26 	portion of the market value of property owned by a veteran and serving as the veteran's 
55.27 	homestead under this section is excluded in determining the property's taxable market value 
55.28 	if the veteran has a service-connected disability of 70 percent or more as certified by the 
55.29 	United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 
55.30 	the veteran must have been honorably discharged from the United States armed forces, as 
55.31 	indicated by United States Government Form DD214 or other official military discharge 
55.32 	papers.
55.33 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
55.34 	except as provided in clause (2); and
56.1 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
56.2 	excluded.
56.3 	(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph 
56.4 	(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 
56.5 	spouse holds the legal or beneficial title to the homestead and permanently resides there, 
56.6 	the exclusion shall carry over to the benefit of the veteran's spouse until such time as the 
56.7 	spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise 
56.8 	provided in paragraph (n). Qualification under this paragraph requires an application under 
56.9 	paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's 
56.10 	marital status, ownership of the property, or use of the property as a permanent residence.
56.11 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
56.12 	who dies due to a service-connected cause while serving honorably in active service, as 
56.13 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
56.14 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
56.15 	benefit described in paragraph (b), clause (2), until such time as the spouse remarries or 
56.16 	sells, transfers, or otherwise disposes of the property, except as otherwise provided in 
56.17 	paragraph (n).
56.18 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
56.19 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
56.20 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
56.21 	for under paragraph (b).
56.22 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
56.23 	of the house and garage and immediately surrounding one acre of land qualifies for the 
56.24 	valuation exclusion under this subdivision.
56.25 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
56.26 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
56.27 	paragraph (b).
56.28 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
56.29 	apply to the assessor by December 15 31 of the first assessment year for which the exclusion 
56.30 	is sought. For an application received after December 15, the exclusion shall become effective 
56.31 	for the following assessment year. Except as provided in paragraph (c), the owner of a 
56.32 	property that has been accepted for a valuation exclusion must notify the assessor if there 
56.33 	is a change in ownership of the property or in the use of the property as a homestead.
57.1 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
57.2 	paragraph (d) must be made any time within two years of the death of the service member.
57.3 	(j) For purposes of this subdivision:
57.4 	(1) "active service" has the meaning given in section 190.05;
57.5 	(2) "own" means that the person's name is present as an owner on the property deed;
57.6 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
57.7 	United States Department of Veterans Affairs for assistance as the primary provider of 
57.8 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
57.9 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
57.10 	(4) "veteran" has the meaning given the term in section 197.447.
57.11 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
57.12 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
57.13 	under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise 
57.14 	disposes of the property, except as otherwise provided in paragraph (n), if:
57.15 	(1) the spouse files a first-time application within two years of the death of the service 
57.16 	member or by June 1, 2019, whichever is later;
57.17 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
57.18 	homestead and permanently resides there;
57.19 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
57.20 	(4) the United States Department of Veterans Affairs certifies that:
57.21 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
57.22 	paragraph (b), clause (2); or
57.23 	(ii) the spouse has been awarded dependency and indemnity compensation.
57.24 	(l) The purpose of this provision of law providing a level of homestead property tax 
57.25 	relief for veterans with a disability, their primary family caregivers, and their surviving 
57.26 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
57.27 	those burdens most heavily.
57.28 	(m) By July 1, the county veterans service officer must certify the disability rating and 
57.29 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
57.30 	(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds 
57.31 	the legal or beneficial title to the property may continue to receive the exclusion for a 
58.1 	property other than the property for which the exclusion was initially granted until the spouse 
58.2 	remarries or sells, transfers, or otherwise disposes of the property, provided that:
58.3 	(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed 
58.4 	under this paragraph;
58.5 	(2) the spouse holds the legal or beneficial title to the property for which the continuation 
58.6 	of the exclusion is sought under this paragraph, and permanently resides there;
58.7 	(3) the estimated market value of the property for which the exclusion is sought under 
58.8 	this paragraph is less than or equal to the estimated market value of the property that first 
58.9 	received the exclusion, based on the value of each property on the date of the sale of the 
58.10 	property that first received the exclusion; and
58.11 	(4) the spouse has not previously received the benefit under this paragraph for a property 
58.12 	other than the property for which the exclusion is sought.

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

58.14 	Sec. 10. [273.1388] LICENSED IN-HOME CHILD CARE PROVIDER CREDIT.
58.15 		Subdivision 1.Eligibility. Property classified as class 1a under section 273.13, 
58.16 	subdivision 22, and that portion of property classified as class 2a under section 273.13, 
58.17 	subdivision 23, consisting of the house, garage, and surrounding one acre of land, and used 
58.18 	to operate a family day care or group family day care program as defined under Minnesota 
58.19 	Rules, chapter 9502, is eligible for the licensed in-home child care provider credit under 
58.20 	this section.
58.21 		Subd. 2.Notice. By July 1, 2021, and each June 1 thereafter, the commissioner of human 
58.22 	services must provide a list to each county of all licensed family day care or group family 
58.23 	day care providers located within the county.
58.24 		Subd. 3.Credit amount. For each qualifying property, the licensed in-home child care 
58.25 	provider credit is equal to 50 percent of the amount of net tax owed on the property for the 
58.26 	current taxes payable year after subtracting all other applicable credits as determined under 
58.27 	section 273.1393.
58.28 		Subd. 4.Credit reimbursement. The county auditor must determine the tax reductions 
58.29 	allowed under this section within the county for each taxes payable year and must certify 
58.30 	that amount, including any prior year adjustments, to the commissioner of revenue as required 
58.31 	under section 270C.85, subdivision 2, clause (4). The commissioner of revenue must review 
59.1 	the certification for accuracy and may make necessary changes or return the certification 
59.2 	to the county auditor for correction.
59.3 		Subd. 5.Payment. (a) The commissioner of revenue must reimburse each local taxing 
59.4 	jurisdiction, other than school districts, for the tax reductions granted under this section in 
59.5 	two equal installments on October 31 and December 26 of the taxes payable year for which 
59.6 	the reductions are granted, including in each payment the prior year adjustments certified 
59.7 	under section 270C.85, subdivision 2, for that taxes payable year.
59.8 	(b) The commissioner of revenue must certify the total of tax reductions granted under 
59.9 	this section for each taxes payable year within each school district to the commissioner of 
59.10 	education and the commissioner of education must pay the reimbursement amounts to each 
59.11 	school district as provided in section 273.1392.
59.12 		Subd. 6.Appropriation. An amount sufficient to make the payments required under 
59.13 	this section to taxing jurisdictions other than school districts is annually appropriated from 
59.14 	the general fund to the commissioner of revenue. An amount sufficient to make the payments 
59.15 	required under this section for each school district is annually appropriated from the general 
59.16 	fund to the commissioner of education.

59.17 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2022.

59.18 	Sec. 11. Minnesota Statutes 2020, section 273.1392, is amended to read:
59.19 	273.1392 PAYMENT; SCHOOL DISTRICTS.
59.20 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
59.21 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
59.22 	sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387; 
59.23 	licensed in-home child care provider credits under section 273.1388; aids and credits under 
59.24 	section 273.1398; enterprise zone property credit payments under section 469.171; and 
59.25 	metropolitan agricultural preserve reduction under section 473H.10 for school districts, 
59.26 	shall be certified to the Department of Education by the Department of Revenue. The 
59.27 	amounts so certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

59.28 	EFFECTIVE DATE. This section is effective July 1, 2022.

59.29 	Sec. 12. Minnesota Statutes 2020, section 273.1393, is amended to read:
59.30 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
59.31 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
59.32 	by subtracting the credits in the order listed from the gross tax:
60.1 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
60.2 	(2) powerline credit as provided in section 273.42;
60.3 	(3) agricultural preserves credit as provided in section 473H.10;
60.4 	(4) enterprise zone credit as provided in section 469.171;
60.5 	(5) disparity reduction credit;
60.6 	(6) conservation tax credit as provided in section 273.119;
60.7 	(7) the school bond credit as provided in section 273.1387;
60.8 	(8) agricultural credit as provided in section 273.1384;
60.9 	(9) taconite homestead credit as provided in section 273.135;
60.10 	(10) supplemental homestead credit as provided in section 273.1391; and
60.11 	(11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
60.12 	(12) the licensed in-home child care provider credit, as provided in section 273.1388.
60.13 	The combination of all property tax credits must not exceed the gross tax amount.

60.14 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2022.

60.15 	Sec. 13. Minnesota Statutes 2020, section 275.025, subdivision 1, is amended to read:
60.16 		Subdivision 1.Levy amount. The state general levy is levied against 
60.17 	commercial-industrial property and seasonal residential recreational property, as defined 
60.18 	in this section. The state general levy for commercial-industrial property is $737,090,000
60.19 	$710,800,000 for taxes payable in 2020 2022 and thereafter. The state general levy for 
60.20 	seasonal-recreational property is $41,690,000 $39,627,000 for taxes payable in 20202022 
60.21 	and thereafter. The tax under this section is not treated as a local tax rate under section 
60.22 	469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
60.23 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
60.24 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
60.25 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
60.26 	information is available to the commissioner at the time the rates for a year must be certified, 
60.27 	and for the following reasons:
60.28 	(1) an erroneous report of taxable value by a local official;
60.29 	(2) an erroneous calculation by the commissioner; and
61.1 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
61.2 	residential recreational property reported to the commissioner under section 270C.85, 
61.3 	subdivision 2, clause (4), for the same year.
61.4 	The commissioner may, but need not, make adjustments if the total difference in the tax 
61.5 	levied for the year would be less than $100,000.

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

61.8 	Sec. 14. Minnesota Statutes 2020, section 275.025, subdivision 2, is amended to read:
61.9 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
61.10 	"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 
61.11 	as class 3 or class 5(1) under section 273.13, excluding:
61.12 	(1) the tax capacity attributable to the first $100,000 $150,000 of market value of each 
61.13 	parcel of commercial-industrial property as defined under section 273.13, subdivision 24, 
61.14 	clauses (1) and (2);
61.15 	(2) electric generation attached machinery under class 3; and
61.16 	(3) property described in section 473.625.
61.17 	County commercial-industrial tax capacity amounts are not adjusted for the captured 
61.18 	net tax capacity of a tax increment financing district under section 469.177, subdivision 2, 
61.19 	the net tax capacity of transmission lines deducted from a local government's total net tax 
61.20 	capacity under section 273.425, or fiscal disparities contribution and distribution net tax 
61.21 	capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures 
61.22 	for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and 
61.23 	(2), shall apply in determining the portion of a property eligible to be considered within the 
61.24 	first $100,000 $150,000 of market value.

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

61.27 	Sec. 15. Minnesota Statutes 2020, section 275.065, subdivision 3, is amended to read:
61.28 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
61.29 	the county treasurer shall deliver after November 10 and on or before November 24 each 
61.30 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
61.31 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
62.1 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
62.2 	or by ordinary mail.
62.3 	(b) The commissioner of revenue shall prescribe the form of the notice.
62.4 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
62.5 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
62.6 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
62.7 	The notice must clearly state for each city that has a population over 500, county, school 
62.8 	district, regional library authority established under section 134.201, and metropolitan taxing 
62.9 	districts as defined in paragraph (i), and fire protection and emergency medical services 
62.10 	special taxing districts established under section 144F.01, the time and place of a meeting 
62.11 	for each taxing authority in which the budget and levy will be discussed and public input 
62.12 	allowed, prior to the final budget and levy determination. The taxing authorities must provide 
62.13 	the county auditor with the information to be included in the notice on or before the time it 
62.14 	certifies its proposed levy under subdivision 1. The public must be allowed to speak at that 
62.15 	meeting, which must occur after November 24 and must not be held before 6:00 p.m. It 
62.16 	must provide a telephone number for the taxing authority that taxpayers may call if they 
62.17 	have questions related to the notice and an address where comments will be received by 
62.18 	mail, except that no notice required under this section shall be interpreted as requiring the 
62.19 	printing of a personal telephone number or address as the contact information for a taxing 
62.20 	authority. If a taxing authority does not maintain public offices where telephone calls can 
62.21 	be received by the authority, the authority may inform the county of the lack of a public 
62.22 	telephone number and the county shall not list a telephone number for that taxing authority.
62.23 	(d) The notice must state for each parcel:
62.24 	(1) the market value of the property as determined under section 273.11, and used for 
62.25 	computing property taxes payable in the following year and for taxes payable in the current 
62.26 	year as each appears in the records of the county assessor on November 1 of the current 
62.27 	year; and, in the case of residential property, whether the property is classified as homestead 
62.28 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
62.29 	values apply and that the values are final values;
62.30 	(2) the items listed below, shown separately by county, city or town, and state general 
62.31 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
62.32 	credit under section 273.1387, the licensed in-home child care provider credit under section 
62.33 	273.1388, voter approved school levy, other local school levy, and the sum of the special 
62.34 	taxing districts, and as a total of all taxing authorities:
63.1 	(i) the actual tax for taxes payable in the current year; and
63.2 	(ii) the proposed tax amount.
63.3 	If the county levy under clause (2) includes an amount for a lake improvement district 
63.4 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
63.5 	must be separately stated from the remaining county levy amount.
63.6 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
63.7 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
63.8 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
63.9 	in the school district at the November general election, the county auditor must note next 
63.10 	to the school district's proposed amount that a referendum is pending and that, if approved 
63.11 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
63.12 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
63.13 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
63.14 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
63.15 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
63.16 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
63.17 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
63.18 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
63.19 	capacity subject to the areawide tax must each be stated separately and not included in the 
63.20 	sum of the special taxing districts; and
63.21 	(3) the increase or decrease between the total taxes payable in the current year and the 
63.22 	total proposed taxes, expressed as a percentage.
63.23 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
63.24 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
63.25 	property tax before subtraction of the deferred property tax amount.
63.26 	(e) The notice must clearly state that the proposed or final taxes do not include the 
63.27 	following:
63.28 	(1) special assessments;
63.29 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
63.30 	bond referenda and school district levy referenda;
63.31 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
63.32 	in November of the levy year as provided under section 275.73;
64.1 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
64.2 	after the date the proposed taxes are certified;
64.3 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
64.4 	final after the date the proposed taxes are certified; and
64.5 	(6) the contamination tax imposed on properties which received market value reductions 
64.6 	for contamination.
64.7 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
64.8 	county treasurer to deliver the notice as required in this section does not invalidate the 
64.9 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
64.10 	(g) If the notice the taxpayer receives under this section lists the property as 
64.11 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
64.12 	applicable deadline, and the property qualifies for the homestead classification in that 
64.13 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
64.14 	in the following year.
64.15 	(h) In the case of class 4 residential property used as a residence for lease or rental 
64.16 	periods of 30 days or more, the taxpayer must either:
64.17 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
64.18 	or lessee; or
64.19 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
64.20 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
64.21 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
64.22 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
64.23 	notice must be mailed in order to fulfill the requirements of this paragraph.
64.24 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
64.25 	districts" means the following taxing districts in the seven-county metropolitan area that 
64.26 	levy a property tax for any of the specified purposes listed below:
64.27 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
64.28 	473.521, 473.547, or 473.834;
64.29 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
64.30 	(3) Metropolitan Mosquito Control Commission under section 473.711.
65.1 	For purposes of this section, any levies made by the regional rail authorities in the county 
65.2 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
65.3 	shall be included with the appropriate county's levy.
65.4 	(j) The governing body of a county, city, or school district may, with the consent of the 
65.5 	county board, include supplemental information with the statement of proposed property 
65.6 	taxes about the impact of state aid increases or decreases on property tax increases or 
65.7 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
65.8 	information may include information for the following year, the current year, and for as 
65.9 	many consecutive preceding years as deemed appropriate by the governing body of the 
65.10 	county, city, or school district. It may include only information regarding:
65.11 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
65.12 	government purchases;
65.13 	(2) population growth and decline;
65.14 	(3) state or federal government action; and
65.15 	(4) other financial factors that affect the level of property taxation and local services 
65.16 	that the governing body of the county, city, or school district may deem appropriate to 
65.17 	include.
65.18 	The information may be presented using tables, written narrative, and graphic 
65.19 	representations and may contain instruction toward further sources of information or 
65.20 	opportunity for comment.

65.21 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
65.22 	in 2022.

65.23 	Sec. 16. Minnesota Statutes 2020, section 275.066, is amended to read:
65.24 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
65.25 	For the purposes of property taxation and property tax state aids, the term "special taxing 
65.26 	districts" includes the following entities:
65.27 	(1) watershed districts under chapter 103D;
65.28 	(2) sanitary districts under sections 442A.01 to 442A.29;
65.29 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
65.30 	(4) regional public library districts under section 134.201;
65.31 	(5) park districts under chapter 398;
66.1 	(6) regional railroad authorities under chapter 398A;
66.2 	(7) hospital districts under sections 447.31 to 447.38;
66.3 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
66.4 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
66.5 	(10) regional development commissions under sections 462.381 to 462.398;
66.6 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
66.7 	(12) port authorities under sections 469.048 to 469.068;
66.8 	(13) economic development authorities under sections 469.090 to 469.1081;
66.9 	(14) Metropolitan Council under sections 473.123 to 473.549;
66.10 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
66.11 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
66.12 	(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 
66.13 	437, section 1;
66.14 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
66.15 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 
66.16 	1 to 6;
66.17 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 
66.18 	section 39;
66.19 	(21) Middle Mississippi River Watershed Management Organization under sections 
66.20 	103B.211 and 103B.241;
66.21 	(22) fire protection and emergency medical services special taxing districts under section 
66.22 	144F.01;
66.23 	(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
66.24 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
66.25 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
66.26 	(25) an airport authority created under section 360.0426; and
66.27 	(26) any other political subdivision of the state of Minnesota, excluding counties, school 
66.28 	districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 
66.29 	county auditor, as determined by the commissioner of revenue.

67.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
67.2 	applies to districts established after June 30, 2021.

67.3 	Sec. 17. Minnesota Statutes 2020, section 276.04, subdivision 2, is amended to read:
67.4 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
67.5 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
67.6 	tax statement and its contents. The tax statement must not state or imply that property tax 
67.7 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
67.8 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
67.9 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
67.10 	attributable to the county, the state tax, the voter approved school tax, the other local school 
67.11 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
67.12 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
67.13 	amounts due all other special taxing districts, if any, may be aggregated except that any 
67.14 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
67.15 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
67.16 	under the appropriate county's levy. If the county levy under this paragraph includes an 
67.17 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
67.18 	the amount attributable for that purpose must be separately stated from the remaining county 
67.19 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
67.20 	an amount for public library service under section 134.07, the amount attributable for that 
67.21 	purpose may be separated from the remaining county levy amount. The amount of the tax 
67.22 	on homesteads qualifying under the senior citizens' property tax deferral program under 
67.23 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
67.24 	tax amount. The amount of the tax on contamination value imposed under sections 270.91 
67.25 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
67.26 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
67.27 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
67.28 	even-numbered dollar. The amount of market value excluded under section 273.11, 
67.29 	subdivision 16, if any, must also be listed on the tax statement.
67.30 	(b) The property tax statements for manufactured homes and sectional structures taxed 
67.31 	as personal property shall contain the same information that is required on the tax statements 
67.32 	for real property.
67.33 	(c) Real and personal property tax statements must contain the following information 
67.34 	in the order given in this paragraph. The information must contain the current year tax 
68.1 	information in the right column with the corresponding information for the previous year 
68.2 	in a column on the left:
68.3 	(1) the property's estimated market value under section 273.11, subdivision 1;
68.4 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
68.5 	35;
68.6 	(3) the property's taxable market value under section 272.03, subdivision 15;
68.7 	(4) the property's gross tax, before credits;
68.8 	(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
68.9 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
68.10 	273.1388; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount 
68.11 	of credit received under section 273.135 must be separately stated and identified as "taconite 
68.12 	tax relief"; and
68.13 	(7) the net tax payable in the manner required in paragraph (a).
68.14 	(d) If the county uses envelopes for mailing property tax statements and if the county 
68.15 	agrees, a taxing district may include a notice with the property tax statement notifying 
68.16 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
68.17 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
68.18 	in the envelope containing the property tax statement, and if more than one taxing district 
68.19 	relative to a given property decides to include a notice with the tax statement, the county 
68.20 	treasurer or auditor must coordinate the process and may combine the information on a 
68.21 	single announcement.

68.22 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2022.

68.23 	Sec. 18. Minnesota Statutes 2020, section 290A.03, subdivision 3, is amended to read:
68.24 		Subd. 3.Income. (a) "Income" means the sum of the following:
68.25 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
68.26 	(2) the sum of the following amounts to the extent not included in clause (1):
68.27 	(i) all nontaxable income;
68.28 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
68.29 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
68.30 	carryover allowed under section 469(b) of the Internal Revenue Code;
69.1 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
69.2 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
69.3 	Code;
69.4 	(iv) cash public assistance and relief;
69.5 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
69.6 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
69.7 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
69.8 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
69.9 	gross income in the years when the payments were made;
69.10 	(vi) interest received from the federal or a state government or any instrumentality or 
69.11 	political subdivision thereof;
69.12 	(vii) workers' compensation;
69.13 	(viii) nontaxable strike benefits;
69.14 	(ix) the gross amounts of payments received in the nature of disability income or sick 
69.15 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
69.16 	or otherwise;
69.17 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
69.18 	1986, as amended through December 31, 1995;
69.19 	(xi) contributions made by the claimant to an individual retirement account, including 
69.20 	a qualified voluntary employee contribution; simplified employee pension plan; 
69.21 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
69.22 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
69.23 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
69.24 	the claimant and spouse;
69.25 	(xii) to the extent not included in federal adjusted gross income, distributions received 
69.26 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
69.27 	(xiii) nontaxable scholarship or fellowship grants;
69.28 	(xiv) alimony received to the extent not included in the recipient's income;
69.29 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
69.30 	Code;
69.31 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
69.32 	Code; and
70.1 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
70.2 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
70.3 	In the case of an individual who files an income tax return on a fiscal year basis, the 
70.4 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
70.5 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
70.6 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
70.7 	or carryforward allowed for the year.
70.8 	(b) "Income" does not include:
70.9 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
70.10 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
70.11 	or spouse and which funding payments were not excluded from federal adjusted gross 
70.12 	income in the years when the payments were made;
70.13 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
70.14 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
70.15 	the retirement base amount reduced by the amount of contributions excluded from federal 
70.16 	adjusted gross income, but not less than zero;
70.17 	(4) surplus food or other relief in kind supplied by a governmental agency;
70.18 	(5) relief granted under this chapter;
70.19 	(6) child support payments received under a temporary or final decree of dissolution or 
70.20 	legal separation;
70.21 	(7) restitution payments received by eligible individuals and excludable interest as 
70.22 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
70.23 	Public Law 107-16; or
70.24 	(8) alimony paid; or
70.25 	(9) veterans disability compensation paid under title 38 of the United States Code.
70.26 	(c) The sum of the following amounts may be subtracted from income:
70.27 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
70.28 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
70.29 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
70.30 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
71.1 	(5) for the claimant's fifth dependent, the exemption amount; and
71.2 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
71.3 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
71.4 	amount.
71.5 	(d) For purposes of this subdivision, the following terms have the meanings given:
71.6 	(1) "exemption amount" means the exemption amount under section 290.0121, 
71.7 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
71.8 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
71.9 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
71.10 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
71.11 	to whether the claimant or spouse claimed a deduction; and
71.12 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
71.13 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

71.14 	EFFECTIVE DATE. This section is effective for refund claims based on property taxes 
71.15 	payable in 2022 and rent paid in 2021 and thereafter.

71.16 	Sec. 19. Minnesota Statutes 2020, section 429.021, subdivision 1, is amended to read:
71.17 		Subdivision 1.Improvements authorized. The council of a municipality shall have 
71.18 	power to make the following improvements:
71.19 	(1) To acquire, open, and widen any street, and to improve the same by constructing, 
71.20 	reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking 
71.21 	strips of any material, or by grading, graveling, oiling, or otherwise improving the same, 
71.22 	including the beautification thereof and including storm sewers or other street drainage and 
71.23 	connections from sewer, water, or similar mains to curb lines.
71.24 	(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary 
71.25 	sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps, 
71.26 	lift stations, service connections, and other appurtenances of a sewer system, within and 
71.27 	without the corporate limits.
71.28 	(3) To construct, reconstruct, extend, and maintain steam heating mains.
71.29 	(4) To install, replace, extend, and maintain street lights and street lighting systems and 
71.30 	special lighting systems.
72.1 	(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems, 
72.2 	including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, 
72.3 	treatment plants, and other appurtenances of a water works system, within and without the 
72.4 	corporate limits.
72.5 	(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational 
72.6 	facilities within or without the corporate limits.
72.7 	(7) To plant trees on streets and provide for their trimming, care, and removal.
72.8 	(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private 
72.9 	property and to fill the same.
72.10 	(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
72.11 	(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
72.12 	(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and 
72.13 	promote a pedestrian skyway system. Such improvement may be made upon a petition 
72.14 	pursuant to section 429.031, subdivision 3.
72.15 	(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote 
72.16 	underground pedestrian concourses.
72.17 	(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public 
72.18 	malls, plazas or courtyards.
72.19 	(14) To construct, reconstruct, extend, and maintain district heating systems.
72.20 	(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection 
72.21 	systems in existing buildings, but only upon a petition pursuant to section 429.031, 
72.22 	subdivision 3.
72.23 	(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway 
72.24 	sound barriers.
72.25 	(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution 
72.26 	facilities owned by a municipal gas or electric utility.
72.27 	(18) To purchase, install, and maintain signs, posts, and other markers for addressing 
72.28 	related to the operation of enhanced 911 telephone service.
72.29 	(19) To improve, construct, extend, and maintain facilities for Internet access and other 
72.30 	communications purposes, if the council finds that:
73.1 	(i) the facilities are necessary to make available Internet access or other communications 
73.2 	services that are not and will not be available through other providers or the private market 
73.3 	in the reasonably foreseeable future; and
73.4 	(ii) the service to be provided by the facilities will not compete with service provided 
73.5 	by private entities.
73.6 	(20) To assess affected property owners for all or a portion of the costs agreed to with 
73.7 	an electric utility, telecommunications carrier, or cable system operator to bury or alter a 
73.8 	new or existing distribution system within the public right-of-way that exceeds the utility's 
73.9 	design and construction standards, or those set by law, tariff, or franchise, but only upon 
73.10 	petition under section 429.031, subdivision 3.
73.11 	(21) To assess affected property owners for repayment of voluntary energy improvement 
73.12 	financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.
73.13 	(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy 
73.14 	improvement projects in existing buildings, provided that:
73.15 	(i) a petition for the improvement is made by a property owner under section 429.031, 
73.16 	subdivision 3;
73.17 	(ii) the municipality funds and administers the energy improvement project;
73.18 	(iii) project funds are only used for the installation of improvements to heating, 
73.19 	ventilation, and air conditioning equipment and building envelope and for the installation 
73.20 	of renewable energy systems;
73.21 	(iv) each property owner petitioning for the improvement receives notice that free or 
73.22 	low-cost energy improvements may be available under federal, state, or utility programs;
73.23 	(v) for energy improvement projects on residential property, only residential property 
73.24 	having five or more units may obtain financing for projects under this clause; and
73.25 	(vi) prior to financing an energy improvement project or imposing an assessment for a 
73.26 	project, written notice is provided to the mortgage lender of any mortgage encumbering or 
73.27 	otherwise secured by the property proposed to be improved.

73.28 	EFFECTIVE DATE. This section is effective for special assessments payable in 2022 
73.29 	and thereafter.

74.1 	Sec. 20. Minnesota Statutes 2020, section 429.031, subdivision 3, is amended to read:
74.2 		Subd. 3.Petition by all owners. Whenever all owners of real property abutting upon 
74.3 	any street named as the location of any improvement shall petition the council to construct 
74.4 	the improvement and to assess the entire cost against their property, the council may, without 
74.5 	a public hearing, adopt a resolution determining such fact and ordering the improvement. 
74.6 	The validity of the resolution shall not be questioned by any taxpayer or property owner or 
74.7 	the municipality unless an action for that purpose is commenced within 30 days after adoption 
74.8 	of the resolution as provided in section 429.036. Nothing herein prevents any property 
74.9 	owner from questioning the amount or validity of the special assessment against the owner's 
74.10 	property pursuant to section 429.081. In the case of a petition for the municipality to own 
74.11 	and install a fire protection system, energy improvement projects, a pedestrian skyway 
74.12 	system, or on-site water contaminant improvements, the petition must contain or be 
74.13 	accompanied by an undertaking satisfactory to the city by the petitioner that the petitioner 
74.14 	will grant the municipality the necessary property interest in the building to permit the city 
74.15 	to enter upon the property and the building to construct, maintain, and operate the fire 
74.16 	protection system, energy improvement projects, pedestrian skyway system, or on-site water 
74.17 	contaminant improvements. In the case of a petition for the installation of a privately owned 
74.18 	fire protection system, energy improvement projects, a privately owned pedestrian skyway 
74.19 	system, or privately owned on-site water contaminant improvements, the petition shall 
74.20 	contain the plans and specifications for the improvement, the estimated cost of the 
74.21 	improvement and a statement indicating whether the city or the owner will contract for the 
74.22 	construction of the improvement. If the owner is contracting for the construction of the 
74.23 	improvement, the city shall not approve the petition until it has reviewed and approved the 
74.24 	plans, specifications, and cost estimates contained in the petition. The construction cost 
74.25 	financed under section 429.091 shall not exceed the amount of the cost estimate contained 
74.26 	in the petition. In the case of a petition for the installation of a fire protection system, energy 
74.27 	improvement projects, a pedestrian skyway system, or on-site water contaminant 
74.28 	improvements, the petitioner may request abandonment of the improvement at any time 
74.29 	after it has been ordered pursuant to subdivision 1 and before contracts have been awarded 
74.30 	for the construction of the improvement under section 429.041, subdivision 2. If such a 
74.31 	request is received, the city council shall abandon the proceedings but in such case the 
74.32 	petitioner shall reimburse the city for any and all expenses incurred by the city in connection 
74.33 	with the improvement.

74.34 	EFFECTIVE DATE. This section is effective for special assessments payable in 2022 
74.35 	and thereafter.

75.1 	Sec. 21. SUPPLEMENTAL 2022 CITY AID DISTRIBUTION.
 75.2 	(a) Supplemental aid for a city equals the greater of: (1) zero; or (2) the difference 
75.3 	between the local government aid amount under Minnesota Statutes, section 477A.013, 
75.4 	subdivision 9, certified for the city for aid payable in 2021, minus the local government aid 
75.5 	amount under Minnesota Statutes, section 477A.013, subdivision 9, certified for the city 
75.6 	for aid payable in 2022.
75.7 	(b) The commissioner of revenue must notify a city of its supplemental aid amount 
75.8 	before August 1, 2021, and must pay the aid in calendar year 2022 in two installments on 
75.9 	the dates specified in Minnesota Statutes, section 477A.015.
75.10 	(c) Supplemental aid under this section must not be included for any calculations under 
75.11 	Minnesota Statutes, section 477A.013, that rely on prior year aid amounts.
75.12 	(d) An amount sufficient to pay supplemental aid under this section is appropriated in 
75.13 	fiscal year 2023 from the general fund to the commissioner of revenue. This is a onetime 
75.14 	appropriation.

75.15 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 2022.

75.16 	ARTICLE 5
75.17 	TAX INCREMENT FINANCING

75.18 	Section 1. CITY OF BLOOMINGTON; TIF AUTHORITY; AMERICAN 
75.19 	BOULEVARD.
 75.20 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
75.21 	2, the housing and redevelopment authority of the city of Bloomington or the city of 
75.22 	Bloomington may establish a redevelopment district within the city of Bloomington, limited 
75.23 	to the following parcels, identified by tax identification numbers, together with adjacent 
75.24 	roads and rights-of-way: 04-027-24-11-0032, 04-027-24-11-0033, and 04-027-24-11-0034.
75.25 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
75.26 	district under this section, the following special rules apply:
75.27 	(1) the district meets all the requirements of Minnesota Statutes, section 469.174, 
75.28 	subdivision 10;
75.29 	(2) expenditures incurred in connection with the development of the property described 
75.30 	in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision 
75.31 	4j; and
76.1 	(3) increments generated from the district may be expended on undergrounding or 
76.2 	overhead power lines, transformers, and related utility infrastructure within the project area 
76.3 	and all such expenditures are deemed expended on activities within the district for purposes 
76.4 	of Minnesota Statutes, section 469.1763.

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

76.8 	Sec. 2. CITY OF BLOOMINGTON; TIF AUTHORITY; 98TH & ALDRICH.
 76.9 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
76.10 	2, the housing and redevelopment authority of the city of Bloomington or the city of 
76.11 	Bloomington may establish a redevelopment district within the city of Bloomington, limited 
76.12 	to the following parcels, identified by tax identification numbers, together with adjacent 
76.13 	roads and rights-of-way: 16-027-24-41-0010, 16-027-24-41-0011, and 16-027-24-41-0012.
76.14 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
76.15 	district under this section, the following special rules apply:
76.16 	(1) the district meets all the requirements of Minnesota Statutes, section 469.174, 
76.17 	subdivision 10; and
76.18 	(2) expenditures incurred in connection with the development of the property described 
76.19 	in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision 
76.20 	4j.

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

76.24 	Sec. 3. CITY OF BURNSVILLE; TIF AUTHORITY; BURNSVILLE CENTER 
76.25 	MALL.
 76.26 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
76.27 	economic development authority of the city of Burnsville or the city of Burnsville may 
76.28 	establish one or more redevelopment districts located wholly within the area of the city of 
76.29 	Burnsville, Dakota County, Minnesota, limited to the parcels comprising the Burnsville 
76.30 	Center mall together with adjacent roads and rights-of-way.
76.31 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
76.32 	district under this section, the following special rules apply:
77.1 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
77.2 	469.174, subdivision 10;
77.3 	(2) expenditures incurred in connection with the development of the property described 
77.4 	in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176, 
77.5 	subdivision 4j; and
77.6 	(3) increments generated from the districts may be expended for the construction and 
77.7 	acquisition of property for a bridge, tunnel, or other connector from the property described 
77.8 	in subdivision 1 across adjacent roads and rights-of-way and all such expenditures are 
77.9 	deemed expended on activities within the district for purposes of Minnesota Statutes, section 
77.10 	469.1763.

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

77.14 	Sec. 4. CITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE 
77.15 	EXTENSION.
 77.16 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
77.17 	must be undertaken within a five-year period from the date of certification of a tax increment 
77.18 	financing district, is extended by a five-year period for Tax Increment Financing District 
77.19 	No. 1-8, administered by the city of Mountain Lake or its economic development authority.
77.20 	(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to 
77.21 	the use of increment after the expiration of the five-year period under Minnesota Statutes, 
77.22 	section 469.1763, subdivision 3, is extended to the 11th year for Tax Increment Financing 
77.23 	District No. 1-8.

77.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
77.25 	city of Mountain Lake and its chief clerical officer comply with Minnesota Statutes, section 
77.26 	645.021, subdivisions 2 and 3.

77.27 	Sec. 5. CITY OF RAMSEY; TIF DISTRICT NO. 14; FIVE-YEAR RULE 
77.28 	EXTENSION.
 77.29 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
77.30 	must be undertaken within a five-year period from the date of certification of a tax increment 
77.31 	financing district, is extended by a five-year period to November 28, 2026, for Tax Increment 
77.32 	Financing District No. 14 administered by the city of Ramsey.
78.1 	(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to 
78.2 	the use of increment after the expiration of the five-year period under Minnesota Statutes, 
78.3 	section 469.1763, subdivision 3, is extended to the 16th year for Tax Increment Financing 
78.4 	District No. 14.

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

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

78.14 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
78.15 	city of Wayzata, and its chief clerical officer, comply with the requirement of Minnesota 
78.16 	Statutes, section 645.021, subdivisions 2 and 3.

78.17 	Sec. 7. CITY OF WINDOM; TIF DISTRICT NO. 1-22; FIVE-YEAR RULE 
78.18 	EXTENSION; DURATION EXTENSION.
 78.19 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
78.20 	must be undertaken within a five-year period from the date of certification of a tax increment 
78.21 	financing district, is considered to be met for Tax Increment Financing District No. 1-22, 
78.22 	administered by the city of Windom or its economic development authority, if activities are 
78.23 	undertaken within ten years of the district's certification.
78.24 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating 
78.25 	to the use of increment after the expiration of the five-year period under Minnesota Statutes, 
78.26 	section 469.1763, subdivision 3, is extended to the 11th year for Tax Increment Financing 
78.27 	District No. 1-22.
78.28 	(c) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of 
78.29 	Windom, or its economic development authority, may elect to extend the duration of Tax 
78.30 	Increment Financing District No. 1-22, by five years.

78.31 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective the day after the governing 
78.32 	body of the city of Windom and its chief clerical officer comply with Minnesota Statutes, 
79.1 	section 645.021, subdivisions 2 and 3. Paragraph (c) is effective upon compliance by the 
79.2 	city of Windom, Cottonwood County, and Independent School District No. 177 with the 
79.3 	requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
79.4 	subdivisions 2 and 3.

79.5 	Sec. 8. AFFORDABLE HOUSING DEVELOPMENT TAX ASSISTANCE REPORT.
 79.6 	(a) No later than January 31, 2022, the commissioner of revenue, in consultation with 
79.7 	the Minnesota Housing Finance Agency, the Minnesota State Auditor, the Association of 
79.8 	Minnesota Counties, and the League of Minnesota Cities, must produce a report on affordable 
79.9 	housing projects paid for in whole or in part by either tax increment, or from a city or county 
79.10 	housing trust fund for local housing development established under Minnesota Statutes, 
79.11 	section 462C.16. The commissioner must provide a copy of the report to the legislative 
79.12 	committees with jurisdiction over taxation, property taxation, and housing. The report must 
79.13 	comply with the requirements of Minnesota Statutes, sections 3.195 and 3.197.
79.14 	(b) For housing projects financed in whole or in part by tax increment, the report shall 
79.15 	include the following:
79.16 	(1) the identity of each housing tax increment financing district established under 
79.17 	Minnesota Statutes, chapter 469, or through special law, in the previous five years, including 
79.18 	the district's location, certification date, and projected decertification date;
79.19 	(2) for each housing district identified under clause (1), a list of each housing project 
79.20 	financed in whole or in part from tax increment, including the percentage of area median 
79.21 	income relative to each housing project, and any income limits required under federal, state, 
79.22 	or local law for each housing project; and
79.23 	(3) for any tax increment financing district that, pursuant to Minnesota Statutes, section 
79.24 	469.1763, subdivision 2, paragraph (d), increased the permitted amount of expenditures for 
79.25 	activities located outside the district in the last five years, the district's location, type of 
79.26 	district, certification date, projected decertification date, and detailed information relating 
79.27 	to each housing project financed, including the percentage of area median income relative 
79.28 	to each housing project, and any income limits required under federal, state, or local law 
79.29 	for each housing project.
79.30 	(c) For each housing trust fund established under Minnesota Statutes, section 462C.16, 
79.31 	the report shall include the following:
79.32 	(1) a copy of the ordinance or joint powers agreement establishing the trust fund; and
80.1 	(2) an accounting of all authorized expenditures from the housing trust fund for each 
80.2 	calendar year, separated by each of the following expenditure types:
80.3 	(i) administrative expenses;
80.4 	(ii) grants, loans, and business guarantees for the development, rehabilitation, or financing 
80.5 	of housing, with detailed information as to each housing project, including the percentage 
80.6 	of area median income relative to each housing project, and any income limits required 
80.7 	under federal, state, or local law for each housing project;
80.8 	(iii) matching of other funds from federal, state, or private resources for housing projects, 
80.9 	with details provided as to each housing project, including the percentage of area median 
80.10 	income relative to each housing project, and any income limits required under federal, state, 
80.11 	or local law for each housing project; and
80.12 	(iv) down payment assistance, rental assistance, and home buyer counseling services.

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

80.14 	ARTICLE 6
80.15 	PUBLIC FINANCE

80.16 	Section 1. Minnesota Statutes 2020, section 297A.993, subdivision 2, is amended to read:
80.17 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
80.18 	exclusively to: (1) payment of the capital cost of a specific transportation project or 
80.19 	improvement; (2) payment of the costs, which may include both capital and operating costs, 
80.20 	of a specific transit project or improvement; (3) payment of the capital costs of a safe routes 
80.21 	to school program under section 174.40; or (4) payment of transit operating costs; or (5) 
80.22 	payment of the capital cost of constructing buildings and other facilities for maintaining 
80.23 	transportation or transit projects or improvements. The transportation or transit project or 
80.24 	improvement must be designated by the board of the county, or more than one county acting 
80.25 	under a joint powers agreement. Except for taxes for operating costs of a transit project or 
80.26 	improvement, or for transit operations, the taxes must terminate when revenues raised are 
80.27 	sufficient to finance the project. Nothing in this subdivision prohibits the exclusive dedication 
80.28 	of the proceeds of the taxes to payments for more than one project or improvement. After 
80.29 	a public hearing a county may, by resolution, dedicate the proceeds of the tax for a new 
80.30 	enumerated project.

81.1 	Sec. 2. Minnesota Statutes 2020, section 453A.04, subdivision 21, is amended to read:
81.2 		Subd. 21.All other powers Exercising powers of a municipal power agency. It may 
81.3 	exercise all other powers not inconsistent with the Constitution of the state of Minnesota 
81.4 	or the United States Constitution, which powers may be reasonably necessary or appropriate 
81.5 	for or incidental to the effectuation of its authorized purposes or to the exercise of any of 
81.6 	the powers enumerated in this section, and generally may exercise in connection with its 
81.7 	property and affairs, and in connection with property within its control, any and all powers 
81.8 	which might be exercised by a natural person or a private corporation in connection with 
81.9 	similar property and affairs It may exercise the powers of a municipal power agency under 
81.10 	chapter 453, for the limited purpose of engaging in tax-exempt prepayments and related 
81.11 	transactions as described in section 148(b)(4) of the Internal Revenue Code of 1986, as 
81.12 	amended, and Code of Federal Regulations, title 26, part 1, section 1.148-1(e)(2)(iii), both 
81.13 	as may be amended from time to time, or as may otherwise be authorized by statute or the 
81.14 	commissioner of internal revenue.

81.15 	Sec. 3. Minnesota Statutes 2020, section 453A.04, is amended by adding a subdivision to 
81.16 	read:
81.17 		Subd. 22.All other powers. It may exercise all other powers not inconsistent with the 
81.18 	Minnesota Constitution or the United States Constitution, which powers may be reasonably 
81.19 	necessary or appropriate for or incidental to the effectuation of its authorized purposes or 
81.20 	to the exercise of any of the powers enumerated in this section, and generally may exercise 
81.21 	in connection with its property and affairs, and in connection with property within its control, 
81.22 	any and all powers which might be exercised by a natural person or a private corporation 
81.23 	in connection with similar property and affairs.

81.24 	Sec. 4. Minnesota Statutes 2020, section 465.71, is amended to read:
81.25 	465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN, 
81.26 	SCHOOL.
81.27 	A home rule charter city, statutory city, county, town, or school district may purchase 
81.28 	personal property under an installment contract, or lease real or personal property with an 
81.29 	option to purchase under a lease-purchase agreement, by which contract or agreement title 
81.30 	is retained by the seller or vendor or assigned to a third party as security for the purchase 
81.31 	price, including interest, if any, but such purchases are subject to statutory and charter 
81.32 	provisions applicable to the purchase of real or personal property. For purposes of the bid 
81.33 	requirements contained in section 471.345, "the amount of the contract" shall include the 
82.1 	total of all lease payments for the entire term of the lease under a lease-purchase agreement. 
82.2 	The obligation created by an installment contract or a lease-purchase agreement for personal 
82.3 	property, or an installment contract or a lease-purchase agreement for real property if the 
82.4 	amount of the contract for purchase of the real property is less than $1,000,000, shall not 
82.5 	be included in the calculation of net debt for purposes of section 475.53, and shall not 
82.6 	constitute debt under any other statutory provision. No election shall be required in 
82.7 	connection with the execution of an installment contract or a lease-purchase agreement 
82.8 	authorized by this section. The city, county, town, or school district must have the right to 
82.9 	terminate a lease-purchase agreement at the end of any fiscal year during its term.

82.10 	Sec. 5. Minnesota Statutes 2020, section 475.56, is amended to read:
82.11 	475.56 INTEREST RATE.
82.12 	(a) Any municipality issuing obligations under any law may issue obligations bearing 
82.13 	interest at a single rate or at rates varying from year to year which may be lower or higher 
82.14 	in later years than in earlier years. Such higher rate for any period prior to maturity may be 
82.15 	represented in part by separate coupons designated as additional coupons, extra coupons, 
82.16 	or B coupons, but The highest aggregate rate of interest contracted to be so paid for any 
82.17 	period shall not exceed the maximum rate authorized by law. Such higher rate may also be 
82.18 	represented in part by the issuance of additional obligations of the same series, over and 
82.19 	above but not exceeding two percent of the amount otherwise authorized to be issued, and 
82.20 	the amount of such additional obligations shall not be included in the amount required by 
82.21 	section 475.59 to be stated in any bond resolution, notice, or ballot, or in the sale price 
82.22 	required by section 475.60 or any other law to be paid; but if the principal amount of the 
82.23 	entire series exceeds its cash sale price, such excess shall not, when added to the total amount 
82.24 	of interest payable on all obligations of the series to their stated maturity dates, causeand 
82.25 	the average annual rate of such interest to may not exceed the maximum rate authorized by 
82.26 	law. This section does not authorize a provision in any such obligations for the payment of 
82.27 	a higher rate of interest after maturity than before.
82.28 	(b) Any municipality issuing obligations under any law may sell original issue discount 
82.29 	or premium obligations having a stated principal amount in excess of the authorized amount 
82.30 	and the sale price, provided that:
82.31 	(1) the sale price does not exceed by more than two percent the amount of obligations 
82.32 	otherwise authorized to be issued;
82.33 	(2) the underwriting fee, discount, or other sales or underwriting commission does not 
82.34 	exceed two percent of the sale price; and
83.1 	(3) the discount rate necessary to present value total principal and interest payments 
83.2 	over the term of the issue to the sale price does not exceed the lesser of the maximum rate 
83.3 	permitted by law for municipal obligations or ten percent. To determine the average annual 
83.4 	rate of interest on the obligations, any discount shall be added to, and any premium subtracted 
83.5 	from, the total amount of interest on the obligations to their stated maturity dates.
83.6 	(c) Any obligation may bear interest at a rate varying periodically at the time or times 
83.7 	and on the terms, including convertibility to a fixed rate of interest, determined by the 
83.8 	governing body of the municipality, but the rate of interest for any period shall not exceed 
83.9 	any maximum rate of interest for the obligations established by law. For purposes of section 
83.10 	475.61, subdivisions 1 and 3, the interest payable on variable rate obligations for their term 
83.11 	shall be determined as if their rate of interest is the lesser of the maximum rate of interest 
83.12 	payable on the obligations in accordance with their terms or the rate estimated for such 
83.13 	purpose by the governing body, but if the interest rate is subsequently converted to a fixed 
83.14 	rate the levy may be modified to provide at least five percent in excess of amounts necessary 
83.15 	to pay principal of and interest at the fixed rate on the obligations when due. For purposes 
83.16 	of computing debt service or interest pursuant to section 475.67, subdivision 12, interest 
83.17 	throughout the term of bonds issued pursuant to this subdivision is deemed to accrue at the 
83.18 	rate of interest first borne by the bonds. The provisions of this paragraph do not apply to 
83.19 	general obligations issued by a statutory or home rule charter city with a population of less 
83.20 	than 7,500, as defined in section 477A.011, subdivision 3, or to general obligations that are 
83.21 	not rated A or better, or an equivalent subsequently established rating, by Standard and 
83.22 	Poor's Corporation, Moody's Investors Service or other similar nationally recognized rating 
83.23 	agency, except that any statutory or home rule charter city, regardless of population or bond 
83.24 	rating, may issue variable rate obligations as a participant in a bond pooling program 
83.25 	established by the League of Minnesota Cities that meets this bond rating requirement.

83.26 	Sec. 6. Minnesota Statutes 2020, section 475.58, subdivision 3b, is amended to read:
83.27 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
83.28 	without regard to the election requirement under subdivision 1, issue and sell obligations 
83.29 	for street reconstruction or bituminous overlays, if the following conditions are met:
83.30 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 
83.31 	that describes the street reconstruction or overlay to be financed, the estimated costs, and 
83.32 	any planned reconstruction or overlay of other streets in the municipality over the next five 
83.33 	years, and the plan and issuance of the obligations has been approved by a vote of a two-thirds 
83.34 	majority of the members of the governing body present at the meeting following a public 
84.1 	hearing for which notice has been published in the official newspaper at least ten days but 
84.2 	not more than 28 days prior to the hearing; and
84.3 	(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 
84.4 	of the votes cast in the last municipal general election and is filed with the municipal clerk 
84.5 	within 30 days of the public hearing, the municipality may issue the bonds only after 
84.6 	obtaining the approval of a majority of the voters voting on the question of the issuance of 
84.7 	the obligations. If the municipality elects not to submit the question to the voters, the 
84.8 	municipality shall not propose the issuance of bonds under this section for the same purpose 
84.9 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
84.10 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
84.11 	of section 475.58, subdivision 1a, shall apply.
84.12 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
84.13 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
84.14 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
84.15 	includes include but are not limited to: utility replacement and relocation and other activities 
84.16 	incidental to the street reconstruction,; the addition or reconstruction of turn lanes, bicycle 
84.17 	lanes, sidewalks, paths, and other improvements having a substantial public safety function,;
84.18 	realignments, and other modifications to intersect with state and county roads,; and the local 
84.19 	share of state and county road projects. For purposes of this subdivision, "street 
84.20 	reconstruction" includes expenditures for street reconstruction that have been incurred by 
84.21 	a municipality before approval of a street reconstruction plan, if such expenditures are 
84.22 	included in a street reconstruction plan approved on or before the date of the public hearing 
84.23 	under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
84.24 	(d) Except in the case of turn lanes, bicycle lanes, sidewalks, paths, and other safety 
84.25 	improvements,; realignments,; intersection modifications,; and the local share of state and 
84.26 	county road projects, street reconstruction and bituminous overlays does not include the 
84.27 	portion of project cost allocable to widening a street or adding curbs and gutters where none 
84.28 	previously existed.

84.29 	Sec. 7. Minnesota Statutes 2020, section 475.60, subdivision 1, is amended to read:
84.30 		Subdivision 1.Advertisement. All obligations shall be negotiated and sold by the 
84.31 	governing body, except when authority therefor is delegated by the governing body or by 
84.32 	the charter of the municipality to a board, department, or officers of the municipality. Except 
84.33 	as provided in section 475.56, obligations shall be sold at not less than par value plus accrued 
84.34 	interest to date of delivery and not greater than two percent greater than the amount 
85.1 	authorized to be issued plus accrued interest. Except as provided in subdivision 2 all 
85.2 	obligations shall be sold at competitive sale after notice given as provided in subdivision 
85.3 	3.

85.4 	Sec. 8. Minnesota Statutes 2020, section 475.67, subdivision 8, is amended to read:
85.5 		Subd. 8.Escrow account securities. Securities purchased for the escrow account shall 
85.6 	be limited to:
85.7 	(1) general obligations of the United States, securities whose principal and interest 
85.8 	payments are guaranteed by the United States including but not limited to Resolution Funding 
85.9 	Corporation Interest Separate Trading of Registered Interest and Principal of Securities 
85.10 	(STRIPs) and United States Agency for International Development Bonds or STRIPs, and 
85.11 	securities issued by the following agencies of the United States: Banks for Cooperatives,
85.12 	United States government-sponsored enterprises including but not limited to Federal Home 
85.13 	Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks, and the Federal Farm 
85.14 	Credit System, the Federal National Mortgage Association, or the Federal Home Loan 
85.15 	Mortgage Corporation; or
85.16 	(2) obligations issued or guaranteed by any state or any political subdivision of a state, 
85.17 	which at the date of purchase are rated in the highest or the next highest rating category by 
85.18 	Standard and Poor's Corporation, Moody's Investors Service, or a similar nationally 
85.19 	recognized rating agency, but not less than the rating on the refunded bonds immediately 
85.20 	prior to the refunding.
85.21 	"Rating category," as used in this subdivision, means a generic securities rating category, 
85.22 	without regard in the case of a long-term rating category to any refinement or gradation of 
85.23 	such long-term rating category by a numerical modifier or otherwise.

85.24 	Sec. 9. REPEALER.
 85.25 	Minnesota Statutes 2020, section 469.055, subdivision 7, is repealed.

85.26 	ARTICLE 7
85.27 	PARTNERSHIP AUDITS

85.28 	Section 1. Minnesota Statutes 2020, section 270C.445, subdivision 6, is amended to read:
85.29 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
85.30 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
85.31 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
86.1 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
86.2 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
86.3 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
86.4 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
86.5 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
86.6 	the penalty in the same manner as the income tax. There is no right to make a claim for 
86.7 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
86.8 	under this paragraph are public data.
86.9 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
86.10 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
86.11 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
86.12 	desist from committing the violation. The administrative order may include an administrative 
86.13 	penalty provided in paragraph (a).
86.14 	(c) If the commissioner issues an administrative order under paragraph (b), the 
86.15 	commissioner must send the order to the tax preparer addressed to the last known address 
86.16 	of the tax preparer.
86.17 	(d) A cease and desist order under paragraph (b) must:
86.18 	(1) describe the act, conduct, or practice committed and include a reference to the law 
86.19 	that the act, conduct, or practice violates; and
86.20 	(2) provide notice that the tax preparer may request a hearing as provided in this 
86.21 	subdivision.
86.22 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
86.23 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
86.24 	for hearing must be made in writing and must be served on the commissioner at the address 
86.25 	specified in the order. The hearing request must specifically state the reasons for seeking 
86.26 	review of the order. The date on which a request for hearing is served by mail is the postmark 
86.27 	date on the envelope in which the request for hearing is mailed.
86.28 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
86.29 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
86.30 	subject to review by any court or agency.
86.31 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
86.32 	under paragraph (b), the hearing must be commenced within ten days after the commissioner 
86.33 	receives the request for a hearing.
87.1 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
87.2 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
87.3 	must issue a report containing findings of fact, conclusions of law, and a recommended 
87.4 	order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 
87.5 	or the submission of written arguments, whichever is later.
87.6 	(i) Within five days of the date of the administrative law judge's report issued under 
87.7 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
87.8 	written exceptions and arguments to the commissioner. Within 15 days after receiving the 
87.9 	administrative law judge's report, the commissioner must issue an order vacating, modifying, 
87.10 	or making final the administrative order.
87.11 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
87.12 	lengthen any time periods prescribed in paragraphs (g) to (i).
87.13 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
87.14 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
87.15 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
87.16 	the exclusive remedy for a tax preparer aggrieved by the order.
87.17 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
87.18 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
87.19 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
87.20 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
87.21 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
87.22 	penalty order. The request for hearing must be made in writing and must be served on the 
87.23 	commissioner at the address specified in the order. The hearing request must specifically 
87.24 	state the reasons for seeking review of the order. The cease and desist order issued under 
87.25 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
87.26 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
87.27 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
87.28 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
87.29 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
87.30 	under this paragraph may be collected and enforced by the commissioner as an income tax 
87.31 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
87.32 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
88.1 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
88.2 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
88.3 	to the state. Termination under this paragraph is public data.
88.4 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
88.5 	order.
88.6 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
88.7 	action under this subdivision against a tax preparer, with respect to a return, within the 
88.8 	period to assess tax on that return as provided by section sections289A.38 to 289A.382.
88.9 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
88.10 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
88.11 	the commissioner within five years of the violation of statute.

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

88.16 	Sec. 2. Minnesota Statutes 2020, section 289A.31, subdivision 1, is amended to read:
88.17 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
88.18 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
88.19 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
88.20 	taxpayer upon whom the tax is imposed, except in the following cases:
88.21 	(1) the tax due from a decedent for that part of the taxable year in which the decedent 
88.22 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
88.23 	prior years must be paid by the decedent's personal representative, if any. If there is no 
88.24 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
88.25 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
88.26 	decedent;
88.27 	(2) the tax due from an infant or other incompetent person must be paid by the person's 
88.28 	guardian or other person authorized or permitted by law to act for the person;
88.29 	(3) the tax due from the estate of a decedent must be paid by the estate's personal 
88.30 	representative;
88.31 	(4) the tax due from a trust, including those within the definition of a corporation, as 
88.32 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
89.1 	(5) the tax due from a taxpayer whose business or property is in charge of a receiver, 
89.2 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
89.3 	of the business or property so far as the tax is due to the income from the business or property.
89.4 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
89.5 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
89.6 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
89.7 	entertainer for the amount of the payment.
89.8 	(c) The taxes imposed under sections 289A.35, paragraph (b), 289A.382, subdivision 
89.9 	3, and 290.0922 on partnerships are the joint and several liability of the partnership and the 
89.10 	general partners.

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

89.15 	Sec. 3. Minnesota Statutes 2020, section 289A.37, subdivision 2, is amended to read:
89.16 		Subd. 2.Erroneous refunds. (a) Except as provided in paragraph (b), an erroneous 
89.17 	refund occurs when the commissioner issues a payment to a person that exceeds the amount 
89.18 	the person is entitled to receive under law. An erroneous refund is considered an 
89.19 	underpayment of tax on the date issued.
89.20 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
89.21 	taxpayer, an erroneous refund does not include the following:
89.22 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
89.23 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
89.24 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
89.25 	290.0681; or 290.0692; or chapter 290A; or
89.26 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
89.27 	taxpayer.
89.28 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
89.29 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
89.30 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
89.31 	be made at any time.
90.1 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
90.2 	conducted under section sections289A.38 to 289A.382.

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

90.7 	Sec. 4. Minnesota Statutes 2020, section 289A.38, subdivision 7, is amended to read:
90.8 		Subd. 7.Federal tax changes. (a) If the amount of income, items of tax preference, 
90.9 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any 
90.10 	period, as reported to the Internal Revenue Service is changed or corrected by the 
90.11 	commissioner of Internal Revenue or other officer of the United States or other competent 
90.12 	authority, or where a renegotiation of a contract or subcontract with the United States results 
90.13 	in a change in income, items of tax preference, deductions, credits, or withholding tax, or, 
90.14 	in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall 
90.15 	report the change or correction or renegotiation results federal adjustments in writing to the 
90.16 	commissioner. The federal adjustments report must be submitted within 180 days after the 
90.17 	final determination date and must be in the form of either an amended Minnesota estate, 
90.18 	withholding tax, corporate franchise tax, or income tax return conceding the accuracy of 
90.19 	the federal determination adjustment or a letter detailing how the federal determination
90.20 	adjustment is incorrect or does not change the Minnesota tax. An amended Minnesota 
90.21 	income tax return must be accompanied by an amended property tax refund return, if 
90.22 	necessary. A taxpayer filing an amended federal tax return must also file a copy of the 
90.23 	amended return with the commissioner of revenue within 180 days after filing the amended 
90.24 	return.
90.25 	(b) For the purposes of paragraph (a), a change or correction includes any case where a 
90.26 	taxpayer reaches a closing agreement or compromise with the Internal Revenue Service 
90.27 	under section 7121 or 7122 of the Internal Revenue Code. In the case of a final federal 
90.28 	adjustment arising from a partnership-level audit or an administrative adjustment request 
90.29 	filed by a partnership under section 6227 of the Internal Revenue Code, a taxpayer must 
90.30 	report adjustments as provided for under section 289A.382, and not this section.

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

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

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

91.12 	Sec. 6. Minnesota Statutes 2020, section 289A.38, subdivision 9, is amended to read:
91.13 		Subd. 9.Report made of change or correction of federal return. If a taxpayer is 
91.14 	required to make a federal adjustments report under subdivision 7 or section 289A.382, and 
91.15 	does report the change or files a copy of the amended return, the commissioner may 
91.16 	recompute and reassess the tax due, including a refund (1) within one year after the federal 
91.17 	adjustments report or amended return is filed with the commissioner, notwithstanding any 
91.18 	period of limitations to the contrary, or (2) within any other applicable period stated in this 
91.19 	section, whichever period is longer. The period provided for the carryback of any amount 
91.20 	of loss or credit is also extended as provided in this subdivision, notwithstanding any law 
91.21 	to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but 
91.22 	for this subdivision, the commissioner's time period to adjust the tax has expired, the 
91.23 	additional tax due or refund is limited to only those changes that are required to be made 
91.24 	to the return which relate to the changes made on the federal return. This subdivision does 
91.25 	not apply to sales and use tax.
91.26 	For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is 
91.27 	the physical presence of examiners in the taxpayer's or taxpayer's representative's office 
91.28 	conducting an examination of the taxpayer with the intention of issuing an assessment or 
91.29 	notice of change in tax or which results in the issuing of an assessment or notice of change 
91.30 	in tax. The examination may include inspecting a taxpayer's place of business, tangible 
91.31 	personal property, equipment, computer systems and facilities, pertinent books, records, 
91.32 	papers, vouchers, computer printouts, accounts, and documents.
91.33 	A taxpayer may make estimated payments to the commissioner of the tax expected to 
91.34 	result from a pending audit by the Internal Revenue Service. The taxpayer may make 
92.1 	estimated payments prior to the due date of the federal adjustments report without the 
92.2 	taxpayer having to file the report with the commissioner. The commissioner must credit the 
92.3 	estimated tax payments against any tax liability of the taxpayer ultimately found to be due 
92.4 	to the commissioner. The estimated payments limit the accrual of further statutory interest 
92.5 	on that amount. If the estimated tax payments exceed the final tax liability plus statutory 
92.6 	interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the 
92.7 	excess, provided the taxpayer files a federal adjustments report, or claim for refund or credit 
92.8 	of tax, no later than one year following the final determination date.

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

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

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

92.27 	Sec. 8. [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
92.28 		Subdivision 1.Definitions relating to federal adjustments. Unless otherwise specified, 
92.29 	the definitions in this section apply for the purposes of sections 289A.38, subdivisions 7 to 
92.30 	9, 289A.381, and 289A.382.
92.31 		Subd. 2.Administrative adjustment request. "Administrative adjustment request" 
92.32 	means an administrative adjustment request filed by a partnership under section 6227 of 
92.33 	the Internal Revenue Code.
93.1 		Subd. 3.Audited partnership. "Audited partnership" means a partnership subject to a 
93.2 	federal adjustment resulting from a partnership-level audit.
93.3 		Subd. 4.Corporate partner. "Corporate partner" means a partner that is subject to tax 
93.4 	under section 290.02.
93.5 		Subd. 5.Direct partner. "Direct partner" means a partner that holds an immediate legal 
93.6 	ownership interest in a partnership or pass-through entity.
93.7 		Subd. 6.Exempt partner. "Exempt partner" means a partner that is exempt from taxes 
93.8 	on its net income under section 290.05, subdivision 1.
93.9 		Subd. 7.Federal adjustment. "Federal adjustment" means any change in an amount 
93.10 	calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an 
93.11 	item of preference, or any other item that is used by a taxpayer to compute a tax administered 
93.12 	under this chapter for the reviewed year whether that change results from action by the 
93.13 	Internal Revenue Service or other competent authority, including a partnership-level audit, 
93.14 	or from the filing of an amended federal return, federal refund claim, or an administrative 
93.15 	adjustment request by the taxpayer.
93.16 		Subd. 8.Federal adjustments report. "Federal adjustments report" includes a method 
93.17 	or form prescribed by the commissioner for use by a taxpayer to report federal adjustments, 
93.18 	including an amended Minnesota tax return or a uniform multistate report.
93.19 		Subd. 9.Federal partnership representative. "Federal partnership representative" 
93.20 	means the person the partnership designates for the taxable year as the partnership's 
93.21 	representative, or the person the Internal Revenue Service has appointed to act as the 
93.22 	partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
93.23 		Subd. 10.Final determination date. "Final determination date" means:
93.24 	(1) for a federal adjustment arising from an audit by the Internal Revenue Service or 
93.25 	other competent authority, the first day on which no federal adjustment arising from that 
93.26 	audit remains to be finally determined, whether by agreement, or, if appealed or contested, 
93.27 	by a final decision with respect to which all rights of appeal have been waived or exhausted;
93.28 	(2) for a federal adjustment arising from an audit or other action by the Internal Revenue 
93.29 	Service or other competent authority, if the taxpayer filed as a member of a combined report 
93.30 	under section 290.17, subdivision 4, the first day on which no related federal adjustments 
93.31 	arising from that audit remain to be finally determined as described in clause (1) for the 
93.32 	entire combined group;
94.1 	(3) for a federal adjustment arising from the filing of an amended federal return, a federal 
94.2 	refund claim, or the filing by a partnership of an administrative adjustment request, the date 
94.3 	on which the amended return, refund claim, or administrative adjustment request was filed; 
94.4 	or
94.5 	(4) for agreements required to be signed by the Internal Revenue Service and the taxpayer, 
94.6 	the date on which the last party signed the agreement.
94.7 		Subd. 11.Final federal adjustment. "Final federal adjustment" means a federal 
94.8 	adjustment after the final determination date for that federal adjustment has passed.
94.9 		Subd. 12.Indirect partner. "Indirect partner" means either:
94.10 	(1) a partner in a partnership or pass-through entity that itself holds an immediate legal 
94.11 	ownership interest in another partnership or pass-through entity; or
94.12 	(2) a partner in a partnership or pass-through entity that holds an indirect interest in 
94.13 	another partnership or pass-through entity through another indirect partner.
94.14 		Subd. 13.Partner. "Partner" means a person that holds an interest directly or indirectly 
94.15 	in a partnership or other pass-through entity.
94.16 		Subd. 14.Partnership. "Partnership" has the meaning provided under section 7701(a)(2) 
94.17 	of the Internal Revenue Code.
94.18 		Subd. 15.Partnership-level audit. "Partnership-level audit" means an examination by 
94.19 	the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63, 
94.20 	subchapter C, of the Internal Revenue Code, which results in federal adjustments and 
94.21 	adjustments to partnership-related items.
94.22 		Subd. 16.Pass-through entity. "Pass-through entity" means an entity, other than a 
94.23 	partnership, that is not subject to the tax imposed under section 290.02. The term pass-through 
94.24 	entity includes but is not limited to S corporations, estates, and trusts other than grantor 
94.25 	trusts.
94.26 		Subd. 17.Resident partner. "Resident partner" means an individual, trust, or estate  
94.27 	partner who is a resident of Minnesota under section 290.01, subdivision 7, 7a, or 7b, for 
94.28 	the relevant tax period.
94.29 		Subd. 18.Reviewed year. "Reviewed year" means the taxable year of a partnership that 
94.30 	is subject to a partnership-level audit from which federal adjustments arise.
94.31 		Subd. 19.Tiered partner. "Tiered partner" means any partner that is a partnership or 
94.32 	pass-through entity.
95.1 		Subd. 20.Unrelated business taxable income. "Unrelated business taxable income" 
95.2 	has the meaning provided under section 512 of the Internal Revenue Code.

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

95.7 	Sec. 9. [289A.382] REPORTING AND PAYMENT REQUIREMENTS.
95.8 		Subdivision 1.State partnership representative. (a) With respect to an action required 
95.9 	or permitted to be taken by a partnership under this section, or in a proceeding under section 
95.10 	270C.35 or 271.06, the state partnership representative for the reviewed year shall have the 
95.11 	sole authority to act on behalf of the partnership, and its direct partners and indirect partners 
95.12 	shall be bound by those actions.
95.13 	(b) The state partnership representative for the reviewed year is the partnership's federal 
95.14 	partnership representative unless the partnership, in a form and manner prescribed by the 
95.15 	commissioner, designates another person as its state partnership representative.
95.16 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
95.17 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
95.18 	or for adjustments required to be reported for federal purposes pursuant to section 6225(a)(2) 
95.19 	of the Internal Revenue Code, all final federal adjustments of an audited partnership must 
95.20 	comply with paragraph (b) and each direct partner of the audited partnership, other than a 
95.21 	tiered partner, must comply with paragraph (c).
95.22 	(b) No later than 90 days after the final determination date, the audited partnership must:
95.23 	(1) file a completed federal adjustments report, including all partner-level information 
95.24 	required under section 289A.12, subdivision 3, with the commissioner;
95.25 	(2) notify each of its direct partners of their distributive share of the final federal 
95.26 	adjustments;
95.27 	(3) file an amended composite report for all direct partners who were included in a 
95.28 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
95.29 	additional amount that would have been due had the federal adjustments been reported 
95.30 	properly as required; and
95.31 	(4) file amended withholding reports for all direct partners who were or should have 
95.32 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
96.1 	year, and pay the additional amount that would have been due had the federal adjustments 
96.2 	been reported properly as required.
96.3 	(c) No later than 180 days after the final determination date, each direct partner, other 
96.4 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
96.5 	sales tax, must:
96.6 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
96.7 	reported to them under paragraph (b), clause (2); and
96.8 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
96.9 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
96.10 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
96.11 	paragraph (b), clauses (3) and (4).
96.12 		Subd. 3.Election; partnership or tiered partners pay. (a) An audited partnership may 
96.13 	make an election under this subdivision to pay its assessment at the entity level. If an audited 
96.14 	partnership makes an election to pay its assessment at the entity level it must:
96.15 	(1) no later than 90 days after the final determination date:
96.16 	(i) file a completed federal adjustments report, which includes the residency information 
96.17 	for all individual, trust, and estate direct partners and information pertaining to all other 
96.18 	direct partners as prescribed by the commissioner; and
96.19 	(ii) notify the commissioner that it is making the election under this subdivision; and
96.20 	(2) no later than 180 days after the final determination date, pay an amount, determined 
96.21 	as follows, in lieu of taxes on partners:
96.22 	(i) exclude from final federal adjustments the distributive share of these adjustments 
96.23 	made to a direct exempt partner that is not unrelated business taxable income;
96.24 	(ii) exclude from final federal adjustments the distributive share of these adjustments 
96.25 	made to a direct partner that has filed a federal adjustments report and paid the applicable 
96.26 	tax, as required under subdivision 2, for the distributive share of adjustments reported on a 
96.27 	federal return under section 6225(c) of the Internal Revenue Code;
96.28 	(iii) assign and apportion at the partnership level using sections 290.17 to 290.20 the 
96.29 	total distributive share of the remaining final federal adjustments for the reviewed year 
96.30 	attributed to direct corporate partners and direct exempt partners; multiply the total by the 
96.31 	highest tax rate in section 290.06, subdivision 1, for the reviewed year; and calculate interest 
96.32 	and penalties as applicable under this chapter;
97.1 	(iv) allocate at the partnership level using section 290.17, subdivision 1, the total 
97.2 	distributive share of all final federal adjustments attributable to individual resident direct 
97.3 	partners for the reviewed year; multiply the total by the highest tax rate in section 290.06, 
97.4 	subdivision 2c, for the reviewed year; and calculate interest and penalties as applicable 
97.5 	under this chapter;
97.6 	(v) assign and apportion at the partnership level using sections 290.17 to 290.20 the total 
97.7 	distributive share of the remaining final federal adjustments attributable to nonresident 
97.8 	individual direct partners and direct partners who are an estate or a trust for the reviewed 
97.9 	year; multiply the total by the highest tax rate in section 290.06, subdivision 2c, for the 
97.10 	reviewed year; and calculate interest and penalties as applicable under this chapter;
97.11 	(vi) for the total distributive share of the remaining final federal adjustments reported 
97.12 	to tiered partners:
97.13 	(A) determine the amount of the adjustments that would be assigned using  section 290.17, 
97.14 	subdivision 2, paragraphs (a) to (d), excluding income or gains from intangible personal 
97.15 	property not employed in the business of the recipient of the income or gains if the recipient 
97.16 	of the income or gains is a resident of this state or is a resident trust or estate under section 
97.17 	290.17, subdivision 2, paragraph (c), or apportioned using sections 290.17, subdivision 3, 
97.18 	290.191, and 290.20; and then determine the portion of the amount that would be allocated 
97.19 	to this state;
97.20 	(B) determine the amount of the adjustments that are fully sourced to the taxpayer's state 
97.21 	of residency under section 290.17, subdivision 2, paragraph (e), and income or gains from 
97.22 	intangible personal property not employed in the business of the recipient of the income or 
97.23 	gains if the recipient of the income or gains is a resident of this state or is a resident trust 
97.24 	or estate under section 290.17, subdivision 2, paragraph (c);
97.25 	(C) determine the portion of the amount determined in subitem (B) that can be established 
97.26 	to be properly allocable to nonresident indirect partners or other partners not subject to tax 
97.27 	on the adjustments; and
97.28 	(D) multiply the total of the amounts determined in subitems (A) and (B) reduced by 
97.29 	the amount determined in subitem (C) by the highest tax rate in section 290.06, subdivision 
97.30 	2c, for the reviewed year, and calculate interest and penalties as applicable under this chapter; 
97.31 	and
97.32 	(vii) add the amounts determined in items (iii) to (vi), and pay all applicable taxes, 
97.33 	penalties, and interest to the commissioner.
98.1 	(b) An audited partnership may not make an election under this subdivision to report:
98.2 	(1) a federal adjustment that results in unitary business income to a corporate partner 
98.3 	required to file as a member of a combined report under section 290.17, subdivision 4; or
98.4 	(2) any final federal adjustments resulting from an administrative adjustment request.
98.5 	(c) An audited partnership not otherwise subject to any reporting or payment obligation 
98.6 	to this state may not make an election under this subdivision.
98.7 		Subd. 4.Tiered partners and indirect partners. The direct and indirect partners of an 
98.8 	audited partnership that are tiered partners, and all the partners of the tiered partners, that 
98.9 	are subject to tax under chapter 290 are subject to the reporting and payment requirements 
98.10 	contained in subdivision 2, and the tiered partners are entitled to make the elections provided 
98.11 	in subdivision 3. The tiered partners or their partners shall make required reports and 
98.12 	payments no later than 90 days after the time for filing and furnishing of statements to tiered 
98.13 	partners and their partners as established under section 6226 of the Internal Revenue Code.
98.14 		Subd. 5.Effects of election by partnership or tiered partner and payment of amount 
98.15 	due. (a) Unless the commissioner determines otherwise, an election under subdivision 3 is 
98.16 	irrevocable.
98.17 	(b) If an audited partnership or tiered partner properly reports and pays an amount 
98.18 	determined in subdivision 3, the amount must be treated as paid in lieu of taxes owed by 
98.19 	the partnership's direct partners and indirect partners, to the extent applicable, on the same 
98.20 	final federal adjustments. The direct partners or indirect partners of the partnership who are 
98.21 	not resident partners may not take any deduction or credit for this amount or claim a refund 
98.22 	of the amount in this state.
98.23 	(c) Nothing in this subdivision precludes resident direct partners from claiming a credit 
98.24 	against taxes paid under section 290.06 on any amounts paid by the audited partnership or 
98.25 	tiered partners on the resident partner's behalf to another state or local tax jurisdiction.
98.26 		Subd. 6.Failure of partnership or tiered partner to report or pay. Nothing in this 
98.27 	section prevents the commissioner from assessing direct partners or indirect partners for 
98.28 	taxes they owe, using the best information available, in the event that, for any reason, a 
98.29 	partnership or tiered partner fails to timely make any report or payment required by this 
98.30 	section.

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

99.3 	Sec. 10. Minnesota Statutes 2020, section 289A.42, is amended to read:
99.4 	289A.42 CONSENT TO EXTEND STATUTE.
99.5 		Subdivision 1.Extension agreement. If before the expiration of time prescribed in 
99.6 	sections 289A.38 to 289A.382 and 289A.40 for the assessment of tax or the filing of a claim 
99.7 	for refund, both the commissioner and the taxpayer have consented in writing to the 
99.8 	assessment or filing of a claim for refund after that time, the tax may be assessed or the 
99.9 	claim for refund filed at any time before the expiration of the agreed-upon period. The 
99.10 	period may be extended by later agreements in writing before the expiration of the period 
99.11 	previously agreed upon. The taxpayer and the commissioner may also agree to extend the 
99.12 	period for collection of the tax.
99.13 		Subd. 2.Federal extensions. When a taxpayer consents to an extension of time for the 
99.14 	assessment of federal withholding or income taxes, the period in which the commissioner 
99.15 	may recompute the tax is also extended, notwithstanding any period of limitations to the 
99.16 	contrary, as follows:
99.17 	(1) for the periods provided in section sections289A.38, subdivisions 8 and 9, and 
99.18 	289A.382, subdivisions 2 and 3;
99.19 	(2) for six months following the expiration of the extended federal period of limitations 
99.20 	when no change is made by the federal authority. If no change is made by the federal 
99.21 	authority, and, but for this subdivision, the commissioner's time period to adjust the tax has 
99.22 	expired, and if the commissioner has completed a field audit of the taxpayer, no additional 
99.23 	changes resulting in additional tax due or a refund may be made. For purposes of this 
99.24 	subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.

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

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

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

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

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

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

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

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

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

101.5 	Sec. 15. Minnesota Statutes 2020, section 469.319, subdivision 4, is amended to read:
101.6 		Subd. 4.Repayment procedures. (a) For the repayment of taxes imposed under chapter 
101.7 	290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an 
101.8 	amended return with the commissioner of revenue and pay any taxes required to be repaid 
101.9 	within 30 days after becoming subject to repayment under this section. The amount required 
101.10 	to be repaid is determined by calculating the tax for the period or periods for which repayment 
101.11 	is required without regard to the exemptions and credits allowed under section 469.315.
101.12 	(b) For the repayment of taxes imposed under chapter 297B, a business must pay any 
101.13 	taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of 
101.14 	revenue, within 30 days after becoming subject to repayment under this section.
101.15 	(c) For the repayment of property taxes, the county auditor shall prepare a tax statement 
101.16 	for the business, applying the applicable tax extension rates for each payable year and 
101.17 	provide a copy to the business and to the taxpayer of record. The business must pay the 
101.18 	taxes to the county treasurer within 30 days after receipt of the tax statement. The business 
101.19 	or the taxpayer of record may appeal the valuation and determination of the property tax to 
101.20 	the Tax Court within 30 days after receipt of the tax statement.
101.21 	(d) The provisions of chapters 270C and 289A relating to the commissioner's authority 
101.22 	to audit, assess, and collect the tax and to hear appeals are applicable to the repayment 
101.23 	required under paragraphs (a) and (b). The commissioner may impose civil penalties as 
101.24 	provided in chapter 289A, and the additional tax and penalties are subject to interest at the 
101.25 	rate provided in section 270C.40. The additional tax shall bear interest from 30 days after 
101.26 	becoming subject to repayment under this section until the date the tax is paid. Any penalty 
101.27 	imposed pursuant to this section shall bear interest from the date provided in section 270C.40, 
101.28 	subdivision 3, to the date of payment of the penalty.
101.29 	(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the 
101.30 	amount required to be repaid to the property taxes assessed against the property for payment 
101.31 	in the year following the year in which the auditor provided the statement under paragraph 
101.32 	(c).
102.1 	(f) For determining the tax required to be repaid, a reduction of a state or local sales or 
102.2 	use tax is deemed to have been received on the date that the good or service was purchased 
102.3 	or first put to a taxable use. In the case of an income tax or franchise tax, including the credit 
102.4 	payable under section 469.318, a reduction of tax is deemed to have been received for the 
102.5 	two most recent tax years that have ended prior to the date that the business became subject 
102.6 	to repayment under this section. In the case of a property tax, a reduction of tax is deemed 
102.7 	to have been received for the taxes payable in the year that the business became subject to 
102.8 	repayment under this section and for the taxes payable in the prior year.
102.9 	(g) The commissioner may assess the repayment of taxes under paragraph (d) any time 
102.10 	within two years after the business becomes subject to repayment under subdivision 1, or 
102.11 	within any period of limitations for the assessment of tax under sectionsections 289A.38
102.12 	to 289A.382, whichever period is later. The county auditor may send the statement under 
102.13 	paragraph (c) any time within three years after the business becomes subject to repayment 
102.14 	under subdivision 1.
102.15 	(h) A business is not entitled to any income tax or franchise tax benefits, including 
102.16 	refundable credits, for any part of the year in which the business becomes subject to 
102.17 	repayment under this section nor for any year thereafter. Property is not exempt from tax 
102.18 	under section 272.02, subdivision 64, for any taxes payable in the year following the year 
102.19 	in which the property became subject to repayment under this section nor for any year 
102.20 	thereafter. A business is not eligible for any sales tax benefits beginning with goods or 
102.21 	services purchased or first put to a taxable use on the day that the business becomes subject 
102.22 	to repayment under this section.

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

102.27 	ARTICLE 8
102.28 	LOCAL SALES TAXES

102.29 	Section 1. Laws 2019, First Special Session chapter 6, article 6, section 27, is amended 
102.30 	to read:
102.31 	Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
 102.32 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
102.33 	section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved 
103.1 	by voters at the November 3, 2020, a general election, or at a special election held before 
103.2 	November 3, 2020 pursuant to a resolution adopted by its governing body, the city of Sartell 
103.3 	may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food 
103.4 	and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the 
103.5 	city, that is located within the city. For purposes of this section, "food and beverages" include 
103.6 	retail on-sale of intoxicating liquor and fermented malt beverages.
103.7 		Subd. 2.Use of proceeds from authorized taxes. The proceeds of the taxes imposed 
103.8 	under subdivision 1 must be used by the city to fund capital or operational costs for new 
103.9 	and existing recreational facilities and related amenities within the city. Authorized expenses 
103.10 	include securing or paying debt service on bonds or other obligations issued to finance 
103.11 	construction and improvement projects.
103.12 		Subd. 3.Termination of taxes. The tax imposed under subdivision 1 expires five years 
103.13 	after the tax is first imposed.
103.14 		Subd. 4.Collection, administration, and enforcement. The city may enter into an 
103.15 	agreement with the commissioner of revenue to administer, collect, and enforce the taxes 
103.16 	under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota 
103.17 	Statutes, sections 270C.171 and 297A.99, related to collection, administration, and 
103.18 	enforcement apply.

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

103.22 	Sec. 2. CARLTON COUNTY; LOCAL SALES AND USE TAX AUTHORIZED.
 103.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
103.24 	sections 477A.016 and 297A.99, subdivision 2, paragraph (b), or any other law or ordinance, 
103.25 	and if approved by the voters at a general election as required under Minnesota Statutes, 
103.26 	section 297A.99, subdivision 3, Carlton County may impose, by ordinance, a sales and use 
103.27 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
103.28 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
103.29 	imposition, administration, collection, and enforcement of the tax authorized under this 
103.30 	subdivision.
103.31 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
103.32 	under subdivision 1 must be used by Carlton County to pay the costs of collecting and 
103.33 	administering the tax and to finance up to $60,000,000 for the construction of a new law 
104.1 	enforcement center and jail serving a regional female offender program. Authorized costs 
104.2 	include related parking, design, construction, reconstruction, mechanical upgrades, and 
104.3 	engineering costs, as well as the associated bond costs for any bonds issued under subdivision 
104.4 	3.
104.5 		Subd. 3.Bonding authority. (a) Carlton County may issue bonds under Minnesota 
104.6 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
104.7 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
104.8 	not exceed $60,000,000, plus an amount applied to the payment of costs of issuing the 
104.9 	bonds. The bonds may be paid from or secured by any funds available to the county, 
104.10 	including the tax authorized under subdivision 1. The issuance of bonds under this 
104.11 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
104.12 	(b) The bonds are not included in computing any debt limitation applicable to the county. 
104.13 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
104.14 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
104.15 	under Minnesota Statutes, section 475.58, is not required.
104.16 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
104.17 	earlier of: (1) 30 years after the tax is first imposed; or (2) when the county determines that 
104.18 	it has received from this tax $60,000,000 to fund the project listed in subdivision 2, plus an 
104.19 	amount sufficient to pay costs, including interest costs, related to the issuance of the bonds 
104.20 	authorized in subdivision 3. Except as otherwise provided in Minnesota Statutes, section 
104.21 	297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the allowed 
104.22 	costs due to timing of the termination of the tax under Minnesota Statutes, section 297A.99, 
104.23 	subdivision 12, shall be placed in the county's general fund. The tax imposed under 
104.24 	subdivision 1 may expire at an earlier time if the county determines by ordinance.

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

104.28 	Sec. 3. CITY OF CLOQUET; TAXES AUTHORIZED.
 104.29 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
104.30 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
104.31 	and if approved by the voters at a general election as required under Minnesota Statutes, 
104.32 	section 297A.99, subdivision 3, the city of Cloquet may impose by ordinance a sales and 
104.33 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
104.34 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
105.1 	govern the imposition, administration, collection, and enforcement of the tax authorized 
105.2 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
105.3 	sales and use tax imposed under any other special law.
105.4 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
105.5 	under subdivision 1 must be used by the city of Cloquet to pay the costs of collecting and 
105.6 	administering the tax and the capital and administrative costs of any or all of the projects 
105.7 	listed in this subdivision. The amount spent on each project is limited to the amount set 
105.8 	forth below plus an amount equal to interest on and the costs of issuing any bonds:
105.9 	(1) construction, reconstruction, expansion, or improvement related to the Pine Valley 
105.10 	Regional Park Project, including ski jump repairs, chalet replacement, and parking and 
105.11 	lighting improvements, in an amount not to exceed $2,124,700; and
105.12 	(2) restoration, repair, and upgrading of the Cloquet Ice Arena in an amount not to exceed 
105.13 	$6,025,500.
105.14 		Subd. 3.Bonding authority. (a) The city of Cloquet may issue bonds under Minnesota 
105.15 	Statutes, chapter 475, to finance up to $8,150,200 of the portion of the costs of the facilities 
105.16 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
105.17 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
105.18 	issued under this subdivision may not exceed $8,150,200 plus an amount to be applied to 
105.19 	the payment of the costs of issuing the bonds. The bonds may be paid from or secured by 
105.20 	any funds available to the city of Cloquet, including the tax authorized under subdivision 
105.21 	1. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 
105.22 	275.60 and 275.61.
105.23 	(b) The bonds are not included in computing any debt limitation applicable to the city 
105.24 	of Cloquet, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
105.25 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
105.26 	the bonds under Minnesota Statutes, section 475.58, is not required.
105.27 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
105.28 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) ten years 
105.29 	after the tax is first imposed; or (2) when the city council determines that the amount received 
105.30 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
105.31 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
105.32 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
105.33 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
105.34 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
106.1 	any funds remaining after payment of the allowed costs due to the timing of the termination 
106.2 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
106.3 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
106.4 	if the city so determines by ordinance.

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

106.8 	Sec. 4. CITY OF CROSSLAKE; TAX AUTHORIZED.
 106.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
106.10 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
106.11 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
106.12 	the city of Crosslake may impose, by ordinance, a sales and use tax of one-half of one 
106.13 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
106.14 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
106.15 	administration, collection, and enforcement of the tax authorized under this subdivision.
106.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
106.17 	under subdivision 1 must be used by the city of Crosslake to pay the costs of collecting and 
106.18 	administering the tax and paying for the following projects in the city, including securing 
106.19 	and paying debt service on bonds issued to finance all or part of the following projects:
106.20 	(1) $2,000,000 plus associated bonding costs for modifications to a bio-solids treatment 
106.21 	facility;
106.22 	(2) $1,600,000 plus associated bonding costs for expansion of sewer service to the CSAH 
106.23 	66/Moonlight Service Area; and
106.24 	(3) $2,400,000 plus associated bonding costs for expansion of sewer service to the 
106.25 	Daggett Lake Service Area.
106.26 		Subd. 3.Bonding authority. (a) The city of Crosslake may issue bonds under Minnesota 
106.27 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
106.28 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
106.29 	not exceed: (1) $2,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
106.30 	applied to the payment of costs of issuing the bonds; (2) $1,600,000 for the projects listed 
106.31 	in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing the 
106.32 	bonds; and (3) $2,400,000 for the project listed in subdivision 2, clause (3), plus an amount 
106.33 	applied to the payment of costs of issuing the bonds. The bonds may be paid from or secured 
107.1 	by any funds available to the city of Crosslake, including the tax authorized under subdivision 
107.2 	1. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 
107.3 	275.60 and 275.61.
107.4 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
107.5 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
107.6 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
107.7 	under Minnesota Statutes, section 475.58, is not required.
107.8 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
107.9 	earlier of: (1) 15 years after the tax is first imposed; or (2) when the city council determines 
107.10 	that the amount received from the tax is sufficient to pay for the project costs authorized 
107.11 	under subdivision 2, for the projects approved by the voters as required under Minnesota 
107.12 	Statutes, section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including 
107.13 	interest costs, related to the issuance of the bonds authorized in subdivision 3. Any funds 
107.14 	remaining after payment of the allowed costs due to timing of the termination under 
107.15 	Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. The tax 
107.16 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
107.17 	ordinance.

107.18 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
107.19 	city of Crosslake and its chief clerical officer comply with Minnesota Statutes, section 
107.20 	645.021, subdivisions 2 and 3.

107.21 	Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.
 107.22 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
107.23 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
107.24 	and if approved by the voters at a general election as required under Minnesota Statutes, 
107.25 	section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use 
107.26 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
107.27 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
107.28 	imposition, administration, collection, and enforcement of the tax authorized under this 
107.29 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
107.30 	use tax imposed under any other special law.
107.31 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
107.32 	under subdivision 1 must be used by the city of Edina to pay the costs of collecting and 
107.33 	administering the tax and paying for the following projects in the city, including securing 
107.34 	and paying debt service on bonds issued to finance all or part of the following projects:
108.1 	(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park 
108.2 	as identified in the Fred Richards Park Master Plan;
108.3 	(2) $21,600,000 plus associated bonding costs for improvements to Braemar Park as 
108.4 	identified in the Braemar Park Master Plan; and
108.5 	(3) $2,000,000 plus associated bonding costs for developing park amenities, including 
108.6 	recreation and open space areas, and storm water facilities, at Weber Woods Park.
108.7 		Subd. 3.Bonding authority. (a) The city of Edina may issue bonds under Minnesota 
108.8 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
108.9 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
108.10 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
108.11 	under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision 
108.12 	2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds; 
108.13 	(2) $21,600,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
108.14 	applied to the payment of the costs of issuing the bonds; and (3) $2,000,000 for the project 
108.15 	listed in subdivision 2, clause (3), plus an amount to be applied to the payment of the costs 
108.16 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
108.17 	city of Edina, including the tax authorized under subdivision 1. The issuance of bonds under 
108.18 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
108.19 	(b) The bonds are not included in computing any debt limitation applicable to the city 
108.20 	of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
108.21 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
108.22 	the bonds under Minnesota Statutes, section 475.58, is not required.
108.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
108.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years 
108.25 	after the tax is first imposed; or (2) when the city council determines that the amount received 
108.26 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
108.27 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
108.28 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
108.29 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
108.30 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
108.31 	any funds remaining after payment of the allowed costs due to the timing of the termination 
108.32 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
108.33 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
108.34 	if the city so determines by ordinance.

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

109.4 	Sec. 6. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
 109.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
109.6 	section 297A.99, subdivision 1; or 477A.016, or any other law, ordinance, or city charter, 
109.7 	the city of Fergus Falls may, if approved by the voters at a general election as required under 
109.8 	Minnesota Statutes, section 297A.99, subdivision 3, impose, by ordinance, a sales and use 
109.9 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
109.10 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
109.11 	imposition, administration, collection, and enforcement of the tax authorized under this 
109.12 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
109.13 	use tax imposed under any other special law.
109.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
109.15 	under subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting 
109.16 	and administering the tax and for the following projects in the city, including securing and 
109.17 	paying debt service, on bonds issued to finance all or part of the following projects:
109.18 	(1) $7,800,000 for an aquatics center; and
109.19 	(2) $5,200,000 for the DeLagoon Improvement Project.
109.20 		Subd. 3.Bonding authority. (a) The city of Fergus Falls may issue bonds under 
109.21 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
109.22 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
109.23 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
109.24 	issued under this subdivision may not exceed:
109.25 	(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed 
109.26 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
109.27 	the bonds; and
109.28 	(2) $5,200,000 for the project listed in subdivision 2, clause (3),  plus an amount needed 
109.29 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
109.30 	the bonds.
109.31 	(b) The bonds may be paid from or secured by any funds available to the city of Fergus 
109.32 	Falls, including the tax authorized under subdivision 1. The issuance of bonds under this 
109.33 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
110.1 	(c) The bonds are not included in computing any debt limitation applicable to the city 
110.2 	of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
110.3 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
110.4 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
110.5 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
110.6 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) December 
110.7 	1, 2039; or (2) when the city council determines that the amount received from the tax is 
110.8 	sufficient to pay for the project costs authorized under subdivision 2 for projects approved 
110.9 	by voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph 
110.10 	(a), plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
110.11 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
110.12 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
110.13 	after payment of the allowed costs due to the timing of the termination of the tax under 
110.14 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
110.15 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
110.16 	determines by ordinance.

110.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
110.18 	city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 
110.19 	645.021, subdivisions 2 and 3.

110.20 	Sec. 7. CITY OF FLOODWOOD; TAXES AUTHORIZED.
 110.21 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
110.22 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
110.23 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
110.24 	the city of Floodwood may impose by ordinance a sales and use tax of one-half of one 
110.25 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
110.26 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
110.27 	administration, collection, and enforcement of the tax authorized under this subdivision.
110.28 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
110.29 	under subdivision 1 must be used by the city of Floodwood to pay the costs of collecting 
110.30 	and administering the tax and the capital and administrative costs of the Floodwood City-wide 
110.31 	Street and Infrastructure Project, up to $1,250,000.
110.32 		Subd. 3.Bonding authority. (a) The city of Floodwood may issue bonds under Minnesota 
110.33 	Statutes, chapter 475, to finance the costs of the project authorized in subdivision 2 and 
110.34 	approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision 
111.1 	3, paragraph (a). The aggregate principal amount of bonds issued under this subdivision 
111.2 	may not exceed $1,250,000, plus an amount to be applied to the payment of the costs of 
111.3 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
111.4 	city of Floodwood, including the tax authorized under subdivision 1. The issuance of bonds 
111.5 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
111.6 	(b) The bonds are not included in computing any debt limitation applicable to the city 
111.7 	of Floodwood, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
111.8 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
111.9 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
111.10 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
111.11 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 25 years 
111.12 	after the tax is first imposed; or (2) when the city council determines that the amount received 
111.13 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
111.14 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
111.15 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
111.16 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
111.17 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
111.18 	any funds remaining after payment of the allowed costs due to the timing of the termination 
111.19 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
111.20 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
111.21 	if the city so determines by ordinance.

111.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
111.23 	city of Floodwood and its chief clerical officer comply with Minnesota Statutes, section 
111.24 	645.021, subdivisions 2 and 3.

111.25 	Sec. 8. CITY OF HERMANTOWN; TAXES AUTHORIZED.
 111.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
111.27 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
111.28 	and if approved by the voters at a general election as required under Minnesota Statutes, 
111.29 	section 297A.99, subdivision 3, the city of Hermantown may impose by ordinance a sales 
111.30 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
111.31 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
111.32 	govern the imposition, administration, collection, and enforcement of the tax authorized 
111.33 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
111.34 	sales and use tax imposed under any other special law.
112.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
112.2 	under subdivision 1 must be used by the city of Hermantown to pay the costs of collecting 
112.3 	and administering the tax and for up to $28,000,000 for costs related to a Community 
112.4 	Recreational Initiative, which includes: an addition of a second ice sheet with locker rooms 
112.5 	and other facilities and upgrades to the Hermantown Hockey Arena; improvements and 
112.6 	upgrades to Fichtner Park; and construction of the Hermantown-Proctor trail running from 
112.7 	the Essentia Wellness Center to the border with Proctor and eventually connecting to the 
112.8 	Munger Trail.
112.9 		Subd. 3.Bonding authority. (a) The city of Hermantown may issue bonds under 
112.10 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
112.11 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
112.12 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
112.13 	issued under this subdivision may not exceed $28,000,000 for the project listed in subdivision 
112.14 	2 plus an amount to be applied to the payment of the costs of issuing the bonds. The bonds 
112.15 	may be paid from or secured by any funds available to the city of Hermantown, including 
112.16 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
112.17 	subject to Minnesota Statutes, sections 275.60 and 275.61.
112.18 	(b) The bonds are not included in computing any debt limitation applicable to the city 
112.19 	of Hermantown, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
112.20 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
112.21 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
112.22 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
112.23 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years 
112.24 	after being first imposed; or (2) when the city council determines that the amount received 
112.25 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the 
112.26 	project approved by voters as required under Minnesota Statutes, section 297A.99, 
112.27 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
112.28 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
112.29 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
112.30 	any funds remaining after payment of the allowed costs due to the timing of the termination 
112.31 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
112.32 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
112.33 	if the city so determines by ordinance.

113.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
113.2 	city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 
113.3 	645.021, subdivisions 2 and 3.

113.4 	Sec. 9. ITASCA COUNTY; TAXES AUTHORIZED.
 113.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
113.6 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance and if approved 
113.7 	by the voters at a general election as required under Minnesota Statutes, section 297A.99, 
113.8 	subdivision 3, Itasca County may impose by ordinance a sales and use tax of one percent 
113.9 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
113.10 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
113.11 	collection, and enforcement of the tax authorized under this subdivision.
113.12 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
113.13 	under subdivision 1 must be used by Itasca County to pay the costs of collecting and 
113.14 	administering the tax and paying for up to $75,000,000 for new construction of or upgrades 
113.15 	to correctional facilities, new construction of or upgrades to court facilities including ancillary 
113.16 	support accommodations, and new construction of or upgrades to county offices, plus an 
113.17 	amount needed for securing and paying debt service on bonds issued for the project.
113.18 		Subd. 3.Bonding authority. (a) Itasca County may issue bonds under Minnesota Statutes, 
113.19 	chapter 475, to finance the costs of the facility authorized in subdivision 2. The aggregate 
113.20 	principal amount of bonds issued under this subdivision may not exceed $75,000,000 for 
113.21 	the project listed in subdivision 2, plus an amount to be applied to the payment of the costs 
113.22 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
113.23 	county, including the tax authorized under subdivision 1. The issuance of bonds under this 
113.24 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
113.25 	(b) The bonds are not included in computing any debt limitation applicable to the county, 
113.26 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
113.27 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
113.28 	under Minnesota Statutes, section 475.58, is not required.
113.29 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
113.30 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years 
113.31 	after the tax is first imposed; or (2) when the county board determines that the amount 
113.32 	received from the tax is sufficient to pay $75,000,000 in project costs authorized under 
113.33 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
113.34 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
114.1 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
114.2 	after payment of the allowed costs due to the timing of the termination of the tax under 
114.3 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
114.4 	the county. The tax imposed under subdivision 1 may expire at an earlier time if the county 
114.5 	so determines by ordinance.

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

114.9 	Sec. 10. CITY OF LITCHFIELD; TAXES AUTHORIZED.
 114.10 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
114.11 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
114.12 	and if approved by the voters at a general election as required under Minnesota Statutes, 
114.13 	section 297A.99, subdivision 3, the city of Litchfield may impose by ordinance a sales and 
114.14 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
114.15 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
114.16 	govern the imposition, administration, collection, and enforcement of the tax authorized 
114.17 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
114.18 	sales and use tax imposed under any other special law.
114.19 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
114.20 	under subdivision 1 must be used by the city of Litchfield to pay the costs of collecting and 
114.21 	administering the tax and for up to $10,000,000 for the cost of constructing a community 
114.22 	wellness/recreation center that will include a gymnasium and general fitness spaces, a 
114.23 	dedicated walking section, a community room, and any locker rooms and mechanical 
114.24 	equipment needed for future additions to the facility.
114.25 		Subd. 3.Bonding authority. (a) The city of Litchfield may issue bonds under Minnesota 
114.26 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
114.27 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
114.28 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
114.29 	under this subdivision may not exceed $10,000,000 for the project listed in subdivision 2 
114.30 	plus an amount to be applied to the payment of the costs of issuing the bonds. The bonds 
114.31 	may be paid from or secured by any funds available to the city of Litchfield, including the 
114.32 	tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
114.33 	subject to Minnesota Statutes, sections 275.60 and 275.61.
115.1 	(b) The bonds are not included in computing any debt limitation applicable to the city 
115.2 	of Litchfield and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
115.3 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
115.4 	the bonds under Minnesota Statutes, section 475.58, is not required.
115.5 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
115.6 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years 
115.7 	after being first imposed; or (2) when the city council determines that the amount received 
115.8 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
115.9 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
115.10 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
115.11 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
115.12 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
115.13 	any funds remaining after payment of the allowed costs due to the timing of the termination 
115.14 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
115.15 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
115.16 	if the city so determines by ordinance.

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

115.20 	Sec. 11. CITY OF LITTLE FALLS; TAXES AUTHORIZED.
 115.21 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
115.22 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
115.23 	and if approved by the voters at a general election as required under Minnesota Statutes, 
115.24 	section 297A.99, subdivision 3, the city of Little Falls may impose by ordinance a sales and 
115.25 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
115.26 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
115.27 	govern the imposition, administration, collection, and enforcement of the tax authorized 
115.28 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
115.29 	sales and use tax imposed under any other special law.
115.30 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
115.31 	under subdivision 1 must be used by the city of Little Falls to pay the costs of collecting 
115.32 	and administering the tax and for up to $17,000,000 for the cost of constructing a community 
115.33 	recreational facility that includes a gymnasium with an indoor track, multipurpose rooms 
115.34 	for meeting and educational spaces, office and storage space, and outdoor recreational 
116.1 	facilities for aquatic recreation with a master plan to incorporate future additions to the 
116.2 	facility.
116.3 		Subd. 3.Bonding authority. (a) The city of Little Falls may issue bonds under Minnesota 
116.4 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
116.5 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
116.6 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
116.7 	under this subdivision may not exceed $17,000,000 for the project listed in subdivision 2 
116.8 	plus an amount needed to pay capitalized interest and an amount to be applied to the payment 
116.9 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
116.10 	available to the city of Little Falls, including the tax authorized under subdivision 1. The 
116.11 	issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 
116.12 	and 275.61.
116.13 	(b) The bonds are not included in computing any debt limitation applicable to the city 
116.14 	of Little Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
116.15 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
116.16 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
116.17 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
116.18 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years 
116.19 	after being first imposed; or (2) when the city council determines that the amount received 
116.20 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the 
116.21 	project if approved by voters as required under Minnesota Statutes, section 297A.99, 
116.22 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
116.23 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
116.24 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
116.25 	any funds remaining after payment of the allowed costs due to the timing of the termination 
116.26 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
116.27 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
116.28 	if the city so determines by ordinance.

116.29 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
116.30 	city of Little Falls and its chief clerical officer comply with Minnesota Statutes, section 
116.31 	645.021, subdivisions 2 and 3.

117.1 	Sec. 12. COUNTY OF MILLE LACS; LOCAL SALES AND USE TAX 
117.2 	AUTHORIZED.
 117.3 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
117.4 	section 477A.016, or any other law or ordinance, and if approved by the voters at a general 
117.5 	election as required under Minnesota Statutes, section 297A.99, subdivision 3, Mille Lacs 
117.6 	County may impose by ordinance a sales and use tax of one-half of one percent for the 
117.7 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
117.8 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
117.9 	collection, and enforcement of the tax authorized under this subdivision.
117.10 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
117.11 	under subdivision 1 must be used by Mille Lacs County to pay the costs of collecting and 
117.12 	administering the tax, and to finance up to $10,000,000 for the construction of a public 
117.13 	works building in Mille Lacs County, plus an amount needed for securing and paying debt 
117.14 	service on bonds issued to finance the project.
117.15 		Subd. 3.Bonding authority. (a) Mille Lacs County may issue bonds under Minnesota 
117.16 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
117.17 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
117.18 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
117.19 	under this subdivision may not exceed $10,000,000, plus an amount applied to the payment 
117.20 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
117.21 	available to the county, including the tax authorized under subdivision 1. The issuance of 
117.22 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
117.23 	275.61.
117.24 	(b) The bonds are not included in computing any debt limitation applicable to the county. 
117.25 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
117.26 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
117.27 	under Minnesota Statutes, section 475.58, is not required.
117.28 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
117.29 	earlier of: (1) eight years after the tax is first imposed; or (2) when the county board 
117.30 	determines that the amount received from the tax is sufficient to pay for the project costs 
117.31 	authorized under subdivision 2 for the project approved by voters as required under 
117.32 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient 
117.33 	to pay the costs related to issuance of any bonds authorized under subdivision 3, including 
117.34 	interest on the bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, 
118.1 	subdivision 3, paragraph (f), any funds remaining after payment of allowed costs due to the 
118.2 	timing of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 
118.3 	12, shall be placed in the general fund of the county. The tax imposed under subdivision 1 
118.4 	may expire at an earlier time if the county so determines by ordinance.

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

118.8 	Sec. 13. CITY OF MOORHEAD; LOCAL SALES AND USE TAX AUTHORIZED.
 118.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
118.10 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
118.11 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
118.12 	the city of Moorhead may impose by ordinance a sales and use tax of one-half of one percent 
118.13 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
118.14 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
118.15 	collection, and enforcement of the tax authorized under this subdivision.
118.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
118.17 	under subdivision 1 must be used by the city of Moorhead to pay the costs of collecting and 
118.18 	administering the tax, and to finance up to $31,590,000 for the construction of a regional 
118.19 	library and community center in the city of Moorhead, plus an amount needed for securing 
118.20 	and paying debt service on bonds issued to finance the project.
118.21 		Subd. 3.Bonding authority. (a) The city of Moorhead may issue bonds under Minnesota 
118.22 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
118.23 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
118.24 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
118.25 	under this subdivision may not exceed $31,590,000, plus an amount applied to the payment 
118.26 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
118.27 	available to the city, including the tax authorized under subdivision 1. The issuance of bonds 
118.28 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
118.29 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
118.30 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
118.31 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
118.32 	under Minnesota Statutes, section 475.58, is not required.
119.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
119.2 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
119.3 	that the amount received from the tax is sufficient to pay for the project costs authorized 
119.4 	under subdivision 2 for the project approved by voters as required under Minnesota Statutes, 
119.5 	section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs 
119.6 	related to issuance of any bonds authorized under subdivision 3, including interest on the 
119.7 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
119.8 	3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of 
119.9 	the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall 
119.10 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
119.11 	at an earlier time if the city so determines by ordinance.

119.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
119.13 	city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section 
119.14 	645.021, subdivisions 2 and 3.

119.15 	Sec. 14. CITY OF OAKDALE; TAX AUTHORIZED.
 119.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
119.17 	section 477A.016, or any other ordinance or city charter, and if approved by the voters at 
119.18 	a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
119.19 	the city of Oakdale may impose, by ordinance, a sales and use tax of one-half of one percent 
119.20 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
119.21 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
119.22 	collection, and enforcement of the tax authorized under this subdivision.
119.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
119.24 	under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and 
119.25 	administering the tax and paying for the following projects in the city, including securing 
119.26 	and paying debt service on bonds issued to finance all or part of the following projects:
119.27 	(1) $22,000,000 plus associated bonding costs for construction of a new public works 
119.28 	facility; and
119.29 	(2) $15,000,000 plus associated bonding costs for construction and rehabilitation, and 
119.30 	associated building costs of the police department facility.
119.31 		Subd. 3.Bonding authority. (a) The city of Oakdale may issue bonds under Minnesota 
119.32 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
119.33 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
120.1 	not exceed: (1) $22,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
120.2 	applied to the payment of costs of issuing the bonds; and (2) $15,000,000 for the projects 
120.3 	listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing 
120.4 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
120.5 	Oakdale, including the tax authorized under subdivision 1. The issuance of bonds under 
120.6 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
120.7 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
120.8 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
120.9 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
120.10 	under Minnesota Statutes, section 475.58, is not required.
120.11 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
120.12 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
120.13 	that the city has received from this tax $37,000,000 to fund the projects listed in subdivision 
120.14 	2 plus an amount sufficient to pay costs related to the issuance of the bonds authorized in 
120.15 	subdivision 3. Except as otherwise provided under Minnesota Statutes, section 297A.99, 
120.16 	subdivision 3, paragraph (f), any funds remaining after payment of the allowed costs due 
120.17 	to timing of the termination under Minnesota Statutes, section 297A.99, shall be placed in 
120.18 	the city's general fund. The tax imposed under subdivision 1 may expire at an earlier time 
120.19 	if the city so determines by ordinance.

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

120.23 	Sec. 15. CITY OF ST. CLOUD; TAX AUTHORIZED.
 120.24 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
120.25 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
120.26 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
120.27 	the city of St. Cloud may impose by ordinance a sales and use tax of one-half of one percent 
120.28 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
120.29 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
120.30 	collection, and enforcement of the tax authorized under this subdivision.
120.31 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
120.32 	under subdivision 1 must be used by the city of St. Cloud to pay the costs of collecting and 
120.33 	administering the tax and paying for the following projects in the city, including securing 
120.34 	and paying debt service on bonds issued to finance all or part of the following projects:
121.1 	(1) $21,600,000 plus associated bonding costs for multimodal transportation and utility 
121.2 	improvements to East St. Germain Street, Lincoln Avenue, and 4th Street SE;
121.3 	(2) $12,500,000 plus associated bonding costs for multimodal transportation and utility 
121.4 	improvements on Heatherwood Road from Clearwater Road to Opportunity Drive;
121.5 	(3) $23,000,000 plus associated bonding costs for multimodal transportation and utility 
121.6 	improvements for a primary gateway for regional access to St. Cloud State University;
121.7 	(4) $24,000,000 plus associated bonding costs for multimodal transportation and utility 
121.8 	improvements for a regional gateway to St. Cloud's central business district; and
121.9 	(5) $21,100,000 plus associated bonding costs for expansion and improvement of St. 
121.10 	Cloud's Municipal Athletic Complex.
121.11 		Subd. 3.Bonding authority. (a) The city of St. Cloud may issue bonds under Minnesota 
121.12 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
121.13 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
121.14 	not exceed: (1) $21,600,000 for the project listed in subdivision 2, clause (1), plus an amount 
121.15 	applied to the payment of costs of issuing the bonds; (2) $12,500,000 for the projects listed 
121.16 	in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing the 
121.17 	bonds; (3) $23,000,000 for the project listed in subdivision 2, clause (3), plus an amount 
121.18 	applied to the payment of costs of issuing the bonds; (4) $24,000,000 for the project listed 
121.19 	in subdivision 2, clause (4), plus an amount applied to the payment of costs of issuing the 
121.20 	bonds; and (5) $21,100,000 for the project listed in subdivision 2, clause (5), plus an amount 
121.21 	applied to the payment of costs of issuing the bonds. The bonds may be paid from or secured 
121.22 	by any funds available to the city of St. Cloud, including the tax authorized under subdivision 
121.23 	1. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 
121.24 	275.60 and 275.61.
121.25 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
121.26 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
121.27 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
121.28 	under Minnesota Statutes, section 475.58, is not required.
121.29 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
121.30 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
121.31 	that the amount received from the tax is sufficient to pay for the project costs authorized 
121.32 	under subdivision 2, for the projects approved by the voters as required under Minnesota 
121.33 	Statutes, section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including 
121.34 	interest costs, related to the issuance of the bonds authorized in subdivision 3. Any funds 
122.1 	remaining after payment of the allowed costs due to timing of the termination under 
122.2 	Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. The tax 
122.3 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
122.4 	ordinance.

122.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
122.6 	city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section 
122.7 	645.021, subdivisions 2 and 3.

122.8 	Sec. 16. CITY OF ST. PETER; TAXES AUTHORIZED.
 122.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
122.10 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
122.11 	and if approved by the voters at a general election as required under Minnesota Statutes, 
122.12 	section 297A.99, subdivision 3, the city of St. Peter may impose by ordinance a sales and 
122.13 	use tax of one-half of one percent for the purposes specified in subdivision 2. Except as 
122.14 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
122.15 	govern the imposition, administration, collection, and enforcement of the tax authorized 
122.16 	under this subdivision.
122.17 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
122.18 	under subdivision 1 must be used by the city of St. Peter to pay the costs of collecting and 
122.19 	administering the tax and paying for up to $9,121,000 for construction of a new fire station, 
122.20 	plus an amount needed for securing and paying debt service on bonds issued to finance the 
122.21 	project.
122.22 		Subd. 3.Bonding authority. (a) The city of St. Peter may issue bonds under Minnesota 
122.23 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
122.24 	aggregate principal amount of bonds issued under this subdivision may not exceed $9,121,000 
122.25 	for the project listed in subdivision 2, plus an amount to be applied to the payment of the 
122.26 	costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
122.27 	to the city of St. Peter, including the tax authorized under subdivision 1. The issuance of 
122.28 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
122.29 	275.61.
122.30 	(b) The bonds are not included in computing any debt limitation applicable to the city 
122.31 	of St. Peter; and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
122.32 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
122.33 	the bonds under Minnesota Statutes, section 475.58, is not required.
123.1 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
123.2 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 40 years 
123.3 	after the tax is first imposed; or (2) when the city council determines that the amount received 
123.4 	from the tax is sufficient to pay for $9,121,000 in project costs authorized under subdivision 
123.5 	2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
123.6 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
123.7 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
123.8 	after payment of the allowed costs due to the timing of the termination of the tax under 
123.9 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
123.10 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
123.11 	determines by ordinance.

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

123.15 	Sec. 17. CITY OF STAPLES; LOCAL SALES AND USE TAX AUTHORIZED.
 123.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
123.17 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
123.18 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
123.19 	the city of Staples may impose by ordinance a sales and use tax of one-half of one percent 
123.20 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
123.21 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
123.22 	collection, and enforcement of the tax authorized under this subdivision.
123.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
123.24 	under subdivision 1 must be used by the city of Staples to pay the costs of collecting and 
123.25 	administering the tax, and to finance up to $1,600,000 for the renovation of the Staples 
123.26 	Community Center, plus an amount needed for securing and paying debt service on bonds 
123.27 	issued to finance the project.
123.28 		Subd. 3.Bonding authority. (a) The city of Staples may issue bonds under Minnesota 
123.29 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
123.30 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
123.31 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
123.32 	under this subdivision may not exceed $1,600,000, plus an amount applied to the payment 
123.33 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
124.1 	available to the city, including the tax authorized under subdivision 1. The issuance of bonds 
124.2 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
124.3 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
124.4 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
124.5 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
124.6 	under Minnesota Statutes, section 475.58, is not required.
124.7 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
124.8 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
124.9 	that the amount received from the tax is sufficient to pay for the project costs authorized 
124.10 	under subdivision 2 for the project approved by voters as required under Minnesota Statutes, 
124.11 	section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs 
124.12 	related to issuance of any bonds authorized under subdivision 3, including interest on the 
124.13 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
124.14 	3, paragraph (f), any funds remaining after payment of allowed costs due to the timing of 
124.15 	the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall 
124.16 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
124.17 	at an earlier time if the city so determines by ordinance.

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

124.21 	Sec. 18. CITY OF WADENA; TAX AUTHORIZED.
 124.22 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
124.23 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
124.24 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
124.25 	the city of Wadena may impose by ordinance a sales and use tax of one-quarter of one 
124.26 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
124.27 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
124.28 	administration, collection, and enforcement of the tax authorized under this subdivision.
124.29 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
124.30 	under subdivision 1 must be used by the city of Wadena to pay the costs of collecting and 
124.31 	administering the tax and to finance up to $3,000,000, plus associated bonding costs including 
124.32 	securing and paying debt service on bonds issued, for the Wadena Library Rehabilitation 
124.33 	Project.
125.1 		Subd. 3.Bonding authority. (a) The city of Wadena may issue bonds under Minnesota 
125.2 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
125.3 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
125.4 	not exceed $3,000,000, plus an amount applied to the payment of costs of issuing the bonds. 
125.5 	The bonds may be paid from or secured by any funds available to the city of Wadena, 
125.6 	including the tax authorized under subdivision 1. The issuance of bonds under this 
125.7 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
125.8 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
125.9 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
125.10 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
125.11 	under Minnesota Statutes, section 475.58, is not required.
125.12 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
125.13 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
125.14 	that the amount received from the tax is sufficient to pay for the project costs authorized 
125.15 	under subdivision 2, and approved by the voters as required under Minnesota Statutes, 
125.16 	section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest 
125.17 	costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining 
125.18 	after payment of the allowed costs due to timing of the termination under Minnesota Statutes, 
125.19 	section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 
125.20 	1 may expire at an earlier time if the city so determines by ordinance.

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

125.24 	Sec. 19. CITY OF WAITE PARK; TAXES AUTHORIZED.
 125.25 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
125.26 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
125.27 	and if approved by the voters at a general election as required under Minnesota Statutes, 
125.28 	section 297A.99, subdivision 3, the city of Waite Park may impose by ordinance a sales 
125.29 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
125.30 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
125.31 	govern the imposition, administration, collection, and enforcement of the tax authorized 
125.32 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
125.33 	sales and use tax imposed under any other special law.
126.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
126.2 	under subdivision 1 must be used by the city of Waite Park to pay the costs of collecting 
126.3 	and administering the tax and for the following projects in the city, including securing and 
126.4 	paying debt service on bonds issued to finance all or part of the following projects:
126.5 	(1) up to $10,000,000 plus associated bonding costs for the 10th Avenue regional corridor 
126.6 	project;
126.7 	(2) up to $7,500,000 plus associated bonding costs for regional trail connections; and
126.8 	(3) up to $20,000,000 plus associated bonding costs for construction and equipping of 
126.9 	a public safety facility.
126.10 		Subd. 3.Bonding authority. (a) The city of Waite Park may issue bonds under Minnesota 
126.11 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
126.12 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
126.13 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
126.14 	under this subdivision may not exceed:
126.15 	(1) $10,000,000 for the project listed in subdivision 2, clause (1), plus an amount needed 
126.16 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
126.17 	the bonds;
126.18 	(2) $7,500,000 for the project listed in subdivision 2, clause (2), plus an amount needed 
126.19 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
126.20 	the bonds; and
126.21 	(3) $20,000,000 for the project listed in subdivision 2, clause (3), plus an amount needed 
126.22 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
126.23 	the bonds.
126.24 	The bonds may be paid from or secured by any funds available to the city of Waite Park, 
126.25 	including the tax authorized under subdivision 1. The issuance of bonds under this 
126.26 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
126.27 	(b) The bonds are not included in computing any debt limitation applicable to the city 
126.28 	of Waite Park, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
126.29 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
126.30 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
126.31 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
126.32 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 25 years 
126.33 	after the tax is first imposed; or (2) when the city council determines that the amount received 
127.1 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
127.2 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
127.3 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
127.4 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
127.5 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
127.6 	any funds remaining after payment of the allowed costs due to the timing of the termination 
127.7 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
127.8 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
127.9 	if the city so determines by ordinance.

127.10 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
127.11 	city of Waite Park and its chief clerical officer comply with Minnesota Statutes, section 
127.12 	645.021, subdivisions 2 and 3.

127.13 	Sec. 20. CITY OF WARREN; LOCAL SALES AND USE TAX AUTHORIZED.
 127.14 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
127.15 	section 477A.016, or any other law or ordinance, and if approved by the voters at a general 
127.16 	election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of 
127.17 	Warren may impose by ordinance a sales and use tax of one-half of one percent for the 
127.18 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
127.19 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
127.20 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
127.21 	under this subdivision is in addition to any local sales and use tax imposed under current 
127.22 	law.
127.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
127.24 	under subdivision 1 must be used by the city of Warren to pay the costs of collecting and 
127.25 	administering the tax, and to finance up to $1,600,000 for the construction of a new child 
127.26 	care facility. Authorized costs include related parking, design, and construction costs, as 
127.27 	well as payment of debt service on bonds issued to finance the project listed in this 
127.28 	subdivision.
127.29 		Subd. 3.Bonding authority. (a) The city of Warren may issue bonds under Minnesota 
127.30 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
127.31 	subdivision 2, and approved by the voters as required under Minnesota Statutes, section 
127.32 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
127.33 	under this subdivision may not exceed $1,600,000, plus an amount needed to pay capitalized 
127.34 	interest and an amount to be applied to the payment of the costs of issuing the bonds. The 
128.1 	bonds may be paid from or secured by any funds available to the city, including the tax 
128.2 	authorized under subdivision 1. The issuance of bonds under this subdivision is not subject 
128.3 	to Minnesota Statutes, sections 275.60 and 275.61.
128.4 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
128.5 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
128.6 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
128.7 	under Minnesota Statutes, section 475.58, is not required.
128.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
128.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years 
128.10 	after the tax is first imposed; or (2) when the city council determines that the amount received 
128.11 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the 
128.12 	project approved by voters as required under Minnesota Statutes, section 297A.99, 
128.13 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
128.14 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
128.15 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
128.16 	any funds remaining after payment of allowed costs due to the timing of the termination of 
128.17 	the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
128.18 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
128.19 	if the city so determines by ordinance.

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

128.23 	ARTICLE 9
128.24 	MISCELLANEOUS

128.25 	Section 1. Minnesota Statutes 2020, section 270A.04, is amended by adding a subdivision 
128.26 	to read:
128.27 		Subd. 5.Private nonprofit hospital. A private nonprofit hospital that leases its building 
128.28 	from the county or city in which it is located must annually provide the commissioner with 
128.29 	a copy of the lease agreement.

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

129.1 	Sec. 2. Minnesota Statutes 2020, section 270B.13, is amended by adding a subdivision to 
129.2 	read:
129.3 		Subd. 3.Background check; access to federal tax information. An individual 
129.4 	performing services for an independent contractor or a vendor under subdivision 1 who has 
129.5 	or will have access to federal tax information is subject to the requirements of section 
129.6 	299C.76.

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

129.8 	Sec. 3. [270C.075] PRIVATE LETTER RULINGS.
129.9 		Subdivision 1.Program established. By January 1, 2022, the commissioner shall, by 
129.10 	administrative rule adopted under chapter 14, establish and implement a program for issuing 
129.11 	private letter rulings to taxpayers to provide guidance as to how the commissioner will apply 
129.12 	Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other 
129.13 	fact situation of the applying taxpayer. The commissioner must include in each ruling an 
129.14 	explanation of the reasoning for the determination. In establishing the terms of the program, 
129.15 	the commissioner may provide that rulings will not be issued in specified subject areas, for 
129.16 	categories of transactions, or under specified provisions of law, if the commissioner 
129.17 	determines doing so is in the best interests of the state and sound tax administration. The 
129.18 	program must include a process for the representative of a taxpayer to apply for a private 
129.19 	letter ruling and to communicate with the commissioner regarding the requested ruling.
129.20 		Subd. 2.Application procedure; fees. (a) The commissioner shall establish an 
129.21 	application procedure and forms for a taxpayer or the taxpayer's appointed representative 
129.22 	to request a private letter ruling. The commissioner may require the taxpayer to provide any 
129.23 	supporting factual information and certifications that the commissioner determines necessary 
129.24 	or appropriate to issue a private letter ruling. The requirements may vary based on the type 
129.25 	of ruling requested.
129.26 	(b) The commissioner may, in the administrative rule, establish a fee schedule to recover 
129.27 	the department's actual cost of preparing private letter rulings. The maximum fee per private 
129.28 	letter ruling is $........ The commissioner may require the applicant to pay the required fee 
129.29 	for a private letter ruling before the application is considered. If the administrative rule 
129.30 	provides for payment of a fee as a condition for providing a private letter ruling, the rule 
129.31 	must provide a fee structure that varies the amount of the fee by the complexity of the request 
129.32 	or the number and type of issues or both.
130.1 	(c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the 
130.2 	taxpayer's filing of a completed application, the commissioner must refund the application 
130.3 	fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the 
130.4 	taxpayer withdraws the request.
130.5 	(d) Any fees collected under this section must be deposited in the Revenue Department 
130.6 	service and recovery special revenue fund established under section 270C.15, and are 
130.7 	appropriated to the commissioner to offset the cost of issuing private letter rulings and 
130.8 	related administrative costs.
130.9 		Subd. 3.Effect. (a) A private letter ruling is binding on the commissioner with respect 
130.10 	to the taxpayer to whom the ruling is issued if:
130.11 	(1) there was no misstatement or omission of material facts in the application or other 
130.12 	information provided to the commissioner;
130.13 	(2) the facts that subsequently developed were not materially different from the facts 
130.14 	upon which the ruling was based;
130.15 	(3) the applicable statute, administrative rule, federal law referenced by state law, or 
130.16 	other relevant law has not changed; and
130.17 	(4) the taxpayer acted in good faith in applying for and relying on the ruling.
130.18 	(b) Private letter rulings have no precedential effect and may not be relied upon by a 
130.19 	taxpayer other than as provided in paragraph (a).
130.20 		Subd. 4.Public access. The commissioner shall make private letter rulings issued under 
130.21 	this section available to the public on the department's website. The commissioner must 
130.22 	organize the private letter rulings by tax type and must make them available in a searchable 
130.23 	format. The published rulings must redact any information that would permit identification 
130.24 	of the requesting taxpayer.
130.25 		Subd. 5.Legislative report. (a) By January 31 of each odd-numbered year, the 
130.26 	commissioner shall report in writing to the legislature the following information for the 
130.27 	immediately preceding two calendar years:
130.28 	(1) the number of applications for private letter rulings;
130.29 	(2) the number of private letter rulings issued, including the number issued within the 
130.30 	90-day time period under subdivision 2, paragraph (c);
130.31 	(3) the amount of application fees refunded by tax type;
130.32 	(4) the tax types for which rulings were requested;
131.1 	(5) the types and characteristics of taxpayers applying for rulings; and
131.2 	(6) any other information that the commissioner considers relevant to legislative oversight 
131.3 	of the private letter ruling program.
131.4 	(b) The report must be filed as provided in section 3.195, and copies must be provided 
131.5 	to the chairs and ranking minority members of the committees of the house of representatives 
131.6 	and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.

131.7 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
131.8 	that the first legislative report under subdivision 5 is due January 31, 2024.

131.9 	Sec. 4. Minnesota Statutes 2020, section 298.28, subdivision 5, is amended to read:
131.10 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
131.11 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
131.12 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
131.13 	(b) to (d).
131.14 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
131.15 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
131.16 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
131.17 	2 is the basis for the distribution.
131.18 	(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
131.19 	shall be paid to a county that received a distribution under this section in 2000 because there 
131.20 	was located in the county an electric power plant owned by and providing the primary source 
131.21 	of power for a taxpayer mining and concentrating taconite in a different county.
131.22 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
131.23 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
131.24 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
131.25 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
131.26 	processes are carried on in more than one county, the commissioner shall follow the 
131.27 	apportionment formula prescribed in subdivision 2.

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

131.29 	Sec. 5. Minnesota Statutes 2020, section 298.28, subdivision 9b, is amended to read:
131.30 		Subd. 9b.Taconite environmental fund. Five cents per ton through distributions in 
131.31 	2023 must be paid to the taconite environmental fund for use under section 298.2961, 
132.1 	subdivision 4. Beginning with distributions in 2024, ten cents per ton must be paid to the 
132.2 	taconite environmental fund of which five cents per ton must be used as provided under 
132.3 	section 298.2961, subdivision 4.

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

132.5 	Sec. 6. [299C.76] BACKGROUND CHECK; ACCESS TO FEDERAL TAX 
132.6 	INFORMATION.
132.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the following definitions 
132.8 	apply.
132.9 	(b) "Federal tax information" means federal tax returns and return information or 
132.10 	information derived or created from federal tax returns, in possession of or control by the 
132.11 	requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of 
132.12 	the Internal Revenue Code.
132.13 	(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that 
132.14 	provides guidance and requirements for the protection and confidentiality of federal tax 
132.15 	information as required in section 6103(p)(4) of the Internal Revenue Code.
132.16 	(d) "National criminal history record information" means the Federal Bureau of 
132.17 	Investigation identification records as defined in Code of Federal Regulations, title 28, 
132.18 	section 20.3(d).
132.19 	(e) "Requesting agency" means the Department of Revenue, Department of Employment 
132.20 	and Economic Development, Department of Human Services, board of directors of MNsure, 
132.21 	the Office of MN.IT Services, and counties.
132.22 		Subd. 2.National criminal history record information check. As required by IRS 
132.23 	Publication 1075, a requesting agency shall require fingerprints for a national criminal 
132.24 	history record information check from the following individuals who have or will have 
132.25 	access to federal tax information:
132.26 	(1) a current or prospective permanent or temporary employee of the requesting agency;
132.27 	(2) an independent contractor or vendor of the requesting agency;
132.28 	(3) an employee or agent of an independent contractor or vendor of the requesting agency; 
132.29 	or
132.30 	(4) any other individual authorized to access federal tax information by the requesting  
132.31 	agency.
133.1 		Subd. 3.Fingerprint submission and written statement of understanding. An 
133.2 	individual subject to this section must provide fingerprints and a written statement of 
133.3 	understanding that the fingerprints will be used for a background check to the requesting 
133.4 	agency. The requesting agency must submit the fingerprints and written statement of 
133.5 	understanding, along with the processing fees, to the superintendent of the Bureau of Criminal 
133.6 	Apprehension. The fingerprints must only be used for the purposes described in this section.
133.7 		Subd. 4.Bureau of Criminal Apprehension requirements. (a) After the superintendent 
133.8 	of the Bureau of Criminal Apprehension notifies requesting agencies that the United States 
133.9 	Attorney General has approved the request for submission under Public Law 92-544, a 
133.10 	requesting agency may submit information under subdivision 3.
133.11 	(b) Upon receipt of the information under subdivision 3, the superintendent of the Bureau 
133.12 	of Criminal Apprehension must:
133.13 	(1) perform a state criminal history record information search;
133.14 	(2) exchange the fingerprints to the Federal Bureau of Investigation to facilitate a search 
133.15 	of the national criminal history record information;
133.16 	(3) compile the results of the state and national criminal history record information 
133.17 	searches; and
133.18 	(4) provide the results to the requesting agency.
133.19 		Subd. 5.Classification of data. (a) All data collected, created, received, maintained, or 
133.20 	disseminated by the requesting agency under this section is classified as private data on 
133.21 	individuals as defined in section 13.02, subdivision 12.
133.22 	(b) Notwithstanding any law to the contrary, a requesting agency must not further 
133.23 	disseminate the results received under subdivision 4.

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

133.25 	Sec. 7. 2008 DISTRIBUTION TRANSFER; CITY OF BIWABIK STREET AND 
133.26 	HIGHWAY IMPROVEMENTS.
 133.27 	Notwithstanding any law to the contrary, by July 1, 2021, St. Louis County shall transfer 
133.28 	$1,500,000 from the appropriation in Laws 2006, chapter 259, article 12, section 12, 
133.29 	subdivision 4, to the city of Biwabik for deposit in its general fund account to be used for 
133.30 	the preservation and reconstruction of existing streets and highways in the city of Biwabik 
133.31 	or the construction of new streets in the city of Biwabik. Any remaining unspent money 
133.32 	from the appropriation in Laws 2006, chapter 259, article 12, section 12, subdivision 4, 
134.1 	shall be retained by St. Louis County for road improvements to County Road 138, north of 
134.2 	Giants Ridge.

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

134.4 	Sec. 8. CONDITIONAL REPEALER.
 134.5 	(a) The commissioner of management and budget shall report within 30 days that the 
134.6 	bonds under Minnesota Statutes, section 16A.965, have been redeemed or defeased to the 
134.7 	revisor of statutes.
134.8 	(b) Minnesota Statutes, section 16A.727, is repealed 60 days after the commissioner of 
134.9 	management and budget certifies that the bonds under Minnesota Statutes, section 16A.965, 
134.10 	have been redeemed or defeased.

APPENDIX 

Repealed Minnesota Statutes: S0961-1 

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.